Question: Global competition exists when
Answer: 1. A firm starts producing or marketing its products in other countries
Question: The main components of the political and regulatory climate assessment that a global company must address are which two of the following?
Answer: 1. How stable is the country in terms of its government?
2. How difficult is it to navigate the trade rules in order to do business there?
Question: A(n) _______________ designates the maximum quantities of a product that may be brought into a country during a specified time period (one word).
Answer: quota
Question: Put the following choices for a global entry strategy in order, putting the strategy with the least amount of risk and control on top.
Answer: 1. Exporting
2. Licensing
3. Joint venture
4. Direct investment
Question: Match the following strategies for selling products globally with the correct definition.
Answer: Product extension => Selling virtually the same product in other countries.
Product adaption => Changing a product to make it more appropriate for a country’s climate or consumer preferences.
Product invention => Creating a toally new product to satisfy common needs across countries.
Question: Factors that dictate the choice of a global market-entry strategy include which of the following?
Answer: 1. The amount of financial commitment
2. The level of marketing control
3. The potential for profit
Question: When a firm either produces or markets its products worldwide it is participating in what is known as
Answer: global competition
Question: A firm can choose a global market entry strategy from among four choices: exporting, ____________, join venture, and direct investment.
Answer: licensing
Question: The functions of WTO include which of the following?
Answer: 1. Reviewing and issuing decisions regarding trade disputes
2. Settling rules governing trade between its members
Question: Match the following types of companies operating in the global marketplace with the correct definition.
Answer: