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To monitor the performance of a sustainability strategy, a company must ______ a. Develop key performance indicators b. Hire an auditing agency c. Engage NGOs d. Audit its supply chain e. Monitor social media With respect to the international product […]

In general, a capital-abundant country (such as the United States) tends to specialize in capital-intensive industry and export capital-intensive products, and import labor-intensive products. This statement is an illustration of the ____________________ of comparative advantage. a. commodity terms of trade […]

If a product were to be categorized as being heavy, bulky, and nonperishable, probably the best form of global shipping would be: a. ocean shipping. b. air freight. c. truck. d. rail. e. barge. _________________ duties are assessed on imported […]

An example of ____________________ competition is when BMW exports its sports cars to Japan, while Honda exports its competing models to Germany. a. inter-industry b. between-industry c. intra-industry d. superficial e. conglomerate The __________________ model is an attempt to reconcile […]

The ____________________ antitrust laws are applied not only to _______________ -member country companies but also to foreign companies as long as their corporate action has antitrust implications within the _____________. a. MERCOSUR. b. European Union (EU). c. European Free Trade […]

If prospective customers are contacted and shown commercials for the new product and existing brands (then asked to state attitudes and preferences of what they have seen), then the marketing research entity will probably have conducted a(n) __________________ instead of […]

ISP is an acronym for Internet Standards Provider. Small and medium-size companies (SMEs) are also participating in the area of e-commerce and Internet-related opportunities. Answer: (True) A company’s expertise can be channeled through three routes to seek competitive advantage: appropriability […]

With __________________ advertising, guidelines are given to the local affiliates concerning the execution of the advertising. a. geotype b. prototype c. modulartype d. export e. psychological Keyword search advertising allows the company to have a link to its Web site […]

In international marketing, many well-known brands in pure web retailing (e-trade, Amazon.com) still have limited ________________________ expertise. a. local b. international c. regional d. economic e. political The goals of a preliminary screen to determine market opportunities are to minimize […]

In marketing research, once the problem has been identified it is translated into: a. a secondary research search. b. a primary research search. c. specific research questions. d. a sampling process. e. a choice of scales to be used in […]

__________________ refers to an economic system in which free enterprise is permitted and encouraged along with private ownership. a. Socialism b. Communism c. Fascism d. Capitalism e. Planned economics Embargoes and sanctions are ______________________ political trade controls. a. locally-based b. […]

Country of origin (COO) influences are particularly strong among the elderly. Matrix structure can be a bureaucratic bloat. Answer: (True) In these days, many MNCs create organizational structures to foster global product development. Answer: (True) Push strategies are more likely […]

Which of the following is a principle of international trade? a. Japanese workers are more productive than any other workers in the world. b. Countries benefit from international trade. c. Manufacturers must be forced into international trade. d. Specialization is […]

Regarding regional integration, South American markets are still less open than those of East Asia. The Silk Road once connected Shanghai (China) to Istanbul (Turkey) on land. Answer: (False) Ethnocentrism is the belief that one’s own culture is: a. superior […]

Differences in both the cultural and physical environment across countries call for a _________________________ strategy. a. product and communication extension–dual extension b. product invention c. product extension–communications adaptation d. product adaptation–communications extension e. product and communications adaptation–dual adaptation Because emerging […]

___________________ is the only foolproof way to debug the questionnaire and spot embarrassing mistakes. a. Pre-testing b. Post-testing c. Using approved software d. Using standard questionnaire formats e. Having a linguist read the questionnaire All of the following are drivers […]

__________________ means offering a uniform product on a regional or worldwide basis (only minor alterations are made to meet local standards). a. Customization b. Standardization c. Miniaturization d. Assimilation e. Marginalization To implement sustainable supply chain management, the first step […]

The network global organization is sometimes also referred to as an ‘ethnocentric’ organization. Negotiations practices do not vary enormously across cultures. Answer: (False) Brand equity is usually consistent from country to country. Answer: (False) A host country refers to a […]

The most popular budgeting rule is the objective-and-task method. Any start-up firm becoming global at its first inception is called as ‘˜born again firm’. Answer: (False) Asea Brown Boveri is a prime example of networking. Answer: (True) Pirated products tend […]

In the area of pricing, the Internet facilitates: a. work transparency. b. price transparency. c. profit transparency. d. channel transparency. e. none of the above is true. A truly ________________ is one that has a consistent identity with consumers across […]

The goal of standardization is to minimize competition. International business consists of international trade and foreign production. Answer: (True) ‘Test, test, test’ is a maxim that marketers should never forget. Answer: (True) The goal of many MNCs is to avoid […]

An agent intermediary takes title to goods. Today, countries have become economically independent. Answer: (False) In 1994, China’s devaluation of its currency triggered the Asian financial crisis. Answer: (True) In the area of age of data, the frequency of census […]

To identify market opportunities for a given product (or service), the international marketer usually starts off with a large pool of candidate cities. In international marketing, trade barriers to service marketers tend to be much more cumbersome than physical products. […]

