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InternationalMarketing,18e(Cateora)

Chapter9EconomicDevelopmentandtheAmericas

1)Ofthethreekindsofdistancesthatinternationalmarketersmusttraverse,timezoneshavethegreatestinfluenceonthesuccessoftheircommercialeffortsabroad.

2)Theliberalizationoftradeandinvestmentpoliciesindevelopingcountrieshavelittleimpactonthewaycountrieswilltradeandprosperinthe21stcentury.

3)Thelevelofpoliticalstabilityinacountryisthesinglemostimportantenvironmentalelementtowhichtheforeignmarketermustadjustthemarketingtask.

4)Consumptionpatternschangerapidlyinstaticeconomies.

5)Economicdevelopmenttranslatestorapideconomicgrowthandincreasesinconsumerdemand.

6)AccordingtotheUNclassification,industriallydevelopingcountriesjustenteringworldtradewithrelativelylowpercapitaincomesarereferredtoasless-developedcountries.

7)TheUNclassificationofcountriesbasedoneconomicdevelopmenthasbeencriticizedbecauseitnolongerseemsrelevantintherapidlyindustrializingworld.

8)Chileisanewlyindustrializedcountry.Assuch,ithaspercapitaincomeslowerthanLDCs.

9)UndertheUnitedNations'stagesofeconomicdevelopmentforclassifyingcountrieswithrespecttolevelsofindustrialization,Brazilfallsunderthegroupofmore-developedcountries(MDCs).

10)Newlyindustrializedcountries(NICs)arecharacterizedbymarketswithfewerrestrictivetradepracticesandsignificantfreemarketreforms.

11)MercosurisafreetradegroupformedbytheUnitedStates.

12)Privatizationofstate-ownedindustriesreleasedimmediatecapitaltoinvestinstrategicareas.

13)HightransactioncostsassociatedwiththeuseoftheInternetpreventsmallerfirmsinemergingcountriesfromsellingintoaglobalmarket.

14)Economicgrowthismeasuredsolelyineconomicgoals.

15)Thetrendtowardprivatizationisoccurringinindustrializedaswellasindevelopingcountries.

16)Thequalityofaninfrastructuredirectlyaffectsacountry'seconomicgrowthpotential.

17)Amoredevelopedeconomytendstohavefewertypesofmarketingfunctionsthatareneeded.

18)Marketingisaneconomy'sarbitratorbetweenproductivecapacityandgrowthpotential.

19)AccordingtoJagdishSheth,ratherthandiffusionofinnovations,thefocusofnewproductdevelopmentshouldbeonaffordabilityandaccessibility.

20)Forinternationalmarketing,thelevelofmarketdevelopmentparallelsthestagesofeconomicdevelopment.

21)IntheUnitedStates,thevastmajorityofthepopulationlivesinurbanareasandhashigherearningsthanthosewholiveinruralareas.

22)Bigemergingmarketsareofmajorpoliticalimportancewithintheirregions.

23)PolandhasbeenidentifiedasabigemergingmarketbytheDepartmentofCommerce.

24)CanadaisamemberofNAFTA.

25)TheUnitedStates–CanadaFreeTradeArea(CFTA)wasacustomsunionliketheEuropeanCommunity.

26)TheDR-CAFTAincludesawidearrayoftariffreductionsaimedatincreasingtradeandemployment.

27)Mercosuristhelargestcommon-marketagreementintheAmericas.

28)TheMercosuroriginallyenvisionedcentralinstitutionssimilartothoseoftheEuropeanUnioninstitutions.

29)OneofthemostimportantaspectsoftheLatinAmericanIntegrationAssociation(LAIA)thatdiffersfromLAFTA,itspredecessor,isthedifferentialtreatmentofmembercountriesaccordingtotheirlevelofeconomicdevelopment.

30)Asacountrydevelops,marketbehaviorchangesandeventuallyitleadstomarketsegmentation.

31)WhichcountryisanMDC(more-developedcountry)?

A)Brazil

B)Russia

C)Germany

D)Argentina

E)Vietnam

32)AccordingtotheU.S.DepartmentofCommerce,LatinAmericanandotheremergingmarketswillaccountfor________oftheworld'stotalgrowthinthenexttwodecadesandbeyond.

