International Marketing, 18e (Cateora)
Chapter 11 The Asia Pacific Region
1) The term “The Greater China” refers to the information technology (IT) corridor in north
China.
2) In the year 2009, Germany became the world’s biggest exporter ahead of China.
3) The PNTR status given to China contributed much toward increasing the import barriers on
American products and services.
2
4) In view of China’s size, diversity, and political organization, it is not possible to have one-
growth strategy for China.
5) A major issue that China has to address in its path to economic growth is improving human
rights.
6) China is now the biggest market for personal computers.
3
7) China’s “one country, two systems” agreement with Hong Kong guarantees the latter a high
degree of autonomy.
8) The Hong Kong dollar is freely convertible.
9) The Hong Kong SAR government stresses the predominant role of the public sector over the
private sector.
4
10) The sector that was hit the hardest during the Japanese recession was the real estate sector.
11) According to analysts, Japan’s long entrenched Liberal Democratic political party was one of
the reasons for the Japanese crisis.
12) One of Japan’s core advantages over other countries is its language; the syntax of the
Japanese language is similar to that of certain programming languages.
5
13) The Japanese have an affinity for united effort.
14) Owing to the deeply corrupt system, most of the U.S. manufacturers in India are leaving for
other countries or pulling their money back home.
15) The Four Asian Tigers are: China, Thailand, India, and North Korea.
16) The United States has granted NTR (normal trade relations) status to Vietnam.
17) Bottom-of-the-pyramid markets (BOPMs) are always defined by national borders.
18) In recent years, the United States has emerged as Japan’s single largest trading partner,
surpassing the Southeast Asian countries.
19) The Asian financial crisis led to the creation of the ASEAN+3.
20) APEC is a body formed by the major governments of the Asian countries with the primary
purpose of protecting their local industries against the market domination by their western
counterparts.
21) Northeast China was the industrial and technological center of the country in the 1970s and
1980s.
22) The United States is now Japan’s most important trading partner, even ahead of China.
23) Liaoning and Jilin provinces of China share borders with North Korea, and both provinces
have substantial numbers of Korean minorities.
24) China’s longest border is with Russia.
25) Tianjin is China’s largest industrial city.
26) Hong Kong was designated as China’s first Special Economic Zone.
27) At present, low value-added manufacturing in textiles and heavy equipment manufacturing
industries account for the vast majority of Shanghai’s industrial employment.
10
28) The Chinese central government spends almost 50 percent of its budget for the rural poor
who amount to almost three-fourths of the Chinese population.
29) Humility and indirection are more emphasized in northern than in southern China.
30) As they were closest to foreign influences, negotiators in Taiwan are considered to be the
most liberal.
31) What is the term used to refer to both the People’s Republic of China (PRC) and the Republic
of China (ROC) or Taiwan?
A) Integrated China
B) Yellow Route
C) Neo China
D) Mainland China
E) Greater China
32) What has contributed to the decrease in the historical tension among countries in East Asia?
A) ROC acquiring the UN membership
B) rise of communism
C) increase in direct trade
D) American military involvement in peacekeeping
E) ASEAN mandates overruling former hostilities between member nations
33) Aside from the United States, ________ is the most important single national market.
A) United Arab Emirates
B) Union of Soviet Socialist Republics
C) People’s Republic of China
D) Dominican Republic
E) French Southern Territories
34) China’s astonishing growth rate has begun to slow recently; however, most analysts see fast
growth continuing for China. All of this growth is primarily dependent, in part, on China’s
A) ability to deregulate industry.
B) prevention of the privatization of its state-owned enterprises.
C) preparedness to resist the capitalist wave.
D) ability to put embargoes on foreign investment.
E) ability to uphold its traditional legal system.
35) Two major events that occurred in 2000 had a profound effect on China’s economy. One of
these is the United States granting normal trade relations (NTR) to China on a permanent basis
(PNTR). What is the other one?
A) inclusion of state owned companies in NASDAQ
B) admission to the World Trade Organization
C) signing of the new ASEAN pact
D) the handover of Hong Kong by the British to China
E) inclusion of Hong Kong as a special administrative region (SAR) of China
36) The two most important steps China must take to ensure smooth economic growth are to
A) decrease export barriers and promote indigenous technology.
