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MARK 3000 Final—McManus. Exam
Questions With Correct Answers.
Globalization - answer✔✔process by which goods, services, capital, people, info, and ideas flow
across national borders
Assessing Global Markets - answer✔✔Economics
Infrastructure and tech
Government actions
sociocultural factors
Economics - answer✔✔GDP, GNI, purchasing power parity, market size and population growth
rate
GDP - answer✔✔measuring value of products and services created there
GNI - answer✔✔consists of GDP plus the net income earned from investments abroad (minus
any payments made to nonresidents who contribute to the domestic economy)
Purchasing power parity - answer✔✔a theory that states that if the exchange rates of two
countries are in equilibrium, a product purchased in one will cost the same in the other, if
expressed in the same country
Weak dollar - answer✔✔means greater demand for their products in foreign countries because
they can sell it at a lower proce
Big Mac Index - answer✔✔purchasing power parity
Market size and population growth rate - answer✔✔there are millions of people and growing,
but the population has never been equally dispersed
Infrastructure - answer✔✔the basic facilities, services, and installations needed for a community
or society to function, such as transportation and communication systems, water and power lines,
and public institutions such as schools, post offices, and prisons
Transportation - answer✔✔trains, roads, refrigeration, airports
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Communication systems - answer✔✔media access, must be sufficiently developed to allow
consumers to find information about the products and services available in the marketplace
Distribution channels - answer✔✔must exist to deliver products in a timely manner and at a
reasonable cost, some are high tech, some load things onto donkey carts
Commerce - answer✔✔legal, banking, and regulatory systems, allows markets to function
Gov't actions - answer✔✔quota
tariff
exchange control
trade agreement
trading bloc
ease in doing business
Quota - answer✔✔designates a minimum or maximum quantity of a product that may be brought
into a country during a specified time period
- reduces availability of imported goods
Tariff - answer✔✔a tax levies on a good imposed into a country; also called a duty
- artificially raises prices, makes imported goods and more expensive and less competitive with
domestic goods
- lowers demand for imported goods
Quotas and tariffs - answer✔✔both benefit domestically made products because they reduce
foreign competition
Exchange control - answer✔✔regulation of a country's currency exchange rate
Trade agreement - answer✔✔intergovernmental agreement designed to manage and promote
trade activities for specific regions
Trading bloc - answer✔✔consists of those countries that have signed a particular trade
agreement
EU - answer✔✔- 28 member countries
- standardized currency
- regulation
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- trade practices
NAFTA - answer✔✔- US, Canada, Mexico
- item produced in any is treated as domestic in all
Ease in doing business - answer✔✔- ownership policies
- political stability
- desire for foreign business
Culture - answer✔✔the shared meanings, beliefs, morals, values, and customs of a group of
people, exist on two levels: visible artifacts and underlying values
Power distance - answer✔✔willing to accept social inequality as natural
Uncertainty avoidance - answer✔✔the extend to which the society relies on orderliness,
consistency, structure, and formalized procedures to address situations that arts in daily life
Individualism - answer✔✔perceived obligation to and dependence on groups
Masculinity - answer✔✔the extent to which dominant values are male oriented
Low masculinity - answer✔✔men and women are treated equally in all aspects of society; a
higher masculinity ranking suggests that men dominate in a all positions of power
Time orientation - answer✔✔short vs long term orientation
Long-term orientation - answer✔✔values long-term commitments and is willing to accept a
longer time horizon for the success of a new product introduction
Indulgence - answer✔✔the extent to which society allows for gratification of fun and enjoyment
needs or else suppresses and regulates such pursuits
Business Culture - answer✔✔- the common set of practices considered acceptable in a business
setting
- significant differences in values, behaviors across countries, regions
- language problems
Exporting - answer✔✔producing goods in one country and selling them in another
Franchising - answer✔✔a contractual agreement between a firm, the franchisor, and another
firm, or individual, the franchisee
