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CHAPTER 7: MASTER TEST BANK
UNDERSTANDING AND REACHING GLOBAL CONSUMERS AND MARKETS

Test Item Table by Major Section of the Chapter and Bloom’s Level of Learning

Bloom’s Level of Learning (LL)

Major Section Level 1 Level 2 Level 3


of the Chapter Knowledge Comprehension Application
(Knows Basic (Understands Concepts & (Applies
Terms & Facts) Principles) Principles)
Chapter Opener: 1, 2, 3, 4
Dell
(pp. 158-159)
Dynamics of World 7, 8, 11, 14, 15, 16, 21, 22, 5, 6, 9, 10, 12, 13, 17, 18, 25, 26, 19, 20, 48, 51,
Trade 23, 24, 36, 37, 49, 65, 66, 67, 27, 28, 29, 30, 31, 32, 33, 34, 35, 54
68, 69 38, 39, 40, 41, 42, 43, 44, 45, 46,
(pp. 160-163) 47, 50, 52, 53, 55, 56, 57, 58, 59,
317, 318
60, 61, 62, 63, 64, 70

Marketing in 75, 76, 82, 83, 84, 91, 92, 94, 71, 72, 73, 74, 77, 78, 80, 81, 85, 79, 88, 89, 90,
a Borderless 97, 98, 99, 105, 106, 107, 86, 87, 94, 95, 96, 100, 101, 102, 93, 122, 131,
Economic World 116, 117, 118, 119, 120, 123, 103, 104, 108, 109, 110, 111, 133, 137
124, 125, 129, 132, 134, 135, 112, 113, 114, 115, 121, 126, 319, 321
(pp. 164-171) 136, 138, 139, 140, 142, 143, 127, 128, 130, 141, 144, 145,
147, 148 146, 149, 150, 151, 152, 153
325 320, 322, 323, 324

A Global 154, 155, 156, 157, 163, 164, 158, 165, 169, 173, 174, 175, 159, 160, 161,
Environmental Scan 167, 168, 170, 171, 172, 176, 179, 193, 194, 195, 196, 197, 162, 166, 178,
177, 181, 186, 187, 188, 198, 202, 205, 206, 208, 209, 210, 180, 182, 183,
(pp. 171-179) 199, 200, 201, 203, 204, 212, 214, 215, 218, 219, 220, 223, 184, 185, 189,
213, 216, 217, 222, 224 225, 226, 227 190, 191, 192,
329 326, 327, 328, 330, 331 207, 211, 221

Comparing Global 228, 229, 230, 231, 232, 240, 233, 234, 235, 236, 237, 238, 247, 248, 255,
Market-Entry 241, 242, 243, 244, 245, 246, 239, 250, 254, 258, 259, 260, 263, 267, 270,
Strategies 249, 251, 252, 253, 256, 257, 261, 262, 274, 275, 279 280
264, 265, 266, 268, 269, 271, 332, 333, 334, 335
(pp. 179-183) 272, 273, 276, 277, 278

Crafting a 281, 285, 286, 289, 305, 306, 282, 287, 291, 292, 293, 294, 283, 284, 288,
Worldwide 307, 309, 310, 311 295, 296, 297, 298, 299, 300, 290, 308, 312
Marketing Program 301, 302, 303, 304
(pp. 183-186) 336, 337, 338

Video Case 7: 313 314, 315, 316


CNS
(pp. 188-189)

NOTE: Bold numbers indicate short essay questions. Underlined numbers indicate visually enhanced questions.
CHAPTER 7: MASTER TEST BANK
UNDERSTANDING AND REACHING GLOBAL CONSUMERS AND MARKETS

Test Item Table by Learning Objective and Bloom’s Level of Learning

Bloom’s Level of Learning (LL)

Learning Objective Level 1 Level 2 Level 3


(LO) Knowledge Comprehension Application
(Knows Basic (Understands Concepts (Applies
Terms & Facts) & Principles) Principles)
LO1 Describe the 7, 8, 11, 14, 15, 16, 21, 5, 6, 9, 10, 12, 13, 17, 18, 25, 19, 20, 48, 51, 54,
nature and scope 22, 23, 24, 35, 36, 49, 26, 27, 28, 29, 30, 31, 32, 33, 79, 88, 89, 90, 93,
of world trade 65, 66, 67, 68, 69, 75, 34, 37, 38, 39, 40, 41, 42, 43, 122, 131, 133, 137
76, 82, 83, 84, 91, 92, 44, 45, 46, 47, 50, 52, 53, 55, 319, 321
from a global
94, 97, 98, 99, 105, 106, 56, 57, 58, 59, 60, 61, 62, 63,
perspective and 107, 116, 117, 118, 119, 64, 70, 71, 72, 73, 74, 77, 78,
identify the major 120, 123, 124, 125, 129, 80, 81, 85, 86, 87, 94, 95, 96,
trends that have 132, 134, 135, 136, 138, 100, 101, 102, 103, 104, 108,
influenced world 139, 140, 142, 143, 147, 109, 110, 111, 112, 113, 114,
trade and global 148 115, 121, 126, 127, 128, 130,
marketing. 317, 318, 325 141, 144, 145, 146, 149, 150,
151, 152, 153
(pp. 160-171)
320, 322, 323, 324

LO2 Identify the 154, 155, 156, 157, 163, 158, 165, 169, 173, 174, 175, 159, 160, 161, 162,
environmental 164, 167, 168, 170, 171, 179, 193, 194, 195, 196, 197, 166, 178, 180, 182,
forces that shape 172, 176, 177, 181, 186, 202, 205, 206, 208, 209, 210, 183, 184, 185, 189,
187, 188, 198, 199, 200, 214, 215, 218, 219, 220, 223, 190, 191, 192, 207,
global marketing
201, 203, 204, 212, 213, 225, 226, 227 211, 221
efforts. 216, 217, 222, 224 326, 327, 328, 330, 331
(pp. 171-179) 329

LO3 Name and 228, 229, 230, 231, 232, 1, 2, 3, 4, 233, 234, 235, 236, 247, 248, 255, 263,
describe the 240, 241, 242, 243, 244, 237, 238, 239, 250, 254, 258, 267, 270, 280
alternative 245, 246, 249, 251, 252, 259, 260, 261, 262, 274, 275,
253, 256, 257, 264, 265, 279
approaches
266, 268, 269, 271, 272, 332, 333, 334, 335
companies use to 273, 276, 277, 278
enter global
markets.
(pp. 179-183)
LO4 Explain the 281, 285, 286, 289, 305, 282, 287, 291, 292, 293, 294, 283, 284, 288, 290,
distinction 306, 307, 309, 310, 311, 295, 296, 297, 298, 299, 300, 308, 312
between 313 301, 302, 303, 304, 314, 315,
316
standardization
and 336, 337, 338
customization
when companies
craft worldwide
marketing
programs.
(pp. 183-186)

NOTE: Bold numbers indicate short essay questions. Underlined numbers indicate visually enhanced questions.
CHAPTER 7: MASTER TEST BANK
UNDERSTANDING AND REACHING GLOBAL CONSUMERS AND MARKETS

MULTIPLE CHOICE QUESTIONS

7-1 CHAPTER OPENER: DELL COMPREHENSION

Why has Dell, Inc., embarked on a global growth initiative?


a. National sales have decreased.
b. Dell was recently purchased by Lenovo, a major Chinese competitor.
c. There was too much competition in Dell’s direct marketing channel.
d. There are fewer restrictions in computer technology outside the United States.
e. Emerging economies offer significant growth potential.

Answer: e Page(s): 159 LO: 3 AACSB: Global QD: Medium


Rationale: Dell’s global initiative focuses on emerging economies in Asia, Africa, and Latin
America. Compared with mature economies in North America and Western Europe, emerging
economies offer significant growth potential, according to Michael Dell, Dell’s founder and CEO.

7-2 CHAPTER OPENER: DELL COMPREHENSION

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 stores in selected retailers in India.
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.
Answer: c Page(s): 159 LO: 3 AACSB: Global QD: Medium
Rationale: Dell’s global initiative is bold in its departure from prior product development
practices and change to its sales and distribution strategy. It is designing and initially launching
products to meet the specific needs of emerging country customers. Moreover, Dell opened
stores in selected retailers in India, among other initiatives that were different from its U.S.
strategy.

7-3 CHAPTER OPENER: DELL COMPREHENSION

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 will sell its computers in “traveling” stores, consisting of custom-made trailers with solar
energy panels that will allow them to reach remote marketplaces.
b. Dell will partner with each country’s largest department stores and sell its computers in the
small appliance department.
c. Dell will issue its own credit card through multinational banks, making it possible for
customers who would not normally qualify for credit to do so.

-3-
d. Dell will distribute its products through electronics retailers to reach more buyers quickly.
e. Dell will maintain the exact same strategies that brought it this far because it sees no reason
to “mess with success.”

Answer: d Page(s): 159 LO: 3 AACSB: Global QD: Medium


Rationale: In emerging economies, customers prefer to see, touch, and use a personal computer
before they buy. In response, Dell opened “experience centers” to help customers get
comfortable with “buying direct.” More boldly, the company decided to distribute its products
through electronics retailers to reach more buyers quickly.

7-4 CHAPTER OPENER: DELL COMPREHENSION

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 will continue to use its direct buy strategy but will require all new employees in its sales
force to be multilingual.
b. Dell will open “shop-in-a-shop” counters in selected retailers in India where customers can
reduce purchase anxiety by using the computers before they buy.
c. Dell will establish call centers in all major international cities so that customers may deal
directly with native-born speakers.
d. Dell will issue its own credit card through microfinance-oriented banks, making it possible
for customers who would not normally qualify for credit to do so.
e. Dell will maintain the exact same strategies that brought it this far because it sees no reason
to “mess with success.”

Answer: b Page(s): 159 LO: 3 AACSB: Global QD: Medium


Rationale: In emerging economies, customers prefer to see, touch, and use a personal computer
before they buy. In response, Dell will open “shop-in-a-shop” counters in selected retailers in
India where customers can reduce purchase anxiety by using the computers before they buy.

7-5 DYNAMICS OF WORLD TRADE COMPREHENSION

Which of the following statements about the dynamics of world trade is most accurate?
a. Manufactured goods and commodities account for only 10 percent of world trade.
b. Three-fourths of world trade includes services such as telecommunications, transportation,
and banking.
c. World trade will likely exceed $25 trillion by 2015.
d. All nations participate equally in world trade.
e. There is still greater growth potential in developed countries than emerging ones.

Answer: c Page(s): 160 LO: 1 AACSB: Global QD: Medium


Rationale: All nations do not participate equally in world trade. Manufactured goods account for
75 percent of world trade, with service industries accounting for 25 percent. World trade will
likely exceed $25 trillion in 2015.

7-6 GLOBAL PERSPECTIVE ON WORLD TRADE COMPREHENSION

Which of the following statements about the dynamics of world trade is most accurate?

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a. As the largest international marketer, the United States accounts for 85 percent of world
trade.
b. World trade refers exclusively to the exchange of money for goods or services.
c. An estimated 35 percent of world trade involves countertrade.
d. European intratrade is smaller but more powerful than for any of the other world regions.
e. The United States, Western Europe, Canada, China, and Japan together account for more than
two-thirds of world trade in manufactured goods and commodities.

Answer: e Page(s): 160 LO: 1 AACSB: Global QD: Medium


Rationale: The United States, Europe, Canada, China, and Japan together account for more than
two-thirds of world trade in manufactured goods and commodities. Not all trade involves the
exchange of money for goods or services. An estimated 15 percent to 20 percent of world trade
involves countertrade.

7-7 WORLD TRADE FLOWS KNOWLEDGE

Which of the following countries is the world’s leading exporter?


a. United States
b. China
c. India
d. Germany
e. Japan

Answer: b Page(s): 160 LO: 1 AACSB: Global QD: Easy


Rationale: The United States, China, Japan, Western Europe, and Canada together account for
more than two-thirds of world trade in manufactured goods and commodities. China is the
world’s leading exporter, followed by Germany and the United States. See Figure 7-1 in the
textbook.

7-8 WORLD TRADE FLOWS KNOWLEDGE

Which of the following countries is the world’s leading importer?


a. United States
b. China
c. India
d. Germany
e. Japan

Answer: a Page(s): 160 LO: 1 AACSB: Global QD: Easy


Rationale: The United States, China, Japan, Western Europe, and Canada together account for
more than two-thirds of world trade in manufactured goods and commodities. The United States
is the world’s leading importer, followed by China and Germany. See Figure 7-1 in the textbook.

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Figure 7-1

7-9 WORLD TRADE FLOWS COMPREHENSION

According to Figure 7-1 above, which of the following countries is the world’s leading exporter?
a. United States
b. France
c. China
d. Germany
e. Japan

Answer: c Page(s): 160-161 LO: 1 AACSB: Global QD: Medium


Rationale: The United States, China, Japan, Western Europe, and Canada together account for
more than two-thirds of world trade in manufactured goods and commodities. In Figure 7-1, the
data for exports (in billions of U.S. dollars) is shown on the X-axis whereas the data for imports
(in billions of U.S. dollars) is shown on the Y-axis. Each country’s exports and imports is
depicted as a circle; the larger the circle, the greater the size of its exports and imports. Since the
circle that represents China is the farthest to the right on the X-axis, it is the largest exporter.
Drawing a vertical line through the center of this circle, one can estimate that China’s exports
total approximately $1,180 billion or $1.2 trillion. Next, to the left of China is Germany, and then
the United States. See Figure 7-1 in the textbook.

