GB 350 Exam 2 Cascio Questions and
Answers
Absolute quota - ANSWER-maximum number of products that can be imported in a
given time period
Tariff rate quota - ANSWER-maximum number of products that can be imported at a
reduced tariff
Embargo - ANSWER-ban on product/service trade activity with another country
US economic factors and natural resources - ANSWER-large land mass not
bordered by hostile governments
expansive coastline, farmland, water, coal, oil and gas, people
Five methods of entering the global marketplace - ANSWER-exporting
licensing
contract manufacturing
joint venture
direct investment
Exporting - ANSWER-offers the lowest risk primarily because the company does not
assume the cost of operating in another country
Licensing - ANSWER-agreements that give people/organizations in other countries
the right to use a domestic companies resources to do business or operate under a
domestic business model
ex. Chick Fil A
Contract manufacturing - ANSWER-involves outsourcing production of a domestic
product to an independent international business
ex. H&M
Joint ventures - ANSWER-happen when organizations partner to form a new
business or one buys stake in the other
ex. Delta, KLM, Air France
Direct investments - ANSWER-a domestic company's its up shop in an International;
market
ex. General Motors having 27 manufacturing plants in China
Dumping - ANSWER-sale of an exported product at a lower price than that charged
for a similar product in the "home" market of the exporter
, Gray/grey markets - ANSWER-practice of selling and distributing products outside of
normal distribution channels
Consumer behavior - ANSWER-the why/how/when of what people think/feel/do
Perceived value - ANSWER-net wroth (benefits - costs) a consumer expects to
obtain form a particular behavior
Derived value - ANSWER-consumers evaluations of net worth hat results form a
particular behavior
Consumer decision-making process - ANSWER-5 step process used by consumers
when buying goods or services
- need recognition
- information search
- evaluation alternatives
- decision
- post decision behavior
Need recognition - ANSWER-result of an imbalance between actual and desired
states
Information search - ANSWER-consists of internal and external
Evaluation of alternatives - ANSWER-consideration/evoked set: group of brands
resulting from an information search from which a buyer can choose
The three "sets" - ANSWER-evoked/consideration
inept
inert
Cognitive Dissonance - ANSWER-apart of post-decision behavior
- inner tension that a consumer experiences after recognizing an inconsistency
between behavior and values or opinions
Post-decision behavior equity theory - ANSWER-proposes that consumers evaluate
experiences based on ratio of outcomes to investments, through assessments of
three forms of justice
- distributive
- procedural
- interactional
Consumer involvement - ANSWER-amount of time and effort a buyer invests in the
search, evaluation, and decision processes of consumer behavior
Consumer involvement factors: - ANSWER-previous experience
interest
perceived risk of negative consequences
social visibility
Answers
Absolute quota - ANSWER-maximum number of products that can be imported in a
given time period
Tariff rate quota - ANSWER-maximum number of products that can be imported at a
reduced tariff
Embargo - ANSWER-ban on product/service trade activity with another country
US economic factors and natural resources - ANSWER-large land mass not
bordered by hostile governments
expansive coastline, farmland, water, coal, oil and gas, people
Five methods of entering the global marketplace - ANSWER-exporting
licensing
contract manufacturing
joint venture
direct investment
Exporting - ANSWER-offers the lowest risk primarily because the company does not
assume the cost of operating in another country
Licensing - ANSWER-agreements that give people/organizations in other countries
the right to use a domestic companies resources to do business or operate under a
domestic business model
ex. Chick Fil A
Contract manufacturing - ANSWER-involves outsourcing production of a domestic
product to an independent international business
ex. H&M
Joint ventures - ANSWER-happen when organizations partner to form a new
business or one buys stake in the other
ex. Delta, KLM, Air France
Direct investments - ANSWER-a domestic company's its up shop in an International;
market
ex. General Motors having 27 manufacturing plants in China
Dumping - ANSWER-sale of an exported product at a lower price than that charged
for a similar product in the "home" market of the exporter
, Gray/grey markets - ANSWER-practice of selling and distributing products outside of
normal distribution channels
Consumer behavior - ANSWER-the why/how/when of what people think/feel/do
Perceived value - ANSWER-net wroth (benefits - costs) a consumer expects to
obtain form a particular behavior
Derived value - ANSWER-consumers evaluations of net worth hat results form a
particular behavior
Consumer decision-making process - ANSWER-5 step process used by consumers
when buying goods or services
- need recognition
- information search
- evaluation alternatives
- decision
- post decision behavior
Need recognition - ANSWER-result of an imbalance between actual and desired
states
Information search - ANSWER-consists of internal and external
Evaluation of alternatives - ANSWER-consideration/evoked set: group of brands
resulting from an information search from which a buyer can choose
The three "sets" - ANSWER-evoked/consideration
inept
inert
Cognitive Dissonance - ANSWER-apart of post-decision behavior
- inner tension that a consumer experiences after recognizing an inconsistency
between behavior and values or opinions
Post-decision behavior equity theory - ANSWER-proposes that consumers evaluate
experiences based on ratio of outcomes to investments, through assessments of
three forms of justice
- distributive
- procedural
- interactional
Consumer involvement - ANSWER-amount of time and effort a buyer invests in the
search, evaluation, and decision processes of consumer behavior
Consumer involvement factors: - ANSWER-previous experience
interest
perceived risk of negative consequences
social visibility
