Marketing Final Exam

Encouraging foreign investors and imports companies

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Unformatted text preview: est loans to developing nations. PTS: 1 REF: 64 OBJ: 05-3 Thinking KEY: CB&E Model International Perspective TOP: AACSB Reflective MSC: BLOOMS Knowledge 51. When developing countries began encouraging foreign investors and imports, companies like Black & Decker and Pillsbury offered a wide array of products to countries throughout the world. Because of enormous populations in developing countries, these companies predicted a potential for strong annual sales. However, in addition to total population, companies must not overlook _____ factors such as distribution of people within a country and household incomes. a. demographic b. political c. d. e. cultural educational country resource ANS: A Important factors for marketers to consider about an international market are the distribution of the wealth, the average household income, and the division of the population between rural and urban areas. Demography is the study of statistics of populations and their changes in age, income, distribution, and so on. PTS: 1 REF: 65 OBJ: 05-3 TOP: AACSB Reflective Thinking | AACSB International Perspective KEY: CB&E Model Customer MSC: BLOOMS Application 52. A multinational company that makes a labor-intensive product would be interested in the _____ makeup of countries. Factors such as median age, gender, and literacy rates would determine the success of its global expansion. a. demographic b. lifestyle c. natural d. cultural e. economic ANS: A Demographics include age and educational levels as well as ethnicity and gender. PTS: 1 REF: 65 OBJ: 05-3 Thinking KEY: CB&E Model International Perspective TOP: AACSB Reflective MSC: BLOOMS Application 53. Zambia is internationally recognized as the world’s second leading producer of cobalt, which is used to make high-speed and high-temperature cutting tools and dyes. A company that wanted to manufacture tools for shaping steel would be most attracted to which element of the Zambian environment? a. Culture b. Legal c. Economic d. Technological e. Natural resources ANS: E The text concentrates on the importance of petroleum to global marketing, but other minerals are of equal or greater value to some companies. PTS: 1 REF: 65-66 OBJ: 05-3 Thinking KEY: CB&E Model International Perspective TOP: AACSB Reflective MSC: BLOOMS Application 54. Vast differences in natural resources create all of the following EXCEPT: a. potential for military intervention b. c. d. e. shifts in wealth between nations inflation and recession global international dependencies export opportunities for countries with no natural resources ANS: E While differences do create shifts in wealth, dependencies, inflation, recession, and the potential for conflict, they only hinder opportunities for the countries that do not have resources. PTS: 1 REF: 66 Thinking KEY: CB&E Model Strategy OBJ: 05-3 TOP: AACSB Reflective MSC: BLOOMS Analysis 55. Which method of entering the global marketplace would be LEAST risky? a. Exporting b. Li...
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