7-10 WORLD TRADE FLOWS COMPREHENSION

According to Figure 7-1 above, which of the following countries is the world’s leading importer?
a. France
b. Germany
c. Japan
d. United States
e. China

Answer: d Page(s): 160-161 LO: 1 AACSB: Global QD: Medium

-6-
Rationale: The United States, China, Japan, Western Europe, and Canada together account for
more than two-thirds of world trade in manufactured goods and commodities. In Figure 7-1, the
data for exports (in billions of U.S. dollars) is shown on the X-axis whereas the data for imports
(in billions of U.S. dollars) is shown on the Y-axis. Each country’s exports and imports is
depicted as a circle; the larger the circle, the greater the size of its exports and imports. Since the
circle that represents the United States is the highest on the Y-axis, it is the largest importer.
Drawing a horizontal line through the center of this circle, one can estimate that U.S. imports
total approximately $1,580 billion or $1.6 trillion. Next, below the United States is China, and
then Germany. See Figure 7-1 in the textbook.

7-11 TRADE FEEDBACK EFFECT KNOWLEDGE

Which global perspective on world trade views exports and imports as complementary economic
flows?
a. the balance of trade
b. quotas
c. the trade feedback effect
d. the competitive advantage of nations
e. tariffs

Answer: c Page(s): 160 LO: 1 AACSB: Global QD: Easy


Rationale: A global perspective on world trade views exports and imports as complementary
economic flows: A country’s imports affect its exports and exports affect its imports. Every
nation’s imports arise from the exports of other nations. For example: Increased exports from
country (A) result in increased income, which results in increased demand for imports. This
demand stimulates exports from country (B), increasing its income, which creates consumer
demand for products and services, which in turn, generates demand for imports. This
phenomenon is called the trade feedback effect and is one argument for free trade among nations,
and therefore the establishment of free trade agreements among nations.

7-12 TRADE FEEDBACK EFFECT COMPREHENSION

The trade feedback effect is one argument for


a. decreasing a nation’s exports.
b. free trade agreements.
c. increased tariffs and quotas.
d. international trade associations.
e. decreasing a nation’s imports.

Answer: b Page(s): 160 LO: 1 AACSB: Global QD: Medium


Rationale: Increased exports from country (A) result in increased income, which results in
increased demand for imports. This demand stimulates exports from country (B), increasing its
income, which creates consumer demand for products and services, which in turn, generates
demand for imports. This phenomenon is called the trade feedback effect and is one argument for
free trade among nations, and therefore the establishment of free trade agreements among nations.

7-13 TRADE FEEDBACK EFFECT COMPREHENSION

Which of the following statements accurately describes the global perspective on world trade?

-7-
a. Exports are of significantly greater importance than imports.
b. Imports are of significantly greater importance than exports.
c. Imports and exports should be complementary economic flows: a country’s imports affect its
exports and exports affect its imports.
d. Exports and imports should always be kept in a state of equilibrium.
e. Imports and exports should be controlled through extensive use of international tariffs,
quotas, and other trade regulations.

Answer: c Page(s): 160 LO: 1 AACSB: Global QD: Medium


Rationale: A global perspective on world trade views exports and imports as complementary
economic flows: a country’s imports affect its exports and exports affect its imports, which is
known as the trade feedback effect.

7-14 COUNTERTRADE KNOWLEDGE

Countertrade refers to
a. the illegal agreement of one country to buy products exclusively from another.
b. the legal agreement of one country to buy products exclusively with another.
c. the practice of using barter rather than money for making global sales.
d. the sale of industrial goods from a brick and mortar outlet rather than directly from the
manufacturer.
e. the use of legal tender in making global sales.

Answer: c Page(s): 160 LO: 1 AACSB: Global QD: Easy


Rationale: Key term definition—countertrade.

7-15 COUNTERTRADE KNOWLEDGE

The practice of using barter rather than money for making global sales is referred to as
a. trade balancing.
b. tariffs.
c. the trade feedback effect.
d. countertrade.
e. currency forbearance.

Answer: d Page(s): 160 LO: 1 AACSB: Global QD: Easy


Rationale: Key term definition—countertrade.

7-16 COUNTERTRADE KNOWLEDGE

What percentage of world trade involves countertrade?


a. 5 percent to 10 percent
b. 15 percent to 20 percent
c. 25 percent to 30 percent
d. roughly 50 percent
e. Countertrade is so pervasive that it cannot accurately be calculated.

Answer: b Page(s): 160 LO: 1 AACSB: Global QD: Easy

-8-
Rationale: An estimated 15 to 20 percent of world trade involves countertrade, which is the
practice of using barter rather than money for making global sales.

7-17 COUNTERTRADE COMPREHENSION

Volvo of North America delivered automobiles to the Siberian police force when Siberia had no
cash to pay for them. It accepted payment in oil, which it then sold for cash to pay for media
advertising in the United States. This is an example of
a. a quota.
b. countertrade.
c. balance of trade.
d. competitive advantage.
e. a trade feedback effect.

Answer: b Page(s): 160 LO: 1 AACSB: Global QD: Medium


Rationale: Countertrade is the practice of using barter rather than money for making global sales;
in this case, exchanging police cars for oil.

7-18 COUNTERTRADE COMPREHENSION

The Malaysian government recently exchanged 20,000 tons of rice for an equivalent amount of
Philippine corn. This is an example of (a)
a. competitive advantage.
b. countertrade.
c. balance of trade.
d. quota.
e. trade feedback.

Answer: b Page(s): 160 LO: 1 AACSB: Global QD: Medium


Rationale: Countertrade is the practice of using barter rather than money for making global sales;
in this case, exchanging rice for corn.

7-19 COUNTERTRADE APPLICATION

The Tahitian pearl market might never have existed were it not for Salvador Assael, the “pearl
king” of the South Seas. Assael got into the pearl business at the end of World War II. Tahiti
had thousands of Swiss watches but suddenly had no GIs to buy them. Assael observed that the
Japanese were desperate for watches but had no cash, and also, that the Japanese still had a pearl
industry. So, Assael oversaw the swapping of watches for pearls, which were then sold to the
Australian and U.S. markets. This international barter is an example of
a. a reciprocity agreement.
b. balance of trade.
c. cross-cultural commerce.
d. countertrade.
e. a trade feedback effect.

Answer: d Page(s): 160 LO: 1 AACSB: Global QD: Hard


Rationale: Countertrade is the practice of using barter rather than money for making global sales;
in this case, exchanging watches for pearls.

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7-20 COUNTERTRADE APPLICATION

Recipco and Tradaq are both companies that connect international companies who want to barter
the products they make for the products they need without using cash or credit. Recipco and
Tradaq assist international companies in making
a. countertrades.
b. quota exchanges.
c. trading exchanges.
d. balances of trade.
e. WTO trade arrangements.

Answer: a Page(s): 160 LO: 1 AACSB: Global QD: Hard


Rationale: Countertrade is the practice of using barter rather than money for making global sales.
Recipco and Tradaq assist companies in bartering the product they make for products they need.

7-21 GROSS DOMESTIC PRODUCT (GDP) KNOWLEDGE

The monetary value of all goods and services produced in a country during one year is referred to
as the
a. gross national production.
b. national monetary reserve.
c. gross domestic product.
d. monetary domestic product.
e. annual national product.

Answer: c Page(s): 160 LO: 1 AACSB: Global QD: Easy


Rationale: Key term definition—gross domestic product.

7-22 GROSS DOMESTIC PRODUCT (GDP) KNOWLEDGE

Gross domestic product refers to


a. the monetary value of all goods and services produced by a single manufacturer during one
year.
b. the monetary value of all domestic exports of a nation during one year.
c. the monetary value of all goods and services produced in a country during one year.
d. the monetary value of all domestic imports of a nation during one year.
e. the difference between all domestic exports and imports for any nation during the course of
one fiscal year.

Answer: c Page(s): 160 LO: 1 AACSB: Global QD: Easy


Rationale: Key term definition—gross domestic product.

7-23 BALANCE OF TRADE KNOWLEDGE

Balance of trade refers to


a. the sum of all a nation’s imports and exports.
b. the difference between the monetary value of a nation’s exports and imports.

- 10 -
c. the comparison of total exports from one country to another.
d. the difference between projected sales and actual sales for a nation’s exports.
e. the state of equilibrium when two neighboring nations participate in countertrade.

Answer: b Page(s): 161 LO: 1 AACSB: Global QD: Easy


Rationale: The difference between the monetary value of a nation’s exports and imports is called
its balance of trade. When a country’s exports exceed its imports, it incurs a surplus in its balance
of trade. When imports exceed exports, a deficit results.

7-24 BALANCE OF TRADE KNOWLEDGE

The difference between the monetary value of a nation’s exports and imports is called its
a. countertrade.
b. trade feedback effect.
c. balance of trade.
d. gross domestic product.
e. tariffs.

Answer: c Page(s): 161 LO: 1 AACSB: Global QD: Easy


Rationale: The difference between the monetary value of a nation’s exports and imports is called
its balance of trade. When a country’s exports exceed its imports, it incurs a surplus in its balance
of trade. When imports exceed exports, a deficit results.

7-25 WORLD TRADE FLOWS COMPREHENSION

Which of the following statements best describes the relationship between the imports into the
United States and the exports from the United States during the last 30 years?
a. No accurate data has been made available from the WTO on trade imports and exports.
b. The volume of both imports and exports has consistently decreased.
c. Imports into the United States and exports have been about equal, indicating balanced trade.
d. Exports have exceeded imports, indicating a continuing trade surplus.
e. Imports have exceeded exports, indicating a continuing trade deficit.

Answer: e Page(s): 161 LO: 1 AACSB: Global QD: Medium


Rationale: Over the past 30 years, imports have significantly exceeded exports each year,
indicating that the United States has a continuing balance of trade deficit.

7-26 WORLD TRADE FLOWS COMPREHENSION

Which of the following statements about world trade flows is most accurate?
a. The United States is tied with China and Japan as the world’s leaders in exports.
b. The U.S. percentage share of world exports has shifted upwards over the past 30 years.
c. The United States has maintained a steady percentage share of world imports.
d. The relative position of the United States as a supplier to the world has diminished despite an
absolute growth in exports.
e. The United States’ relative role as an exporter has decreased in areas of aerospace, chemical,
pharmaceutical, and information technology industries within the past five years.

Answer: d Page(s): 160-161 LO: 1 AACSB: Global QD: Medium

- 11 -
Rationale: The United States is among the world’s leaders in exports. However, the U.S.
percentage of world exports has shifted downward over the past 30 years, whereas its percentage
share of world imports has increased. The relative position of the United States as a supplier to
the world has diminished despite an absolute growth in exports. At the same time, its relative
role as a marketplace for the world has increased. See Figure 7-1 in the textbook.

7-27 WORLD TRADE FLOWS COMPREHENSION

Which of the following statements about world trade flows is most accurate?
a. The United States is tied with China and Japan as the world’s leaders in exports.
b. The U.S. percentage share of world exports has shifted downwards over the past 30 years.
c. The United States has maintained a steady percentage share of world imports.
d. The United States’ relative role as an exporter has decreased in the area of aerospace during
the past five years.
e. The relative position of the United States as a supplier to the world has increased because of
an absolute growth in exports.

Answer: b Page(s): 160-161 LO: 1 AACSB: Global QD: Medium


Rationale: The United States is among the world’s leaders in exports. However, the U.S.
percentage of world exports has shifted downward over the past 30 years, whereas its percentage
share of world imports has increased. The relative position of the United States as a supplier to
the world has diminished despite an absolute growth in exports. At the same time, its relative
role as a marketplace for the world has increased. See Figure 7-1 in the textbook.

7-28 WORLD TRADE FLOWS COMPREHENSION

Which of the following statements about world trade flows is most accurate?
a. China is the world leader in terms of GDP (gross domestic product).
b. The relative position of the United States as a supplier to the world has increased because of
an absolute growth in exports.
c. The relative position of the United States as a supplier to the world has diminished despite an
absolute growth in exports.
d. The United States’ relative role as an exporter has decreased in the area of aerospace during
the past five years.
e. It is impossible to compare GDPs of different nations since it is an internal measurement of
economic activity.

Answer: c Page(s): 64-65 LO: 1 AACSB: Global QD: Medium


Rationale: The United States is among the world’s leaders in exports. However, the U.S.
percentage of world exports has shifted downward over the past 30 years, whereas its percentage
share of world imports has increased. The relative position of the United States as a supplier to
the world has diminished despite an absolute growth in exports. At the same time, its relative
role as a marketplace for the world has increased. See Figure 7-1 in the textbook.

7-29 WORLD TRADE FLOWS COMPREHENSION

Which of the following statements about world trade flows is most accurate?
a. The United States is the world leader in terms of GDP (gross domestic product).

- 12 -
b. The relative position of the United States as a supplier to the world has increased because of
an absolute growth in exports.
c. The United States is running a continuing trade surplus because it has the world’s largest
gross domestic product.
d. The United States’ relative role as an exporter has decreased in the area of aerospace during
the past five years.
e. During the past 30 years, the relative position of the United States in terms of GDP has
remained stable despite the fact that actual value of products and services has increased.

Answer: a Page(s): 160-161 LO: 1 AACSB: Global QD: Medium


Rationale: The United States is the world’s perennial leader in terms of gross domestic product
(GDP), which is the monetary value of all goods and services produced in a country during one
year.

