120) Even though there are hundreds of different languages and dialects, the three major
languages used in global diplomacy and commerce are
A) English, Japanese, and Chinese.
B) English, French, and Spanish.
C) Japanese, Spanish, and French.
D) Japanese, Spanish, and English.
E) Spanish, English, and Chinese.
121) The practice where a translated word or phrase is retranslated into the original language by
a different interpreter to catch errors is referred to as
A) locution.
B) heuristics.
C) transliteration.
D) back translation.
E) cross-cultural paraphrasing.
122) If you were responsible for marketing communications at a company that manufactures
office supplies and had to provide product literature to be distributed in France, you would be
wise to use ________, whereby you have someone translate your literature from American
English into French, and then have someone else in France translate the French into American
English.
A) back talk
B) back translation
C) double talk
D) double entendre
E) double indemnity
123) A Tokyo shopkeeper would have been wise to use ________ to verify the accuracy of the
new sign in English he purchased for his dry cleaning business. The sign read, “Drop your pants
here for best results,” which he did not know had another suggestive meaning to native speakers.
A) cultural symbolism
B) dialect transformation
C) semantic analysis
D) linguistic exchange
E) back translation
124) A New York car wash owner wanted to open a car wash in Quebec, Canada. He hired a
U.S. translator to create signage for the new venture and to design some simple advertising. It
was not until the business was opened that he realized he should have used ________. His
French signs actually said “car bath” instead of “car wash.”
A) Esperanto
B) back translation
C) semiotics
D) semantic symbolism
E) linguistic exchange
125) The belief that aspects of one’s culture are superior to another’s is referred to as
A) cultural ethnocentricity.
B) consumer ethnocentrism.
C) cultural commitment.
D) cross-cultural bias.
E) cultural imperialism.
126) ________ is the tendency to believe that it is inappropriate, indeed immoral, to purchase
foreign-made products.
A) Country partisanship
B) Cultural ethnocentrism
C) Xenophobia
D) Consumer ethnocentrism
E) Nationalism
127) Consumer ethnocentrism refers to
A) the belief that all products that are foreign made are cheap and of poor quality.
B) the belief that one should only purchase products made by indigenous groups in developing
countries.
C) the belief that all corporations are corrupt and consumers must look out for themselves.
D) the tendency to believe that the only products that are of true quality are those that are
manufactured in one’s own country.
E) the tendency to believe it is inappropriate, even immoral, to purchase foreign-made products.
128) In Detroit, a woman came back from lunch to find a nasty note on her Toyota Camry about
failing to support the American economy by purchasing her vehicle. The person who left the note
is exhibiting
A) cultural semiotics.
B) the trade feedback effect.
C) cultural ethnocentricity.
D) protectionism.
E) consumer ethnocentrism.
129) Since global marketing is affected by economic considerations, a scan of the global
marketplace should include which of the following factors?
A) an analysis of cultural diversity within the country under consideration
B) regulatory constraints regarding contracts, mergers, and partnerships
C) an assessment of the economic infrastructure in different countries
D) an assessment of language differences including dialect variation
E) political and ideological differences between the countries involved
130) A country’s communications, transportation, financial, and distribution systems are
considered to be its
A) capital improvements.
B) fixed-asset base.
C) economic infrastructure.
D) geopolitical wealth.
E) asset wealth.
131) Economic infrastructure refers to
A) a nation’s military-industrial complex.
B) a country’s governmental services.
C) the people and the wealth of a nation.
D) a country’s communications, transportation, financial, and distribution systems.
E) all of a country’s natural resources, whether or not they are currently being exploited.
132) Two-thirds of the commercial transactions in Russia involve nonmonetary forms of
payment due to limits in formal operating procedures among financial institutions and even
limits on the notion of private property there. These would best be described as constraints in the
country’s
A) capital infrastructure.
B) political infrastructure.
C) economic infrastructure.
D) geopolitical system.
E) financial exchange system.
133) Although Russia now has a free economy, there are still some problems with its financial
and legal systems, as well as with the notion of
A) private property.
B) product promotion.
C) paid advertising.
D) community services.
E) foreign exchange rates.
134) In Latvia, only one six-lane highway exists, connecting Riga, its capital, with Moscow.
Otherwise, the roads are two lanes and many are made of cobblestones or bricks. This limits the
speed with which deliveries can be made and requires that delivery trucks be quite small. The
road network in Latvia is an example of problems with a country’s
A) capital improvements.
B) fixed-asset base.
C) geopolitical wealth.
D) asset wealth.
E) economic infrastructure.
135) A global marketer selling consumer products and services must also consider what the
average per capita or ________ is among a country’s consumers and how the income is
distributed to determine a nation’s purchasing power.
A) buying capacity
B) currency exchange risk
C) purchasing power
D) household income
E) cost of living
136) A country’s income distribution is important because it gives a more reliable picture of a
country’s ________ than just per capita income alone.
A) consumer tastes
B) taxable income
C) purchasing power
D) discretionary income
E) cost of living
137) Foreign countries with very low per capita incomes may still be attractive markets for some
goods. To get a more reliable picture of a country’s purchasing power, a country’s ________
must also be considered.