The size of segments (in the international environment) based on cultural or lifestyle indicators are typically easy to gauge and to factor into overall planning. In most instances, there is no mixture of universal, regional, and country-specific market segments. Answer: […]

The _________________ argument says that two countries cannot engage in trade if one country has a(an) ___________________ over the other country. Note: the phrase will fit in both blanks. a. absolute advantage b. regional advantage c. supply chain advantage d. […]

In the Asia-Pacific region, B2B e-commerce activities are facing obstacles which could hinder the growth of the Internet. These obstacles include: a. doing business on a face-to-face basis. b. cultivating relationships and secrecy issues. c. reluctance to share information. d. […]

In arm’s-length prices, a firm uses the market mechanism as a cue for setting transfer prices. Strategic alliances between strong and weak partners often work because of the synergy and learning that can take place between mentor and subordinate. Answer: […]

Products from emerging markets only compete as low-end challengers to established brands. In solo branding, each brand stands on its own with a product or brand manager running it. Answer: (True) Silent language refers to the thoughts that humans have […]

The purpose of ______________________ is to get scores from subjects of different countries to have the same meaning and interpretation. a. time evaluation b. scalar equivalence c. polar equivalence d. bias equivalence e. focus equivalence When a company such as […]

‘What is left unsaid is as important as what is said’ would be an example of what form of culture? a. agrarian. b. low context. c. intellectual. d. high context. e. northern European. One framework that helps with studying the […]

________________________ can be deterred by strong entry barriers. a. Potential new entrants to the market b. The bargaining power of suppliers c. The bargaining power of buyers d. The threat of substitute products or services e. Existing rivals or competitors […]

All of the following are possible payment terms for goods exported to another nation EXCEPT: a. advance payment b. third party draft. c. confirmed irrevocable letter of credit. d. unconfirmed irrevocable letter of credit e. open account The chief executive […]

Contract manufacturing is also known as outsourcing. Frugal engineering means making very cheap, low quality products so you can get the most profit. Answer: (False) If an exporter were to stress price benefits, the exporter would probably be facing a […]

Careless translation of advertising slogans or product labels leads to: a. language blunders. b. high cost. c. government regulation. d. imprisonment of offending parties. e. preference of domestic products. Data in the European market was gathered on the penetration of […]

According to the text, regarding the profile of Internet buyers, differences across countries are mainly due to two factors which are: a. access charges and availability of computer programmers. b. access charges and availability of outsourcing. c. access charges and […]

Wide gaps in the price sensitivity between countries for the same product may create conditions that promote _________________ markets. a. backward b. gray c. white d. demand e. forward After China, the country with the largest shopping malls in the […]

Some distribution companies even find that the best way to be successful is to create a distribution ________________. a. alliances b. mergers c. acquisitions d. consortia e. joint ventures Why is distribution considered to be the biggest challenge when entering […]

One reason Chinese parents treat their children as little ’emperors and empresses’ is that: a. they have no choice since it is mandated by Chinese law. b. China has a one child per couple (without penalties) birth control policy. c. […]

Social marketing in the Third World is a waste of time and money. For global marketers, the Web could affect the firm’s high margins because of price transparency. Answer: (True) Cost-based pricing simply adds a mark-up to the cost of […]

All of the following are shortcomings of standard ‘per-capita income’ segmentation processes EXCEPT: a. monetization of transactions within a country. b. not knowing how much a household can buy. c. gray and black sectors of the economy being accounted for. […]

All of the following are examples of intercultural issues with the foreign country EXCEPT: a. motivation. b. cultural sensitivity. c. ethical standards. d. relationship building. e. home to host communications. One of the problems with joint ventures is ________________ between […]

Pepsico’s decision to adopt a global policy to advertise only nutritious products toward children is an example of ________ a. Cause-related marketing b. Responsible marketing c. Green marketing d. Global advertising e. Viral marketing B2B stands for: a. bubble-to-business b. […]

In 1969, the IMF created ____________________________, which are special account entries on the IMF books designed to provide additional liquidity to support growing world trade. a. special drawing rights (SDRs) b. special legal rights c. special finance rights d. special […]

There are many unsolved issues in the Internet. For example, e-commerce is global but the national laws are mostly transnational. Any research effort starts off with a precise definition of who the marketer wants to research. Answer: (False) If a […]

Bottom of the pyramid means: a. lower class Egyptians. b. the lowest level of consumer involvement with your product. c. the lowest satisfaction level of Maslow’s hierarchy. d. people earning less than $2 per day. e. the first step toward […]

Regionalization can also be defined as cross-subsidization. The American Export Trading Company act was passed in 1982. Answer: (True) Country of origin (COO) effects depend on the product category. Answer: (True) India is experiencing changes in its income pattern from […]

One of the procedures used in practice to avoid sloppy translation of questionnaires is forward-translation. Some common market forces are global economies of scale and scope and a steep experience curve. Answer: (False) A common market eliminates all tariffs and […]