7-30 WORLD TRADE FLOWS COMPREHENSION

Which of the following statements about world trade flows is most accurate?
a. The EU (European Union) is the world leader in terms of GDP (gross domestic product).
b. The relative position of the United States as a supplier to the world has increased because of
an absolute growth in exports.
c. The United States is running a continuing trade surplus because it has the world’s largest
gross domestic product.
d. The United States’ relative role as an exporter remains strong in the area of aerospace.
e. During the past 30 years, the relative position of the United States in terms of GDP has
remained stable despite the fact that actual value of products and services has increased.

Answer: d Page(s): 160-161 LO: 1 AACSB: Global QD: Medium


Rationale: The United States is among the world’s leaders in exports. However, the U.S.
percentage of world exports has shifted downward over the past 30 years, whereas its percentage
share of world imports has increased. The relative position of the United States as a supplier to
the world has diminished despite an absolute growth in exports. At the same time, its relative
role as a marketplace for the world has increased. The United States is also among the world’s
leaders in exports due in large part to its global prominence in the aerospace, chemical, office
equipment, information technology, pharmaceutical, telecommunications, and professional
service industries.

7-31 WORLD TRADE FLOWS COMPREHENSION

Which of the following statements about world trade flows is most accurate?
a. The EU (European Union) is the world leader in terms of GDP (gross domestic product).
b. The relative position of the United States as a supplier to the world has increased despite an
absolute growth in exports.
c. The United States’ role as a marketplace for the world has increased, especially for
automobiles, oil, textiles, and consumer electronics.
d. The United States’ relative role as an exporter has decreased in the area of aerospace during
the past five years.
e. The United States’ relative role as an exporter changed dramatically when it became a
service-oriented economy.

Answer: c Page(s): 160-161 LO: 1 AACSB: Global QD: Medium

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Rationale: The United States is among the world’s leaders in exports. However, the U.S.
percentage of world exports has shifted downward over the past 30 years, whereas its percentage
share of world imports has increased. The relative position of the United States as a supplier to
the world has diminished despite an absolute growth in exports. At the same time, its relative
role as a marketplace for the world has increased. See Figure 7-1 in the textbook.

7-32 WORLD TRADE FLOWS COMPREHENSION

Which of the following statements best describes what has happened to U.S. exports versus
imports over the last 30 years?
a. No accurate data have been made available from the WTO for trade imports and exports.
b. The volume of imports and exports has consistently decreased.
c. U.S. imports and U.S. exports have been about equal, indicating balanced trade.
d. U.S. exports have exceeded U.S. imports, indicating a continuing trade surplus.
e. The volume of both U.S. exports and U.S. imports has increased significantly.

Answer: e Page(s): 161 LO: 1 AACSB: Global QD: Medium


Rationale: Both U.S. exports and imports have increased substantially over the past 30 years.

7-33 WORLD TRADE FLOWS COMPREHENSION

Changes in the products Americans buy and sell, additional jobs, and an improved standard of
living are all effects of
a. an increase in imports and an increase of exports.
b. an increase in imports and a decrease in exports.
c. a decrease in imports and a decrease in exports.
d. a state of equilibrium between imports and exports.
e. the reversal of importance between the services sector and the manufacturing sector.

Answer: a Page(s): 161 LO: 1 AACSB: Global QD: Medium


Rationale: Both U.S. exports and imports have increased substantially over the last 30 years.
Every American is significantly affected. The effect varies from the products they buy to those
they sell and the additional jobs and improved standard of living that result.

7-34 WORLD TRADE FLOWS COMPREHENSION

World trade flows to and from the United States reflect __________ for goods and services
among nations and industries.
a. demand and supply interdependencies
b. disparities between supply and demand
c. positive and negative synergistic trade
d. a negative currency exchange
e. an ethnocentric bias

Answer: a Page(s): 161 LO: 1 AACSB: Global QD: Medium


Rationale: World trade flows to and from the United States reflect demand and supply
interdependencies for goods and services among nations and industries.

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7-35 WORLD TRADE FLOWS COMPREHENSION

The four largest importers of U.S. goods and services are


a. Japan, Germany, China, and Canada.
b. Canada, China, Japan, and Mexico.
c. China, Brazil, Japan, and Germany.
d. Mexico, Canada, Europe, and China.
e. England, Canada, Australia, and New Zealand.

Answer: b Page(s): 161 LO: 1 AACSB: Global QD: Medium


Rationale: The four largest exporters to the United States are Canada, China, Mexico, and Japan.
These countries purchase approximately 67 percent of U.S. exports.

7-36 WORLD TRADE FLOWS KNOWLEDGE

The four largest exporters to the United States are


a. Canada, China, Japan, and Mexico.
b. Japan, Germany, Brazil, and Canada.
c. China, Brazil, Japan, and Germany.
d. Mexico, Argentina, Brazil, and Venezuela.
e. England, Canada, Australia, and New Zealand.

Answer: a Page(s): 161 LO: 1 AACSB: Global QD: Easy


Rationale: The four largest exporters to the United States are Canada, China, Mexico, and Japan.

7-37 WORLD TRADE FLOWS KNOWLEDGE

China, Japan, and South Korea combine for about _________ percent of the total U.S. balance of
trade deficit.
a. 30
b. 50
c. 65
d. 80
e. 95

Answer: d Page(s): 161 LO: 1 AACSB: Global QD: Easy


Rationale: China, Japan and South Korea combine for about 80 percent of the total U.S. balance
of trade deficit, illustrating the trade imbalance between the United States and Asia.

7-38 PORTER’S DIAMOND COMPREHENSION

Michael Porter has identified four key elements to explain why some companies and industries
succeed globally while others fail. These four elements are collectively referred as
a. the balance of trade wheel.
b. the points of difference effect.
c. the trade feedback effect.
d. the international trade pyramid.
e. the diamond of national competitive advantage.

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Answer: e Page(s): 161-162 LO: 1 AACSB: Global QD: Medium
Rationale: To explain a nation’s competitive advantage, Michael Porter suggests a “diamond” of
four elements: (1) factor conditions; (2) demand conditions; (3) related and supporting industries;
and (4) company strategy, structure, and rivalry. See Figure 7-2 in the textbook.

7-39 PORTER’S DIAMOND COMPREHENSION

Michael Porter has identified four key elements in a nation’s competitive advantage:
__________; demand conditions; related and supporting industries; and company strategy,
structure and rivalry.
a. industry composition
b. size of market
c. governmental regulation
d. suppliers
e. factor conditions

Answer: e Page(s): 161-162 LO: 1 AACSB: Global QD: Medium


Rationale: To explain a nation’s competitive advantage, Michael Porter suggests a “diamond” of
four elements: (1) factor conditions; (2) demand conditions; (3) related and supporting industries;
and (4) company strategy, structure, and rivalry. See Figure 7-2 in the textbook.

7-40 PORTER’S DIAMOND COMPREHENSION

Michael Porter has identified four key elements in a nation’s competitive advantage: factor
conditions; __________; related and supporting industries; and company strategy, structure, and
rivalry.
a. demand conditions
b. ethnocentrism
c. barriers to entry
d. governmental regulation
e. suppliers

Answer: a Page(s): 161-162 LO: 1 AACSB: Global QD: Medium


Rationale: To explain a nation’s competitive advantage, Michael Porter suggests a “diamond” of
four elements: (1) factor conditions; (2) demand conditions; (3) related and supporting industries;
and (4) company strategy, structure, and rivalry. See Figure 7-2 in the textbook.

7-41 PORTER’S DIAMOND COMPREHENSION

Michael Porter has identified four key elements in a nation’s competitive advantage: factor
conditions; demand conditions; __________; and company strategy, structure, and rivalry.
a. consumer behavior
b. workforce education and skill levels
c. related and supporting industries
d. governmental regulation
e. ethnocentrism

Answer: c Page(s): 161-162 LO: 1 AACSB: Global QD: Medium

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Rationale: To explain a nation’s competitive advantage, Michael Porter suggests a “diamond” of
four elements: (1) factor conditions; (2) demand conditions; (3) related and supporting industries;
and (4) company strategy, structure, and rivalry. See Figure 7-2 in the textbook.

7-42 PORTER’S DIAMOND COMPREHENSION

Michael Porter has identified four key elements in a nation’s competitive advantage: factor
conditions; demand conditions; related and supporting industries; and __________.
a. consumer behavior
b. workforce education and skill levels
c. governmental regulation
d. company strategy, structure, and rivalry
e. suppliers

Answer: d Page(s): 161-162 LO: 1 AACSB: Global QD: Medium


Rationale: To explain a nation’s competitive advantage, Michael Porter suggests a “diamond” of
four elements: (1) factor conditions; (2) demand conditions; (3) related and supporting industries;
and (4) company strategy, structure, and rivalry. See Figure 7-2 in the textbook.

Figure 7-2

7-43 PORTER’S DIAMOND COMPREHENSION

According to Michael Porter’s diamond in Figure 7-2 above, quadrant “A” represents
a. factor conditions.
b. related and supporting industries.
c. demand conditions.
d. managerial conditions.
e. company strategy, structure, and rivalry.

Answer: a Page(s): 161-162 LO: 1 AACSB: Global QD: Medium

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Rationale: To explain a nation’s competitive advantage, Michael Porter suggests a “diamond” of
four elements: (1) factor conditions; (2) demand conditions; (3) related and supporting industries;
and (4) company strategy, structure, and rivalry. Factor conditions reflect a nation’s ability to
turn its natural resources, education, and infrastructure into a competitive advantage. See Figure
7-2 in the textbook.

7-44 PORTER’S DIAMOND COMPREHENSION

According to Michael Porter’s diamond in Figure 7-2 above, quadrant “B” represents
a. factor conditions.
b. related and supporting industries.
c. demand conditions.
d. managerial conditions.
e. company strategy, structure, and rivalry.

Answer: e Page(s): 161-162 LO: 1 AACSB: Global QD: Medium


Rationale: To explain a nation’s competitive advantage, Michael Porter suggests a “diamond” of
four elements: (1) factor conditions; (2) demand conditions; (3) related and supporting industries;
and (4) company strategy, structure, and rivalry. Company strategy, structure, and rivalry include
the conditions governing the way a nation’s businesses are organized and managed, along with
the intensity of domestic competition. See Figure 7-2 in the textbook.

7-45 PORTER’S DIAMOND COMPREHENSION

According to Michael Porter’s diamond in Figure 7-2 above, quadrant “C” represents
a. factor conditions.
b. related and supporting industries.
c. demand conditions.
d. managerial conditions.
e. company strategy, structure, and rivalry.

Answer: c Page(s): 161-162 LO: 1 AACSB: Global QD: Medium


Rationale: To explain a nation’s competitive advantage, Michael Porter suggests a “diamond” of
four elements: (1) factor conditions; (2) demand conditions; (3) related and supporting industries;
and (4) company strategy, structure, and rivalry. Demand conditions include both the number
and sophistication of domestic customers for an industry’s product. See Figure 7-2 in the
textbook.

7-46 PORTER’S DIAMOND COMPREHENSION

According to Michael Porter’s diamond in Figure 7-2 above, quadrant “D” represents
a. factor conditions.
b. related and supporting industries.
c. demand conditions.
d. managerial conditions.
e. company strategy, structure, and rivalry.

Answer: b Page(s): 161-162 LO: 1 AACSB: Global QD: Medium

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Rationale: To explain a nation’s competitive advantage, Michael Porter suggests a “diamond” of
four elements: (1) factor conditions; (2) demand conditions; (3) related and supporting industries;
and (4) company strategy, structure, and rivalry. Related and supporting industries include the
existence of supplier clusters that accelerate innovation and improve quality. See Figure 7-2 in
the textbook.

7-47 FACTOR CONDITIONS COMPREHENSION

The Dutch lead the world in the cut-flower industry because of their research in flower
cultivation, packaging, and shipping. Using this knowledge as a resource is an example of what
Michael Porter would term
a. structural conditions.
b. demand conditions.
c. sociocultural conditions.
d. competitive conditions.
e. factor conditions.

Answer: e Page(s): 162 LO: 1 AACSB: Global QD: Medium


Rationale: Factor conditions reflect a nation’s ability to turn its natural resources, education, and
infrastructure into a competitive advantage. In this case, education (the research in flower
cultivation, packaging, and shipping) is a factor condition. See Figure 7-2 in the textbook.

7-48 FACTOR CONDITIONS APPLICATION

Each day, in a third-class carriage of the express train that runs between Bombay and
Ahmadabad, plainly dressed couriers carry precious cargo: diamonds. Rough gems are imported
to Bombay from dealers in London, Antwerp, Tel Aviv, and New York. Couriers then take these
gems to cutting and polishing centers in Gujarat state and then carry them back to Bombay to be
reexported to the world. This system, based on trust, secrecy, and skilled low-cost labor, has
worked for half a century. It has helped make India the world’s premier center for diamond
cutting and polishing. Nine out of every 10 stones sold in the world pass through India, making
diamonds that country’s largest export. India’s ability to use its skilled labor as a resource is an
example of what Michael Porter would term
a. structural conditions.
b. demand conditions.
c. factor conditions.
d. competitive conditions.
e. sociocultural conditions.

Answer: c Page(s): 162 LO: 1 AACSB: Global QD: Hard


Rationale: Factor conditions reflect a nation’s ability to turn its natural resources, education, and
infrastructure into a competitive advantage. In this case, the skilled labor of India makes this
system work. See Figure 7-2 in the textbook.

