International Marketing, 18e (Cateora)
Chapter 17 Personal Selling and Sales Management
1) The first step in managing a sales force is making a decision regarding its design.
2) For selling in relationship-oriented countries, a sales force consisting of American expatriates
proves to be most efficient.
3) Only a limited number of American high-caliber sales personnel are willing to live abroad for
extended periods of time as expatriates.
4) A chief disadvantage of an expatriate sales force is the high cost for a company.
5) Since expatriates are not locals, they often have a negative effect on the prestige of the
company and its product line in the eyes of foreign customers.
6) With advances in communications technologies, virtual expatriates find it easy to maintain
close contact with subordinates and customers.
7) Local salespeople are better able to lead a company through the maze of unfamiliar
distribution systems and referral networks of a foreign country.
8) The main disadvantage of hiring local nationals for an international sales force is the tendency
of headquarters personnel to ignore their advice.
9) In relationship-oriented cultures, sales representatives tend to be on the bottom rung of the
social ladder.
10) For an American company, one of the disadvantages of recruiting a U.S. home-country
national for a foreign sales assignment is the cost of double taxation.
11) Though maturity and emotional stability are essential, the transnational manager is rarely
expected to have knowledge of many subjects, either on or off the job.
12) An international salesperson can be hampered by flexibility when working in a foreign
country or in the home country.
13) The traits that make for successful sales representatives in the United States are the same as
those that are important in other countries as well.
14) In the context of international sales management, managers’ cultures affect their personnel
decisions.
15) Training for expatriates focuses on the company, its products, technical information, and
selling methods, while that for local personnel focuses on customs and foreign sales problems.
16) Marketing is a business function requiring high motivation regardless of the location of the
practitioner.
17) Social recognition is a more important motivating factor for an American sales representative
compared to a Japanese salesperson.
18) Japanese sales representatives are motivated more by the social pressure of their peers than
by the prospect of making more money individually.
19) In eastern European countries, compensation packages typically involve a substantially
greater emphasis on performance-based incentives than in the United States.
20) Differences in languages and culture can make mutual understanding between foreign
managers and sales representatives difficult.
21) Expatriate managers fear that they will lose opportunities for promotion because they will be
forgotten by the home office while they are working in a foreign country.
22) Expatriates working in high-tax countries prefer direct income instead of fringe benefits as
part of their compensation package.
23) Separation allowances are benefits paid when an expatriate manager leaves a company.
24) In Europe, external labor unions are involved in setting compensation rules for sales people.
25) In the U.S., poor performers typically stay with the company and are seldom fired.
26) The primary control tool used by American sales managers is the benefits system.
27) Jacob’s wife never grew accustomed to his foreign assignment and was miserable, so Jacob
requested a move back to the home country. This is a common reason for an expatriate’s failure
to function effectively in a foreign assignment.
28) Personal career planning for the expatriate is a significant strategy that helps companies
prevent returnee attrition.
29) An expatriate with excellent management and technical skills is sure to excel in any
environment, even if he or she lacks an understanding of cultural differences.
30) An expatriate with excellent cultural skills does not tolerate ambiguity and upholds the
superiority of his or her culture.
31) Most companies today limit their search for senior-level executive talent to their home
countries.
32) What is a company’s most direct tie to the customer?
A) the product
B) the salesperson
C) the parent company
D) the retail outlet
E) the distributor
33) What is the final link in a company’s marketing and sales efforts?
A) the chairperson
B) the marketing manager
C) the sales representative
D) the customer
E) the sales manager
34) Relationship marketing focuses on
A) the short-term effort.
B) maintaining an atmosphere of trust with the sales manager.
C) involving all members of the sales team in the sale.
D) treating each sale as a one-time event.
E) building long-term alliances.
35) Countries such as Germany allow for greater use of expatriates in international sales forces.
What is most likely the reason for this?
A) Germany is a member of the World Trade Organization.
B) Germany has a relationship-oriented culture.
C) The German language is easy to master.
D) Germany has an information-oriented culture.
E) Germany is a member of the United Nations.
36) In countries like Japan, a sales force is likely to be most effective if it consists mostly of
A) professional expatriates.
B) local nationals.
C) virtual expatriates.
D) third-world nationals.
E) expatriates from Asian countries.
37) A multinational company with its headquarters in the U.S. wants to sell its new high-
technology product in Germany. For the most effective selling, the sales force for this company
would probably consist mostly of
A) local German nationals.
