51) If a country is in Stage 5 (the age of mass consumption) of Rostow’s five-stage model of
economic development, it purchases most of its highest-technology products and services from
________ suppliers.
A) Stage 4
B) Stage 3
C) Stage 5
D) Stage 1
E) Stage 2
52) What is possibly the best indicator of a country’s ability to use technology to leap several
stages of economic development in a very short time?
A) the quality of the educational system
B) the size of the population
C) the general economic environment
D) the size and growth rate of the market
E) the level of government regulations
53) Which trend spurs demand for technologically advanced products in the world?
A) an increase in the size of the global unskilled labor force
B) large fiscal deficits in developed nations
C) expanding economic and industrial growth in Asia
D) the increase in the average age in Europe
E) the opening of the Trans-Arctic route
54) Which trend will expand demand for industrial goods and business services in Latin
America?
A) the increase of import tariff by 70 percent
B) the adoption of Marxist–socialist policies
C) the privatization of state-owned enterprises
D) the increased use of labor in place of capital in production
E) the decline of economic growth in Asia
55) What does the perception of quality depend on?
A) government specifications
B) the customer
C) universal quality standards
D) the manufacturer’s specifications
E) standardization
56) An important dimension of quality is how well the product
A) meets the specific needs of the buyer.
B) exceeds competitors’ products.
C) conforms to manufacturer’s specifications.
D) alters the marketing landscape.
E) saves time and labor.
57) The process of total quality management (TQM) starts with
A) providing all customers with technologically advanced products.
B) signing trade agreements with developed countries.
C) involving customers in the product development process.
D) reducing the time taken for the product to reach the market.
E) marketing the products at trade shows and fairs.
58) Which statement is true of universal standards in the sale of international products?
A) The idea of universal standards is being resisted in developing countries.
B) Firms that adhere to universal standards find the costs to be greater than the benefits.
C) The international market for industrial goods uses the imperial system as a universal standard.
D) All governments mandate universal standards.
E) The lack of universal standards limits the expansion of industries.
59) The Global Harmonization Task Force is an international effort that is attempting to
A) coordinate standards for several international industrial sectors.
B) promote free trade among developing and developed nations.
C) equalize wages among countries.
D) increase double testing of goods and services.
E) equalize the perception of quality across countries.
60) Buyers in country X prefer to use the older, cheaper version of Firm A’s product although it
is bulkier and less user-friendly. Buyers in country Y, however, prefer to use the newer,
lightweight version for its new user interface. Which statement is the most accurate conclusion
from the given information?
A) Firm A needs to revamp its after-sales services.
B) The sales of industrial goods are higher in country X than in country Y.
C) The perception of quality can differ across countries.
D) Country X is a highly industrialized nation.
E) Country Y has a lower average income level compared to country X.
61) The U.S. Congress and businesses have been resisting conversion to the metric system
because they fear
A) market competition from international firms already using the metric system.
B) consumer backlash and the substitution of international products.
C) it will promote standardization.
D) workers will not understand the system.
E) it will be too costly to implement.
62) A U.S. manufacturing firm lost a big contract in Qatar because it provided pipes that were
three yards long and the specifications called for three meters. In this case, the U.S. firm failed to
recognize the importance of
A) ISO 9000 standards.
B) U.S. manufacturing guidelines.
C) the EU Product Liability Directive.
D) the American Customer Satisfaction Index.
E) using the metric system.
63) The lack of universal standards in the industrial goods market
A) increases the price of raw materials.
B) gives each firm a competitive edge.
C) increases the level of consumer satisfaction.
D) reduces the price of the final goods.
E) increases the cost of doing business.
64) Which of the following countries is not officially on the metric system?
A) Liberia
B) Japan
C) Saudi Arabia
D) Mexico
E) China
65) The American Customer Satisfaction Index (ACSI) focuses on
A) differentiating a product based on its quality.
B) rating a company’s quality based on its leadership, strategic planning, and customer and
market focus.
C) the audit of a company’s business processes in order to ensure quality.
D) quality as perceived by product and service users.
E) the creation of a quality control system that can meet published quality standards.
66) What is true of the ISO 9000 standards?
A) The ISO 9000 standards apply to specific products.
B) The ISO 9000s guarantee that a manufacturer produces a “quality” product or service.
C) The ISO 9000 series describes eight quality system models.
D) The ISO 9000 standards are a certification of the quality control system that a company has in
place.
E) The ISO 9000s were originally designed by the International Organization for Quality in the
United States.
67) ISO 9000 concerns the
A) cost-effectiveness of the production of a good.
B) registration and certification of a manufacturer’s quality system.
C) profitability of a production line.
D) ability of a company’s computer system to adapt to SAP, a business management software.
E) marketing and promotional strategies of a firm.
68) Many suppliers are adopting ISO 9000 standards because
A) they can acquire the certification at no extra cost.
B) governments mandate ISO certification for all product categories.
C) they want to be perceived as being environmentally friendly.
D) the WTO expects international suppliers to conform to ISO standards.
E) their buyers require them to be ISO 9000 registered.
69) What is driving a strong level of interest in the ISO 9000 certification?
A) government regulations
B) marketplace requirements
C) environmental regulations
D) trade tariff requirements
E) protectionism restrictions
70) What statement about ISO 9000 certification is true?
A) It does not require a registration assessment.
B) It is generally voluntary except for certain regulated products.
C) It requires an annual complete assessment for recertification.
D) It measures customers’ satisfaction and perceptions of quality of a representative sample.
E) It guarantees that a manufacturer produces a “quality” product or service.
71) ________ certification is considered to be an important competitive marketing tool in
Europe.
A) ISO 9000
B) ICE
C) ACSI
D) AERA
E) NCME
72) The ________ measures customers’ satisfaction and perceptions of quality of a representative
sample of America’s goods and services.
A) ISO 9000
B) ICE
C) Net Promoter Score (NPS)
D) American Customer Satisfaction Index (ACSI)
E) American Price Index (API)
73) In the case of cellular phones, the physical product is practically given away to gain the
phone services contract. This could be because
A) cellular phone companies do not view market share as a strategic goal.
B) the cost of production of cellular phones is very low.
C) the revenues from associated services exceed the revenues from the cellular phones.
D) the margins on after-sales services for cellular phones is low.
E) consumers sometimes buy a variety of services that are not associated with products.
74) The ISO 9000 certification allows a company to
A) hedge its risk from currency fluctuations.
B) bypass all international trade barriers.
C) diversify into other product lines.
D) differentiate it from its competitors.
E) provide after-sales services.
75) ________ is rapidly becoming a major after-sales service when selling technical products in
countries that demand the latest technology.
A) Promotional pricing
B) Product innovation
C) Capacity utilization efficiency
D) Customer training
E) Warranty
76) Firms that sell industrial goods in international markets should focus on after-sales services
because these services
A) are almost always more profitable than the actual sale of the goods themselves.
B) require high levels of investment in training and development.
C) ensure that the firm’s goods are not liable to lawsuits.
D) cost the firm almost nothing.
E) cannot be outsourced to other companies and must be provided by the firm itself.