7-49 DEMAND CONDITIONS KNOWLEDGE

According to Michael Porter’s diamond of national competitive advantage, both the number and
sophistication of domestic customers for an industry’s product are examples of
a. structural conditions.

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b. demand conditions.
c. sociocultural conditions.
d. competitive conditions.
e. factor conditions.

Answer: b Page(s): 162 LO: 1 AACSB: Global QD: Easy


Rationale: Text term definition—demand conditions. See Figure 7-2 in the textbook.

7-50 DEMAND CONDITIONS COMPREHENSION

Which of the following is an example of a demand condition?


a. available natural resources
b. existence of supplier clusters
c. sophistication of consumers
d. intensity of competition
e. competitive wage rates

Answer: c Page(s): 162 LO: 1 AACSB: Global QD: Medium


Rationale: Demand conditions include both the number and sophistication of domestic customers
for an industry’s product. See Figure 7-2 in the textbook.

7-51 DEMAND CONDITIONS APPLICATION

Austria has been described as “the very heartland of European coffee culture.” These “coffee-
knowledgeable” Austrians drink 21.5 liters of coffee per person annually. Starbucks wanted to
open coffee houses in Austria and sell Starbucks coffee there. For Starbucks, the Austrian level
of coffee-drinking sophistication would be an example of
a. structural conditions.
b. demand conditions.
c. sociocultural conditions.
d. competitive conditions.
e. factor conditions.

Answer: b Page(s): 162 LO: 1 AACSB: Global QD: Hard


Rationale: Demand conditions include both the number and sophistication of domestic customers
for an industry’s product. Austrians are very knowledgeable when it comes to coffee. See Figure
7-2 in the textbook.

7-52 RELATED AND SUPPORTING INDUSTRIES COMPREHENSION

To become leaders in the world market, countries need related and supporting industries because
a. collaborative suppliers can generate revenue for further investment.
b. they can eliminate the need to import materials from other countries.
c. clusters of strong suppliers can accelerate innovation.
d. most countries still believe strongly in protectionism.
e. their union lessens financial vulnerability and increases buying power.

Answer: c Page(s): 162 LO: 1 AACSB: Global QD: Medium

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Rationale: Related and supporting industries include the existence of supplier clusters that
accelerate innovation and improve quality. See Figure 7-2 in the textbook.

7-53 RELATED AND SUPPORTING INDUSTRIES COMPREHENSION

Which of the following is an element of related and supporting industries?


a. media exposure of products
b. existence of supplier clusters
c. sophistication of consumers
d. intensity of competition
e. aggregation of markets

Answer: b Page(s): 162 LO: 1 AACSB: Global QD: Medium


Rationale: Related and supporting industries include the existence of supplier clusters that
accelerate innovation and improve quality. See Figure 7-2 in the textbook.

7-54 RELATED AND SUPPORTING INDUSTRIES APPLICATION

Nine out of every 10 diamonds sold in the world pass through India, making diamonds that
country’s largest export at $6.6 billion a year. One of the reasons for its success is the nation’s
2,500 trading firms, banks, airlines, customers’ offices, and courier services that make sure the
diamonds are safely delivered. According to Michael Porter’s theory about national competitive
advantage, India’s success in the diamond industry is due in part to its
a. company strategy, structure, and rivalry.
b. absence of competition.
c. related and supporting industries.
d. factor conditions.
e. demand conditions.

Answer: c Page(s): 162 LO: 1 AACSB: Global QD: Hard


Rationale: Related and supporting industries include the existence of supplier clusters that
accelerate innovation and improve quality. India’s success in the diamond trade is due in part to
the 2,500 trading firms, banks, airlines, customers’ offices, and courier services—related and
supporting firms and associated industries—that ensure the diamonds are safely delivered to
customers around the globe. See Figure 7-2 in the textbook.

7-55 COMPANY STRATEGY, STRUCTURE, AND RIVALRY COMPREHENSION

Which of the following is an element of company strategy, structure, and rivalry?


a. sales of companies in an industry
b. size of market
c. number of suppliers
d. intensity of competition
e. number of sophisticated consumers

Answer: d Page(s): 162 LO: 1 AACSB: Global QD: Medium


Rationale: Company strategy, structure, and rivalry include the conditions governing the way a
nation’s businesses are organized and managed, along with the intensity of domestic competition.
See Figure 7-2 in the textbook.

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7-56 COMPANY STRATEGY, STRUCTURE, AND RIVALRY COMPREHENSION

The Italian shoe industry has become a world leader because of intense domestic competition
among firms such as Bruno Magli and Rossimoda. According to Michael Porter’s theory about
national competitive advantage, Italy’s success in the shoe industry is due in part to its
a. company strategy, structure, and rivalry.
b. absence of competition.
c. related and supporting industries.
d. factor conditions.
e. demand conditions.

Answer: a Page(s): 162 LO: 1 AACSB: Global QD: Medium


Rationale: Company strategy, structure, and rivalry include the conditions governing the way a
nation’s businesses are organized and managed, along with the intensity of domestic competition.
See Figure 7-2 in the textbook.

7-57 COMPETITIVE ADVANTAGE OF NATIONS COMPREHENSION

Which of the following statements reflects Michael Porter’s theory regarding national
competitive advantage?
a. Clusters of strong suppliers can interfere with entry into a global market.
b. A firm that succeeds in global markets often has first succeeded in its domestic market.
c. A country’s natural resources, education, and infrastructure often pose obstacles that cannot
be overcome.
d. The first goal of a global marketer is to actively educate a nation’s domestic customers.
e. A nation’s domestic workforce is more motivated to work for foreign corporations than its
own.

Answer: b Page(s): 163 LO: 1 AACSB: Global QD: Medium


Rationale: While the strategies used by successful global competitors differed in many respects,
a common theme emerged: A firm that succeeds in global markets often has first succeeded in
intense domestic competition. See Figure 7-2 in the textbook.

7-58 COMPETITIVE ADVANTAGE OF NATIONS COMPREHENSION

Although there are many factors contributing to the success of major global marketers, a common
theme seems to be that they
a. first became involved with a formalized trade organization, such as the WTO.
b. specialized in services rather than consumer goods.
c. employed a multicultural or multinational staff.
d. first succeeded in intense domestic competition.
e. were the largest companies in their industry.

Answer: d Page(s): 163 LO: 1 AACSB: Global QD: Medium


Rationale: While the strategies employed by the most successful global competitors have been
different in many respects, a common theme has emerged—a firm that succeeds in global markets
has first succeeded in intense domestic competition. See Figure 7-2 in the textbook.

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7-59 COMPETITIVE ADVANTAGE OF NATIONS COMPREHENSION

Which of the following statements reflects Michael Porter’s theory regarding national
competitive advantage?
a. Clusters of strong suppliers can interfere with entry into a global market.
b. A firm that succeeds in global markets has often left a domestic market because it was too
competitive.
c. A country’s natural resources, education, and infrastructure can be turned into a competitive
advantage.
d. The first goal of a global marketer is to actively educate a nation’s domestic customers.
e. A nation’s domestic workforce is more motivated to work for foreign corporations than its
own.

Answer: c Page(s): 161-163 LO: 1 AACSB: Global QD: Medium


Rationale: Factor conditions reflect a nation’s ability to turn its natural resources, education, and
infrastructure into a competitive advantage. See Figure 7-2 in the textbook.

7-60 COMPETITIVE ADVANTAGE OF NATIONS COMPREHENSION

Which of the following statements reflects Michael Porter’s theory regarding national
competitive advantage?
a. Clusters of strong suppliers can accelerate innovation.
b. A firm that succeeds in global markets has often left a domestic market because it was too
competitive.
c. A country’s natural resources, education, and infrastructure can represent obstacles that are
often difficult to overcome.
d. The first goal of a global marketer is to actively educate a nation’s domestic customers.
e. A nation’s domestic workforce is more motivated to work for foreign corporations than its
own.

Answer: a Page(s): 161-163 LO: 1 AACSB: Global QD: Medium


Rationale: Firms and industries seeking leadership in global markets need clusters of world-class
suppliers that accelerate innovation and improve quality. See Figure 7-2 in the textbook.

7-61 COMPETITIVE ADVANTAGE OF NATIONS COMPREHENSION

Which of the following statements reflects Michael Porter’s theory regarding national
competitive advantage?
a. Clusters of strong suppliers can interfere with entry into a global market.
b. A firm that succeeds in global markets has often left a domestic market because it was too
competitive.
c. A country’s natural resources, education, and infrastructure can represent obstacles that are
often difficult to overcome.
d. Conditions such as the number and sophistication of domestic customers can affect demand
for an industry’s product.
e. A nation’s domestic workforce is more motivated to work for foreign corporations than its
own.

Answer: d Page(s): 161-163 LO: 1 AACSB: Global QD: Medium

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Rationale: Demand conditions include both the number and sophistication of domestic customers
for an industry’s product. See Figure 7-2 in the textbook.

7-62 COMPETITIVE ADVANTAGE OF NATIONS COMPREHENSION

Competitive advantage for global firms grows out of __________, innovation, and change.
a. product quality
b. continuous improvement
c. employment of a multicultural or multinational staff
d. membership in a formalized trade organization
e. market research

Answer: b Page(s): 161-163 LO: 1 AACSB: Global QD: Medium


Rationale: While the strategies employed by the most successful global competitors have been
different in many respects, a common theme has emerged—a firm that succeeds in global markets
has first succeeded in intense domestic competition. Competitive advantage for global firms
grows out of continuous improvement, innovation, and change. See Figure 7-2 in the textbook.

7-63 COMPETITIVE ADVANTAGE OF NATIONS COMPREHENSION

Competitive advantage for global firms grows out of continuous improvement, __________, and
change.
a. product quality
b. employment of a multicultural or multinational staff
c. membership in a formalized trade organization
d. market research
e. innovation

Answer: e Page(s): 161-163 LO: 1 AACSB: Global QD: Medium


Rationale: While the strategies employed by the most successful global competitors have been
different in many respects, a common theme has emerged—a firm that succeeds in global markets
has first succeeded in intense domestic competition. Competitive advantage for global firms
grows out of continuous improvement, innovation, and change. See Figure 7-2 in the textbook.

7-64 COMPETITIVE ADVANTAGE OF NATIONS COMPREHENSION

Competitive advantage for global firms grows out of continuous improvement, innovation, and
__________.
a. accountability
b. change
c. product quality
d. company size
e. location

Answer: b Page(s): 161-163 LO: 1 AACSB: Global QD: Medium


Rationale: While the strategies employed by the most successful global competitors have been
different in many respects, a common theme has emerged—a firm that succeeds in global markets
has first succeeded in intense domestic competition. Competitive advantage for global firms
grows out of continuous improvement, innovation, and change. See Figure 7-2 in the textbook.

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7-65 ECONOMIC ESPIONAGE KNOWLEDGE

The clandestine collection of trade secrets or proprietary information about a company’s


competitors is referred to as
a. trade piracy.
b. transnational fraud.
c. economic espionage.
d. competitive duplicity.
e. transnational espionage.

Answer: c Page(s): 163 LO: 1 AACSB: Global QD: Easy


Rationale: Text-term definition—economic espionage.

7-66 ECONOMIC ESPIONAGE KNOWLEDGE

Economic espionage is the clandestine collection of trade secrets or __________.


a. government economic information
b. industrial intelligence
c. proprietary information about competitors
d. government weapons information
e. banking lists

Answer: c Page(s): 163 LO: 1 AACSB: Global QD: Easy


Rationale: Text-term definition—economic espionage.

7-67 ECONOMIC ESPIONAGE KNOWLEDGE

The estimated cost of economic espionage to firms in the United States is estimated to be
a. $10 billion per year.
b. $250 billion per year.
c. $750 billion per year.
d. $900 billion per year.
e. exceeding $1 trillion per year.

Answer: b Page(s): 163 LO: 1 AACSB: Global QD: Easy


Rationale: It is estimated that economic espionage costs U.S. firms $250 billion per year.

7-68 ECONOMIC ESPIONAGE KNOWLEDGE

The prescribed penalty for individuals found guilty of the theft of trade secrets is
a. up to 15 years in prison and fines up to $500,000.
b. up to 25 years in prison and fines up to $10 million.
c. life in prison with chance of parole after 25 years.
d. expulsion from the United States and/or revocation of citizenship.
e. 30 years in prison and fines to be determined by the courts.

Answer: a Page(s): 163 LO: 1 AACSB: Global QD: Easy

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Rationale: The Economic Espionage Act (1996) makes the theft of trade secrets by foreign
entities a federal crime in the United States. This act prescribes prison sentences of up to 15
years and fines up to $500,000 for individuals. Agents of foreign governments found guilty of
economic espionage face a 25-year prison sentence and a $10 million fine.

7-69 ECONOMIC ESPIONAGE KNOWLEDGE

The prescribed penalty for agents of foreign governments found guilty of economic espionage is
a. up to 15 years in prison and fines up to $500,000.
b. life in prison with chance of parole after 25 years.
c. 25 years in prison and a $10 million fine.
d. permanent expulsion from the United States.
e. 30 years in prison and fines proportional to the damage caused.

Answer: c Page(s): 163 LO: 1 AACSB: Global QD: Easy


Rationale: The Economic Espionage Act (1996) makes the theft of trade secrets by foreign
entities a federal crime in the United States. This act prescribes prison sentences of up to 15
years and fines up to $500,000 for individuals. Agents of foreign governments found guilty of
economic espionage face a 25-year prison sentence and a $10 million fine.

