International Marketing, 18e (Cateora)
Chapter 1 The Scope and Challenge of International Marketing
1) Today, becoming international is a luxury only some companies can afford.
2) Companies from the Netherlands are the leading group of investors in the United States.
3) International marketing involves selling of a company’s goods and services to consumers or
users in more than one nation for a profit.
4) The main difference between domestic and international marketing lies in the different
concepts of marketing.
5) An international marketer must deal with at least two levels of uncontrollable uncertainty.
6) The geography and infrastructure of a country are uncontrollable factors that influence the
business decisions of a company in an international market.
7) The uncontrollable factors affecting international marketing are limited to political forces,
economic climate, and competitive structure.
8) The level of technology in a country is a controllable element for international marketers.
9) The uncontrollable factors a company has to deal with decrease with the number of foreign
markets in which it operates.
10) The controllable elements for marketers can be altered in the long run and, usually, in the
short run to adjust to changing market conditions, consumer tastes, or corporate objectives.
11) Political and legal forces, economic climate, and competition are some of the domestic
environment’s controllable factors.
12) The foreign policies of a country are one example of a home-country element that has a
direct effect on a firm’s international marketing success.
13) Abolition of apartheid in South Africa is an example of a positive effect on foreign policy, an
uncontrollable element, in an international marketing scenario.
14) Commercial contracts with a Chinese company can only be entered into if that company is
considered a “legal person.”
15) The process of evaluating the uncontrollable elements in an international marketing program
may involve cultural, political, and economic shock.
16) Level of technology typically remains unchanged across countries, making it a fairly
controllable factor in international marketing.
17) Political and legal issues a company may face abroad are mitigated by the “alien status” of
the company.
18) The political details and the ramifications of political and legal events are often more
transparent in a domestic situation than they are in a foreign market.
19) The political/legal environment is a controllable element for international marketers because
of their potent ability to lobby and influence legislation in foreign markets.
20) The uncontrollable elements of the foreign business environment include the culture.
21) A foreign company is always subject to the political whims of the local government to a
greater degree than a domestic firm.
22) John refuses to buy Japanese products because he considers this as a way of selling out to a
nation that was once our enemy. John is using a self-reference criterion to make his decision.
23) The self-reference criterion is closely related to collectivism—or the importance of the
group.
24) Renata just ate cookies and, therefore, feels justified in refusing food offered by her Middle
Eastern host. In this instance, Renata’s self-reference criterion has just saved her from making a
cultural blunder.
25) To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that
emphasizes the need for ethnocentrism.
26) Family reference and upbringing provides a complete basis for understanding one’s culture
and no additional study is required to become aware of cultural norms and activities.
27) The most effective approach to build global awareness into an organization is to increase the
diversity mix of the employee profile for entry-level jobs.
28) Traditional manufacturing companies possess the most favorable factors for doing business
internationally.
29) A company in the “no direct foreign marketing” stage of international marketing involvement
does not actively cultivate customers outside national boundaries.
30) The global marketing concept views the marketplace as consisting of one primary domestic
market that is complimented by several smaller regional markets.
31) What is one of the most dynamic trends that is affecting current global business strategies?
A) the trend toward buying American cars in Europe
B) the trend toward the acceptance of the free market system among developing countries
C) the trend toward using English as the global language
D) the trend toward establishing a world currency
E) the trend toward providing aid to developing and less developed nations
32) What event spurred the final downfall of the U.S. economy in 2008 when world trade
experienced its deepest decline in more than 50 years?
A) The stock market ended at a record high.
B) The U.S. and Cuba joined forces.
C) The Senate and House failed to compromise on interest rates.
D) The housing market collapsed.
E) The voters elected a third-party candidate.
33) How has globalization impacted domestic markets in the United States?
A) Companies with only domestic markets have been able to sustain their customary rates of
growth.
B) Multinational companies are making more profits from their domestic operations compared to
their earnings from the foreign markets.
C) Only multinational companies with large production facilities have outperformed their strictly
domestic U.S. counterparts.
D) The domestic companies have reduced their manufacturing employment more than U.S.
multinationals.
E) Multinational manufacturing companies in all industries and sizes have outperformed their
domestic counterparts.
34) What is an essential requirement for experienced, as well as new, firms to succeed in
international markets?
