50) Angelica Wu is preparing a marketing plan for her company for the upcoming year’s
business activities. She knows that she should begin her plan by examining the variables she has
some control over. These controllable variables would include price, product, channels-of-
distribution, and
A) level of technology.
B) political forces.
C) competition.
D) economic climate.
E) promotion.
51) M&G Inc., a company producing musical instruments, had dominated its home market for
several years before venturing into international markets. The company was focusing more on
international operations until Beige N, a German company in the same business, entered its home
market. Beige N started selling good quality products at prices much lower than M&G’s and
affected its sales adversely. Which of the following elements in the marketing environment has
affected the business of M&G Inc. with the market entry of Beige N?
A) level of technology
B) structure of distribution
C) competition in the domestic market
D) cultural forces
E) promotion of the product
52) Shondra McDonald, a marketing manager at a hearing aid manufacturing firm, is asked to
review the marketing opportunities of her company in a foreign market. She is aware that she can
modify certain elements of the marketing environment to suit the foreign market needs. She
focuses her attention on the uncontrollable factors that might affect the firm’s business prospects.
Which of the following uncontrollable elements is most likely to affect the company’s business
prospects in the foreign market?
A) pricing policies in the domestic market
B) research methodologies used by her company
C) promotional activities required to market the product
D) level of technology in the targeted market
E) product distribution channels adopted by his company
53) The uncontrollable issue of ________ faced by a company abroad is often amplified by the
“alien status” of the company, which increases the difficulty of properly assessing and
forecasting the dynamic international business climate.
A) research
B) channel of distribution
C) product specification
D) politics
E) product promotion
54) Which scenario best illustrates the political and legal issues faced by companies because of
their “alien status” when they attempt to do business in foreign countries?
A) a company doing moderate business in international markets because of violent history of its
home country
B) a company being forced by the local government to share its core competencies in order to
continue doing business
C) a product not being widely accepted in the foreign market because of its irrelevance to the
customers
D) a company utilizing an identical promotional campaign it used in the domestic country
E) a company not succeeding in a foreign market because its product pricing is above the
purchasing power of the local customers
55) Adaptation on the part of an international marketer is best described as
A) a conscious effort to make themselves aware of the home cultural reference in their analyses
and decision making.
B) a conscious effort to anticipate the influences of both the foreign and domestic uncontrollable
factors on a marketing mix and then to adjust the marketing mix to minimize the effects.
C) the notion that people in one’s own company or country know best how to do things.
D) the process of identifying the similarities that exists between the domestic and foreign
markets.
E) an unconscious reference to one’s own cultural values, experiences, and knowledge as a basis
for decisions and then to adjust the marketing mix in order to closely reflect these decisions.
56) A natural off shoot of a person’s self-reference criterion is ________ that also creates a
concern for the international marketer.
A) sympathy
B) self-actualization
C) ethnocentrism
D) empathy
E) collectivism
57) ________ is an unconscious reference to one’s own cultural values, experiences, and
knowledge as a basis for decisions.
A) Xenocentrism
B) Holism
C) Self-reference criterion
D) Segregation
E) Orientalism
58) People seldom stop to think about a reaction; they simply react. Thus, when faced with a
problem in another culture, their tendency is to react instinctively and refer to their ________ for
a solution.
A) self-space principle
B) segregation principle
C) integration criterion
D) space command criterion
E) self-reference criterion
59) Parul believes that her culture and country know how to do things best and she looks down
on the cultural habits of other countries. What is Parul exhibiting?
A) differentiation
B) marketing myopia
C) ethnocentrism
D) multiculturalism
E) pluralism
60) What characteristic would impede the ability of a person to assess a foreign market in its true
light?
A) polycentrism
B) pluralism
C) xenocentrism
D) ethnocentrism
E) relativism
61) Brett, who is from Ohio, has taken a job in Thailand. Last week, he was confronted with a
personnel issue and resolved it by saying that “In the U.S., you would be given one warning and
then fired for this type of behavior.” Brett did not take into account that company standards
might differ in Thailand and the employee was acting appropriately. Which obstacle to
international marketing does this demonstrate?
A) collectivism
B) self-reference criterion
C) tragedy of the commons
D) individualism
E) marketing myopia
62) The most effective way to control the influence of ethnocentrism and the self-reference
criterion is to
A) reduce interaction with a culturally diverse audience.