7-70 ECONOMIC ESPIONAGE ACT COMPREHENSION

The Economic Espionage Act


a. allows the World Court in The Hague to adjudicate trade disputes on behalf of United
Nations’ members and requires the home country to impose any penalties.
b. imposes a personal fine on a convicted U.S. citizen of up to $10 million.
c. targets espionage activities that are commonplace in any industry that holds governmental
contracts.
d. makes the theft of trade secrets by foreign entities a federal crime in the United States.
e. is well-intended in theory, but is virtually impossible to enforce.

Answer: d Page(s): 163 LO: 1 AACSB: Global QD: Medium


Rationale: Key term definition—Economic Espionage Act.

7-71 TRENDS IN WORLD TRADE COMPREHENSION

Four trends in the past decade have significantly influenced the landscape of global marketing.
One of them is:
a. an increase in most countries’ GDPs coupled with an increased degree of consumer
ethnocentrism.
b. a significant increase in economic protectionism and a decline in free trade.
c. a more aggressive attitude toward initiating international tariffs and quota systems.
d. a decrease in most countries’ GDPs and a renewal of nationalism.
e. a gradual decline in economic protectionism by individual countries.

Answer: e Page(s): 164 LO: 1 AACSB: Global QD: Medium


Rationale: Four trends in the past decade have significantly influenced the landscape of global
marketing: (1) the gradual decline of economic protectionism by individual countries; (2) the

- 26 -
formal economic integration and free trade among nations; (3) global competition among global
companies for global customers; and (4) the development of networked global marketspace.

7-72 TRENDS IN WORLD TRADE COMPREHENSION

Four trends in the past decade have significantly influenced the landscape of global marketing.
One of them is:
a. an increase in economic protectionism and a decline in free trade.
b. a more aggressive attitude towards initiating international tariffs and quota systems.
c. a decrease in most countries’ GDPs and a renewal of nationalism.
d. global competition among global companies for global customers.
e. an increase in most countries’ GDPs coupled with an increased degree of consumer
ethnocentrism.

Answer: d Page(s): 164 LO: 1 AACSB: Global QD: Medium


Rationale: Four trends in the past decade have significantly influenced the landscape of global
marketing: (1) the gradual decline of economic protectionism by individual countries; (2) the
formal economic integration and free trade among nations; (3) global competition among global
companies for global customers; and (4) the development of networked global marketspace.

7-73 TRENDS IN WORLD TRADE COMPREHENSION

Four trends in the past decade have significantly influenced the landscape of global marketing.
One of them is:
a. an increase in economic protectionism and a decline in free trade.
b. a more aggressive attitude towards initiating international tariffs and quota systems.
c. a decrease in most countries’ GDPs and a renewal of nationalism.
d. the formal economic integration and free trade among nations.
e. an increase in most countries’ GDPs coupled with an increased degree of consumer
ethnocentrism.

Answer: d Page(s): 164 LO: 1 AACSB: Global QD: Medium


Rationale: Four trends in the past decade have significantly influenced the landscape of global
marketing: (1) the gradual decline of economic protectionism by individual countries; (2) the
formal economic integration and free trade among nations; (3) global competition among global
companies for global customers; and (4) the development of a networked global marketspace.

7-74 TRENDS IN WORLD TRADE COMPREHENSION

Four trends in the past decade have significantly influenced the landscape of global marketing.
One of them is:
a. an increase in economic protectionism and a decline free trade.
b. a more aggressive attitude towards initiating international tariffs and quota systems.
c. a decrease in most countries’ GDPs and a renewal of nationalism.
d. emergence of networked global marketspace.
e. an increase in most countries’ GDPs coupled with an increased degree of consumer
ethnocentrism.

Answer: d Page(s): 164 LO: 1 AACSB: Global QD: Medium

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Rationale: Global marketing has been and continues to be affected by a growing borderless
economic world. Four trends in the past decade have significantly influenced the landscape of
global marketing: gradual decline of economic protectionism by individual countries, formal
economic integration and free trade among nations, global competition among global companies
for global customers, and development of networked global marketspace.

7-75 PROTECTIONISM KNOWLEDGE

The practice of shielding one or more sectors of a country’s economy from foreign competition
through the use of tariffs or quotas is referred to as
a. domestic imperialism.
b. protectionism.
c. blocked competition.
d. import taxation.
e. trade restrictions.

Answer: b Page(s): 164 LO: 1 AACSB: Global QD: Easy


Rationale: Key term definition—protectionism.

7-76 PROTECTIONISM KNOWLEDGE

Protectionism refers to
a. the practice of purchasing products exclusively from a domestic market in order to shore up a
nation’s economy.
b. the use of tariffs, quotas, and boycotts with the express intention of putting foreign
competitors out of business.
c. the practice of shielding one or more sectors of a country’s economy from foreign
competition through the use of tariffs or quotas.
d. a form of domestic imperialism that holds that only those products manufactured within one’s
home nation are of sufficient quality to warrant purchase.
e. the practice of purchasing products exclusively from a foreign developing country in order to
develop its industries and economic infrastructure.

Answer: c Page(s): 164 LO: 1 AACSB: Global QD: Easy


Rationale: Key term definition—protectionism.

7-77 PROTECTIONISM COMPREHENSION

According to economists, protectionism


a. protects a nation’s political security.
b. encourages economic reliance on foreign countries.
c. inhibits the development of domestic industries.
d. creates opportunities for the outsourcing of domestic jobs.
e. creates a more favorable environment for a global economy.

Answer: a Page(s): 164 LO: 1 AACSB: Global QD: Medium


Rationale: Protectionism is the practice of shielding one or more sectors of a country’s economy
from foreign competition through the use of tariffs or quotas. The economic argument for
protectionism is that it limits the outsourcing of jobs, protects a nation’s political security,

- 28 -
discourages economic dependency on other countries, and encourages the development of
domestic industries.

7-78 PROTECTIONISM COMPREHENSION

Those in favor of protectionism advocate that protectionism


a. helps reduce tariffs and quotas.
b. encourages the development of domestic industries.
c. encourages economic reliance on foreign countries.
d. creates opportunities for the outsourcing of domestic jobs.
e. creates a more favorable environment for a global economy.

Answer: b Page(s): 164 LO: 1 AACSB: Global QD: Medium


Rationale: Protectionism is the practice of shielding one or more sectors of a country’s economy
from foreign competition through the use of tariffs or quotas. The economic argument for
protectionism is that it limits the outsourcing of jobs, protects a nation’s political security,
discourages economic dependency on other countries, and encourages the development of
domestic industries.

7-79 PROTECTIONISM APPLICATION

Beginning January 1, 2005, China lifted the import quotas and lowered tariffs on automobiles.
This removal of the quotas and the lowering of tariffs is an example of
a. relaxing the rule of eminent domain.
b. reducing ethnocentrism.
c. enhancing domestic imperialism.
d. reducing protectionism.
e. enhancing countertrade.

Answer: d Page(s): 164 LO: 1 AACSB: Global QD: Hard


Rationale: Protectionism is the practice of shielding one or more sectors of a country’s economy
from foreign competition through the use of tariffs or quotas. By removing the quotas and
lowering tariffs, China is reducing protectionism of the automobile industry in China.

- 29 -
Figure 7-3

7-80 PROTECTIONISM COMPREHENSION

The box with the “?” in Figure 7-3 above leads to which of the following as a result of the
imposition of tariffs and quotas based on protectionist policies of a country?
a. an increase in world trade
b. a decrease in world trade
c. a limit on exports
d. a limit on imports
e. countertrade

Answer: b Page(s): 164 LO: 1 AACSB: Global QD: Medium


Rationale: Protectionism hinders world trade through tariff and quota policies of individual
countries. Tariffs increase prices and quotas limit supply, which ultimately leads to a decrease in
world trade. See Figure 7-3 in the textbook.

7-81 MAKING RESPONSIBLE DECISIONS COMPREHENSION

Which of the following issues raises concerns about the ethics of protectionism?
a. Competitive advantage grows out of continuous improvement.
b. Small firms succeed in foreign niche markets.
c. Tariffs have declined from an average of 40 percent to less than 5 percent.
d. Regional trade agreements provide preferential treatment for member nations.
e. Pan-European marketing strategies are possible due to greater uniformity in packaging
standards.

Answer: d Page(s): 165 LO: 1 AACSB: Global QD: Medium


Rationale: Of the statements above, the possibility of preferential treatment, alternative “d” is
most likely to suggest an ethical consideration.

7-82 TARIFFS KNOWLEDGE


- 30 -
Government taxes on goods or services entering a country that primarily serve to raise prices on
imports are referred to as
a. tariffs.
b. quotas.
c. GATT taxes.
d. foreign excise taxes.
e. trade subsidies.

Answer: a Page(s): 164-165 LO: 1 AACSB: Global QD: Easy


Rationale: Key term definition—tariffs.

7-83 TARIFFS KNOWLEDGE

Tariffs refer to
a. government payments to companies or industries that primarily serve to create competitive
advantage for domestic products.
b. government taxes on goods or services entering a country that primarily serve to raise prices
on imports.
c. a restriction placed on the amount of a product allowed to enter or leave a country.
d. a minimum requirement for the purchase between two or more nations of products or
services.
e. a refusal to purchase or exchange goods or services with another nation unless certain
financial or ideological requirements have been satisfied.

Answer: b Page(s): 164-165 LO: 1 AACSB: Global QD: Easy


Rationale: Key term definition—tariffs.

7-84 TARIFFS KNOWLEDGE

A government tax on goods or services entering a country is referred to as a


a. GATT tax.
b. quota.
c. tariff.
d. foreign excise tax.
e. subsidy.

Answer: c Page(s): 164-165 LO: 1 AACSB: Global QD: Easy


Rationale: Key term definition—tariffs.

7-85 TARIFFS COMPREHENSION

The U.S. Rice Millers’ Association claims that if the Japanese rice market were opened to
imports by lowering __________, lower prices would save Japanese consumers $6 billion
annually and the United States would gain a large share of the Japanese rice market.
a. boycotts
b. tariffs
c. quotas
d. sanctions

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e. subsidies

Answer: b Page(s): 164-165 LO: 1 AACSB: Global QD: Medium


Rationale: Tariffs are government taxes on goods or services entering a country that primarily
serve to raise prices on imports.

7-86 TARIFFS COMPREHENSION

The __________ imposed on bananas by European Union countries cost consumers $2 billion a
year in higher prices.
a. boycotts
b. tariffs
c. quotas
d. sanctions
e. subsidies

Answer: b Page(s): 164-165 LO: 1 AACSB: Global QD: Medium


Rationale: Tariffs are government taxes on goods or services entering a country that primarily
serve to raise prices on imports.

7-87 TARIFFS COMPREHENSION

U.S. citizens pay $5 billion more annually for shoes and Japanese citizens pay $6 billion more for
rice than the actual cost of the products because
a. both countries have suffered major financial crises due a severe trade imbalance.
b. both countries have imposed tariffs on imported goods to protect their domestic markets.
c. both countries have imposed limits on the quantity of these goods that can leave their
respective domestic markets.
d. both products are considered essentials and as a result are more heavily taxed.
e. these products were purchased at a lower price from nations that currently are under
governmental sanctions.

Answer: b Page(s): 164-165 LO: 1 AACSB: Global QD: Medium


Rationale: Tariffs are government taxes on goods or services entering a country that primarily
serve to raise prices on imports.

7-88 TARIFFS APPLICATION

Recently, the Japanese government, under pressure from its domestic farm lobby, slapped
government taxes on mushrooms, leeks, and the reeds used in tatami mats that were being
imported from China. Japan levied
a. GATT taxes.
b. quotas.
c. tariffs.
d. excise taxes.
e. subsidies.

Answer: c Page(s): 164-165 LO: 1 AACSB: Global QD: Hard

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Rationale: Tariffs are government taxes on goods or services entering a country that primarily
serve to raise prices on imports.

7-89 TARIFFS APPLICATION

If you wanted to set up a business importing amber from Latvia to the United States, you would
have to plan on paying the U.S. Customs Service roughly 20 percent of the value of the product
as a(n) __________.
a. bribe
b. tariff
c. subsidy
d. excise tax
e. quota

Answer: b Page(s): 164-165 LO: 1 AACSB: Global QD: Hard


Rationale: Tariffs are government taxes on goods or services entering a country that primarily
serve to raise prices on imports.

7-90 TARIFFS APPLICATION

President Bill Clinton attempted to protect American firms from foreign competition by placing a
government tax on Japanese automobiles imported to the United States. President Clinton’s goal
was to raise the price on Japanese imports, thereby encouraging American consumers to purchase
American-made automobiles. The tax the president threatened to impose is an example of a
__________.
a. boycott
b. tariff
c. quota
d. sanction
e. subsidy

Answer: b Page(s): 164-165 LO: 1 AACSB: Global QD: Hard


Rationale: Tariffs are government taxes on goods or services entering a country that primarily
serve to raise prices on imports.

7-91 QUOTA KNOWLEDGE

A restriction placed on the amount of a product allowed to enter or leave a country is referred to
as a
a. quota.
b. tariff.
c. GATT tax.
d. subsidy.
e. excise tax.

Answer: a Page(s): 165 LO: 1 AACSB: Global QD: Easy


Rationale: Key term definition—quota.

- 33 -
7-92 QUOTA KNOWLEDGE

A quota refers to
a. a government tax on goods or services entering a country that primarily serves to raise prices
on imports.
b. government payments to companies or industries that serve to lower costs and provide a
competitive advantage to domestic industries.
c. a restriction placed on the amount of a product allowed to enter or leave a country.
d. a minimum requirement for the purchase of specific products or services between two
nations.
e. a refusal to purchase or exchange goods or services with another nation unless certain
financial or ideological requirements have been satisfied.

