77) For most consumer services firms, the mode of entry into a foreign market is licensing,
franchising, strategic alliances, or direct. This is usually done because
A) services are highly differentiated.
B) services produced cannot be added to inventory.
C) the creation and consumption of services cannot be separated.
D) the inputs used vary to a great extent.
E) services usually do not have any intrinsic value that can be converted into a tangible form.
78) Some business services have intrinsic value that can be embodied in some tangible form;
they can be produced in one country and exported to another. An example is
A) language schools.
B) in-flight services on an airplane.
C) operating an automatic teller machine.
D) data processing services.
E) physicians’ services.
79) What is true of business services?
A) Most business services companies enter international markets to service their local clients
abroad.
B) Services are intangible and so cannot be produced in one country and exported to another.
C) The removal of trade barriers poses a serious threat to the continued expansion of
international services trade.
D) Firms should avoid providing after-sales services as the costs do not justify the benefits.
E) The perception of quality of a business service depends solely on the average per capita
income of the buyer’s country.
80) Alcare Advertising has just signed a contract with Miramar cosmetics company to create ads
for Miramar’s products. Miramar wants Alcare to come up with creative ideas for its recent
expansion into South Asian markets of India and Indonesia. In order to accommodate Miramar,
Alcare has now opened offices in two Indian cities and one Indonesian city. In this context,
Alcare is a
A) head hunter.
B) client follower.
C) bargain hunter.
D) bet padder.
E) risk avoider.
81) In knowledge-based services, such as consulting, engineering, education, and information
technology, ________ are a key driver of success and failure.
A) income taxes
B) intellectual property issues
C) free trade zones (FTZs)
D) exchange rate regulations
E) tariffs on the import of goods
82) What is the most serious threat to the continued expansion of international services trade?
A) free trade
B) capitalism
C) globalization
D) foreign trade zones (FTZs)
E) protectionism
83) Restrictions on cross-border data flows are potentially the most damaging to industries that
A) are fragmented.
B) focus on domestic production.
C) generate revenue from the sale of physical products across borders.
D) rely on information transfers across countries.
E) are concentrated in nature.
84) What has become the primary vehicle for business-to-business promotion and selling in
many foreign countries?
A) trade shows
B) in-office visits by sales teams
C) TV advertising
D) local radio advertising
E) transit media
85) _______ provide the facilities for a manufacturer to exhibit and demonstrate products to
potential users and to view competitors’ products.
A) Catalogs
B) Direct mail campaigns
C) Banners
D) Trade shows
E) Specialty advertising blogs
86) Paul attends the London Book Fair every year to represent his company and show its
products to publishers from other countries. He also meets with individual publishers to discuss
distributing their books in the U.S. The London Book Fair is
A) an industry forum.
B) a commerce opportunity.
C) a commercial storefront.
D) a market expander.
E) a trade show.
87) What is true of commercial relationships in countries with collectivistic and high-context
cultures?
A) The commercial relationship is limited to a one-time provision of the goods or service.
B) Efficiency and innovation matter more than long-term relationship building.
C) Trust is a crucial aspect of commercial relationships.
D) The focus of the relationship is on price and value-for-money.
E) Customer loyalty is fleeting and short-lived.
88) Jamal has been the sales representative for the western region for ten years, calling on the
same customers repeatedly. Other companies have brought in reps from their home countries, but
Jamal finds his customers prefer to deal with him. Jamal demonstrates qualities associated with
A) relationship marketing.
B) in-country advantage.
C) sales orientation.
D) consistency.
E) efficiency.
89) The key functions of global account managers revolve around the notions of intelligence
gathering, coordination with the customer’s staff, and
A) managing the marketing mix.
B) adapting practices to the changing environment.
C) increasing post-purchase sales
D) attending trade shows.
E) gauging demand in various environments.
90) In countries with strong cultures, particularly those with collectivistic and high-context
cultures, ________ will be the single most important source of information about the
development of new industrial products and services.
A) knowledge of the local language and customs
B) understanding competitive trends
C) the use of technology
D) constant and close communication with customers
E) direct and assertive follow-up
91) Three factors affect the demand in international industrial markets differently than in
consumer markets. What are these factors?
92) Explain the concept of derived demand. Provide an illustration.
93) Describe the five stages of Rostow’s model of economic development.
94) What are the three trends that spur demand for technologically advanced products?
95) Discuss how a customer determines the quality of a product. Give a specific example to
illustrate your answer.
96) What is the ISO 9000 certification? Why would a company need this?
97) Companies today must be ready to provide after-sale services in the international
marketplace if they are to dominate the global arena. Explain why this is true.
98) What is the mode of entry chosen by most consumer services firms to enter a foreign
market? What is the reason for this?
99) What has become the primary vehicle for doing business in many foreign countries? Explain
and justify your answer.
100) What is relationship marketing, and how does it benefit an international marketer?