Marketing 13th Edition by Roger Kerin – Test Bank

Marketing 13th Edition by Roger Kerin – Test Bank

Chapter 07
Understanding and Reaching Global Consumers and Markets

Multiple Choice Questions

1. Why did Dell, Inc., embark on a global growth initiative?

A. U.S. sales had decreased.

B. Dell was recently purchased by Lenovo, a major Chinese competitor.

C. There was too much competition in Dell’s direct-to-consumer marketing channel.

D. There were fewer restrictions in computer technology outside the United States.

E. Emerging economies offered significant growth potential.

2. In what way is Dell’s expansion into the global arena a departure from its prior marketing practices?

A. All Dell products were manufactured in the countries within which they were sold.

B. Dell sold its products to emerging markets using the telephone and Internet sales strategy that was so successful in the United States.

C. Dell opened shop-within-a-shop counters in selected retailers in India so shoppers could experience the products.

D. Dell sold only laptops in China, whereas it sold both desktops and laptops in India due to trade restrictions in China.

E. Dell designed and distributed the same products globally to take advantage of economies of scale.

3. Dell established its company primarily with direct telephone- and Internet-based sales. In terms of Dell’s global expansion strategy, which of the following statements is most accurate?

A. Dell sells its computers via word of mouth, which is the most powerful method for consumer electronics.

B. Dell partners with each country’s largest department stores and sells its computers in the small appliance department.

C. Dell issues its own credit card through multinational banks, making it possible for customers who would not normally qualify for credit to do so.

D. Dell distributes its products through individual sales associates who reach out to customers with a first-hand experience at their doorsteps.

E. Dell maintains the exact same U.S. strategies that brought it this far because it sees no reason to change.

4. All nations and regions of the world do not participate equally in world trade. World trade flows reflect

A. the influences of culture and language.

B. the differences among industries, countries, and regions.

C. interdependencies among industries, countries, and regions.

D. the challenges of currency and exchange imbalances.

E. the increasing importance of services verses products.

5. A country’s imports

A. stimulate the imports of other countries.

B. have no affect on its exports.

C. have no relationship with its balance of payments.

D. affect its exports and exports affect its imports.

E. over time will decrease its overall economic activity.

6. An estimated 10 to 15 percent of world trade involves __________, the practice of using barter rather than money for making global sales.

A. cross trade

B. countertrade

C. exchange trade

D. trade feedback

E. market trading

7. The balance of trade is the

A. difference between the monetary value of a nation’s exports and imports.

B. sum of the monetary value of a nation’s exports and imports.

C. monetary value of a nation’s exports divided by its imports.

D. surplus that occurs when nations engage in exporting.

E. difference between a country’s services and goods exports.

8. When a country’s exports exceed its imports,

A. it incurs a deficit in its balance of trade.

B. the result is the trade feedback effect.

C. it will try to rebalance its overall economy.

D. it will attempt to engage in a trade war.

E. it incurs a surplus in its balance of trade.