B) design products and services in a traditional manner.
C) recognize their effects on our behavior.
D) learn at least two foreign languages to understand the cultural differences.
E) establish beneficial relations with the host country’s government.
63) To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that
isolates the self-reference criterion (SRC) influences. What is the first step in this analysis?
A) redefining the problem without the SRC influence
B) solving the problem for the optimum business goal situation
C) isolating the SRC influence in the problem
D) defining the business problem or goal in home-country cultural traits, habits, or norms
E) examining the isolated SRC influence to see how it complicates the problem
64) Why does understanding one’s own culture require additional study?
A) to find out why cultural traits in one’s own country does not affect market behavior
B) because much of the cultural influence on market behavior is at the subconscious level
C) since without which, understanding the cultural traits of one’s own country is impossible
D) because an average manager must have extensive cultural knowledge of all countries in the
world
E) because cultural influence on one’s own market behavior is generally minimal
65) A globally aware manager is characterized by
A) using one’s home culture’s values alone to market one’s products in foreign countries
B) accepting the cultural ways of another individual as his or her own
C) tolerating cultural differences and allowing others to be different and equal
D) discarding one’s home culture’s standards to adopt the global cultural standards
E) controlling any influences that the global cultural standards may have on the marketing
process
66) Tomas is a manager at a frozen food company and wants to understand the way people in
different countries think and act so that the company can respond to their needs appropriately.
What is the best aid he can use to accomplish this?
A) a sound financial background
B) better political connections
C) an understanding of foreign investment opportunities
D) an understanding of macroeconomics
E) knowledge of the foreign country’s history
67) What is the most effective way to achieve organizational global awareness?
A) hiring entry-level employees based on the sole criterion of global awareness
B) organizing frequent employee trips to foreign cultures to increase their sensitivity
C) increasing the diversity mix of the front-level employee profile
D) having a culturally diverse senior executive staff or board of directors
E) promoting social networking as a means to improve inter-cultural communication
68) Which firm seems better equipped for internationalization?
A) a firm that sells its products only to those foreign customers who directly contact the firm
B) a firm that has a production capacity that is larger than home market demand
C) a firm that focuses its production activities on meeting the demands in the home market
D) a firm that has a culturally diverse employee profile but few competitive offerings at the
global level
E) a firm that has little intention of maintaining a continuous market representation
69) Which firm has a better chance of accelerating the internationalization process?
A) Box-Co has key managers well-networked internationally.
B) Ironworks International uses more traditional manufacturing practices.
C) Piano Plus primarily focuses all its operations and production capacities to meet the domestic
market needs.
D) Animal Awareness and Action refrains from using the Internet as its major communication
platform.
E) Kenilworth Karts has larger home markets and smaller production capacities.
70) When considering the stages of international marketing involvement, it is important to
remember that
A) a firm essentially progresses through the stages in a linear order.
B) the international marketing stage is a direct result of temporary surpluses caused by variations
in production levels or demand.
C) a larger home market with a smaller production base favors internationalization.
D) a firm may be in more than one stage simultaneously.
E) at the global marketing level, a firm focuses on market segmentation based on geographical
borders.
71) In the context of stages of international marketing involvement, a company’s product reaches
a foreign market without any conscious effort on the part of a marketer during which stage of the
process?
A) infrequent foreign marketing stage
B) regular foreign marketing stage
C) no direct foreign marketing stage
D) international marketing stage
E) global marketing stage
72) Watson’s, a firm that specializes in dog food and grooming products, has a very well-
established domestic market. The company does not actively sell its products outside national
borders but provides goods to customers who contact them directly or place orders with them
through the Internet. Watson’s is currently in the ________ stage of international marketing
involvement.
A) frequent foreign marketing
B) active foreign marketing
C) global marketing
D) regular foreign marketing
E) no direct foreign marketing
73) While Heidi’s company does not typically sell internationally, they have a temporary surplus
in the small appliances they manufacture and decide to promote them in other countries. Which
stage of international marketing involvement does this represent?
A) infrequent foreign marketing stage
B) regular foreign marketing stage
C) no direct foreign marketing stage
D) international marketing stage
E) global marketing stage