Archives

Which of the following is also known as direct marketing? A) an intensive channel B) an exclusive channel C) a zero-level channel D) a two-level channel Answer: Which of the following is considered as a primary activity in an organization? […]

By ignoring important cultural nuances, companies can inadvertently decrease the potential for noise that can cloud the audience’s understanding of their promotional message. Answer: The rapid pace of technological innovation today extends the life cycles of products. Answer: FALSE Customer […]

A class system is a system of social stratification in which ________. A) people are divided into various political groups and subgroups B) a person’s social rank depends upon his/her parentage C) people join highly exclusive associations that forbid external […]

Subcultures contribute very little to national culture and can be safely ignored when making marketing and production decisions. Answer: Trade barriers and specialized knowledge are examples of market imperfections. Answer: TRUE Advance payment is the least favorable method of payment […]

Which of the following is the main cultural motive behind government intervention in trade? A) promotion of strategic trade policies B) protection of jobs C) protection of national identity D) protection of young industries from competition Answer: Which of the […]

Developed countries have been the major participants behind cross-border mergers and acquisitions. Answer: Cultural elements can influence what kinds of products are sold and how they are sold in a country. Answer: TRUE The marketing communication process involves encoding and […]

The intentional raising of the value of a currency by a nation’s government is called ________. A) revaluation B) securitization C) fundamental disequilibrium D) currency hedging Answer: Which of the following is least likely a reason for companies to seek […]

Offering the same products using the same marketing strategy in all national markets of an organization is referred to as a ________ strategy. A) global B) retrenchment C) multinational D) blue ocean Answer: Which of the following methods will Happyland […]

Transactions involving the export of Happyland’s textile and computer products are included in its ________ account. A) capital B) merchandise C) services D) income payments Answer: Which of the following variables attempts to estimate market openness when creating a market-potential […]

The international monetary system created by the Bretton Woods Agreement collapsed because ________. A) of its heavy dependence on the stability of the dollar B) it was not accepted by a majority of the world’s nations C) it did not […]

A company can achieve market power through ________. A) ownership advantages B) internalization advantages C) horizontal integration D) vertical integration Answer: Crystal inc. is a multifaceted company that deals with the mining, cutting, and selling of diamonds. It gives distributors […]

If ABC Software simultaneously purchases and sells foreign exchange for two different dates, the company is said to be involved in ________. A) increasing its foreign exchange rate risk B) conducting a currency swap C) entering an arbitrage situation D) […]

When going global with an Internet presence, it is highly beneficial for a business to localize its Web site. Answer: Increased regulation of national capital markets has been instrumental in the expansion of the international capital market. Answer: FALSE[/cpmembership] The […]

________ is a decentralized exchange encompassing a global computer network of foreign exchange traders and other market participants. A) Securities exchanges B) Eurocurrency market C) Interbank market D) Over-the-counter market Answer: Which of the following countries is a member of […]

________ is the layer of corporate social responsibility in which a business builds social responsibility into its core operations to create value and build competitive advantage. A) Risk management B) Traditional philanthropy C) Strategic CSR D) Political polity Answer: Which […]

Which of the following requires an importer to pay for the imported goods when they are delivered? A) sight draft B) inland bill of lading C) air way bill of lading D) time draft Answer: Which of the following philosophies […]

The most common method used for buying and selling goods internationally is licensing. Answer: A voluntary export restraint refers to a quota that a nation imposes on its exports, usually at the request of another nation. Answer: TRUE Products made […]

Which of the following promotional strategies is being used by a company that hires a fleet of trucks to drive through village squares and hand out free trial packages to potential end users? A) push strategy B) pull strategy C) […]

The rate at which one currency is interchanged for another is called the ________. A) exchange rate B) interbank interest rate C) official cash rate D) prime rate Answer: Which of the following is a contractual entry mode? A) wholly […]

________ is an effective alternative to traditional distribution channels for firms that sell digitized products. A) Dual licensing B) Electronic distribution C) Visual merchandising D) Digital switchover Answer: Compare and contrast the business environments in China and Russia. Answer: Doing […]

A designated geographic region in which merchandise is allowed to pass with lower customs duties and/or fewer custom procedures is called a(n) ________. A) foreign trade zone B) free trade area C) single market D) open border Answer: The income-elasticity […]

Volatile currency values make it easier for firms to predict future earnings accurately in terms of the home-country currency. Answer: Direct exporters always sell directly to end users. Answer: FALSE Trade missions are advantageous to small businesses as they are […]

Company debt normally takes the form of ________. A) bonds B) equity C) stocks D) bank loans Answer: While ________ encourages free trade among Canada, Mexico and the United States, manufacturers and distributors must abide by local content requirements and […]

Most of the world merchandise trade is composed of trade in ________. A) minerals B) services C) manufactured goods D) agricultural products Answer: Economic integration whereby countries remove all barriers to trade among themselves, but set a common trade policy […]

A market is efficient if the prices of financial instruments quickly reflect new public information made available to traders. Answer: Unwanted cultural influence in a nation can cause governments to block imports that it believes are harmful. Answer: TRUE Availability […]

The scope of a corporation’s operations refers to the size of its operations. Answer: Companies strive toward quality improvements for attaining economies of scale. Answer: FALSE Gross national product (GNP) is the value of all goods and services imported into […]

The theory of absolute advantage destroys the mercantilist idea that international trade is a zero-sum game. Answer: According to the eclectic theory that explains FDI, an ownership advantage is the advantage that arises from internalizing a business activity rather than […]

If Verandas International chooses to pursue equity financing, but wants to avoid the time and money required to comply with stock exchange regulations, the company would most likely issue ________. A) American Depository Receipts B) bills of lading C) equity […]

The immediate cause of country risk is a legal or political factor. Answer: The ISO 9000 is a production technique in which inputs to the production process arrive exactly when they are needed. Answer: FALSE Predictable exchange rates increase the […]

According to Michael Porter, advanced factors account for the sustained competitive advantage a country enjoys in a product. Answer: The European monetary system is still in practice today. Answer: FALSE Today, due to improved technology, it is fairly easy to […]

Olive oil prepared in a small Italian oil press factory and sold by large supermarkets in the United States is an example of a ________. A) net national product B) U.S. export C) U.S. import D) gross domestic product Answer: […]

The first phase of human resource planning is estimating the company’s future HR needs. Answer: The bureaucracy is the part of government that implements the rules and laws passed by elected representatives. Answer: TRUE Currency speculation is the purchase or […]