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The Big Mac Index is a novel measure of


A) GDP.
B) purchasing power parity.
C) per capita GNI.
D) economic growth.
E) international trade surplus.

F) None of the above
G) A) and C)

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The most common measure of market potential of an economy is a country's


A) GNI.
B) GDP.
C) PPP.
D) CPI.
E) APR.

F) All of the above
G) B) and E)

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In most cases,countries use tariffs to reduce foreign competition,but tariffs are also used


A) to shorten supply chains.
B) as a response to perceived unfair trade practices.
C) to offer domestic discounts.
D) to stimulate consumer demand.
E) as a way to equalize quotas.

F) C) and D)
G) All of the above

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Which of the following is currently a negative factor for foreign investment in India?


A) India's population is fairly old and aging fast.
B) India's infrastructure for supply chain management is not up-to-date.
C) India prevents foreign investors from entering into joint ventures.
D) India has no shopping malls or other large commercial centers.
E) India lacks a skilled workforce.

F) D) and E)
G) All of the above

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What does purchasing power parity mean?

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It is a theory stating that if...

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Which of the following trade agreements is designed to manage and promote trade activities for the United States,Canada,and Mexico?


A) NAFTA
B) EU
C) CAFTA
D) Mercosur
E) ASEAN

F) None of the above
G) A) and B)

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Marketers considering operations and trade with a specific country must consider whether or not the country belongs to a trading bloc.A trading bloc is a group of countries


A) that have established a formal agreement to manage trade activities.
B) using the same currency.
C) with similar cultural shopping patterns.
D) located next to each other.
E) with similar political views.

F) D) and E)
G) A) and E)

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Culture affects


A) how consumers decide to make their purchases.
B) what consumers decide to purchase.
C) when consumers decide to make their purchases.
D) where consumers decide to make their purchases.
E) every aspect of consumers' purchase decisions.

F) A) and E)
G) A) and D)

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The term "trade deficit" refers to


A) a country that exports more goods than it imports.
B) an indicator of the quality of life in a country.
C) a level of population growth that impacts exports.
D) the sum of all goods and services handled in a country.
E) higher levels of imports than exports.

F) A) and E)
G) B) and D)

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GDP is defined as


A) the value of a country's exports minus its imports.
B) great domestic product.
C) the market value of goods and services produced in a country in a year.
D) national income minus national taxes.
E) the gross purchasing power of domestic goods and services plus international income.

F) A) and D)
G) A) and C)

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Glocalization refers to a global marketing strategy in which each of the four Ps is customized for each country.

A) True
B) False

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Exchange controls refers to the regulation of a country's


A) comparative inflation rate.
B) countertrade exchange.
C) quota rate of exchange.
D) exchange tariffs.
E) currency exchange rate.

F) C) and D)
G) A) and C)

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Gross national income equals GDP


A) minus net consumer spending.
B) plus government spending on international trade.
C) minus purchasing power parity.
D) plus the net investment income earned from abroad.
E) plus gross domestic international investment.

F) A) and D)
G) A) and E)

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Which of the following statements best describes global expansion through a strategic alliance?


A) A strategic alliance is a relationship in which two firms collaborate on a business opportunity,but do not invest in each other.
B) In a strategic alliance,a firm enters a new market and forms a new company with shared ownership,profits and controls.
C) In a strategic alliance,two firms enter into a franchise agreement.
D) In a strategic alliance,a firm in one country sends products to a firm in another country.
E) In a strategic alliance,a firm signs a trade agreement with a firm in another country.

F) All of the above
G) C) and E)

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Graham had developed an extremely successful advertising and promotion campaign for a client in the United States.The client wanted to roll out the same campaign to markets worldwide,but Graham cautioned against doing this because


A) differences in languages,customs,and culture might make the campaign meaningless and ineffective in some markets.
B) copyright and intellectual property concerns prevented him from wanting to share his good ideas outside of the U.S.market.
C) he had not applied for or received international certification that was required for working outside the United States.
D) he was unfamiliar with the code of ethics for advertising in other countries.
E) he did not have the budget for a global rollout.

F) None of the above
G) B) and E)

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When Ben evaluated the commercial infrastructure in Mauritius,he considered the island's


A) population control measures.
B) legal,banking,and regulatory systems.
C) retailing capabilities.
D) per capita income estimates.
E) climate and culture.

F) C) and D)
G) A) and E)

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Which statement about India's population is TRUE?


A) With a median age of 61,India has one of the oldest populations in the world.
B) India's young people mostly live in rural areas in large families.
C) India's workforce is highly skilled,particularly in technology.
D) India claims more than 25% of the world's population.
E) Most Indian citizens shop in large retail outlets.

F) A) and E)
G) A) and D)

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