A)20%

B)30%

C)50%

D)75%

E)90%

33)Whatisconsideredthesinglemostimportantenvironmentalelementofacountrytowhichtheforeignmarketermustadjustthemarketingtask?

A)politicalstability

B)economiclevel

C)socialnorms

D)literacylevel

E)culturalorientation

34)Dynamiceconomiesdifferfromstaticeconomiesinthatdynamiceconomies

A)neednotmatchmarketingeffortswiththemarketneedsandwants.

B)haverapidlychangingconsumptionpatterns.

C)haveahighlypredictableandloyalconsumerbase.

D)definemarketingastypicallynothingmorethanasupplyeffort.

E)donotrequireamarketertobepreparedforeconomicshiftsandemergingmarkets.

35)Economic________referstoanincreaseinnationalproductionthatisreflectedbyanincreaseintheaveragepercapitagrossdomesticproductorgrossnationalincome.

A)repression

B)duress

C)equilibrium

D)development

E)sustainability

36)The________classifiesacountry'sstageofeconomicdevelopmentonthebasisofitslevelofindustrializationintothreecategoriesandthethreecategoriesareMDCs,LDCs,andLLDCs.

A)U.S.DepartmentofCommerce

B)NorthAtlanticTreatyOrganization

C)InternationalOrganizationforStandardization

D)UnitedNations

E)InternationalDevelopmentAssociation

37)AccordingtotheUnitedNations'stagesofeconomicdevelopmentforclassifyingcountriesbasedonlevelsofindustrialization,inwhichcategorydoesanindustrializedcountrywithhighpercapitaincomefall?

A)less-developedcountries

B)least-developedcountries

C)more-developedcountries

D)frontiermarkets

E)pre-emergingmarkets

38)WhichstatementistrueaboutMDCs(more-developedcountries)?

A)Thesecountriesarejustenteringworldtrade.

B)Themajorityoftheirpopulationsstayinruralareas.

C)Thesecountrieshavehighpercapitaincomes.

D)Thesecountrieshavelittleworldtradeinvolvement.

E)Thesecountrieshavemainlyagrarianeconomies.

39)AccordingtotheUnitedNations'stagesofeconomicdevelopmentforclassifyingcountriesbasedonlevelsofindustrialization,Canadafallsunderthecategoryof________countries.

A)ThirdWorld

B)least-developed

C)more-developed

D)less-developed

E)pre-emerging

40)AccordingtotheUnitedNations'stagesofeconomicdevelopmentforclassifyingcountriesbasedonlevelsofindustrialization,________countriesconsistofindustriallydevelopingcountriesjustenteringworldtradewithrelativelylowpercapitaincomes.

A)firstworld

B)least-developed

C)less-developed

D)ThirdWorld

E)more-developed

41)Acountrythatisindustriallyunderdeveloped,agrarian,hasasubsistencesocietywithruralpopulations,andhasextremelylowpercapitaincomelevelsfallsunderthecategoryof

A)firstworldcountries.

B)least-developedcountries.

C)less-developedcountries.

D)newlyindustrializedcountries.

E)frontiermarkets.

42)TheUnitedNations'classificationofstagesofeconomicdevelopmenthasbeencriticizedprimarilybecause

A)manycountriesthatareclassifiedasLDCsareindustrializingataveryrapidrate,whileothersareadvancingatmoretraditionalratesofeconomicdevelopment.

B)countriesclassifiedasLLDCsaregrowingataveryrapidrate.

C)itnolongertakesintoaccountsocialoverheadcapitalasanindicatorofeconomicdevelopment.

D)itonlyfocusesontheliteracylevelinacountry.

E)countriesthatareclassifiedasLDCsareindustrializingataslowrate.

43)Mostnewlyindustrializedcountries(NICs)havemovedawayfromrestrictivetradepracticesandinstitutedsignificantfreemarketreforms.Asaresult,thesecountrieshave

A)attractedbothtradeandforeigndirectinvestment.

B)becomepoorimportersaswellasexporters.