Answer: c Page(s): 165 LO: 1 AACSB: Global QD: Easy


Rationale: Key term definition—quota.

7-93 QUOTA APPLICATION

The world’s largest manufacturer of peppermint candy canes was in Albany, Georgia, until it
could no longer afford to buy the sugar needed for its operation. It moved its manufacturing
business to Mexico where there are no restrictions (as existed in the United States) on the amount
of sugar that can be brought into the nation. The movement of this U.S. business to Mexico was
caused by a(n) __________ established by the U.S. government.
a. tariff
b. trade imbalance
c. quota
d. excise tax
e. subsidy

Answer: c Page(s): 165 LO: 1 AACSB: Global QD: Hard


Rationale: A quota is a restriction placed on the amount of a product allowed to enter or leave a
country. In this case, the U.S. government caused domestically grown sugar to be priced higher
than sugar on the world market due to its protectionist policies on sugar.

7-94 GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT) KNOWLEDGE

The __________ is an international treaty intended to limit trade barriers and promote world trade
through the reduction of tariffs.
a. North Atlantic Treaty Organization (NATO)
b. General Agreement on Tariffs and Trade (GATT)
c. North American Free Trade Agreement (NAFTA)
d. World Trade Association Treaty (WTAT)
e. United Nations Agreement on Trade (UNAT)

Answer: b Page(s): 165 LO: 1 AACSB: Global QD: Easy


Rationale: Text term definition—General Agreement on Tariffs and Trade (GATT).

7-95 GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT) COMPREHENSION

- 34 -
Every country engages in some form of protectionism. However, protectionism has declined
internationally over the past 50 years due in large part to the
a. United Nations Agreement on Trade (UNAT).
b. North American Free Trade Agreement (NAFTA).
c. General Agreement on Tariffs and Trade (GATT).
d. North Atlantic Treaty Organization (NATO).
e. World Trade Association Treaty (WTAT).

Answer: c Page(s): 165 LO: 1 AACSB: Global QD: Medium


Rationale: Protectionism has declined over the past 50 years due in large part to the General
Agreement on Tariffs and Trade (GATT).

7-96 GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT) COMPREHENSION

To a degree, every country engages in some form of protectionism. Over the past 50 years
however, this practice has diminished, in large part due to
a. an alignment of nations by ethnicity rather than geographical borders.
b. an increase in population and a decrease in resources.
c. the evolution of mass media.
d. the establishment of GATT.
e. an alignment of nations by political ideology rather than geographical borders.

Answer: d Page(s): 165 LO: 1 AACSB: Global QD: Medium


Rationale: Every country engages in some form of protectionism. However, protectionism has
declined over the past 50 years due in large part to the General Agreement on Tariffs and Trade
(GATT). This international treaty intended to limit trade barriers and promote world trade
through the reduction of tariffs, which it did.

7-97 WORLD TRADE ORGANIZATION (WTO) KNOWLEDGE

A permanent institution that sets rules governing trade between its members through a panel of
trade experts who decide on trade disputes between members and issue binding decisions is
referred to as the __________.
a. League of Nations
b. World Trade Organization (WTO)
c. Association for Commerce Equity (ACE)
d. United Nations Board of Trade (UNBT)
e. Global Better Business Bureau (BBB-G)

Answer: b Page(s): 165-166 LO: 1 AACSB: Global QD: Easy


Rationale: Key term definition—World Trade Organization (WTO).

7-98 WORLD TRADE ORGANIZATION (WTO) KNOWLEDGE

The World Trade Organization (WTO) refers to


a. the world’s largest banking institution responsible for establishing and maintaining equitable
exchange rates for all member nations.
b. the world’s largest licensing institution responsible for the certification of products
distributed to a global market.

- 35 -
c. a permanent institution that sets rules governing trade between its members through panels of
trade experts who decide on trade disputes between members and issue binding decisions.
d. a multinational trade organization composed of the world’s wealthiest nations whose primary
purpose is to aid in the economic growth of developing nations.
e. a multinational trade organization comprised of the world’s wealthiest nations whose primary
purpose is to promote free trade economies.

Answer: c Page(s): 165-166 LO: 1 AACSB: Global QD: Easy


Rationale: Key term definition—World Trade Organization (WTO).

7-99 WORLD TRADE ORGANIZATION (WTO) KNOWLEDGE

There are __________ World Trade Organization countries, including the United States, which
account for more than 90 percent of world trade.
a. 37
b. 52
c. 97
d. 113
e. 153

Answer: e Page(s): 165-166 LO: 1 AACSB: Global QD: Easy


Rationale: The World Trade Organization (WTO) was formed in 1995 to address a broad array
of world trade issues. Today, there were 153 WTO member countries, including the United
States, which account for more than 90 percent of world trade.

7-100 WORLD TRADE ORGANIZATION (WTO) COMPREHENSION

Which of the following statements about the World Trade Organization (WTO) is most accurate?
a. The WTO is a permanent institution that sets rules governing trade between its members.
b. The WTO sets rules governing trade between its members and the remainder of the world.
c. The 153 member countries of the WTO account for approximately 55 percent of world trade.
d. The WTO uses panels of trade experts who can issue non-binding recommendations.
e. The WTO was formed by the United Nations.

Answer: a Page(s): 165-166 LO: 1 AACSB: Global QD: Medium


Rationale: The major industrialized nations of the world formed the WTO in 1995 to address
world trade issues. The 153 WTO member countries account for more than 90 percent of world
trade. The WTO is a permanent institution that sets rules governing trade between its members
through panels of trade experts who decide on trade disputes between members and issue binding
decisions.

7-101 WORLD TRADE ORGANIZATION (WTO) COMPREHENSION

Which of the following statements about the World Trade Organization (WTO) is most accurate?
a. The World Trade organization is a temporary group that meets on an as needed basis.
b. The 153 member countries of the WTO account for approximately 55 percent of world trade.
c. The WTO sets rules governing trade between its members and the remainder of the world.
d. The WTO uses panels of trade experts who can issue binding decisions.
e. The WTO was formed by the United Nations.

- 36 -
Answer: d Page(s): 165-166 LO: 1 AACSB: Global QD: Medium
Rationale: The major industrialized nations of the world formed the WTO in 1995 to address
world trade issues. The 153 WTO member countries account for more than 90 percent of world
trade. The WTO is a permanent institution that sets rules governing trade between its members
through panels of trade experts who decide on trade disputes between members and issue binding
decisions.

7-102 WORLD TRADE ORGANIZATION (WTO) COMPREHENSION

Which of the following statements about the World Trade Organization (WTO) is most accurate?
a. The World Trade organization is a temporary institution.
b. The 153 member countries of the WTO account for more than 90 percent of world trade.
c. The WTO sets rules governing trade between its members and the remainder of the world.
d. The WTO uses panels of trade experts who can issue non-binding recommendations.
e. The WTO was formed by the United Nations.

Answer: b Page(s): 165-166 LO: 1 AACSB: Global QD: Medium


Rationale: The major industrialized nations of the world formed the WTO in 1995 to address
world trade issues. The 153 WTO member countries account for more than 90 percent of world
trade. The WTO is a permanent institution that sets rules governing trade between its members
through panels of trade experts who decide on trade disputes between members and issue binding
decisions.

7-103 WORLD TRADE ORGANIZATION (WTO) COMPREHENSION

Which of the following statements about the World Trade Organization (WTO) is most accurate?
a. The World Trade organization is a temporary institution.
b. The 153 member countries of the WTO account for less than 25 percent of world trade.
c. The WTO sets rules governing trade among its members.
d. The WTO uses panels of trade experts who can issue non-binding recommendations.
e. The WTO was formed by the United Nations.

Answer: c Page(s): 165-166 LO: 1 AACSB: Global QD: Medium


Rationale: The major industrialized nations of the world formed the WTO in 1995 to address
world trade issues. The 153 WTO member countries account for more than 90 percent of world
trade. The WTO is a permanent institution that sets rules governing trade between its members
through panels of trade experts who decide on trade disputes between members and issue binding
decisions.

7-104 WORLD TRADE ORGANIZATION (WTO) COMPREHENSION

Which of the following statements about the World Trade Organization (WTO) is most accurate?
a. The World Trade organization is a temporary institution.
b. The 153 member countries of the WTO account for less than 25 percent of world trade.
c. The WTO sets rules governing trade between its members and the rest of the world.
d. The WTO uses panels of trade experts who can issue non-binding recommendations.
e. The WTO was formed by the major industrialized nations of the world.

- 37 -
Answer: e Page(s): 165-166 LO: 1 AACSB: Global QD: Easy
Rationale: The major industrialized nations of the world formed the WTO in 1995 to address
world trade issues. The 153 WTO member countries account for more than 90 percent of world
trade. The WTO is a permanent institution that sets rules governing trade between its members
through panels of trade experts who decide on trade disputes between members and issue binding
decisions.

7-105 EUROPEAN UNION (EU) KNOWLEDGE

The European Union (EU) in mid-2012 consisted of 27 countries with more than 500 million
consumers. The EU has eliminated most barriers to the free flow of goods, services, capital, and
labor across its borders. Which of the following countries is NOT a member of the EU as of mid-
2012?
a. Latvia
b. Greece
c. Ireland
d. Switzerland
e. England

Answer: d Page(s): 166-167 LO: 1 AACSB: Global QD: Easy


Rationale: Switzerland was NOT one of the 27 countries that belong to the EU as of mid-2012.
See Figure 7-4 in the textbook.

7-106 EUROPEAN UNION (EU) KNOWLEDGE

The European Union is an economic and political union of __________ member countries
located primarily in Europe that have eliminated most barriers to the free flow of goods, services,
capital, and labor across their borders.
a. 17
b. 20
c. 27
d. 30
e. 37

Answer: c Page(s): LO: 2 AACSB: Global QD: Easy


Rationale: The European Union as of mid-2012 consisted of 27 countries that have eliminated
most barriers to the free flow of goods, services, capital, and labor across their borders.

7-107 EUROPEAN UNION (EU) KNOWLEDGE

The European Union consists of 27 member countries. This single market houses more than
__________ million consumers with a combined GDP that is larger than that of the United States.
a. 100
b. 200
c. 300
d. 400
e. 500

Answer: e Page(s): LO: 2 AACSB: Global QD: Easy

- 38 -
Rationale: The European Union as of mid-2012 consisted of 27 countries with more than 500
million consumers with a combined GDP that is larger than that of the United States.

7-108 EUROPEAN UNION (EU) COMPREHENSION

The European Union (EU) has created abundant marketing opportunities because it is no longer
necessary to
a. print material in multiple languages.
b. continually monitor currency exchange rates.
c. trade with the former Eastern European communist countries.
d. obey international trade regulations.
e. use the American dollar as an economic standard.

Answer: b Page(s): 166-167 LO: 1 AACSB: Global QD: Medium


Rationale: One benefit of the EU was the adoption of the euro, which has been a boon to the
electronic commerce in the EU by eliminating the need to continually monitor currency exchange
rates.

7-109 EUROPEAN UNION (EU) COMPREHENSION

The EU has benefited its member nations because


a. there is immunity against world recessions.
b. there is a common language advantage among EU consumers.
c. most companies within the EU are engaging in strategic global partnerships.
d. there is a legally binding code of economic conduct.
e. firms do not need to market their products and services on a nation-by-nation basis.

Answer: e Page(s): 166-167 LO: 1 AACSB: Global QD: Medium


Rationale: The EU has benefited its member nations because firms do not need to market their
products and services on a nation-by-nation basis. Rather, pan-European marketing strategies are
possible due to greater uniformity in product and packaging standards; fewer regulatory
restrictions on transportation, advertising, and promotion imposed by countries; and removal of
most tariffs that affect pricing practices.

7-110 EUROPEAN UNION (EU) COMPREHENSION

The EU has benefited its member nations because firms do not need to market their products and
services on a nation-by-nation basis, most tariffs that affect pricing practices have been removed,
and
a. there is a legally binding code of economic conduct.
b. there is immunity against world recessions.
c. there are fewer regulatory restrictions on transportation, advertising, and promotion.
d. there is a common language advantage among EU consumers.
e. most companies within the EU are engaging in strategic global partnerships.

Answer: c Page(s): 166-167 LO: 1 AACSB: Global QD: Medium


Rationale: The EU has benefited its member nations because firms do not need to market their
products and services on a nation-by-nation basis. Rather, pan-European marketing strategies are
possible due to greater uniformity in product and packaging standards; fewer regulatory

- 39 -
restrictions on transportation, advertising, and promotion imposed by countries; and removal of
most tariffs that affect pricing practices.

7-111 NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA) COMPREHENSION

The North American Free Trade Agreement was designed to encourage free trade between
a. North America, Central America, and South America.
b. the United States, Canada, and Mexico.
c. the United States and the European Union.
d. member countries originally from NATO (North Atlantic Treaty Organization).
e. North America and The Commonwealth of Independent States.

Answer: b Page(s): 167 LO: 1 AACSB: Global QD: Medium


Rationale: The North American Free Trade Agreement lifted many trade barriers between
Canada, Mexico, and the United States and created a marketplace with more than 450 million
consumers.

