Although countries are similar in terms of having a mandatory retirement age, they differ in what that age is.
Answer: TRUE
Although countries are similar in terms of having a mandatory retirement age, they differ in what that age is.
Answer: TRUE
Answer: TRUE
National origin is an acquired group membership.
National origin is an acquired group membership.
Answer: FALSE
English-speaking peoples account for a larger portion of global output than people who speak any other language.
English-speaking peoples account for a larger portion of global output than people who speak any other language.
Answer: TRUE
Creolization refers to the mixing of cultural elements that occurs during cultural diffusion.
Creolization refers to the mixing of cultural elements that occurs during cultural diffusion.
Answer: TRUE
Cultural change may come by choice or imposition.
Cultural change may come by choice or imposition.
Answer: TRUE
Most people's basic values are acquired during childhood and are not readily changed later in life.
Most people's basic values are acquired during childhood and are not readily changed later in life.
Answer: TRUE
The identity of a nation is typically promoted through symbols, monuments, and museums.
The identity of a nation is typically promoted through symbols, monuments, and museums.
Answer: TRUE
Cultures do not transcend national (state) boundaries.
Cultures do not transcend national (state) boundaries.
Answer: FALSE
Similarity among people is both a cause and effect of national boundaries.
Similarity among people is both a cause and effect of national boundaries.
Answer: TRUE
The lack of cultural guidebooks and research specifically for international managers poses a significant problem for global firms.
The lack of cultural guidebooks and research specifically for international managers poses a significant problem for global firms.
Answer: FALSE
Most cultural variables are universal.
Most cultural variables are universal.
Answer: TRUE
Many firms gain a global competitive advantage by fostering cultural diversity.
Many firms gain a global competitive advantage by fostering cultural diversity.
Answer: TRUE
The specific learned norms based on attitudes, values, and beliefs of a group of people are known as ethnology.
The specific learned norms based on attitudes, values, and beliefs of a group of people are known as ethnology.
Answer: FALSE
In most cases, if the misery index of a country is high, then consumers and businesses are less likely to spend and invest.
In most cases, if the misery index of a country is high, then consumers and businesses are less likely to spend and invest.
Answer: TRUE
The Happy Planet Index measures well-being and perceptions of living conditions by assessing areas such as housing, incomes, security, and work-life balance.
The Happy Planet Index measures well-being and perceptions of living conditions by assessing areas such as housing, incomes, security, and work-life balance.
Answer: FALSE
Between 2000 and 2008, China's economy grew at a faster rate than Japan's economy.
Between 2000 and 2008, China's economy grew at a faster rate than Japan's economy.
Answer: TRUE
The BRICs are the strongest developed economies in the world.
The BRICs are the strongest developed economies in the world.
Answer: FALSE
In response to the global credit crisis, the United States government took actions that increased economic freedom.
In response to the global credit crisis, the United States government took actions that increased economic freedom.
Answer: FALSE
The collapse of communism in the late 1980s and early 1990s led to a more widespread adoption of the principles of capitalism.
The collapse of communism in the late 1980s and early 1990s led to a more widespread adoption of the principles of capitalism.
Answer: TRUE
There is a positive correlation between economic freedom and economic growth.
There is a positive correlation between economic freedom and economic growth.
Answer: TRUE
A mixed economy is a system where economic decisions are largely market driven and ownership is largely private, but the government intervenes in many private economic decisions.
A mixed economy is a system where economic decisions are largely market driven and ownership is largely private, but the government intervenes in many private economic decisions.
Answer: TRUE
In a mixed economy, all dimensions of economic activity, including pricing and production decisions, are determined by a central government plan.
In a mixed economy, all dimensions of economic activity, including pricing and production decisions, are determined by a central government plan.
Answer: FALSE
The government considers itself a better judge of resource allocation than businesses or citizens in a market economy.
The government considers itself a better judge of resource allocation than businesses or citizens in a market economy.
Answer: FALSE
In a command economy, the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold are all planned by the government.
In a command economy, the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold are all planned by the government.
Answer: TRUE
A market economy is one in which resources are primarily owned and controlled by individuals and companies.
A market economy is one in which resources are primarily owned and controlled by individuals and companies.
Answer: TRUE
A market economy gives individuals the freedom to decide where to work doing what, how to spend or save money, and whether to consume now or later.
A market economy gives individuals the freedom to decide where to work doing what, how to spend or save money, and whether to consume now or later.
Answer: TRUE
The range of economic systems in the world today, when represented on a spectrum, has one end anchored by the idea of capitalism, the other with that of socialism.
The range of economic systems in the world today, when represented on a spectrum, has one end anchored by the idea of capitalism, the other with that of socialism.
Answer: FALSE
An economic system is the set of structures and processes that guides the allocation of resources and shapes the conduct of business activities within a country.
An economic system is the set of structures and processes that guides the allocation of resources and shapes the conduct of business activities within a country.
Answer: TRUE
In a country's balance of payments, the current account and the capital account represent equal values.
In a country's balance of payments, the current account and the capital account represent equal values.
Answer: FALSE
The balance of trade is a record of a country's international transactions that take place among companies, governments, or individuals.
The balance of trade is a record of a country's international transactions that take place among companies, governments, or individuals.
Answer: FALSE
There is a strong relationship between skewed income distributions and the split between those who live in urban settings versus those who live in rural areas.
There is a strong relationship between skewed income distributions and the split between those who live in urban settings versus those who live in rural areas.
Answer: TRUE
Uneven income distribution is largely a problem confined to poorer nations.
Uneven income distribution is largely a problem confined to poorer nations.
Answer: FALSE
External debt results when the government spends more than it collects in revenues, whereas internal debt results when a government borrows money from foreign lenders.
External debt results when the government spends more than it collects in revenues, whereas internal debt results when a government borrows money from foreign lenders.
Answer: FALSE
The so-called "misery index" is the sum of a country's inflation and unemployment rates.
The so-called "misery index" is the sum of a country's inflation and unemployment rates.
Answer: TRUE
Inflation affects interest rates, exchange rates, the cost of living, general economic confidence, and the stability of the current political system.
Inflation affects interest rates, exchange rates, the cost of living, general economic confidence, and the stability of the current political system.
Answer: TRUE
Inflation occurs because aggregate demand is growing as fast as aggregate supply.
Inflation occurs because aggregate demand is growing as fast as aggregate supply.
Answer: FALSE
The Human Development Index measures the average achievements in a country on three basic dimensions of human development: mortality, knowledge, and standard of living.
The Human Development Index measures the average achievements in a country on three basic dimensions of human development: mortality, knowledge, and standard of living.
Answer: TRUE
Economic indicators such as GNI, and its expression in terms of per capita, growth rate, and PPP, are not sufficient to develop a clear picture of the overall quality of life in a country.
Economic indicators such as GNI, and its expression in terms of per capita, growth rate, and PPP, are not sufficient to develop a clear picture of the overall quality of life in a country.
Answer: TRUE
The calculation of GNI per capita takes into account the differences in the cost of living from one country to another.
The calculation of GNI per capita takes into account the differences in the cost of living from one country to another.
Answer: FALSE
A car manufactured in the U.S. by Toyota would be included in the calculation of the GDP for the United States.
A car manufactured in the U.S. by Toyota would be included in the calculation of the GDP for the United States.
Answer: TRUE
Gross domestic product is the value of production that takes place within a nation's border, without regard to whether the production is done by domestic or foreign factors of production.
Gross domestic product is the value of production that takes place within a nation's border, without regard to whether the production is done by domestic or foreign factors of production.
Answer: TRUE
When analyzing the key elements of a country's economic environment, it is best to apply a systems perspective.
When analyzing the key elements of a country's economic environment, it is best to apply a systems perspective.
Answer: TRUE
In the aftermath of the recent worldwide credit crisis, there has been a significant reduction in the level of government involvement in economic affairs.
In the aftermath of the recent worldwide credit crisis, there has been a significant reduction in the level of government involvement in economic affairs.
Answer: FALSE
Which of the following governmental actions is LEAST likely to increase national debt?
Which of the following governmental actions is LEAST likely to increase national debt?
A) macroeconomic stimulus plans
B) unemployment benefits
C) corporate bailouts
D) T-bond sales
Answer: D
During a time of reflation, the government is most likely to ________.
During a time of reflation, the government is most likely to ________.
A) lower taxes
B) print money
C) reduce interest rates
D) support infrastructure
Answer: B
Which of the following ideas calls for assessing a country's performance based on factors such as life expectancy, leisure time, and income equality?
Which of the following ideas calls for assessing a country's performance based on factors such as life expectancy, leisure time, and income equality?