C)experiencedlowgrossnationalincome.

D)steppeduptheirprotectionistpolicies.

E)majorlygivenupontheirdomesticmarkets.

44)Newlyindustrializedcountries(NICs)differfromless-developedcountriesinthatNICs

A)includeCanada,theUnitedStates,andGermany.

B)attractinsignificantornoforeigninvestment.

C)havepercapitaincomesthatarelowerthanotherdevelopingcountries.

D)havemovedawayfromrestrictivetradepracticesandinstitutedsignificantfreemarketreforms.

E)haveshownslowindustrializationandexpansionoftargetedindustries.

45)Chile,Brazil,Mexico,SouthKorea,Singapore,andTaiwanareexamplesof________countries.

A)least-developed

B)ThirdWorld

C)underdeveloped

D)newlyindustrialized

E)closedeconomy

46)WhichcountrywasinvolvedintheformationofthefreetradegroupMercosur?

A)Australia

B)China

C)Argentina

D)Russia

E)Thailand

47)_________isafreetradegroupthatincludes200millionpeople,andwasformedbyArgentina,Brazil,Paraguay,andUruguay.

A)NAFTA

B)Caricom

C)Mercosur

D)SACU

E)DR-CAFTA

48)Whencountriesselloffstate-ownedenterprisesandprivatizethem,itusuallyresultsina(n)

A)lackofaccommodationofoutsideinvestors.

B)declineinproductivitythroughouttheprivatesector.

C)increaseinmodernizationbynewinvestors.

D)instantchangeinpoliticalleadership.

E)continuingdrainonfuturenaturalresources.

49)Whatistrueofprivatizationofstate-ownedenterprises?

A)Itleadstoadeclineinproductivitythroughouttheprivatesector.

B)Itwasdoneinordertostopthedrainonnationalbudgetsduetoinefficientstate-ownedenterprises.

C)Itblockscapitalmobilitytostrategicareas.

D)Itleadstoachangeinpoliticalleadership.

E)Itactsasasetbacktotheprocessofmodernization.

50)Whatisacharacteristicimpactofprivatizationofstate-ownedenterprises?

A)Itnormallyhasanegativeeffectoneconomicgrowth.

B)Itblocksinvestmentofcapitalinstrategicareas.

C)Itoftenleadstoneweconomicgrowth.

D)Itresultsinadrainingofthefuturenationalresources.

E)Itbringsaboutapoliticalshiftinthecountry.

51)Duringtheearlymarketgrowthofmanycountries,thefirstlargeopenmarketwas

A)Russia.

B)theUnitedStates.

C)Australia.

D)Germany.

E)theUnitedKingdom.

52)Acountry'sinvestmentininformationtechnologyisakeytoeconomicgrowth.Specifically,theInternet

A)furtherincreasestheadvantageofricheconomiesoverthepoorones.

B)increasesmarkettransactioncosts.

C)allowsforinnovativeservicesbutatarelativelyhighercost.

D)enablessmallerfirmsinemergingeconomiestosellintoaglobalmarket.

E)decreasestheeconomiesofscalefromverticalintegration.

53)Whatistrueabouttheactivitiesofforeigninvestorsindevelopingcountries?

A)Foreigninvestorsareseenasvitalpartnersineconomicdevelopment.

B)Today,mostdevelopingcountrieshavemoreconservativeattitudestowardforeigninvestmentsthanbefore.

C)Foreignfirmsareexpropriatedandchargedwithexcessivelyhightariffsandquotasbyalldevelopingcountries.

D)Foreignbusinessesaregenerallynotallowedtoraisemoneybymeansofsharesindevelopingcountries.

E)Foreigninvestmentisbannedinmostdevelopingcountries.

54)Whatisanindicatorofacountry'seconomicdevelopment?

A)populationexpansion

B)expandingstateownership

C)thecountry'sinfrastructure

D)socialreformation

E)culturaldiversity

55)Pavedroads,railroads,seaports,communicationnetworks,andfinancialnetworksareexamplesof

A)environmentalresources.

B)inventory.

C)infrastructure.

D)factorsofproduction.

E)freightclaims.

