Chapter1Multiplechoices1.d2.d3.d4.a5.c6.c7.b8.d9.e10.d11.bTrueorfalse1.True2.True3.False4.False5.False6.True7.TrueDiscussion1ChinasuccessfullyparticipatingintheWTOoffersbothchallengesandopportunitiestoChinesecompanies.ChinaofficiallyjoinedtheWTOon10thNovember2001.WTOisoneofthemostinfluentialinternationalgovernmentalbodiestoaffectmarketing.WTOandtheWorldCourtaresetuptohelptosolveinternationaltradedisputes,andtheyalsohelpthemembercountriestogainfairtreatmentininternationaltrades.SinceChinaisamembercountryoftheorganization,Chinacanalsoenjoylowtradetariffsandseekequaltreatmentamongassociationmembers,whichwould,ofcourse,givecompaniesmorechancestoexpandtheirinternationalmarkets.2internationalmarketingismorecomplexthandomesticmarketinginanumberofways.1.Differentenvironments,2.Differentapplicationsofmarketingprinciples,conceptsandtechniques3.Differentrelationsbetweenenterprisesandgovernment.3Contact:Theseekingoutofprospectiveconsumersanditmaybebasedonavarietyofdeterminants.Improperhandlingoftheinitialcontactcankeepacompanyoutofthemarketplaceindefinitely.Merchandising:Merchandisingistheprocessofbringingtherightproducttotherightplaceattherighttimeintherightquantityattherightplace.Pricing:Thepriceofaproductisoftenthedeterminingfactorwhenapurchaseismadeandisalwaysakeytoprofit.Promotion:Promotionisusedtosupportmarketingefforts:paidadvertising,personalselling,publicrelations,andsupplementalefforts.Distribution:Theprocessofputtingtheconsumerandtheproducttogether.Humanresources:Internalmarketingthatoccurswithinacompanybetweenemployersandemployeesisareflectionintheabilitytomarketexternallytothepublic.It’sessentialthatsellersunderstand,communicatewith,andvaluebuyers.4.Therearemanyreasonsforthat,environment,Competition,legalrestraints,governmentcontrols,weather,fickleconsumers,andanynumberofotheruncontrollableelementscan,andfrequentlydo,affectChapter2Multiplechoices1.c2.a3.a4.d5.a6.b7.c8.c9.d10.cTrueorfalse1.False2.True3.True4.True5.True6.True7.True8.True9.True10.FalseDiscussion1.1)Ahasanabsoluteadvantageinproducingbothwheatandcars.Theresourcesrequiredproducing1unitofwheatinAandBare1/80and1/40respectively.Theresourcesrequiredproducing1carinAandBare1/10and1/8respectively.2)SinceAhasacomparativeadvantageinproducingwheatandcomparativedisadvantageinproducingcars,itisexpectedtoexportwheatandimportcars.3)Underautarky,Awouldproduce4000unitsofwheatand500carswhileBwouldproduce2000unitsofwheatand400cars.Worldproductionofwheatandcarswouldthenbe6000unitsofwheatand900cars.SupposethetwocountriestradeandspecializedinproductionsothatAdevotes80unitsofresourcestoproducewheatand20unitsofresourcestoproducecars.Atthesametime,Bdevotesallitsresourcestoproducecars.TheproductionpatternissummarizedinTable1below.Table1:ProductionPatternsBeforeandAfterTradeABTOTALBEFOREWheat4,0002,0006,000Cars500400900AFTERWheat6,40006,400Cars2008001,000IfAagreestoexport2200unitsofwheatandinreturnBagreestoexport350cars,theresultingconsumptionpatternsinthetwocountriesisrepresentedinTable2below.ABTOTALBEFOREWheat4,0002,0006,000Cars500400900AFTERWheat4,2002,2006,400Cars5504501,000Asmaybeseen,withspecializationandtradebothcountriescanconsumemoreofbothproductsandhencebebetteroff.Chapter3Multiplechoices1.c2.a3.c4.e5.a6.b7.d8.a9.b10.bTrueorfalse1.False2.True3.False4.True5.True6.True7.True8.True9.True10.TrueDiscussionReviewQuestionAnswersTheGlobaleconomyhasexperiencedthefollowingchangesa)Capitalmovementsratherthantradehavebecomethedrivingforceoftheglobaleconomy.b)productionhasbecomeuncoupledfromemployment.c)primaryproductshavebecomeuncoupledfromtheindustrialeconomy.d)Theworldeconomyisincontrol.Reasonsa)WorldtradeissomeUS$3trillion,whereastheLondonEurodollarmarket-aloneissomeUS$75billionperannumandforeignexchangetransactionswereUS$35billionperannum.Interestandexchangerate-gainsareoftenmorelucrativethaninvestmentingoodsandservicesmanufacturing.b)Employmentisindeclinewhilemanufacturingeithergrowsorremainsstatic.Sectorsarebecomingmoreproductive,withinjectionsofcapitalequipmentandnewtechnologies.c)Commoditypricesmaycollapsebutindustrialeconomiescanbeunaffected.d)Worldtradeisrecognizedasvitaltoeconomiesasdomesticgrowthslowsdownandopportunitiesoverseasgrow.Growthachievableininternationaltradeisoftenatagreaterratethandomesticallyandthereturnshigher.Chapter4Multiplechoices1.a2.d3.d4.b5.d6.a7.a8.c9.b10.cTrueorfalse1.True2.False3.False4.False5.True6.False7.False8.True9.True10.TrueDISCUSSIONReviewQuestionsAnswers1.Importanttohavearegulatoryframeworkforthefollowingreasons.a)Frameworkstatesthepolitical,socialandlegalgroundrulesfordoingbusinessbetweenandwithincountries.b)Theframeworkgives:i)thebasisforallproduction,exchangeanddistributionactivitiesii)givesrisetoexpectationsandassurancesabouttheactionsofothersandiii)givesorderandstabilitytothemeansofdoingbusiness.Themostimportantrulesarethese:a)Defining,allocatingandenforcingpropertyrights.b)Establishingrulesandconventionsdefiningallowableandnonallowableformsofcooperationandcoordination(standards,rulesofconduct,fairtradingetc).2.Tariffbar