A) microeconomics
B) happynomics
C) macroeconomics
D) green economics
Answer: B
Which of the following calls for economic activity that meets present needs without hindering the future needs of society?
Which of the following calls for economic activity that meets present needs without hindering the future needs of society?
A) privatization
B) state capitalism
C) economic freedom
D) sustainable development
Answer: D
According to the concept of green economics, measuring a country's economic performance should also take into account ________.
According to the concept of green economics, measuring a country's economic performance should also take into account ________.
A) market share
B) population size
C) ecological costs
D) cost-of-living increases
Answer: C
A firm with operations in Denmark can most likely expect all of the following EXCEPT ________.
A firm with operations in Denmark can most likely expect all of the following EXCEPT ________.
A) high taxes
B) significant regulation
C) tough job-protection laws
D) minimal monetary policies
Answer: D
Presently, which of the following countries is best characterized as a pure example of a command economy?
Presently, which of the following countries is best characterized as a pure example of a command economy?
A) Russia
B) North Korea
C) China
D) Vietnam
Answer: B
Tatum Manufacturing recently opened a new facility in Hong Kong. The firm can most likely expect the Hong Kong government to ________.
Tatum Manufacturing recently opened a new facility in Hong Kong. The firm can most likely expect the Hong Kong government to ________.
A) monitor market prices
B) control natural resources
C) ensure fair competition
D) provide innovation incentives
Answer: C
Taylor Enterprises wants to expand its operations into Asia. Managers are focusing on countries with high degrees of economic freedom most likely because the firm is interested in a country with ________.
Taylor Enterprises wants to expand its operations into Asia. Managers are focusing on countries with high degrees of economic freedom most likely because the firm is interested in a country with ________.
A) minimal government intervention
B) standardized minimum wages
C) laws favoring sustainability
D) state-run corporations
Answer: A
Pender Pharmaceuticals is considering expanding overseas and is focusing primarily on the BRICs. Which of the following countries is one that Pender is considering?
Pender Pharmaceuticals is considering expanding overseas and is focusing primarily on the BRICs. Which of the following countries is one that Pender is considering?
A) Indonesia
B) Chile
C) Russia
D) Bangladesh
Answer: C
An economic system is the set of structures and processes that ________ in a country.
An economic system is the set of structures and processes that ________ in a country.
A) guides the allocation of resources and shapes the conduct of business activities
B) directs the movement of specific products to specific consumers
C) sets the standards of competitive success for companies in the economy
D) stipulates the roles and responsibilities of consumers
Answer: A
In a country's balance of payments, the ________ tracks all trade activity in merchandise.
In a country's balance of payments, the ________ tracks all trade activity in merchandise.
A) capital account
B) current account
C) payment account
D) deficit account
Answer: B
The two main categories in the balance of payments are the ________.
The two main categories in the balance of payments are the ________.
A) merchandise exchange account and the services account
B) external debt and the unilateral transfers account
C) merchandise trade account and the capital account
D) current account and the capital account
Answer: D
Which of the following is a statement that summarizes all economic transactions between a country and the rest of the world during a given period of time?
Which of the following is a statement that summarizes all economic transactions between a country and the rest of the world during a given period of time?
A) trade deficit
B) Gini coefficient
C) balance of payments
D) purchasing power parity
Answer: C
The ________ view calls for companies to develop low-cost, high-powered, resource-minimizing innovations that can be marketed to the billions of people living on less than a few dollars a day.
The ________ view calls for companies to develop low-cost, high-powered, resource-minimizing innovations that can be marketed to the billions of people living on less than a few dollars a day.
A) Base of the Pyramid
B) Hierarchy of Needs
C) Happy Planet Index
D) Gini coefficient
Answer: A
The Gini coefficient estimates a country's ________.
The Gini coefficient estimates a country's ________.
A) gross national product
B) economic development
C) political and legal risk
D) income inequality
Answer: D
The World Bank reports that approximately ________ percent of the world's population is poor.
The World Bank reports that approximately ________ percent of the world's population is poor.
A) 50
B) 33
C) 80
D) 95
Answer: C
Which of the following is most likely a FALSE statement about income inequality?
Which of the following is most likely a FALSE statement about income inequality?
A) The richest 1% of the world's population claims as much income as the bottom 57%.
B) GNI is the most effective tool for estimating the relative wealth of a nation's citizens.
C) Among industrialized nations, the U.S. has the largest inequality gap between rich and poor.
D) Income inequality between metropolitan and rural areas threatens a country's social stability.
Answer: B
Uneven income distribution ________.
Uneven income distribution ________.
A) exists in almost every country
B) is largely a problem for poorer nations
C) primarily affects people in urban settings
D) is limited to a small share of the world population
Answer: A
Country X has a significant amount of external debt. Which of the following is the most likely cause?
Country X has a significant amount of external debt. Which of the following is the most likely cause?
A) The government of Country X borrowed money from local banks.
B) The government of Country X borrowed money from other governments.
C) The government of Country X spent more than it collected in revenues.
D) The government of Country X received short-term credits from selling bonds.
Answer: B
A government increases its internal debt for all of the following reasons EXCEPT ________.
A government increases its internal debt for all of the following reasons EXCEPT ________.
A) the tax system is so poorly run that the government cannot collect all the revenues it expects
B) government costs such as security and social programs exceed total tax revenues
C) the government borrows money from international financial institutions
D) state-owned enterprises run large deficits
Answer: C
The so-called "misery index" is the sum of a country's ________.
The so-called "misery index" is the sum of a country's ________.
A) foreign and national debt
B) inflation and unemployment rates
C) unemployment level and total debt
D) trade deficit and long-term inflation rate
Answer: B
In the U.S., the unemployment rate indicates the ________.
In the U.S., the unemployment rate indicates the ________.
A) percentage of the labor force that wants to work full-time but can only find part-time employment
B) number of people who have stopped looking for work because full-time jobs are unavailable
C) percentage of unemployed workers seeking paid work relative to the total labor force
D) number of workers eligible for government services and unemployment benefits
Answer: C
_______ typically results when demand decreases and supply increases.
_______ typically results when demand decreases and supply increases.
A) Inflation
B) Chronic inflation
C) Reflation
D) Deflation
Answer: D
In most cases, governments ________ in order to regulate inflation.
In most cases, governments ________ in order to regulate inflation.
A) lower interest rates
B) increase taxes
C) raise interest rates
D) decrease taxes
Answer: C
A worrisome outcome of chronic inflation is that it tends to ________.
A worrisome outcome of chronic inflation is that it tends to ________.
A) erode confidence in a country's currency
B) give central banking officials excessive flexibility to manage monetary policy
C) increase the real income of people, thereby inflating their spending and borrowing levels
D) lower consumer demand for foreign goods, which triggers lower prices and eventually lower employment
Answer: A
What is the most likely reason that a universal scheme for assessing the performance and potential of a country's economic environment does NOT exist?
What is the most likely reason that a universal scheme for assessing the performance and potential of a country's economic environment does NOT exist?
A) difficulties of identifying a definitive set of predictive economic indicators
B) a lack of reliable economic data from most developed economies
C) the isolation of most markets from each other
D) static nature of the marketplace
Answer: A
______ is a general, sustained rise in prices measured against a standard level of purchasing power.
______ is a general, sustained rise in prices measured against a standard level of purchasing power.
A) Deflation
B) Inflation
C) Expansion
D) Reflation
Answer: B
The ________ starts with the same accounting framework used to calculate GDP but then adjusts for values assigned to environmental quality, population health, livelihood security, equity, free time, and educational attainment.
The ________ starts with the same accounting framework used to calculate GDP but then adjusts for values assigned to environmental quality, population health, livelihood security, equity, free time, and educational attainment.
A) Gross National Index
B) Net National Product
C) Genuine Progress Indicator
D) Human Development Index
Answer: C
The Human Development Index measures the average achievements in a country on three basic dimensions of human development, including ________.
The Human Development Index measures the average achievements in a country on three basic dimensions of human development, including ________.
A) promotion of cultural values
B) quantity of free time
C) extent of knowledge
D) sustainability
Answer: C
The United Nations' ________ measures life expectancy, educational attainment, and the standard of living in a given country.
The United Nations' ________ measures life expectancy, educational attainment, and the standard of living in a given country.
A) Human Development Index
B) Emerging Economic Stability
C) Genuine Progress Indicator
D) Net National Product
Answer: A
Eileen, a manager at an international restaurant chain, wants to know if it will be most cost effective to buy 1,000 pounds of sugar in Country X or in Country Y using U.S. dollars. Which of the following is Eileen most likely trying to determine?
Eileen, a manager at an international restaurant chain, wants to know if it will be most cost effective to buy 1,000 pounds of sugar in Country X or in Country Y using U.S. dollars. Which of the following is Eileen most likely trying to determine?
A) purchasing power parity
B) economic growth rate
C) gross domestic income
D) gross national product
Answer: A
To determine whether the standard of living within a country is rising or falling, economists would most likely use which of the following measures?
To determine whether the standard of living within a country is rising or falling, economists would most likely use which of the following measures?
A) per capita GNI
B) GNI growth rate
C) purchasing power parity
D) degree of human development
Answer: B
The measure of the value of production that occurs within a country's borders without regard to whether the production is done by domestic or foreign factors of production is its ________.
The measure of the value of production that occurs within a country's borders without regard to whether the production is done by domestic or foreign factors of production is its ________.
A) net national product (NNP)
B) gross national product (GNP)
C) gross domestic product (GDP)
D) gross national income (GNI)
Answer: C
In computing GNI, the value of a Ford car that is manufactured in Mexico using capital from the United States would ________.
In computing GNI, the value of a Ford car that is manufactured in Mexico using capital from the United States would ________.
A) be added to the GNI of the United States as well as to the GNI and GDP of Mexico
B) not be added to the GNI of the United States but would be added to the GNI of Mexico
C) only affect the computation of GDP and have no bearing on GNI
D) be added to the GNI of the United States but not the GNI of Mexico
Answer: D
Gross national income (GNI), the broadest measure of economic activity for a country, is defined as the ________.
Gross national income (GNI), the broadest measure of economic activity for a country, is defined as the ________.
A) total of all consumption and investment that takes place in a national economy
B) income generated in one country, regardless of who owns the productive assets
C) total of all economic activity in one country less services, such as government administration, health services, and education
D) income generated by both total domestic production and the international production activities of national companies
Answer: D
In a country that practices state capitalism, all of the following are most likely to be handled by the state EXCEPT ________.
In a country that practices state capitalism, all of the following are most likely to be handled by the state EXCEPT ________.
A) leveraging control of the financial system
B) developing national corporations
C) supporting the local activities of foreign competitors
D) systematically managing trade relations
Answer: C
Country X is in the process of transforming from a command economy to a market economy. This process most likely involves ________.
Country X is in the process of transforming from a command economy to a market economy. This process most likely involves ________.
A) standardized procedures implemented by the state
B) high economic growth rates for the long-term
C) privatization of many factors of production
D) violent political and legal upheaval
Answer: C
Which of the following countries is the best example of a mixed economic model?
Which of the following countries is the best example of a mixed economic model?
A) United States
B) France
C) United Kingdom
D) Australia
Answer: B
In the Economic Freedom Index, ________ exhibit high economic freedom whereas ________ exhibit little to no economic freedom.
In the Economic Freedom Index, ________ exhibit high economic freedom whereas ________ exhibit little to no economic freedom.
A) mixed economies; market economies
B) command economies; market economies
C) market economies; command economies
D) centrally planned economies; command economies
Answer: C
Some countries opt for a mixed economic system in the belief that although an economic system should aspire to achieve the efficiencies created by free markets, it must also support policies to ________.
Some countries opt for a mixed economic system in the belief that although an economic system should aspire to achieve the efficiencies created by free markets, it must also support policies to ________.
A) destabilize poverty rates
B) achieve low unemployment
C) restrict economic growth
D) inequitably distribute wealth
Answer: B
In a ________ economy, certain sectors of the economy are left to private ownership and free market mechanisms, while other sectors have significant state ownership and government planning.
In a ________ economy, certain sectors of the economy are left to private ownership and free market mechanisms, while other sectors have significant state ownership and government planning.
A) state-directed
B) market
C) command
D) mixed
Answer: D
Which of the following is most typical of a command economy?
Which of the following is most typical of a command economy?
A) Consumers have choices of many substitutes for any given product.
B) Quality of products and services tends to be consistent.
C) The prices of goods and services frequently change.
D) Many products are usually in short supply.
Answer: D
In Country X, all dimensions of economic activity, including pricing and production decisions, are determined by the central government. Which term best describes Country X?
In Country X, all dimensions of economic activity, including pricing and production decisions, are determined by the central government. Which term best describes Country X?
A) market economy
B) mixed economy
C) command economy
D) democratic economy
Answer: C
In a command economy, ________.
In a command economy, ________.
A) businesses and consumers are assumed to be the best judges of how resources should be allocated
B) the government sets goals and determines the price and quantity of what is produced
C) different economic sectors coordinate the activities of the federal government
D) each enterprise sets its goals before making reports to the central government
Answer: B
In a command economy, the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold are planned by ________.
In a command economy, the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold are planned by ________.
A) government officials
B) private industries
C) individual entrepreneurs
D) local trade associations
Answer: A
Market economies are primarily characterized by ________.
Market economies are primarily characterized by ________.
A) formal cooperation among government, companies, and workers to achieve stable growth
B) heavy government spending and high taxation to pay for a range of social services
C) minimal governmental participation
D) restricted consumer powers
Answer: C
A system in which individuals, rather than the government, make the majority of economic decisions is commonly referred to as a ________.
A system in which individuals, rather than the government, make the majority of economic decisions is commonly referred to as a ________.
A) command economy
B) market economy
C) private economy
D) mixed economy
Answer: B
In a market economy, the patterns of resource allocation are most directly influenced by ________.
In a market economy, the patterns of resource allocation are most directly influenced by ________.
A) government administrators who monitor the equilibrium of supply and demand
B) industry coalitions that strive to improve the efficiency of production and service
C) consumer group alliances that negotiate with firms to improve product quality
D) consumers who "vote" by their personal decision to buy or not buy products
Answer: D
Communism primarily relies on a system of ________.
Communism primarily relies on a system of ________.
A) private business ownership
B) competitive pricing and marketing
C) market-generated supply and demand
D) government controlled economic activity
Answer: D
Which of the following is NOT a characteristic of capitalism?
Which of the following is NOT a characteristic of capitalism?
A) private ownership of assets
B) right to profit from individual effort
C) state control of factors of production
D) private control of investment
Answer: C
According to research, which of the following countries is the strongest supporter of free markets?
According to research, which of the following countries is the strongest supporter of free markets?
A) China
B) India
C) France
D) Ukraine
Answer: A
History suggests that if the economic crisis worsens, we are likely to see more people question the ________.
History suggests that if the economic crisis worsens, we are likely to see more people question the ________.
A) fall of communism
B) legitimacy of capitalism
C) practicality of mixed market economies
D) correlation between economic freedom and prosperity
Answer: B
The recent global credit crisis has interrupted the trend of national economies ________.
The recent global credit crisis has interrupted the trend of national economies ________.
A) rapidly adopting the command market model
B) steadily adopting the free market model
C) moving from the mixed to the command model
D) turning away from the mixed model
Answer: B
The Economic Freedom Index indicates that economic freedom is positively correlated with all of the following EXCEPT ________.
The Economic Freedom Index indicates that economic freedom is positively correlated with all of the following EXCEPT ________.
A) life expectancy
B) literacy
C) environmental sustainability
D) diversity
Answer: D
Since the late 1980s, the growing emergence of freer markets has been powered by the realization that ________.
Since the late 1980s, the growing emergence of freer markets has been powered by the realization that ________.
A) economic growth is directly related to economic freedom
B) economic growth has a limited effect on the standard of living
C) adoption of free market principles contributes to social injustices
D) centrally planned economies are best designed to deliver progress
Answer: A
Managers at Morrison Manufacturing are considering expanding the firm's production overseas and want to ensure that the firm is located in a country with a high degree of economic freedom. Presently, which of the following locations would most likely offer Morrison the highest economic freedom?
Managers at Morrison Manufacturing are considering expanding the firm's production overseas and want to ensure that the firm is located in a country with a high degree of economic freedom. Presently, which of the following locations would most likely offer Morrison the highest economic freedom?
A) Bolivia
B) Hong Kong
C) Venezuela
D) North Korea
Answer: B
Kyle, an international manager for Apex Industries, has been given the task of analyzing the economies of three different emerging countries for the firm's potential expansion. Which of the following questions is LEAST relevant to Kyle's assignment?
Kyle, an international manager for Apex Industries, has been given the task of analyzing the economies of three different emerging countries for the firm's potential expansion. Which of the following questions is LEAST relevant to Kyle's assignment?
A) How much freedom will Apex have to run its foreign operations?
B) What are the current economic policies related to development?
C) What is the likelihood that Apex can fill manufacturing positions with locals?
D) What factors in the country drive or hinder economic change?
Answer: C
Which of the following is most likely a true statement about the global economy since the 1980s?
Which of the following is most likely a true statement about the global economy since the 1980s?
A) Socialist governments are intervening more in global exchanges.
B) Wealthy countries are exercising total control over emerging markets.
C) Developing countries are losing growing shares of their foreign-exchange reserves.
D) Emerging economies are adopting the principles and practices of free markets.
Answer: D
The recent global economic crisis has led to which of the following?
The recent global economic crisis has led to which of the following?
A) governments seeking to impose more constraints on capitalism
B) governments seeking to eliminate constraints on capitalism
C) governments seeking to increase the interdependence of developing economies
D) governments seeking to eliminate the interdependence of developing economies
Answer: A
Global STP is more complicated than domestic STP because:
Global STP is more complicated than domestic STP because:
a. foreign consumers view products and their roles differently
b. firms fully understand cultural nuances of other countries
c. there is typically only one subculture in foreign markets
d. prices within the foreign market will be dramatically different
Answer: A
A franchise is a contractual agreement between:
A franchise is a contractual agreement between:
a. a firm and infrastructure
b. a firm and the government
c. a firm and an outside country.
d. firms or a firm and individual
Answer: D
Marketers mights be less interested in countries with the highest purchasing power because of ____ growth and saturated markets.
Marketers mights be less interested in countries with the highest purchasing power because of ____ growth and saturated markets.
a. lost
b. increased
c. stagnated
d. an opportunity for
Answer: C
Gross national income consists of GDP plus ____, minus any payments made to nonresidents who contribute to the domestic economy.
Gross national income consists of GDP plus ____, minus any payments made to nonresidents who contribute to the domestic economy.
a. net deficit earned from investment abroad
b. trade deficits and surpluses
c. net income earned from investment abroad
d. goods and services produced in a year
Answer: C
Firms spend millions of dollars to develop brand names that have no preexisting meaning in any known language because:
Firms spend millions of dollars to develop brand names that have no preexisting meaning in any known language because:
a. there are few other factors to consider when developing a global communication strategy
b. language is a simple issue for marketers to overcome
c. they want to avoid potential embarrassment that language confusion can cause
d. language is typically uncomplicated
Answer: C
Transportation, distribution channels, communications, and commerce are the four key elements of a country's:
Transportation, distribution channels, communications, and commerce are the four key elements of a country's:
a. global market assessment
b. infrastructure
c. GDP
d. economy
Answer: B
A(n) ____ is a tax levied on a good imported into a country.
A(n) ____ is a tax levied on a good imported into a country.
a. trade agreement
b. boycott
c. tariff
d. escrow fee
e. quota
Answer: C
A trade surplus means a country:
A trade surplus means a country:
a. imports more goods than it exports
b. imports as many goods as it exports
c. exports more goods than it imports
d. exports as many goods as it imports
Answer: C
Trade agreements are signed by different governments to
Trade agreements are signed by different governments to
a. manage and promote trade activities for a certain region.
b. to increase the diffusion of innovation.
c. to reach early adopters.
d. consider helping laggards.
Answer: A
China's economy is the ____ largest in the world, and the ____ largest market for U.S. exports.
China's economy is the ____ largest in the world, and the ____ largest market for U.S. exports.
a. third; third
b. fourth; third
c. third; second
d. second; third
e. second; second
Answer: D
True or false: The global population has only experienced negative population growth since the turn of the 20th century in both less developed nations and developed countries.
True or false: The global population has only experienced negative population growth since the turn of the 20th century in both less developed nations and developed countries.
a. True
b. False
Answer: B
Since 1978, China's leadership has:
Since 1978, China's leadership has:
a. abandoned communist political ideals
b. embraced market-oriented economic development
c. retained anti-communist economic ideals in its approach to market growth
d. stifled economic development
Answer: B
Which of the following statements about metrics is true?
Which of the following statements about metrics is true?
a. They provide marketers with a good picture of the economic health of a country despite different stages of economic development.
b. They provide a nearly perfect assessment of the economic health of a country.
c. The give marketers non essential views of a particular country.
d. They are not very useful in marketing and generally are more focused with the financial areas of the firm.
Answer: A
After firms have completed the ____, they are better able to make informed decisions about a potential country market.
After firms have completed the ____, they are better able to make informed decisions about a potential country market.
a. marketing mix
b. marketing strategy
c. market assessment
d. global entry strategy
Answer: C
Global distribution networks form complex value chains that ultimately ____ the final selling price of a product.
Global distribution networks form complex value chains that ultimately ____ the final selling price of a product.
a. increase
b. negate
c. equalize
d. decrease
Answer: A
Overall, culture affects ____ aspects(s) of consumer behavior.
Overall, culture affects ____ aspects(s) of consumer behavior.
a. some food and dining
b. only multi-generational
c. a few meaningful
d. all
Answer: D
An internal assessment of a firm's capabilities includes all the following EXCEPT:
An internal assessment of a firm's capabilities includes all the following EXCEPT:
a. its potential future income, revenue, and losses.
b. management's commitment to the proposed strategy.
c. current markets it serves.
d. access to capital.
Answer: A
When a firm identifies its positioning within a market, it must decide how to ____ its marketing strategies using the marketing mix.
When a firm identifies its positioning within a market, it must decide how to ____ its marketing strategies using the marketing mix.
a. target
b. segment
c. implement
d. position
Answer: C
A dramatic economic downturn caused by ____ can increase a foreign entrant's risk considerably.
A dramatic economic downturn caused by ____ can increase a foreign entrant's risk considerably.
a. global entry strategies
b. infrastructure
c. other foreign entrants
d. political instability
Answer: D
A firm chooses its ____ after conducting internal market assessments.
A firm chooses its ____ after conducting internal market assessments.
a. entry strategy
b. communication method
c. global market
d. market analysis
Answer: A
In the timeline for a firm's global expansion, a firm conducts an internal assessments of its capabilities when:
In the timeline for a firm's global expansion, a firm conducts an internal assessments of its capabilities when:
a. it has collected information and analyzed a country's culture
b. it has concluded an assessment of a country's government actions
c. it has concluded its assessment analysis of the most viable markets
d. it has collected information and analyzed only risky countries' metrics
Answer: C
A trading bloc consists of:
A trading bloc consists of:
a. countries that block a particular trade agreement.
b. countries outside those who have signed a particular trade agreement.
c. countries that have signed a particular trade agreement.
d. countries that are blocked from a particular trade agreement.
Answer: C
Global marketing strategies include which of the following components?
Global marketing strategies include which of the following components?
a. Developing a marketing mix
b. Eliminating the target markets
c. Eliminating competition
d. Evaluating the global economic environment
e. Financing the global expansion
Answer: A
A novel metric that employs purchasing power parity is ____, which suggests that exchange rates should adjust to equalize the cost of a basket of goods and services, wherever it is bought around the world.
A novel metric that employs purchasing power parity is ____, which suggests that exchange rates should adjust to equalize the cost of a basket of goods and services, wherever it is bought around the world.
a. the Whopper Index
b. the Big Mac Index
c. the apple pie index
d. the Chevy Index
Answer: B
Competitive factors influence global pricing because a firm's products may not:
Competitive factors influence global pricing because a firm's products may not:
a. be as expensive to make for the foreign country
b. be as cheap to make for the foreign country
c. have the same positioning as they do in the home country
d. have the same targeting as they do in the home country
Answer: C
The number of middlemen with which a seller deals in a network determines the complexity of a:
The number of middlemen with which a seller deals in a network determines the complexity of a:
a. global product strategy
b. global communication strategy
c. global distribution channel
d. global pricing strategy
Answer: C
The components of a country market assessment include all of the following EXCEPT:
The components of a country market assessment include all of the following EXCEPT:
a. government actions
b. sociocultural analysis
c. infrastructure and technology
d. analysis of imports and exports
Answer: D
Which of the following best describes Russian consumers' attitudes toward U.S. brands?
Which of the following best describes Russian consumers' attitudes toward U.S. brands?
a. Consumers show strong demand for U.S. products.
b. Consumer prefer Mexican and Canadian products.
c. They actively resist buying U.S. products.
d. Very few of them can afford U.S. products
Answer: A
All of the following are potential negative aspects of tariffs and quotas for a foreign firm entering the host market EXCEPT:
All of the following are potential negative aspects of tariffs and quotas for a foreign firm entering the host market EXCEPT:
a. reduction of available imported merchandise
b. artificially higher prices
c. reduction of domestic competition
d. lower demand for the import
Answer: C
Exchange control refers to the regulation of a country's:
Exchange control refers to the regulation of a country's:
a. exchange of goods and services
b. trade bloc
c. cultural exchange to prevent cultural blending
d. currency exchange rate
Answer: D
Risks involved in franchising as a global entry strategy include:
Risks involved in franchising as a global entry strategy include:
a. more government influence in marketing options
b. more required investment
c. too much control over foreign operations
d. takes more time to enter the foreign market
e. need to share profits
Answer: E
A joint venture:
A joint venture:
a. share the financial burden with a local partner in a foreign market
b. accepts all financial burdens from a local partner in a foreign market
c. has no financial burden to a local partner in a foreign market
d. gives the financial burden to a local partner in a foreign market
Answer: A
The cross-cultural value dimensions that defines how much the society respects those in authority by virtue of their social position is:
The cross-cultural value dimensions that defines how much the society respects those in authority by virtue of their social position is:
a. long-term orientation
b. masculinity/feminism
c. individualism/masculinity
d. uncertainty avoidance
e. power distance
Answer: E
Acme Corp. has altered its widely used advertisement for its canned products in consideration of a certain country's cultural differences. This is an example of:
Acme Corp. has altered its widely used advertisement for its canned products in consideration of a certain country's cultural differences. This is an example of:
a. globalization a communication strategy
b. ruining a communication strategy
c. localizing a communication strategy
d. broadening a communication strategy
Answer: C
True or False: Brazil is currently in the top ten of the world's largest economies.
True or False: Brazil is currently in the top ten of the world's largest economies.
a. True
b. False
Answer: A
How have joint venture regulations changed in India, encouraging more foreign investment?
How have joint venture regulations changed in India, encouraging more foreign investment?
a. Foreign retailers are now allowed to own more than half of joint ventures.
b. Foreign retailers are not subject to tariffs.
c. Foreign retailers can hire 51% of their workers from other countries.
d. Foreign retailers are now allowed to open large stores.
Answer: A
Based on standardized metrics marketers can identify ____ that are experiencing growth and increased globalization.
Based on standardized metrics marketers can identify ____ that are experiencing growth and increased globalization.
a. populations
b. demographics
c. target markets
d. countries
Answer: D
Reaching rural populations using long supply chains in which goods pass through many hands adds ____ to products.
Reaching rural populations using long supply chains in which goods pass through many hands adds ____ to products.
a. profits
b. quality
c. costs
d. features
Answer: C
Which of the following facilitates globalization?
Which of the following facilitates globalization?
a. Customized import/export laws in each country
b. Higher tariffs
c. Elimination of trade barriers
d. Creation of trade barriers
Answer: D
Which of the following best describes how a firm may venture into global expansion.
Which of the following best describes how a firm may venture into global expansion.
a. When a firm opens a plant, store, or office in another country
b. When a firm receives an order for a product or service from another country
c. When a firm signs a franchising contract with an individual
d. When a firm enters a new market
Answer: B
Which of the following factors threaten Chinese economic growth?
Which of the following factors threaten Chinese economic growth? (select all that apply)
a. Equal distribution of wealth
b. A rabidly aging population
c. A fast-growing population
d. A large migrant workforce with low-paying jobs.
Answer: BD
A trade surplus means a country:
A trade surplus means a country:
a. exports more goods than it imports
b. imports more goods than it exports
c. imports as many goods as it exports
d. exports as many goods as it imports
Answer: A
Sociocultural factors are important because they tell marketers:
Sociocultural factors are important because they tell marketers: (select all that apply)
a. which boycotts make an impact on buyers
b. who in the family is in charge of buying decisions
c. how, where, and when people shop.
d. why people buy certain products and services
Answer: BCD
Pricing in the global marketplace is a difficult task because:
Pricing in the global marketplace is a difficult task because: (select all that apply)
a. currency exchange policies might exist
b. cultural issues get in the way of pricing
c. many countries have rules governing the competitive marketplace
d. issues like tariffs and anti-dumping laws might exist
Answer: ACD
Franchising is a contractual agreement between a firm, the franchisor, and another firm or individual, known as the ____.
Franchising is a contractual agreement between a firm, the franchisor, and another firm or individual, known as the ____.
Answer: franchisee
Which of the following best describes Russian's economy since the fall of the Soviet Union?
Which of the following best describes Russian's economy since the fall of the Soviet Union?
a. Continual, slow growth
b. Multiple up-and downturns
c. Continual, rapid growth
d. Continual decline
Answer: B
Many firms choose the direct investment strategy when entering foreign markets because:
Many firms choose the direct investment strategy when entering foreign markets because: (select all that apply)
a. potential profits are not shared with other firms
b. it offers complete control over operations
c. franchising is not an option
d. exporting places burden on the company
Answer: AB
Which of the following is NOT an example of how the four components of infrastructure are essential to the development of an efficient marketing system?
Which of the following is NOT an example of how the four components of infrastructure are essential to the development of an efficient marketing system?
a. The communication system must be sufficiently develop to allow consumers to find information.
b. Legal, banking, and regulatory system exists to allow markets to function.
c. An open and efficient stock market exchange exists to allow citizens to buy shares in domestic companies.
d. Distribution channels exist to deliver products in timely manner.
Answer: C
Direct investment is the ____ type of global entry strategy.
Direct investment is the ____ type of global entry strategy.
a. least risky
b. safest
c. riskiest
d. investment-free
Answer: C
Which of the following factors have helped Brazil's economy to grow?
Which of the following factors have helped Brazil's economy to grow? (select all that apply)
a. Quotas
b. Impositions of social programs
c. Currency controls
d. A growing middle class
Answer: BD
A franchisor:
A franchisor:
a. buys a franchise from a franchisee.
b. shares a franchise with a franchisor.
c. creates equal partnerships.
d. owns the overarching firm.
Answer: D
As part of any foreign market assessment, firms assess:
As part of any foreign market assessment, firms assess: (select all that apply)
a. infrastructure
b. technological capabilities
c. communication
d. a country's art industry
Answer: ABC
Goods and services that serve the same needs and wants on a global scale often require:
Goods and services that serve the same needs and wants on a global scale often require:
a. total adaptation in form of message
b. little or no adaptation in form or message
c. do not exist since each culture is different
d. unusual adaptation in form or message
Answer: B
If the value of the U.S. dollar decreases significantly compared with other important world currencies:
If the value of the U.S. dollar decreases significantly compared with other important world currencies: (select all that apply)
a. nothings happens.
b. the cost of American goods and services become more expensive.
c. the cost of American goods and services are cheaper to foreign buyers.
d. raw foreign materials cost more.
Answer: CD
Some differences in communication strategies around the world are cause by:
Some differences in communication strategies around the world are cause by: (select all that apply)
a. literacy levels
b. advertising regulations
c. the availability of media
d. exchange rates
Answer: ABC
Which of the following global entry strategies involves the most risk?
Which of the following global entry strategies involves the most risk?
a. Joint venture
b. Direct investment
c. Franchising
d. Exporting
Answer: B
Language can ____ marketers ability to communicate with customers in different countries.
Language can ____ marketers ability to communicate with customers in different countries.
a. overwhelm
b. complicate
c. simplify
d. ease
Answer: B
Some factors firms consider when determining the need for and level of product adaptation include:
Some factors firms consider when determining the need for and level of product adaptation include: (select all that apply)
a. differences in product and technical standards
b. the country's offshoring practices
c. the level of economic development
d. uncertain legislation
Answer: AC
True or false: A global marketing mix is more complicated than a domestic marketing mix.
True or false: A global marketing mix is more complicated than a domestic marketing mix.
a. False
b. True
Answer: B
Hofstede's cultural dimensions concept believes cultures differ on which of the following dimensions?
Hofstede's cultural dimensions concept believes cultures differ on which of the following dimensions? (select all that apply)
a. Power distance
b. Infrastructure
c. Masculinity
d. Individualism
Answer: ACD
Firms typically take a(n) ____ approach when entering their first foreign markets.
Firms typically take a(n) ____ approach when entering their first foreign markets.
a. all-or-nothing
b. very risky
c. less risky
d. no-risk
Answer: C
True or false: To do business in less developed nation, firms often adjust products or prices to make offering more affordable.
True or false: To do business in less developed nation, firms often adjust products or prices to make offering more affordable.
a. False
b. True
Answer: B
Which of the following factors threaten Russia's prospects for economic growth?
Which of the following factors threaten Russia's prospects for economic growth? Select all that apply.
a. An aging population
b. A growing online population
c. Widespread corruption
d. A high birth rate
Answer: AC
The level of economic development, as well as differences in product and technical standards, help determine the need for and level of ____.
The level of economic development, as well as differences in product and technical standards, help determine the need for and level of ____.
a. product mix
b. product testing
c. product creation
d. product adaptation
Answer: D
Which of the following factors is contributing to the growth of India's economy?
Which of the following factors is contributing to the growth of India's economy? (select all that apply)
a. A well-educated younger generation
b. Expanding middle and upper classes
c. An older population
d. A highly skilled work force
e. A large rural population
Answer: ABD
____ consists of GDP plus the net income earned from investments abroad.
____ consists of GDP plus the net income earned from investments abroad.
a. Trade surplus
b. Gross national income
c. Global investment
d. General economic environment
Answer: B
An example of a franchise is:
An example of a franchise is:
a. a Snicker candy bar.
b. a Macy's department store.
c. a Bank of America bank.
d. a McDonalds restaurant
Answer: D
Elements in a global communication strategy usually need to be ____ to the local market to be effective.
Elements in a global communication strategy usually need to be ____ to the local market to be effective.
a. adapted
b. standardized
c. removed
d. replicated
Answer: A
Countries with the highest ____ today may become less attractive in the future for many products and services because of stagnated growth.
Countries with the highest ____ today may become less attractive in the future for many products and services because of stagnated growth.
a. government interaction
b. literacy rates
c. purchasing power
d. unemployment rates
Answer: C
A designated agency in each country sets the rules for currency exchange. What are some examples of this agency?
A designated agency in each country sets the rules for currency exchange. What are some examples of this agency? (select all that apply)
a. Federal Reserve
b. European Union
c. Central Bank
d. Country Bank
Answer: AC
____ is a market entry strategy in which independent companies from a partnership, but do not invest in each other.
____ is a market entry strategy in which independent companies from a partnership, but do not invest in each other.
a. A joint venture
b. A strategic alliance
c. Franchising
d. Exporting
e. Direct investment
Answer: B
___ is the shared meanings, beliefs, morals, values, and customs of a group of people.
___ is the shared meanings, beliefs, morals, values, and customs of a group of people.
a. Infrastructure
b. Trade
c. Branding
d. Culture
Answer: D
Potential global product strategies including selling:
Potential global product strategies including selling: (select all that apply)
a. a product that includes major adaptations for the home country.
b. a product that includes minor adaptations for the host country.
c. only existing proven products or services.
d. the same product or service in both the home and host country.
Answer: BD
Infrastructure includes basic facilities, services and installations needed for a community or society to function, including all EXCEPT which of the following?
Infrastructure includes basic facilities, services and installations needed for a community or society to function, including all EXCEPT which of the following?
a. Transportation systems
b. Schools and post offices
c. A culture that accepts innovation
d. Water and power lines
Answer: C
When a firm decides to standardize their products globally but use different promotional campaigns, this strategy is referred to as ____.
When a firm decides to standardize their products globally but use different promotional campaigns, this strategy is referred to as ____.
Answer: glocalization
Joint ventures can be a risky entry strategy because:
Joint ventures can be a risky entry strategy because: (select all that apply)
a. there is great potential in another country
b. partners might disagree
c. governments might place restrictions on the entering firm
d. countries might require 100% ownership of its plants.
Answer: C
A joint venture is formed when a firm ____ a new market and ____ its resources with those of a local firm to form a new, shared company.
A joint venture is formed when a firm ____ a new market and ____ its resources with those of a local firm to form a new, shared company.
a. enters; imports
b. exits; pools
c. enters; pools
d. exits; exports
Answer: C
Exporting is an entry strategy that requires the ____ financial risk and allows a(n) ____ return to the firm.
Exporting is an entry strategy that requires the ____ financial risk and allows a(n) ____ return to the firm.
a. least; limited
b. least; unlimited
c. most; limited
d. most; unlimited
Answer: A
A trade deficit means that a country:
A trade deficit means that a country:
a. imports and exports an equal amount of goods
b. exports more goods than it imports
c. has a healthy balance of trade
d. imports more goods than it exports
Answer: D
____ is defined as the total market value of all goods and services produced by a country is a year.
____ is defined as the total market value of all goods and services produced by a country is a year.
a. Gross domestic product
b. Budget surplus
c. Trade deficit
d. A nation's economic health
Answer: A
Marketers must adapt their global distribution strategies for developing countries because:
Marketers must adapt their global distribution strategies for developing countries because: (select all that apply)
a. foreign firms often cannot reach them easily
b. distribution systems are too sophisticated
c. consumers shop in small, family-owned retail outlets
d. consumers lack adequate transportation to central shopping areas.
Answer: ACD
In the United States, the market has evolved from a regional marketplace to a more current process known as ____. This is the process by which goods, services, capital, people, information, and ideas flow across national borders.
In the United States, the market has evolved from a regional marketplace to a more current process known as ____. This is the process by which goods, services, capital, people, information, and ideas flow across national borders.
Answer: globalization
Direct investment requires a firm to maintain ____ ownership of its facilities, offices, and plants in a foreign country.
Direct investment requires a firm to maintain ____ ownership of its facilities, offices, and plants in a foreign country.
a. joint more than 50% and less than 100%
b. franchise
c. 100%
d. more than 0% and less than 50%
e. 50%
Answer: C
A(n) ____ designates the maximum quantities of a product that may be brought into a country during a specified time period.
A(n) ____ designates the maximum quantities of a product that may be brought into a country during a specified time period.
Answer: quota
The four key elements of a country's infrastructure include:
The four key elements of a country's infrastructure include:
a. GDP, GNI, trade surplus, and trade deficit.
b. product, place, promotion, and price
c. transportation, distribution channels, communication, and commerce.
d. tariffs, quota, trade agreements, and exchange control
Answer: C
The ____ rate is the measure of how much one country's currency is worth in relation to another country's currency.
The ____ rate is the measure of how much one country's currency is worth in relation to another country's currency.
Answer: exchange
Some details used to evaluate the general economic environment include:
Some details used to evaluate the general economic environment include: (select all that apply)
a. transportation
b. uncertainty avoidance.
c. the trade deficit or surplus.
d. the GDP
Answer: CD
A tariff is a(n) ____ levied on a good imported into a country.
A tariff is a(n) ____ levied on a good imported into a country.
Answer: tax
To minimize a buyer's perceived risk, which of the following tactics will contribute to its reduction?
To minimize a buyer's perceived risk, which of the following tactics will contribute to its reduction?
a. Higher prices
b. A new brand name
c. Extended warranties
d. The ability to shop around at many vendors
Answer: C
Jon is using ____ ____ when he bases decision to purchase textbooks on price condition, and location.
Jon is using ____ ____ when he bases decision to purchase textbooks on price condition, and location.
a. personal preferences
b. habitual buying
c. evaluative criteria
d. determinant evaluation
Answer: C
It is buyers' ____ that shape the values, shared meaning, and behaviors of the social organization of their market. Often the entire country functions much like a reference group does at a more intimate level.
It is buyers' ____ that shape the values, shared meaning, and behaviors of the social organization of their market. Often the entire country functions much like a reference group does at a more intimate level.
a. culture
b. friends
c. ethnicity
d. social class
e. family
Answer: A
Since many buyers are leery of buying a product advertised on an infomercial, one way to reduce post-purchase cognitive dissonance for the item is to offer:
Since many buyers are leery of buying a product advertised on an infomercial, one way to reduce post-purchase cognitive dissonance for the item is to offer:
a. a money back guarantee
b. multiple versions of the item
c. accessories bundled with the item
d. quantity discounts
Answer: A
Perception as it influences consumer behavior is:
Perception as it influences consumer behavior is:
a. developed through culture and family influences
b. predominantly gender-based
c. developed once you visit the manufacturing facility
d. developed through product instruction guide
Answer: A
A situational shopping influence might be promotional in nature and could include all of the following in-store activities EXCEPT:
A situational shopping influence might be promotional in nature and could include all of the following in-store activities EXCEPT:
a. in-store coupons
b. a fashion show
c. multidiscount items
d. free gift with purchase
Answer: B
Children have a significant role in buying and consuming in the American marketplace. They spend nearly $300B out of pocket and ____ spend nearly $600B through their influence on family purchases.
Children have a significant role in buying and consuming in the American marketplace. They spend nearly $300B out of pocket and ____ spend nearly $600B through their influence on family purchases.
a. indirectly
b. through their grandparents
c. directly
d. through the Internet
Answer: A
Mary buys a new bathing suit, and her friends tell her it looks great. She feels it is too revealing, and she is very self-conscious of her body. Mary never wears the $78 bathing suit because she is experiencing ____ risk.
