Marketing Final Exam

That is imported into the country this is an example

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Unformatted text preview: T PTS: 1 TOP: AACSB Reflective Thinking MSC: BLOOMS Application REF: 61 OBJ: 05-3 KEY: CB&E Model International Perspective 11. The U.S. government prohibits the importation of Havana cigars because of political differences with Cuba. This is an example of an import exchange control. ANS: F This is an example of a boycott. PTS: 1 REF: 61 OBJ: 05-3 Thinking KEY: CB&E Model International Perspective TOP: AACSB Reflective MSC: BLOOMS Application 12. To protect its local vodka industry, Russia allows foreign manufacturers to have only one percent of the Russian vodka market. This is an example of using tariffs to control foreign competition. ANS: F This is an example of using quotas to control foreign competition. PTS: 1 REF: 61 OBJ: 05-3 Thinking KEY: CB&E Model International Perspective TOP: AACSB Reflective MSC: BLOOMS Application 13. GATT, NAFTA, and the EU are all examples of market groupings. ANS: F GATT and NAFTA are trade agreements, and the EU is the best-known market grouping. PTS: 1 REF: 61-62 OBJ: 05-3 Thinking KEY: CB&E Model International Perspective Comprehension TOP: AACSB Reflective MSC: BLOOMS 14. The Uruguay Round of trade negotiations dramatically increased trade barriers worldwide. ANS: F It lowered trade barriers. PTS: 1 REF: 62 OBJ: 05-3 Thinking KEY: CB&E Model International Perspective Comprehension TOP: AACSB Reflective MSC: BLOOMS 15. NAFTA is the New American Foreign Trade Amendment, which allows for balanced trade with the European Union. ANS: F NAFTA is the North American Free Trade Agreement, which creates a free trade zone among Canada, the United States, and Mexico. PTS: 1 REF: 62 OBJ: 05-3 Thinking KEY: CB&E Model International Perspective TOP: AACSB Reflective MSC: BLOOMS Knowledge 16. Vast differences in natural resources create international dependence and huge shifts of wealth. ANS: T PTS: 1 TOP: AACSB Reflective Thinking MSC: BLOOMS Comprehension REF: 66 OBJ: 05-3 KEY: CB&E Model International Perspective 17. Even though it is not actively involved in global marketing, Hennessey Enterprises, a U.S.-based business, agreed to sell two thousand of its stress-reducing products to a distribution company in Norway. This would be an example of direct investment. ANS: F This is an example of exporting. PTS: 1 REF: 66 OBJ: 05-4 TOP: AACSB Reflective Thinking KEY: CB&E Model International Perspective | CB&E Model Strategy MSC: BLOOMS Application 18. Licensing agreements reduce the risk for manufacturers and sometimes even remove the requirement for a manufacturer to produce its own product. ANS: TOP: KEY: MSC: T PTS: 1 REF: 67 OBJ: 05-4 AACSB Reflective Thinking CB&E Model International Perspective | CB&E Model Strategy BLOOMS Comprehension 19. The major disadvantage of licensing agreements is that international companies cannot maintain control over their licensees. ANS: F Two common ways of maintaining effective control over licensees are shipping one or more critical components...
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