7-112 CAFTA-DR COMPREHENSION

CAFTA-DR is a comprehensive free trade agreement between Costa Rica, the Dominican
Republic, El Salvador, Guatemala, Honduras, Nicaragua, and __________.
a. the United States
b. Panama
c. Belize
d. Cuba
e. Mexico

Answer: a Page(s): 167 LO: 1 AACSB: Global QD: Medium


Rationale: CAFTA-DR is a comprehensive free trade agreement among Costa Rica, the
Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States.

7-113 ASIAN FREE TRADE AGREEMENTS COMPREHENSION

Which of the following is most accurate in regards to the Asian free trade agreements?
a. Efforts to liberalize trade in East Asia are growing.
b. Asian free trade agreements are more formal than those of the EU and NAFTA.
c. Asian free trade agreements are based on ethnicity rather than geographical borders.
d. Asian free trade agreements encourage the formation of multinational corporations.
e. Asian free trade agreements recently include India and China.

Answer: a Page(s): 167 LO: 1 AACSB: Global QD: Medium


Rationale: Efforts to liberalize trade in East Asia are growing. Although the trade agreements
are less formal than those underlying the EU and NAFTA, they have reduced tariffs among
countries and promoted trade.

7-114 ASIAN FREE TRADE AGREEMENTS COMPREHENSION

Which of the following is most accurate in regards to the Asian free trade agreements?

- 40 -
a. Efforts to liberalize trade in East Asia have decreased as a result of the economic downturn in
2009.
b. Asian free trade agreements are based on ethnicity rather than geographical borders.
c. Asian free trade agreements encourage the formation of multinational corporations.
d. Asian free trade agreements recently include India and China.
e. Asian free trade agreements have reduced tariffs among countries and promoted trade.

Answer: e Page(s): 167 LO: 1 AACSB: Global QD: Medium


Rationale: Efforts to liberalize trade in East Asia are growing. Although the trade agreements
are less formal than those underlying the EU and NAFTA, they have reduced tariffs among
countries and promoted trade.

7-115 ASIAN FREE TRADE AGREEMENTS COMPREHENSION

The “Little Dragons,” in relation to the Asian free trade agreements, are composed of:
a. Hong Kong, Singapore, South Korea, and Taiwan.
b. Hong Kong, Shanghai, Singapore, and Bangkok.
c. Beijing, Hong Kong, Shanghai, and Singapore.
d. Beijing, Tokyo, Taiwan, and Singapore.
e. Beijing, Hong Kong, Taiwan, and Bangkok.

Answer: a Page(s): 167 LO: 1 AACSB: Global QD: Medium


Rationale: The Asian free trade agreements consist of efforts to liberalize trade in East Asia—
from Japan and the four “Little Dragons” (Hong Kong, Singapore, South Korea, and Taiwan)
through Thailand, Malaysia, and Indonesia.

7-116 GLOBAL COMPETITION KNOWLEDGE

When firms originate, produce, and market their products and services worldwide, it is referred to
as __________.
a. acculturation
b. global competition
c. free trade
d. global branding
e. transactional exchange

Answer: b Page(s): 167 LO: 1 AACSB: Global QD: Easy


Rationale: Key term definition—global competition.

7-117 GLOBAL COMPETITION KNOWLEDGE

Global competition refers to when


a. a firm produces and markets its products worldwide rather than in its own domestic market.
b. firms originate, produce, and market their products and services worldwide.
c. two firms from two different countries compete for market share in a domestic market.
d. two or more firms from different nations combine their resources to market products globally.
e. the firm from one nation dominates the market for that product in every other nation.

Answer: b Page(s): 167 LO: 1 AACSB: Global QD: Easy

- 41 -
Rationale: Key term definition—global competition.

7-118 GLOBAL COMPETITION KNOWLEDGE

Pepsi-Cola, now available in more than 160 countries and territories, accounts for __________
percent of all soft drinks sold internationally.
a. 10
b. 15
c. 20
d. 25
e. 30

Answer: d Page(s): 167 LO: 1 AACSB: Global QD: Easy


Rationale: Pepsi-Cola, now available in more than 160 countries and territories, accounts for a
quarter of all soft drinks sold internationally.

7-119 STRATEGIC ALLIANCES KNOWLEDGE

Agreements between two or more independent firms to cooperate for the purpose of achieving
common goals are referred to as
a. compacts.
b. global partnerships.
c. strategic alliances.
d. free trade agreements.
e. economic coalitions.

Answer: c Page(s): 168 LO: 1 AACSB: Global QD: Easy


Rationale: Key term definition—strategic alliance.

7-120 STRATEGIC ALLIANCES KNOWLEDGE

Strategic alliances refer to


a. multinational firms that have as many different product variations, brand names, and
advertising programs as countries in which they do business.
b. when a foreign company and a local firm invest together to create a local business in order to
share ownership, control, and profits of the new company.
c. when a domestic firm actually invests in and owns a foreign subsidiary or division.
d. agreements between two or more independent firms to cooperate for the purpose of achieving
common goals such as a competitive advantage or customer value.
e. the right to a trademark, patent, trade secret, or similarly valued item of intellectual property
of one firm in return for a royalty or fee from another firm.

Answer: d Page(s): 168 LO: 1 AACSB: Global QD: Easy


Rationale: Key term definition—strategic alliance.

7-121 STRATEGIC ALLIANCES COMPREHENSION

- 42 -
Collaborative relationships are becoming a common way to meet the demands of global
competition. Global __________ are agreements between two or more independent firms to
cooperate for the purpose of achieving common goals such as a competitive advantage or
customer value creation.
a. compacts
b. collaborative treaties
c. strategic alliances
d. free trade agreements
e. economic coalitions

Answer: c Page(s): 168 LO: 1 AACSB: Global QD: Medium


Rationale: Key term definition—strategic alliance.

7-122 STRATEGIC ALLIANCES APPLICATION

Two carmakers have developed a strange but successful partnership. Ford, a U.S. automaker, and
Mazda, an Asian carmaker, have collaborated on several models, including the Explorer, the
Probe, the Mazda 323, and the Mazda MX-6. The U.S. automaker has supplied Mazda with help
in marketing, finance, and styling. In return, Mazda has provided manufacturing and product
development expertise to Ford. Both companies have worked together toward a common goal
and both have benefited as a result of their
a. international contract.
b. free trade agreement.
c. strategic alliance.
d. collaborative treaty.
e. global oligopoly.

Answer: c Page(s): 168 LO: 1 AACSB: Global QD: Hard


Rationale: A strategic alliance is a cooperative venture between two or more independent firms.
The organizations work together to achieve common goals such as gaining competitive advantage
or creating customer value.

7-123 GLOBAL COMPANIES KNOWLEDGE

In terms of the global marketplace, there are three primary types of companies: __________,
multinational firms, and transnational firms.
a. worldwide
b. conglomerate
c. intercontinental
d. international
e. cosmopolitan

Answer: d Page(s): 168 LO: 1 AACSB: Global QD: Easy


Rationale: Three types of companies compete in the global marketplace: international firms,
multinational firms, and transnational firms.

7-124 GLOBAL COMPANIES KNOWLEDGE

- 43 -
In terms of the global marketplace, there are three primary types of companies: international
firms, __________ firms, and transnational firms.
a. large-scale
b. conglomerate
c. intercontinental
d. cosmopolitan
e. multinational

Answer: e Page(s): 168 LO: 1 AACSB: Global QD: Easy


Rationale: Three types of companies compete in the global marketplace: international firms,
multinational firms, and transnational firms.

7-125 GLOBAL COMPANIES KNOWLEDGE

The administrative, marketing, and manufacturing operations that many international firms,
multinational firms, and transnational firms have around the world are often called
a. divisions.
b. outlets.
c. departments.
d. markets.
e. holding companies.

Answer: a Page(s): 168 LO: 1 AACSB: Global QD: Easy


Rationale: Text term definition—divisions or subsidiaries.

7-126 GLOBAL COMPANIES COMPREHENSION

In terms of the global marketplace, there are three primary types of companies: (1) international
firms; (2) multinational firms; and (3) transnational firms. The key factor that distinguishes one
from another is
a. the firm’s financial capacity to take risks.
b. the willingness and ability to embrace diversity.
c. the firm’s orientation toward and strategy for global markets and marketing.
d. the relative position of the product or service in terms of its life cycle.
e. the relative size of the firm both in financial terms and in production capacity.

Answer: c Page(s): 168 LO: 1 AACSB: Global QD: Medium


Rationale: The three types of companies populate and compete in the global marketplace are: (1)
international firms; (2) multinational firms; and (3) transnational firms. A firm’s orientation and
strategy for global markets and marketing defines the type of company it is or attempts to be.

7-127 GLOBAL COMPANIES COMPREHENSION

The three types of companies populate and compete in the global marketplace are (1)
international firms; (2) multinational firms; and (3) __________ firms.
a. multiethnic
b. transnational
c. multidomestic
d. ethnocentric

- 44 -
e. meganational

Answer: b Page(s): 168 LO: 1 AACSB: Global QD: Medium


Rationale: The three types of companies populate and compete in the global marketplace are: (1)
international firms; (2) multinational firms; and (3) transnational firms. An international firm
engages in trade as an extension of the marketing strategy in its home country, a multinational
firm markets to each part of the world differently, and a transnational firm emphasizes cultural
similarities across countries.

7-128 GLOBAL COMPANIES COMPREHNSION

The three types of companies that populate and compete in the global marketplace are
international firms, __________ firms, and transnational firms.
a. multiethnic
b. domestic
c. multinational
d. ethnocentric
e. decentralized

Answer: c Page(s): 168 LO: 1 AACSB: Global QD: Medium


Rationale: The three types of companies populate and compete in the global marketplace are: (1)
international firms; (2) multinational firms; and (3) transnational firms. An international firm
engages in trade as an extension of the marketing strategy in its home country, a multinational
firm markets to each part of the world differently, and a transnational firm emphasizes cultural
similarities across countries.

7-129 INTERNATIONAL FIRM KNOWLEDGE

A(n) __________ firm engages in trade and marketing in different countries as an extension of
the marketing strategy in its home country.
a. multidomestic
b. meganational
c. international
d. multinational
e. transnational

Answer: c Page(s): 168 LO: 1 AACSB: Global QD: Easy


Rationale: Text term definition—international firm.

7-130 INTERNATIONAL FIRM COMPREHENSION

Generally speaking, a(n) __________ firm markets its existing products and services in other
countries the same way it does in its home country.
a. meganational
b. international
c. multinational
d. transnational
e. intranational

- 45 -
Another random document with
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The Project Gutenberg eBook of Perttunen kiinni!
This ebook is for the use of anyone anywhere in the United States
and most other parts of the world at no cost and with almost no
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Title: Perttunen kiinni!


1-näytöksinen ilveily

Author: Sakari Ruotsalo

Release date: December 2, 2023 [eBook #72284]

Language: Finnish

Original publication: Jyväskylä: K. J. Gummerus Oy, 1925

Credits: Tapio Riikonen

*** START OF THE PROJECT GUTENBERG EBOOK PERTTUNEN


KIINNI! ***
PERTTUNEN KIINNI!

1-näytöksinen ilveily

Kirj.

S. A. RUOTSALO

Jyväskylässä, K. J. Gummerus Oy, 1925.


HENKILÖT:

SOINISKA, Amerikan leski.


SELMA, hänen tyttärensä.
PERTTUNEN, aikanaan kuulu suurrosvo.
ERVINKI, maallikkosaarnaaja.
ALAPEREEN AUKUSTA, elähtänyt neiti, matkustajakodin pitäjä.
3 vahtimiestä.

HUONE:

Tupa, jossa on leivinuuni keskellä peräseinää; uunin etupuolessa


hella. Huone on seinällä jaettu kahtia: isompi oikea puoli on keittiö,
vasempi kamari, johon tuo ovi hellan edestä. Keittiön oikeassa
seinässä ulko-ovi liki yleisöä, sen vieressä sänky vuoteineen;
peräseinässä ikkuna verhoineen ja sen alla kaappipöytä
tavaroineen. Kamarin peräseinässä ikkuna verhoineen ja alla olevine
pöytineen; vasemmalla piironki peileineen, oikealla sänkysohva
vuoteineen. Tuoleja siellä täällä ja meriltä tuotuja tauluja ja koruja.
Kamarin lattiassa kynnyksen alla avattava luukku, josta mennään
kellariin. On syyskuun iltapuhde; tuli hellassa, ei lampussa.
SELMA (hellan edessä pyyhkii juuri valmistunutta kahvipannua ja
laulaa)

Jo lienet kuullut, veikkonen,


Tuon mainittavan Perttusen?
Hän oli aina hurja mies
Ja metsäpolut tarkoin ties!

Ei työhön ollut tottunut,


Vaan varastamaan oppinut;
Siihen vain taipui luontonsa —
Ja harjautui jo lapsena.

PERTTUNEN (on ilmestynyt ovelle ja kuunnellut)

Mistäs se Selmakin on tuon uuden arkkiveisun oppinut?

SELMA

Kas! Eera Manninen Kalajoelta! (kättelee) Tervetuloa! Istumaan!

PERTTUNEN (ympärilleen pälyillen)

Oletko yksin kotona?

SELMA

Olen. Äiti on vieraansa kanssa hihhulien seuroissa. Mutta mikäs


suden saareen saatti, minkä sinutkin meille, ja miten sinä mökkimme
löysit, vaikket ennen olekaan sisälle poikennut?

PERTTUNEN
Vaikeatapa tänne olikin osata, kun vastaantulijat lensivät kuin
hullut sen suuren varkaan perässä, josta juuri lauloit, eivätkä
joutaneet neuvomaan. (Istuu keinutuolissa.)