B) illegal aliens living in the US.
C) temporary, freelancing German sales personnel.
D) American expatriates.
E) third-culture people from Japan.
38) The largest personnel requirement in foreign countries for most companies is in the
A) management team.
B) finance department.
C) information technology team.
D) human resources department.
E) sales team.
39) An expatriate sales force is likely to be
A) most efficient in relationship-based cultures.
B) unsuitable when a company wants to sell high-technology products.
C) lacking in knowledge regarding the product line of the company.
D) received unfavorably in information-oriented cultures.
E) the best choice when selling requires an extensive background of information.
40) When is an expatriate sales force most likely to have an advantage over a native sales force?
A) when selling consulting services
B) when selling in relationship-oriented countries
C) when the product caters to a niche market
D) when the product is highly technical in nature
E) when selling does not require effective communication skills
41) What is an advantage of a sales force consisting of expatriate sales representatives?
A) They possess greater technical training.
B) They transcend cultural and legal barriers.
C) They cost less to be maintained in a foreign location.
D) The cultural gap can be easily narrowed.
E) They have a better understanding of distribution channels.
42) What is a disadvantage associated with a sales force consisting of expatriate salespeople?
A) adverse effect on the prestige of the product
B) inability to effectively communicate and influence headquarters’ personnel
C) lack of technological expertise
D) inadequate knowledge of the company
E) large cultural barriers
43) What is the most likely reason for Americans to seek third-country nationals for their
international sales forces?
A) They transcend legal and cultural barriers.
B) They are thoroughly knowledgeable about a country’s business structure.
C) They are often able to speak several languages.
D) They cost less to maintain than a staff of local nationals.
E) They can lead a company better through unfamiliar referral networks than local nationals.
44) What is a strategy that international companies use to encourage sales personnel to accept
foreign assignments?
A) International experience is considered important to join top management.
B) It is made mandatory for all sales personnel to take up expatriate positions.
C) Part of the headquarters of the company is set up at the foreign location.
D) Companies unfailingly provide employment for the employee’s spouse in a top position.
E) Legal obligations are imposed on the expatriate sales representatives.
45) What is a characteristic of a professional expatriate?
A) They work abroad for a period of one month and then return to the home office.
B) They work for a foreign company in a third country for a short period.
C) They work abroad in country after country for the greater part of their careers.
D) They work in their home branches for most of their careers.
E) They manage operations in other countries but do not move there.
46) Helmut, a German national, works as a sales manager for Grey Oil Corporation in the Middle
East. Given the benefits associated with the job, he works on one foreign assignment after
another and rarely returns to the headquarters in Germany. In view of the given information, we
can say that Helmut is a
A) repatriate manager.
B) virtual expatriate.
C) third-country national.
D) professional expatriate.
E) native salesperson.
47) What best defines virtual expatriates?
A) They stay and work abroad for a short period of one to two months and then return to their
home country.
B) They work in a foreign culture and blend to such an extent that they may more closely
resemble a local than an expatriate.
C) They work abroad in one country after another for the greater part of their career.
D) They are expatriates from their own countries working for a foreign company in a third
country.
E) They manage operations in foreign countries but do not move there.
48) Jorge, an American citizen, works as the sales manager at an office supply company. He is
posted at the company headquarters in the U.S. and manages operations in China, making
frequent and lengthy visits to conduct business meetings with his colleagues there. Jorge may be
considered to be a
A) repatriate.
B) virtual expatriate.
C) third-country national.
D) professional expatriate.
E) local sales manager.
49) What is an advantage of being a virtual expatriate?
A) They can eliminate the problem of time zone differences.
B) They can establish closer relationships with their customers in the foreign country.
C) Their families do not have to be uprooted from their home country.
D) They possess complete local knowledge about cultural practices in the foreign country.
E) They can avoid cross-cultural communications problems with their foreign colleagues.
50) From an international firm’s perspective, what is an advantage associated with virtual
assignments?
A) Sales personnel can avoid health risks involved in flying frequently to foreign countries.
B) Customer relationship structures may be improved due to direct customer interaction.
C) The extra expense involved in an actual executive move may be avoided.
D) Problems related to low morale of personnel due to living in hotels can be avoided.
E) Misunderstandings due to lack of cultural skills may be completely eliminated.