56)Economicplannersareoftenmore________orientedthanmarketingoriented.

A)production

B)advertising

C)logistics

D)theory

E)distribution

57)Economicplannersareleastlikelytobeconcernedwiththeproblemsrelatedto

A)production.

B)finance.

C)capacity.

D)distribution.

E)investment.

58)________isaneconomy'sarbitratorbetweenproductivecapacityandconsumerdemand.

A)Warehousing

B)Marketing

C)Convergence

D)Procurement

E)Outsourcing

59)Thelevelofmarketdevelopmentroughlyparallelsthestagesofeconomic

A)stagnation.

B)duress.

C)repression.

D)equilibrium.

E)development.

60)Estimatingmarketpotentialinless-developedcountriesinvolvesadditionalchallenges,butmostofthedifficultyarisesfromthe

A)coexistenceofthreedistinctkindsofmarketsineachcountry.

B)dependenceofthemarketsontheindustrializedsectors.

C)lowerwageratesoftheworkforce.

D)highfluctuationinthecurrencyrate.

E)higherconcentrationofpopulationresidingintheurbanareas.

61)Thetransitionalsectordiffersfromthemodernurbansectorinthatthetransitionalsector

A)isanexclusivelyagriculture-orientedsector.

B)consistsofpopulationthatworksinthecountryside.

C)consistsofanexpandingWesternizedmiddleclass.

D)representsthehigh-incomeurbanslums.

E)consistsofpopulationthatmovesfromthecountrytothelargecities.

62)WhichmarketsectorhasanexpandingWesternizedmiddleclass?

A)thetraditionalsector

B)themodernsector

C)theruralservicessector

D)thetransitionalsector

E)theagriculturalsector

63)Developingcountrieswithmarketsthataregeographicallylarge,havestronggrowthrates,areregionaleconomicdrivers,andrepresentsizablemarketsforawiderangeofproductshavebeenidentifiedbytheU.S.DepartmentofCommerceas________markets.

A)frontier

B)bigemerging

C)two-sided

D)niche

E)grey

64)CountryAisadevelopingcountrythathasasignificantpopulationandrepresentsasizablemarketforawiderangeofproducts.Ithasastronggrowthrateandisconsideredaregionaleconomicdriver.Basedonthisinformation,CountryAcanbeclassifiedasa________market.

A)grey

B)bigemerging

C)two-sided

D)frontier

E)niche

65)WhichcountryhasbeenidentifiedbytheDepartmentofCommerceasaBEM(bigemergingmarket)?

A)Philippines

B)Egypt

C)Venezuela

D)Mexico

E)Nicaragua

66)ThetypeofgrowththatishappeninginBEMstodayisanalogoustowhathappenedin

A)SaudiArabiainthe1800s.

B)IndiaduringtheruleoftheBritishEmpire.

C)RussiaafterthefalloftheCzar.

D)EuropeafterWorldWarII.

E)Iraqbetween1890and1990.

67)WhichcountryisapartofthefreetradeareaknownasCFTA?

A)France

B)Uruguay

C)theUnitedStates

D)Argentina

E)Brazil

68)ThethreemembersoftheNorthAmericanFreeTradeAgreement(NAFTA)are

A)theUnitedStates,theUnitedKingdom,andFrance.

B)theUnitedStates,Cuba,andUruguay.

C)Canada,China,andJapan.

D)theUnitedStates,France,andGermany.

E)Canada,Mexico,andtheUnitedStates.

69)TheCFTAwasdesignedto

A)establishtariffsbetweentheU.S.andEurope.

B)createseveralindependentcommercialmarketsforgoodsandservices.

C)becomeacustomsunionliketheEuropeanCommunity.

D)involvebotheconomicandpoliticalunions.

E)eliminatetariffsandothertradebarriersbetweentheUnitedStatesandCanada.

70)WhichcountryannouncedthatitwouldseekfreetradewiththeUnitedStatesshortlyaftertheratificationoftheUnitedStates–CanadaFreeTradeArea(CFTA)?

A)Germany

B)Australia

C)Mexico

D)TheUnitedKingdom

E)China

71)________requiredtheUnitedStates,Canada,andMexicotoremovealltariffsandtradebarriersover15years,andbeginningin2008,alltariffbarrierswereofficiallydropped.

A)Mercosur

B)LAIA

C)CARICOM

D)NAFTA

E)DR-CFTA

72)WhatkeyprovisionofNAFTArestrictsJapanfromassemblingautosinMexicoandavoidingU.S.orCanadiantariffsandquotas,unlesstheautohadaspecificpercentageofMexican(i.e.,NorthAmerican)content?

A)services

B)standards

C)rulesoforigin

D)uniformcustomsprocedures

E)governmentprocurement

73)WhatistrueaboutNAFTA?

A)Itallowstheuseofstandardsandtechnicalregulationsasobstaclestotrade.

B)Itwasratifiedandbecameeffectiveintheyear2000.

C)ItprohibitsU.S.andCanadianfinancialinstitutionstoopenwhollyownedsubsidiariesinMexico.

D)Itsprovisionsrequiregoodstocontainminimumof10%NorthAmericancontenttobetradeddutyfree.

E)ItsprovisionsrequireCanada,Mexico,andtheUnitedStatestoimplementuniformcustomsproceduresandregulations.

74)NAFTAdiffersfromMercosurinthatNAFTA

A)wasprovidedlegalbasisbytheTreatyofAsunción.

B)isthesecond-largestcommon-marketagreementintheAmericasafterMercosur.

C)includesArgentina,Bolivia,Brazil,Chile,Paraguay,andUruguay.

D)aimstoaddressandimproveallaspectsofdoingbusinesswithinNorthAmerica.

E)aimstoestablishacommoncurrencyforitsLatinAmericanmembers.

75)GiventhefactthatNAFTAisnoweffectiveintheU.S.,Mexico,andCanada,anAmericancompanythathasitsproductionplantinSriLankawillbewillingtorelocateitsproductionplanttoMexicomostlybecause

A)itwillimprovetheimageofitsgoods.

B)MexicohaslowerwagesthanSriLanka.

C)itwillenablethecompanytogetanentirelywesternconsumerbaseforitsproducts.

D)movingfinishedgoodsfromMexicototheUnitedStatesischeaperandfasterthanmovingthemfromSriLanka.

E)workersinMexicoaremoreskilledthanthoseinSriLanka.

76)WhatcountryisamemberofthefreetradeagreementDR-CAFTA?

A)Bahrain

B)Bhutan

C)Morocco

D)CostaRica

E)Oman

77)WhichisthecomprehensivefreetradeagreementamongCostaRica,theDominicanRepublic,ElSalvador,Guatemala,Honduras,Nicaragua,andtheUnitedStatesthatincludesawidearrayoftariffreductionsaimedatincreasingtradeandemployment?

A)DR-CAFTA

B)NAFTA

C)CFTA

D)SAARC

E)Mercosur

78)ThesuccessoftheCaribbeanFreeTradeAssociationledtothecreationofthe

A)CentralAmericanIntegrationSystem.

B)CommunityofLatinAmericanandCaribbeanStates.

C)CaribbeanCommunityandCommonMarket.

D)UnionofSouthAmericanNations.

E)UnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean.

79)CARICOMestablishedtheCSME(CARICOMSingleMarketandEconomy)withthemajorgoalof

A)establishingcentralinstitutionssimilartothoseoftheEuropeanUnioninstitutions.

B)formingapoliticalunion.

C)implementingacommoncurrencyforallmembernations.

D)increasingnontariffbarriers.

E)implementinguniformcustomsprocedures.

80)InthecontextofapoliticalandeconomicrevolutionthathasbeentakingplaceinLatinAmerica,stateownershiphasresultedin

A)inclusionofforeignanddomesticprivateownership.

B)efficientstatetreasuries.

C)efficientpubliccompanies.

D)predictableregulatoryenvironments.

E)inefficientpubliccompanies.

81)WhatcountryisamemberoftheLatinAmericanIntegrationAssociation(LAIA,akaALADI)?

A)Bahamas

B)Cuba

C)Nicaragua

D)CostaRica

E)Honduras

82)Haitiisamemberof

A)CARICOM.

B)NAFTA.

C)CFTA.

D)LAIA.

E)Mercosur.

83)Whatisthelargestcommon-marketagreementintheAmericas?

A)CFTA

B)NAFTA

C)Mercosur

D)DR-CAFTA

E)SAFTA

84)Whatisthesecond-largestcommon-marketagreementintheAmericas,afterNAFTA?

A)CFTA

B)TPP

C)Mercosur

D)DR-CAFTA

E)SAFTA

85)WhichofthefollowingtreatiesprovidedthelegalbasisforMercosur?

A)TreatyofVerdun

B)TreatyofAsunción

C)TreatyofWestphalia

D)TreatyofVersailles

E)TreatyofMontevideo

86)Whataccountsforthelion'sshareofMercosurexportstoEurope?

A)clothingandapparel

B)telecommunicationequipment

C)consumerdurables

D)petroleumandminerals

E)agriculturalandagro-industrialproducts

87)WhatistrueofstateownershipinLatinAmerica?

A)Privatizationofstate-ownedenterprisesblockedthereleaseofimmediatecapitaltoinvestinstrategicareas.

B)Stateownershipisthemostidealengineforeconomicgrowth.

C)Privatizationofstate-ownedenterprisescontinuallydrainedthefuturenationalresources.

D)Stateownershiphasresultedincomplicatedandunpredictableregulatoryenvironments.

E)Stateownershiphasconsistentlyresultedintheinclusionofforeignanddomesticprivateownership,andtheformationofefficientpubliccompanies.

88)Thelong-termgoaloftheLAIA(LatinAmericanIntegrationAssociation),betterknownbyitsSpanishacronym,ALADI,isto

A)improvetheliteracylevelsinmembercountries.

B)reducethechildmortalityratesinmembercountries.

C)establishaLatinAmericancommonmarket.

D)establishacommoncurrencyforallitsmembercountries.

E)standardizetheindustrialproductioninthemembercountries.

89)OnewaythatLAIAdiffersfromLAFTA,itspredecessor,is

A)thedifferentialtreatmentofmembercountriesaccordingtotheirlevelofeconomicdevelopment.

B)theinclusionofrulesoforigin.

C)theexclusionoftariffbarrier.

D)themembersareforbiddenfromestablishingbilateraltradeagreementsamongmembercountries.

E)theintroductionofacommoncurrencyforthemembercountries.

90)Morehouseholdmoneygoesfor________inemergingmarketsthanindevelopedmarkets.

A)housing

B)durablegoods

C)food

D)leisure

E)education

91)Explaintheimportanceoftimezonesfortraderelationshipsandmarketingoperations.Whatarethethreemultinationalmarketregionsthatcomprisemajortradingblocs?

92)Describethepoliticalandeconomicchangesaffectingdevelopingcountries,includingforeigninvestment,transitionfromsocialisttomarket-driveneconomies,andtradepolicies.

93)Explaintheconceptofeconomicdevelopment.

94)DescribethethreecategoriesusedbytheUnitedNationstoclassifyacountry'sstageofeconomicdevelopmentonthebasisofitslevelofindustrialization.

95)Listandbrieflydescribefiveoftheninefactorsthatexistedduringtheeconomicgrowthofnewlyindustrializedcountries(NICs).

96)ExplainhowtheInternetimpactseconomicdevelopmentinemergingeconomies.

97)DescribetheoriginandpurposeofMercosuranditsroleinimprovingtradeassociationsamongAmericannations.

WhywasCaribbeanCommunityandCommonMarket(CARICOM)created?Whatareitsgoals?

InternationalMarketing,18e(Cateora)

Chapter9EconomicDevelopmentandtheAmericas

1)Ofthethreekindsofdistancesthatinternationalmarketersmusttraverse,timezoneshavethegreatestinfluenceonthesuccessoftheircommercialeffortsabroad.

Answer:TRUE

Explanation:Timezonesmakeadifference.Jetlagisanimportantproblem.Amongthreekindsofdistancesthatinternationalmarketersmusttraverse—miles,timezones,andculturaldistances—timezoneshavethegreatestinfluenceonthesuccessoftheircommercialeffortsabroad.