SELMA

Muistatkos vielä, miten tutustuimme? (Panee kuppeja ja pannun


tarjottimelle.)

PERTTUNEN

Muistanpa tietenkin. Sinä olit menossa tuohon naapurikylään


laulamaan Sivistysseurain kuvaelmassa. Kun tulin vastaan,
virvoittelit sinä maantielle tuupertunutta ukkoa. Minä autoin sinua, ja
meistä tuli heti ystävät, avomielisiä kun ollaan. Vai pidätkö minua
vielä ystävänäsi?

SELMA (on nostanut tuolin P:n viereen hellan suun eteen ja istuu
vastatessaan)

Totta kai! Sinä olet minusta nuoren maamiehen perikuva harmaine


nuttuinesi ja pieksusaappainesi, pestyine poskinesi ja kammattuine
hiuksinesi olet minun miesihanteeni (silittelee P:n poskea). Mutta
kauan sinä olet ollut poissa näkyvistäni. Missä?

PERTTUNEN

Kotona Kalajoella. Heinänteko ja elonkorjuu pidättävät


isäntämiestä. (kaivaa taskuaan) Minä olen tuonut sinulle muistoksi
tämän äitivainajani kellon perineen. (Ylös.) Huolitkos? (Pistää tytön
kaulaan.)
SELMA

Kiitos, kiitos! Tämä on kuin äidiltäni varastettu kello, mutta siinä ei


ollut periä. Isäntämiesten lahjat ovat suuria. (Selman epäluulo on
herännyt, ovelle koputetaan.)

PERTTUNEN (säikähtäen)

Joko äitisi tulee?

SELMA

Jaa! Manninenpa taisi panna porstuan oven lukkoon? Mutta ei se


äiti vielä ole, sillä hänellä on avain. Vieras se on. Manninen istuu
tuolla kamarissa ja juo kahvia. (Vie pannun tarjottimella ynnä kupit
kamarin pöydälle ja käskee Perttusen istumaan ja juomaan.) Juopas
nyt! Minä tulen pian. (Menee, avaa porstuan oven, josta Alapereen
Aukusta tulee.)

AUKUSTA

Iltaa!

SELMA

Iltaa! Tapasitteko äitiä?

AUKUSTA

Tapasin. Hän käski sanoa, ettei sinun tarvitse varata kahvia eikä
ruokaa. Soiniska syö saarnamiehineen siellä.

SELMA
Jokos seurat sitten loppuivat näin aikaisin?

AUKUSTA

Vasta ovat puhuneet Pere, Penttilä ja Soiniskan pappi, vielä


puhuvat Rahikka, Rasi, Runtti ja Rappi, niinkuin pojat veisaavat.
Mutta minä luulen, ettei äitisi ole loppuun asti, kun Pennaska on
aamupäivällä leiponut ja seuratupa on kuuma kuin pätsi. Voi Antti ja
Taavetti, kuinka kauheasti ne pääuskovaiset olivat riemussa!
Nenolaiskakin konttasi neulansilmän läpi. Arvaapas, miten se kävi.

SELMA

En arvaa.

AUKUSTA

Hän ryömi tuolinjalkojen välitse, se lihava tyllerö. Kun tuolilla


sylitysten istuvat pojat eivät liikahtaneet, tarttui eukko kiinni. Lopulta
hän rupesi nipistelemään poikia, ja pojat kiljumaan. Lysti sitä oli
suruttoman katsella. Mutta kun meidän vieraskodissamme on
kortteeria muiden muassa se konsulin vararouva kaupungista, se
Noppa-Katti hyväkäs, täytyi siksikin lähteä jo, sillä se pakana on
pitkäkynsinen. (Tekee lähtöä, panee huivin päähänsä, saalin
hartioille lattialta.) Kuule. Tiedätkö, mitä tuo ulkoa kuuluva huuto on?

SELMA

Siellä kuuluu ajettavan Perttusta takaa.

AUKUSTA
Niin, sitä suurta voroa. Ihmiset juoksevat pitkin kujia ja lääviä. Hän
on viime yönä kierrellyt kirkonkylällä ja ammuskellut nimismiehen
akkunoita. Aamulla hän kuuluu Punaisesta mökistä vaimonpuolen
puvussa tulleen tännepäin. (Kaivaa povestaan kuvan) Tässä on
hänen kuvansa, että tietäisit juosta pakoon, jos eteesi sattuu.
Leikkasin tämän Oulun lehdestä. Hän on sievä mies. Branderin
mamselli sanoikin: »Minä ottaisin tuon miehekseni, jos ei häntä
odottaisi ikuinen kakola».

PERTTUNEN (on Selman ja Aukustan puhellessa avaimillaan


aukonut piirongin laatikot, tukkinut taskuunsa lusikoita ja sormuksia
sanoen samalla):

Tämä on minun työtäni, tähän minä olen jo lapsena tottunut, kuten


veisussa sanotaankin. Varas varastaa morsiameltaankin. (Istuu
kahvia juomaan.)

SELMA (katselee kuvaa, kalpenee)

Hiljaa. (Vetää Aukustan ovelle.) Minä luulen, että juuri tämä mies,
tämä Perttunen, istuu perikamarissa ja juo kahvia. Menkää ja
ilmoittakaa pyytäjille! Minä narraan hänet, koska hän on pettänyt
minut, narraan kellariin muka äitiä piiloon.

AUKUSTA

Vai on siellä joku. (Kovasti.) Ei, nyt minä juoksen kotiin. Hyvästi.
(Menee porstuaan, palaa takaisin.) Kuule! Kun tulet kaupunkiin, niin
soita sieltä uutisia.

SELMA
Ei sitä viitsi, kun se keskuksen akka kaikki kuuntelee ja kaikki
kertoo koko kylälle.

AUKUSTA

Ei se enää uskalla. Rouva Setälä paransi hänestä sen taudin. Hän


soitti Ouluun ja kertoi salaisuutena muka, että yhtiön johtokunta on
tarjonnut hänen hoidettavakseen kaupungin keskuksen, kun tämä
Mareliuksen Fiinu kaikki kuuntelee ja kertoo. Se auttoi. Fiinulla on
siitä asti ollut pikilappu suulla. Ei. Hyvästi! (Lyö mennessään
porstuan oven kiinni.)

SELMA (yksin)

Oletkos siis todellakin sinä Eera Manninen tuo katala Perttunen!


Ja tämä kello on varastettu tämäkin. Hyi! (Viskaa uunille.) Malta,
malta! Miehet sinä olet aina ja kaikkialla kekuloinut, mutta nainen on
heitä ovelampi. Saatpas kokea. (Menee kamariin, kuuluu kolinaa.)
Nyt äiti tulee ja Ervinki, se meillä asuva saarnamies. Manninen istuu
vain täällä ja juo kahvia, tulen heti. (Menee keittiöön, Perttunen
kuuntelee).

SOINISKA

Terveisiä seuroista! Istu Ervinki ja riisu! Hullu se on tuo Pennaska,


kun korventaa saarnatuvan kuin saunan. Huhui! (Pyyhkii silmiään.)
Ei sinun tarvitse kahvia eikä ruokaa tuoda. Mene maata, tyttö. (Istuu
pöydän päähän, nostaa 2 pikaria ja pullon kaapista.) Tuossa
Ervingillekin vähän sydämen vahvistusta. (Juovat molemmat,
Soiniska riisuu kengät ja hameet.) Juo pullo tyhjäksi, muuten vilustut
hikeiltyäsi hirveästi. Mutta ei sinun tarvitse tästä seuroissa saarnata.
Minulla on tilkka takana alituisen koliikini vuoksi. Pahe sinä maata
tuohon sänkyyn. Minä menen tuonne uunille. (Kiivetessään.) On
täällä tilaa sinullekin. Jos rupeaa vilustamaan täi haluttamaan, niin
kämmi tänne, kuten ennenkin eräillä kerroilla.

ERVINKI

Kyllä, kyllä, jahka Selma nukkuu. (Panee maata.)

SELMA (on kuunnellut oven raosta, Perttuselle)

Uskooko Manninen, että tuo Ervinki rietas tulee tänne


reistailemaan heti, kun äiti nukkuu. Se kiusaa minua.

PERTTUNEN (kattelee)

Mutta pääseekös sieltä varmasti ulos?

SELMA

Vielä häntä kysyy. Pian nyt! (Perttusen laskeuduttua alas Selma


vetää portaat ylös, mutta jättää luukun auki) Ei saa ennen ovea
survoa, kuin äiti nukkuu, minä ilmoitan. (Vähentää vaatteita, vetää
ikkunaverhot kiinni.)

ERVINKI (nousee ylös, riisuu alusvaatteilleen ja hiipii kamariin


kääry kädessä)

Sst! Hiljaa, Selma! Tässä sinulle tuon pienen — — — (Putoo


samassa luukusta kellariin.) Mitä pirun vehkeitä tämä?

SELMA (sulkiessaan luukun)


Olkaa siellä, mokomat sulhaset, älkääkä huutako, ettei äiti herää.
Minä lähetän vahtimiehet Perttusta kiinni ottamaan. (Kuuluu
kolkutusta ulko-ovelta.) Nyt ne tulevat! (Menee avaamaan)

PERTTUNEN (paiskaa luukun auki, putkahtaa permannolle,


sieppaa Selman vaatteita ylleen, hiipii Selman puhellessa sängyn
päähän piiloon.)

SELMA

Menkää kellarin oven eteen kaikki, minä viskaan kamarin


akkunasta avaimen, se on pöytälaatikossa siellä. (Menee kamariin,
mutta putoo hänkin kellariin.)

PERTTUNEN (huutaa uunille)

Laskekaa portaat kellariin, jotta Selma sulhasineen pääsee pois.


(Juoksee ulos varastettuaan Ervingin puvun.)

SOINISKA

Mitä, mitä tämä melu on? Ja mistä tämä minun varastettu kelloni
on uunille ilmestynyt? (Kuuluu kolkutusta kellarista ja huutoja
ikkunan alta, Soiniska paitasillaan permannolla huutaa akkunasta.)
Mitä siellä elämöidään? Tulkaa sisälle!

ERÄS VAHTIMIES (tulee)

Mihin se sinun tyttölintusi katosi, kun kellarin avainta ei


kuulukaan?

SOINISKA
Mitä te sitten minun kellarissani tekisitte?

VAHTIMIES.

Sinne on kätketty Perttunen.

SOINISKA

Valehtelet! Minä en ole mikään rosvojen huoltaja. Että uskoisitte,


niin menkää katsomaan. Täältä luukusta sinne pääsette ilman
avainta. (Menevät kamariin.) Tuossa on luukku ja tuossa portaat!
Hakekaa tarkoin! Minä puen päälleni riepuja.

VAHTIMIES (asettaa portaat alas; kun toisetkin ovat tulleet,


huutaa)

Jos siellä joku on, niin ylös ja äkkiä!

SELMA

Putosin pimeässä kellariin, kun Perttunen karkasi luukusta. Äiti,


viskatkaa sängystä hameeni!

SOINISKA

Ei täällä sinun hameitasi näy.

ERVINKI

Anna, Soiniska, takkini ja housuni tuvan tuolilta.

PERTTUNEN (lyö ruudun rikki kamarista, pistää päänsä näkyviin)


Ei niitä siellä ole. Tuossa on morsiameni vaatteet. (Viskaa kääryn
ikkunasta.) Perttunen herrastelee saarnasaksan puvussa. Hyvästi!
Ottakaa Perttunen kiinni!

15

VAHTIMIEHET (hölmistyneinä hyökkäävät ulos)

Ottakaa Perttunen kiinni! Ottakaa Perttunen kiinni!

SOINISKA (kellarista kömpivälle Ervingille)

Pahuusko sinut sinne viskasi?

ERVINKI

Minä kävelin unissani.

SOINISKA

Unissasi!

ERVINKI

Se oli seuraus sinun sydämenvahvistuksestasi.

SOINISKA (Selmalle)

Entä sinä?
SELMA (lattialla jo)

Minä läksin viskaamaan avainta tuosta ikkunasta vahtimiehille,


mutta putosinkin kellariin.

SOINISKA

Miksi luukku oli auki?

ERVINKI

Siellä kellarissa oli todella toinen mies. Se kiepsahti kuin orava


olkapäilleni, paiskasi luukun auki ja pakeni, mutta ei auttanutkaan
minua ylös, vaikka lupasi. Olikohan se pahuus se Perttunen?

SELMA

Oli se. Tunsin hänet kuvasta, jonka Alapereen Aukusta antoi.


Kahvittelin häntä kamarissa ja olin olevinani morsian, että Aukusta
ennättäisi hakea vahtimiehiä. Hän se antoi minulle tuon kellon, joka
on äidin kädessä.

SOINISKA

Ja jonka Noppa-Katti varasti minulta.

ERVINKI

Ja Perttunen Noppa-Katilta.

SELMA
Varas varkaan varasti. Perttunen olikin ovelampi minua. Minä
menen katsomaan, saadaanko se kytketyksi. (Pois.)

SOINISKA

Minä en usko, että Ervinki unissa käveli. Selmaa sinä ahdistit.


Mutta menetitpä vaatteesi! Kutti! Mutta tuon luukun, jota Selman isä
sanoo hentunsilmäksi, kun tahtoo mustasukkaisuudessaan minua
kiusata, minä naulaan huomispäivänä umpeen ja iäksi.
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