B) strengthen the hold of its communist party and promote innovative thinking.
C) invest in more developing countries and change its education system.
D) acquire membership in more regional trade blocs and increase embargoes.
E) improve human rights and reform the legal system.
14
37) One of the reasons there is no one-growth strategy for China is
A) the regions have no link to the central government.
B) each region in China is at a different stage economically.
C) the inability to prevent the privatization of its state-owned enterprises.
D) each region within China is completely isolated from other regions.
E) the complete absence of autonomy in the various regions of China.
38) IBM entered into a venture with the Chinese Railways Ministry that allowed IBM to set up a
national network of IBM service centers in railway stations so that IBM could ship computer
parts via the railroad around the country within 24 hours. This venture was dubbed the
A) Blue Connect.
B) China Express.
C) China Blue.
D) Blue Express.
E) China Connect.
39) What is a cultural hurdle in the path of China becoming a vast market in the long run?
A) caste system
B) xenophobia
C) excessive focus on human rights
D) excessive bureaucracy
E) excessive spending
40) What is the biggest threat to the fast growth China is experiencing?
A) increased opening of the market to foreign investments
B) trade isolation by other ASEAN countries
C) losing the permanent normal trade relations (PNTR) status
D) reformation of the traditional legal system
E) economic volatility
41) Since its turnover to the People’s Republic of China, Hong Kong
A) has lost its autonomy.
B) negotiates bilateral agreements and makes major economic decisions on its own.
C) operates with no jurisdiction from the central government in Beijing over matters related to
foreign affairs and defense of Hong Kong.
D) has ceased to be freely convertible after its turnover to the People’s Republic of China.
E) openly opposes economic policies that stress the predominant role of the private sector.
42) What tenet does China follow to ensure that Hong Kong’s exuberant capitalism is retained
despite the communist leanings of mainland China?
A) absolute plutocracy
B) sovereignty of the provinces
C) theocracy
D) noninterventionist approach
E) one country, two systems
43) What accurately represents the “three direct links” leading to the establishment of One
China?
A) transportation, trade, and communications
B) culture, language, and religion
C) history, language, and transportation
D) federal bodies, education, and trade
E) technology, natural resources, and people
44) What is one of the reasons behind the economic stagnation in Japan in the 1990s?
A) the caste system
B) inept political apparatus
C) aggressive internal competition
D) theocratic rule
E) lack of natural resources
18
45) Political explanations of Japan’s crisis during the 1990s identified two causes. One of them
was the country’s long entrenched Liberal Democratic political party. What is the other one?
A) Japan’s trade policies with the United States
B) Japan’s refusal to join Asian trade blocs
C) the powerful influence of the royalty in political issues
D) the hidebound Japanese bureaucracy
E) the splintering of Japan’s right-wing political parties
46) In the 1970s, Frank Gibney called Japan “The Fragile Superpower,” which was confirmed
with the economic crisis of the 1990s. In his new appraisal, Gibney writes that Japan has become
the victim of
A) social loafing.
B) compensating errors.
C) being penny-wise and pound-foolish.
D) herd behavior.
E) one-party sickness.
19
47) What was Japan’s greatest hindrance to the development of software innovations appropriate
for world markets?
A) deeply rooted bureaucratic structure
B) rise in global oil prices
C) complex language
D) growing fiscal deficit
E) burgeoning population
48) What theory explains Japan’s recovery from WWII as a result of the nation adopting a
consensus goal for national recovery?
A) the Cultural Causation theory
B) the Power Shift theory
C) the Third Way theory
D) the Hybridity theory
E) the Cultural Capital theory
49) A survey of U.S. manufacturers shows that 95 percent of respondents with Indian operations
plan on expanding, and none say they are leaving, in spite of widespread corruption in the
country. What is primarily behind this new trend?
A) India’s government machinery is one of the most efficient in the world.
B) Living standards for expatriates in India are comparable to the world’s best.
C) India offers cheap qualified labor and a massive market.
D) India’s proximity to China makes sourcing of parts easier.
E) There is a lack of competitiveness among local firms in India.
50) Which nation is one of the Four Asian Tigers?
A) India
B) Thailand
C) South Korea
D) Malaysia
E) Sri Lanka