Difficulty:1Easy

Topic:ChallengesandOpportunitiesCreatedbyGlobalization

LearningObjective:09-01Theimportanceoftimezonesfortraderelationshipsandmarketingoperations.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

2)Theliberalizationoftradeandinvestmentpoliciesindevelopingcountrieshavelittleimpactonthewaycountrieswilltradeandprosperinthe21stcentury.

Answer:FALSE

Explanation:Thetransitionfromsocialisttomarket-driveneconomies,theliberalizationoftradeandinvestmentpoliciesindevelopingcountries,thetransferofpublic-sectorenterprisestotheprivatesector,andtherapiddevelopmentofregionalmarketalliancesarechangingthewaycountrieswilltradeandprosperinthe21stcentury.

Difficulty:1Easy

Topic:OverviewofTrade

LearningObjective:09-02Thepoliticalandeconomicchangesaffectingglobalmarketing.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

3)Thelevelofpoliticalstabilityinacountryisthesinglemostimportantenvironmentalelementtowhichtheforeignmarketermustadjustthemarketingtask.

Answer:FALSE

Explanation:Theeconomiclevelofacountryisthesinglemostimportantenvironmentalelementtowhichtheforeignmarketermustadjustthemarketingtask.Thestageofeconomicgrowthwithinacountryaffectstheattitudestowardforeignbusinessactivity,thedemandforgoods,thedistributionsystemsfoundwithinacountry,andtheentiremarketingprocess.

Difficulty:1Easy

Topic:TheChangingNatureoftheGlobalEconomy

LearningObjective:09-03Theconnectionbetweentheeconomiclevelofacountryandthemarketingtask.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

4)Consumptionpatternschangerapidlyinstaticeconomies.

Answer:FALSE

Explanation:Instaticeconomies,consumptionpatternsbecomerigid,andmarketingistypicallynothingmorethanasupplyeffort.Inadynamiceconomy,consumptionpatternschangerapidly.

Difficulty:1Easy

Topic:TheChangingNatureoftheGlobalEconomy

LearningObjective:09-03Theconnectionbetweentheeconomiclevelofacountryandthemarketingtask.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

5)Economicdevelopmenttranslatestorapideconomicgrowthandincreasesinconsumerdemand.

Answer:TRUE

Explanation:Economicdevelopment,ascommonlydefinedtoday,tendstomeanrapideconomicgrowthandincreasesinconsumerdemand—improvementsachieved"indecadesratherthancenturies."

Difficulty:1Easy

Topic:EconomicDevelopment

LearningObjective:09-03Theconnectionbetweentheeconomiclevelofacountryandthemarketingtask.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

6)AccordingtotheUNclassification,industriallydevelopingcountriesjustenteringworldtradewithrelativelylowpercapitaincomesarereferredtoasless-developedcountries.

Answer:TRUE

Explanation:Industriallydevelopingcountriesjustenteringworldtrade,manyofwhichareinAsiaandLatinAmerica,withrelativelylowpercapitaincomesareclassifiedasless-developedcountries(LDCs).

Difficulty:1Easy

Topic:EconomicDevelopment

LearningObjective:09-03Theconnectionbetweentheeconomiclevelofacountryandthemarketingtask.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

7)TheUNclassificationofcountriesbasedoneconomicdevelopmenthasbeencriticizedbecauseitnolongerseemsrelevantintherapidlyindustrializingworld.

Answer:TRUE

Explanation:TheUNclassificationhasbeencriticizedbecauseitnolongerseemsrelevantintherapidlyindustrializingworld.Also,manycountriesthatareclassifiedasLDCsareindustrializingataveryrapidrate,whereasothersareadvancingatmoretraditionalratesofeconomicdevelopment.

Difficulty:1Easy

Topic:EconomicDevelopment

LearningObjective:09-03Theconnectionbetweentheeconomiclevelofacountryandthemarketingtask.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

8)Chileisanewlyindustrializedcountry.Assuch,ithaspercapitaincomeslowerthanLD