A) adhering strictly to their traditional methods of production and operations
B) focusing primarily on their production to exclusively meet domestic demand
C) venturing into multiple markets by investing in all of them at once
D) committing themselves completely to foreign markets
E) having beneficial relations with lobbyists of foreign markets
35) Jason’s department is responsible for the business activities designed to plan, price, promote,
and direct the flow of his company’s small appliance products to consumers in various nations
around the world for a profit. What is his department in charge of?
A) internal marketing
B) importing
C) performance appraisal
D) international marketing
E) domestic trade
36) What is considered the most critical difference between domestic marketing and international
marketing?
A) the difference in marketing principles being followed
B) the different concepts of marketing
C) the difference in marketing theories being followed
D) the environment in which marketing plans must be implemented
E) the basic processes used to market products and services
37) Marketers must be especially cognizant of ________ for both domestic and international
markets because of the dominantly uncontrollable nature of this factor.
A) price
B) promotion
C) research activities
D) political/legal forces
E) channels of distribution
38) ________ is a controllable element for an international marketer.
A) Level of technology
B) Geography and infrastructure
C) Channels-of-distribution
D) Cultural forces
E) Competitive forces
39) What is an uncontrollable element for an international marketer?
A) firm characteristics
B) channels-of-distribution
C) price
D) research
E) level of technology
40) For an international marketer, the ________ can be altered in the long run and, usually, in the
short run to adjust to changing market conditions, consumer tastes, or corporate objectives.
A) competitive structure
B) economic climate
C) structure of distribution
D) environmental factors
E) controllable elements
41) Ian works for a sports equipment manufacturer in Boston and is responsible for shipping
products across the United States. What is one factor that would be uncontrollable for Ian?
A) firm characteristics
B) competitive structure
C) channels of distribution
D) price of the product
E) promotional measures
42) Which political action is most likely to favor international marketing?
A) placing trade embargoes on Cuba owing to widespread political instability in the country
B) the U.S. government placing a trade ban on Libya owing to rampant terrorism
C) South Africa abolishing apartheid and the U.S. lifting the embargo
D) tariff hike for imports established by China
E) the U.S. government coupling human rights issues with foreign trade policy
43) What is an accurate description of the relationship between international business and
domestic business?
A) The domestic economic climate has no effect on a company’s competitive position in foreign
markets.
B) Domestic businesses must focus on capital mobility toward international businesses before
capital generation.
C) Countries must not restrict foreign investment even if domestic economic conditions
deteriorate.
D) The ability to invest abroad is to a large extent a function of domestic economic vitality.
E) Domestic businesses are more viable than international businesses as capital tends to move
toward minimum use.
44) How can “alien status” unfavorably affect a company?
A) prejudiced treatment by the host country’s politicians and legal authorities
B) an inflated balance of trade
C) a sharp rise in domestic and international demand
D) lower trade tariffs in the host country
E) an economic situation of the magnitude of the Great Depression
45) With respect to the environment in which a business operates, factors such as competition,
political and legal forces, and economic climate would all be classified as
A) controllable elements.
B) uncontrollable elements.
C) tractable elements.
D) demographic elements.
E) cultural elements.
46) ________ is a controllable element in both domestic and international marketing
environments.
A) Economic climate
B) Competition within the home country
C) Price of products
D) Political force
E) Foreign policy
47) The marketing tasks of an international marketer differ from that of a domestic marketer as
the
A) international marketer has fewer uncontrollable elements to deal than a domestic marketer.
B) level of technology and cultural forces are controllable elements for the international
marketer.
C) structure of distribution is an uncontrollable element for the international marketer.
D) competitive structure is one of the controllable factors for an international marketer.
E) international marketer is less concerned about geography and infrastructure than the domestic
marketer.
48) Kelly Reeves is in charge of a new marketing effort directed toward Peru. In order for her
company to market effectively and distribute to all of Peru’s major cities, Kelly must devise a
logistics plan for crossing the Andes Mountains on a daily basis. Which of these foreign
environment uncontrollable variables would be a chief concern as Kelly devises her firm’s
logistics plan?
A) price
B) product
C) geography and infrastructure
D) promotional strategies
E) channels of distribution
49) Compared to the foreign environment variables, which of the following uncontrollable
variables is least likely to affect a domestic marketer?
A) political forces
B) competitive structure
C) economic climate
D) cultural forces
E) legal forces