Mary buys a new bathing suit, and her friends tell her it looks great. She feels it is too revealing, and she is very self-conscious of her body. Mary never wears the $78 bathing suit because she is experiencing ____ risk.
a. financial
b. social
c. performance
d. psychological
Answer: D
Peter is buying a big screen TV. He decides that price determines 50% of the decision, the brand name is 20%, the actual screen size is 20%, and the weight of the product is 10%. This process of weighting attributes is used:
Peter is buying a big screen TV. He decides that price determines 50% of the decision, the brand name is 20%, the actual screen size is 20%, and the weight of the product is 10%. This process of weighting attributes is used:
a. in the compensatory model of decision making and can be somewhat useful for noncompensatory decisions.
b. to value determinant attributes only in the decision-making process
c. only in noncompensatory decision to eliminate choices, but it is very useful to systematically reduce the number of factors
d. in determining the evoked set of brands
Answer: A
As a consumer views a package of crackers on the store shelf, he first recognizes and identifies the shape, then the color, then the items located around it. As he integrates that brand image into his knowledge of the choices in the product category, it is ____ that interprets the images and stimuli differently for each consumer.
As a consumer views a package of crackers on the store shelf, he first recognizes and identifies the shape, then the color, then the items located around it. As he integrates that brand image into his knowledge of the choices in the product category, it is ____ that interprets the images and stimuli differently for each consumer.
a. attitude structure
b. culture
c. motivation
d. gender
e. perception
Answer: E
Which of the following buyers exemplifies a consumer who has a high degree of internal locus of control?
Which of the following buyers exemplifies a consumer who has a high degree of internal locus of control?
a. Fred buys the brand for which he has a twenty-dollar rebate.
b. Joe buys the most expensive brand since price is usually a signal of high quality.
c. Mary buys the brands she has bought for years because she trust them.
d. Sally first spends time searching online comparing brand. Sally senses this action gives her more control over the outcome.
Answer: D
Joe goes to Crate and Barrel to buy his wife a birthday present. When he arrives, the store is very crowded with shoppers and he leaves. Due to ____ situational factors, Joe's best intentions were thwarted.
Joe goes to Crate and Barrel to buy his wife a birthday present. When he arrives, the store is very crowded with shoppers and he leaves. Due to ____ situational factors, Joe's best intentions were thwarted.
a. social
b. shopping
c. purchase
d. temporal
e. cultural
Answer: B
Which of the following products/services would requires the least amount of search time and effort on part of the consumer?
Which of the following products/services would requires the least amount of search time and effort on part of the consumer?
a. Purchasing a new video game
b. Purchasing a new car
c. Purchasing a new home
d. Purchasing health insurance
e. Deciding on a lawyer
Answer: A
Russell just got a new smart phone. He did his research before purchasing the phone since he needed it for work purposes. Which of the following information sources is an examples of internal search?
Russell just got a new smart phone. He did his research before purchasing the phone since he needed it for work purposes. Which of the following information sources is an examples of internal search?
a. The salesperson at the store said it was the best phone for his needs.
b. His best friend told him it looked like a good phone.
c. He liked the previous version of the phone.
d. His girlfriend recommended the phone to him.
Answer: C
Which of the following purchases will involve the most actual or perceived risk and therefore the longest search time?
Which of the following purchases will involve the most actual or perceived risk and therefore the longest search time?
a. Buying a car
b. Buying a desktop computer
c. Buying a home
d. Going on vacation
Answer: C
Having completed his information search, a consumer's next step in decision making is:
Having completed his information search, a consumer's next step in decision making is:
a. purchase
b. information integration
c. trial
d. evaluation of alternatives
Answer: D
One of the most difficult of situational factors with which to deal is the ____ state. The marketer often is unaware of the preceding or antecedent events that customer experienced.
One of the most difficult of situational factors with which to deal is the ____ state. The marketer often is unaware of the preceding or antecedent events that customer experienced.
a. temporal
b. purchase
c. shopping
d. situational
Answer: A
Customer dissatisfaction is most likely to occur when a consumer buys a washing machine and it:
Customer dissatisfaction is most likely to occur when a consumer buys a washing machine and it:
a. performs better than the salesperson indicated
b. does not live up to high performance expectations
c. performs as advertised
d. works much as expected
Answer: B
All of the brands that Mary can easily call to mind for laundry detergents, whether she would consider buying them or not, comprise her ____ set.
All of the brands that Mary can easily call to mind for laundry detergents, whether she would consider buying them or not, comprise her ____ set.
a. retrieval
b. pre-determined
c. evoked
d. universal
Answer: A
Barbara asks her boss what flavors of ice cream he eats and he replies: chocolate chip, mint chocolate chip, and cherry chocolate chip. Those three flavors are described as:
Barbara asks her boss what flavors of ice cream he eats and he replies: chocolate chip, mint chocolate chip, and cherry chocolate chip. Those three flavors are described as:
a. his evoked set
b. his brand loyalty
c. his non loyal set
d. his attribute set
e. his positive set
Answer: A
Which of the buyers below is perceiving a higher risk in the purchase of a laptop computer?
Which of the buyers below is perceiving a higher risk in the purchase of a laptop computer?
a. Melanie walks into a retail store and purchases the first laptop she sees.
b. Janet hears about a laptop on the evening news and purchases that specific laptop
c. Polly purchase a laptop off groupon
d. Suzanne searches online, asks friends at work for advice, and buys one after spending hours in multiple stores.
Answer: D
There are several reasons why marketers like habitual purchasers including which of the following reasons?
There are several reasons why marketers like habitual purchasers including which of the following reasons?
a. They are less likely to say negative things if they have a poor customer service experience.
b. They are more likely to switch brands.
c. They are more likely to be consistently looking for the lowest price.
d. They are more likely to remain brand loyal.
Answer: D
Name the type of need that pertains to the performance of a product or service.
Name the type of need that pertains to the performance of a product or service.
a. Social
b. None are correct.
c. Functional
d. Psychological
e. Biological
Answer: C
A(n) ____ is a basic need that drives the consumer to solve the problem and satisfy the need such as purchasing a pain reliever when she has a headache.
A(n) ____ is a basic need that drives the consumer to solve the problem and satisfy the need such as purchasing a pain reliever when she has a headache.
a. behavior
b. motive
c. attitude
d. perception
Answer: B
Betty buys antibacterial hand soap for her kitchen and bathrooms to ensure her hands are clean. She is motivated by her ____ need.
Betty buys antibacterial hand soap for her kitchen and bathrooms to ensure her hands are clean. She is motivated by her ____ need.
a. emotional
b. financial
c. safety
d. physiological
e. functional
Answer: C
Which of the following factors do NOT directly influence a consumer's information search and purchase decision?
Which of the following factors do NOT directly influence a consumer's information search and purchase decision?
a. Time
b. Perceived benefits
c. Effort
d. Accounting process
Answer: D
Which of the following statements illustrates an internal locus of control?
Which of the following statements illustrates an internal locus of control?
a. Consequences are the result of my actions
b. Bad luck will sometimes come to you, it is just the way the world works.
Answer: A
A habitual purchase:
A habitual purchase:
a. applies primarily to products and services that are boring and routine
b. involves many choices but the decision is made easily
c. involves an extended internal search but not an external search
d. involves little conscious effort
Answer: D
Which of the following statements illustrates an external locus of control?
Which of the following statements illustrates an external locus of control?
a. If I study hard enough, I will get a high score on the test.
b. If I do poorly on the test, I will have to study harder the next time.
c. No matter how hard I study, the test will be too hard.
Answer: C
The collection of all possible alternatives for a decision, even those the buyer would NOT consider and might not even be aware of, is the:
The collection of all possible alternatives for a decision, even those the buyer would NOT consider and might not even be aware of, is the:
a. retrieval set
b. evaluative criterion
c. evoked set
d. attribute set
e. universal set
Answer: E
Factors that influence consumer behavior and are a part of the external ____ environment, include the consumer's family, friends, reference groups, and culture in which they operate.
Factors that influence consumer behavior and are a part of the external ____ environment, include the consumer's family, friends, reference groups, and culture in which they operate.
a. situational
b. motivational
c. cultural
d. social
Answer: D
Which of the following factors is not a perceived cost of product purchase?
Which of the following factors is not a perceived cost of product purchase?
a. Habitual purchase
b. Effort
c. Price
d. Time
Answer: A
Two brothers lead very different ____ and consequently buy different products. One brother lives in a metropolitan area, uses public transportation, and rents a car from Hertz on weekends if he wants to get away from the city. The other brother lives 50 miles from the nearest town and drives his Ford truck over 25,000 miles annually.
Two brothers lead very different ____ and consequently buy different products. One brother lives in a metropolitan area, uses public transportation, and rents a car from Hertz on weekends if he wants to get away from the city. The other brother lives 50 miles from the nearest town and drives his Ford truck over 25,000 miles annually.
Answer: lifestyles
Of the influences on the consumer's behavior when buying a car, select the internal factor which applies to a buyer.