Shift from TV and print to radio advertising is becoming a big reality. ‘Not-Invented-Here’ (NIH) syndrome does not come from local subsidiaries. Answer: (False) The company’s management programs are another major formal control tools. Answer: (False) Backward innovation and selling […]

As a profile of a twenty-first century country manager, _________________ establishes a beachhead in a new market or heads a recently acquired local distributor. They should have an entrepreneurial spirit. a. the trader b. the representative c. the builder d. […]

The _______________ strengthened the U.S. antitrust arsenal by prohibiting trade practices that were not covered in previous legislation. It outlawed exclusive dealing and price discrimination. a. Sherman Act b. Clayton Act c. Federal Trade Commission Act d. Foreign Corrupt Practices […]

The key determinant in the market entry choice decisions is the: a. risk. b. local infrastructure. c. flexibility. d. internal resources and assets. e. market size and growth potential. Which of the following would be a good option to follow […]

To expand services for countries in monetary difficulties, the IMF created Special Drawing Rights (SDRs). Foreign exchange is not the monetary mechanism that allows the transfer of funds from one nation to another. Answer: (False) The Economist publishes a PPP […]

To improve health and hygiene standards around the world, Unilever instituted a. Global laundry day b. Global hand washing day c. Global shampooing day d. Global tooth brushing day e. Global face washing day Industry globalization forces include the following […]

If goods enter a ________________, they can be re-exported anytime (up to five years) without payment of duty. a. holding pen b. corporate security zone c. bonded warehouse d. wharf zone e. parallel import zone When import duties are paid, […]

FDI in services is controlled by U.S. firms. One of the problems with a multiple party governmental system is a lack of political stability and continuity. Answer: (True) Clan cultures do not stress cohesiveness, participation, and teamwork. Answer: (False) Countries […]

In today’s global marketing, international trade and foreign production are increasingly managed on a __________________. a. vertical basis b. horizontal basis c. global basis d. regional basis e. local basis The preferred entry mode(s) for emerging markets: a. include(s) both […]

According to the text, the Web clearly provides a unique _______________ and ______________ channel to marketers across the globe. a. distribution, higher education b. distribution, production c. distribution, network d. distribution, communication e. none of the above Sogoshosha (such as […]

Cross-cultural training is on the decline in recent years. Sales people do not sell services. Answer: (False) Because of their universally known products, the Wrigley chewing gum company can use product adaptation-communications extension strategies effectively. Answer: (False) A monetary union […]

The balance of payments in ______________ shows trade in currently produced goods and services, as well as unilateral transfers of merchandise. a. current account balance b. capital account c. trade balance d. direct investments e. portfolio investment __________________ refers to […]

If promotional dollars are aimed at the end-user, then the strategy is described as being a ______________ strategy. a. push b. pull c. conventional d. vertical e. horizontal G-7 began during the economic crisis of the mid-____________. a. 1950s. b. […]

A good example of a global brand name is Microsoft. Materials management refers to the movement of the firm’s finished products to its customers, consisting of transportation, warehousing, inventory, customer service/order entry, and administration. Answer: (False) According to the textbook, […]

In many industries, connectivity means that existing channels can be bypassed by connecting buyers and suppliers directly. On a competitive map, financial, trading, and industrial activities across national boundaries have rendered political borders increasingly irrelevant. Answer: (True) Religion does not […]

In the product policy area, the Internet can help build: a. regional brands. b. food brands only. c. global brands. d. high-tech brands. e. tangible brands. . Standardization of product has a __________________ orientation (lower costs via mass production). a. […]

Global logistics encompasses: a. advertising and personal selling. b. purchasing and manufacturing. c. materials management and trucking. d. materials management and physical distribution. e. pricing and manufacturing. When contrasted with greenfield operations, _________________ provide(s) a rapid means to get access […]

The first step in the control process is to set standards. Exports from the United States do not require an export license. Answer: (False) Smuggling and black market activities are illegal global markets. Answer: (True) The chain ratio method starts […]

More than 90 percent of the world’s trade is denominated in U.S. dollars. Brand name awareness, perceived quality, and other associations invoked by the brand name in the customer’s mind can be described as being part of brand equity. Answer: […]

Brand equity for global brands varies greatly from country to country. All of the following factors contribute to the variation EXCEPT: a. history. b. competitive climate. c. marketing support. d. cultural receptivity to brands. e. brand equity scale. Poor transportation […]

Which of the following is an example of an issue faced by international sales strategy? a. motivation. b. cultural sensitivity. c. ethical standards. d. relationship building. e. home to host communications. With respect to Hofstede’s cultural classification scheme, ______________ refers […]

__________________ addresses the structure, size, and compensation of the sales force. a. Sales force objectives b. Sales force goals c. Sales force strategy d. Sales force policy e. Sales force vision In international marketing, numerous promotional efforts misfire because of […]

The Internet offers advantages to international advertisers which include: a. global reach. b. interactivity. c. precise information d. all of the above. e. none of the above. The ____________________ is the oldest and most comprehensive international copyright treaty. a. Berne […]