Of the influences on the consumer's behavior when buying a car, select the internal factor which applies to a buyer.
a. Psychological factors: how sporty s/he perceives the car to be.
b. Market mix elements: heavy radio and TV advertising to communicate about the special offer on a sedan
c. Situational factors: the dealer's showroom is very crowded and the wait for a test drive is very long.
d. Social factors: how his or her reference group perceives the car.
Answer: A
Determinant attributes are employed by consumers to:
Determinant attributes are employed by consumers to:
a. choose from among brands or stores that are least important
b. identify stores that offer different types of products where they could also make purchases
c. rank order the value of the choices presented
d. help them differentiate competing brands or stores that seem similar to them
Answer: D
Which of Maslow's needs is the highest-order need, the one that can be satisfied only after all other need are met?
Which of Maslow's needs is the highest-order need, the one that can be satisfied only after all other need are met?
a. Love
b. Esteem
c. Self-actualization
d. Safety
e. Physiological
Answer: C
Bill is trying to decide which university to attend from four at which he was accepted. None completely matches his idea of the perfect school, so he has decided on focusing on the two schools which seem smaller and a bit further away from his home state and costs slightly more than the two larger universities. His final choice is a smaller school which he thinks may be worth the trade-off, his decision model is:
Bill is trying to decide which university to attend from four at which he was accepted. None completely matches his idea of the perfect school, so he has decided on focusing on the two schools which seem smaller and a bit further away from his home state and costs slightly more than the two larger universities. His final choice is a smaller school which he thinks may be worth the trade-off, his decision model is:
a. compensatory
b. determinant
c. irrational
d. noncompensatory
Answer: A
The marketing manager for a brand of root beer often has difficulty convincing buyers to pay for high-quality soda. He has learned that many women buy it but do not drink it; for this reason they often buy store brands for their ____, hoping to save money.
The marketing manager for a brand of root beer often has difficulty convincing buyers to pay for high-quality soda. He has learned that many women buy it but do not drink it; for this reason they often buy store brands for their ____, hoping to save money.
a. culture
b. selves
c. reference groups
d. families
Answer: D
An ____ search is when the buyer seeks information outside his or her personal knowledge base to help make the buying decision, such as checking the internet, asking a friend, or visiting a showroom.
An ____ search is when the buyer seeks information outside his or her personal knowledge base to help make the buying decision, such as checking the internet, asking a friend, or visiting a showroom.
a. alternative
b. information
c. internal
d. external
Answer: D
The final step, and a very important in retaining and building a loyal customer base, in the consumer decision-making process is the ____ phase.
The final step, and a very important in retaining and building a loyal customer base, in the consumer decision-making process is the ____ phase. (note one blank allotted)
Answer: postpurchase
At the Apple Store, employees known as "Geniuses" mix with consumers who are playing with and trying out Apple products. These ____ answer questions for the shoppers. They can complete the transaction and email the receipt to the customer without ever leaving the demonstration counter.
At the Apple Store, employees known as "Geniuses" mix with consumers who are playing with and trying out Apple products. These ____ answer questions for the shoppers. They can complete the transaction and email the receipt to the customer without ever leaving the demonstration counter.
a. postpurchase adopters
b. buyers
c. salespersons
d. technicians
Answer: C
The search for information is the ____ step in the consumer decision process.
The search for information is the ____ step in the consumer decision process.
a. third
b. second
c. fourth
d. first
Bill ordered a Prius by Toyota and made a substantial down payment on the car. Then he read about the recall of many Toyotas, and he is now feeling what negative reaction to the information?
Bill ordered a Prius by Toyota and made a substantial down payment on the car. Then he read about the recall of many Toyotas, and he is now feeling what negative reaction to the information?
a. Buyer indigestion
b. Consumer dissatisfaction
c. Postpurchase consumer regret
d. Postpurchase cognitive dissonance
Answer: D
Judy quickly decides to buy mints at the supermarket check out. This spontaneous purchase is indicative of ____ buying.
Judy quickly decides to buy mints at the supermarket check out. This spontaneous purchase is indicative of ____ buying.
Answer: impulse
Which of the following scenarios describes negative word-of-moth?
Which of the following scenarios describes negative word-of-moth?
a. Joe tells anyone he meets he feels he got a good deal on the product.
b. Joe tells only his wife because he is embarrassed that he was given a defective product.
c. Joe tells no one but writes in the corporate blog when he is satisfied with the brand.
d. Joe tells many of his friends because he feels like he paid too much for poor service.
e. Joe tells the owner of the business because he feels he was rushed through the process.
Answer: D
The key point in the consumer decision process at which marketers can solidify consumer loyalty is during the final step, the ____ stage.
The key point in the consumer decision process at which marketers can solidify consumer loyalty is during the final step, the ____ stage.
Answer: postpurchase
John is unhappy with the way the plumber fixed his problem in his kitchen, but he feels has not leverage with the plumber, has essentially no recourse, and has to simply pay the bill. Under this condition, John is likely to engage in:
John is unhappy with the way the plumber fixed his problem in his kitchen, but he feels has not leverage with the plumber, has essentially no recourse, and has to simply pay the bill. Under this condition, John is likely to engage in:
a. not calling any plumber the next time he has a problem
b. negative word-of-mouth
c. cheating
d. waiting to talk to the manager
e. brand switching
In order to improve the probability of customer satisfaction, the marketing manager is advised to do all of the following EXCEPT:
In order to improve the probability of customer satisfaction, the marketing manager is advised to do all of the following EXCEPT:
a. offer clear demonstrations of how to use the product so the performance is as expected
b. encourage customer feedback
c. provide a gift with purchase or other financial premiums
d. provide warranties and money-back guarantees
e. set realistic expectations for the performance of the product or service
Answer: C
____ attributes are features important to buyers and that help to simplify the decision process and enable them to differentiate between brands.
____ attributes are features important to buyers and that help to simplify the decision process and enable them to differentiate between brands.
Answer: Determinant
Which one of the following is the correct explanation of noncompensatory decision sets?
Which one of the following is the correct explanation of noncompensatory decision sets?
a. Product purchase decision is made because it has a attribute, valued above any of its other attributes, on which the consumer bases the decision.
b. Product purchase decision is made because the product has all desired attributes that the consumer deems important.
c. Product purchase decision is made on the combined value of all attributes which is more important than the value of a single desired attribute.
Answer: A
Less time and effort will be spend analyzing benefits and costs of information search when product price is ____.
Less time and effort will be spend analyzing benefits and costs of information search when product price is ____.
a. fluctuating
b. high
c. decreasing
d. low
Answer: D
Jill is in the market for purchasing a new automobile, but she will only consider models made by American companies. The American car makers are part of Jill's ____ set.
Jill is in the market for purchasing a new automobile, but she will only consider models made by American companies. The American car makers are part of Jill's ____ set.
a. alternative
b. evoked
c. universal
d. retrieval
Answer: B
When a consumer decides to purchase an item either at Banana Republic or Macy's then this would be considered the consumers ____ set.
When a consumer decides to purchase an item either at Banana Republic or Macy's then this would be considered the consumers ____ set.
a. evoked
b. reset
c. universal
d. confined
Answer: C
Hallmark sells Valentine's Day cards with quotes which are appealing to ____ needs (also called affiliation needs in Maslow's hierarchy), which help express feelings towards one another.
Hallmark sells Valentine's Day cards with quotes which are appealing to ____ needs (also called affiliation needs in Maslow's hierarchy), which help express feelings towards one another.
Answer: love
A very real problem for the marketer originating from dissatisfied customers is ____ word-of-mouth.
A very real problem for the marketer originating from dissatisfied customers is ____ word-of-mouth.
Answer: negative
Consumer decision making about products and services is influenced by the configuration of all of the following; market mix, social influences, ____ factors, and sociological factors.
Consumer decision making about products and services is influenced by the configuration of all of the following; market mix, social influences, ____ factors, and sociological factors.
a. psychological
b. second
c. sustainable
d. environmental
Answer: A
Jamie needed to buy a car. She started by visiting the Consumer Reports website to look at their reviews of cards, asked her friends for advice, and visited the websites of all the major car manufacturers. Next, she went to several car dealerships to test-drive cars. Finally, she chose the model she wanted, after which she went back to the Internet to look for the best price. Jamie engaged in ____ problem solving to select a car.
Jamie needed to buy a car. She started by visiting the Consumer Reports website to look at their reviews of cards, asked her friends for advice, and visited the websites of all the major car manufacturers. Next, she went to several car dealerships to test-drive cars. Finally, she chose the model she wanted, after which she went back to the Internet to look for the best price. Jamie engaged in ____ problem solving to select a car.
a. limited
b. extended
c. habitual
d. low-involvement
Answer: B
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