A) total income
B) total area
C) geographical location
D) culture
E) income distribution
138) Which of the following is an important indicator of a nation’s increasing purchasing power?
A) a growing proportion of middle-income households
B) declining per capita income
C) stable household incomes
D) stable incomes for the wealthiest consumers
E) a large gap developing or persisting between top incomes and lowest incomes
139) Generally, as the proportion of middle-income households in a country increases, the
nation’s purchasing power
A) levels off.
B) decreases.
C) increases.
D) becomes less of an economic priority.
E) becomes progressively unstable.
140) The price of one country’s currency expressed in terms of another country’s currency is
referred to as the
A) balance of price.
B) currency exchange rate.
C) money conversion factor.
D) balance of payments.
E) transfer payment.
141) Currency exchange rate refers to
A) the unit equivalency of all international currency.
B) the ratio of a nation’s basic unit of currency relative to the price of silver.
C) the ratio of a nation’s basic unit of currency relative to the price of gold.
D) the price of one country’s currency expressed in terms of another country’s currency.
E) the unit of wealth (gold, oil, diamonds, etc.) upon which a nation bases its national currency.
142) Fluctuations in the ________ among the world’s currencies have a direct impact on the sales
and profits made by global companies.
A) production costs
B) transportation
C) reciprocity
D) economic infrastructure
E) exchange rates
143) When foreign currencies can buy more U.S. dollars,
A) U.S. products are more expensive to foreign customers.
B) U.S. products are more expensive to U.S. customers.
C) U.S. products are less expensive to foreign customers.
D) economists consider it an indicator of an impending long-term economic upturn.
E) American consumers will buy in large quantities and stockpile in fear of an impending
economic crisis.
144) Which of the following statements concerning currency exchange rates is most accurate?
A) Short-term exchange rate fluctuations can have a significant effect on the profits of global
companies.
B) Fluctuations in exchange rates among the world’s currencies occur, but multinational
companies are insulated from the affects because of direct investment.
C) Exchange rate fluctuations are relatively rare, and when they occur, their effects are minimal.
D) Exchange rate fluctuations are now almost nonexistent due in great part to the stability of the
euro.
E) Exchange rate fluctuations may affect the financial sector but rarely reach the consumer.
145) Chrysler Corp. wanted to sell its Jeeps in Japan. The car was priced in U.S. dollars at about
$19,000, but when it reached the Japanese car showrooms, its price was over 3,100,000 Japanese
yen, and the Japanese could not afford to buy it. Its price was set without regard for the
A) balance of price.
B) currency exchange rate.
C) reciprocity price.
D) balance of payments.
E) balance of trade.
146) Assessing the political and regulatory climate for marketing in a country or region of the
world means not only identifying the current environment but also determining how
A) it conducts its macrofinancing.
B) its citizens budget their money.
C) long a favorable or unfavorable climate will last.
D) the country’s stocks are performing on the stock exchange.
E) its population ranks in size compared to other countries.
147) Trade among nations or regions depends on political stability. In recent times, billions of
dollars have been lost in ________ and ________ as a result of internal political strife, terrorism,
and war.
A) Russia; Poland
B) France; Spain
C) China; Japan
D) the Middle East; Africa
E) Germany; the United Kingdom
148) The PRS Group maintains a website that can be used to determine
A) changing demographic and psychographic data for each country in the registry.
B) a country’s political risk ratings that are useful in comparing global marketing locations.
C) the tariffs of each country and their relative effect on product and services sales.
D) the rankings of American products relative to domestic equivalents in each country.
E) changing social trends within different segments of the economy.
149) In addition to about 11,000 other trade regulations that specify how goods are to be made
and marketed, Japanese car safety rules effectively require all automobile replacement parts to be
Japanese. Rules like these often function as
A) economic infrastructure.
B) trade barriers.
C) universal codes.
D) binding requirements.
E) targets for bribery.
150) A firm’s profit potential and control over marketing activities ________ as it moves from
exporting to direct investment as a global market entry strategy.
A) becomes more stable
B) increase
C) levels off
D) decreases
E) becomes more unpredictable
151) Once a company has decided to enter the global marketplace, it must select a means of
market entry. One of the four general options is
A) licensing
B) accreditation
C) countertrading
D) cooperative
E) internationalization
152) Once a company has decided to enter the global marketplace, it must select a means of
market entry. All of the following are the general options except which?
A) licensing
B) exporting
C) direct investment
D) joint venture
E) cooperative
153) A firm’s profit potential and control over marketing activities increase as it moves from
exporting to direct investment as a global market-entry strategy. But so does a firm’s
A) likelihood of long-term success.
B) financial commitment and risk.
C) vulnerability to political changes and doctrines.
D) need for a more educated workforce.
E) need for a larger workforce.
154) As a firm changes its global market entry strategy from exporting to direct investment, all
of the following increase except which?
A) marketing control
B) risk
C) divestiture
D) profit potential
E) financial commitment
155) According to Figure 7-4 above, point A would most likely represent which option for
entering the global marketplace?
A) joint venture
B) licensing
C) exporting
D) direct investment
E) franchise
156) According to Figure 7-4 above, point B would most likely represent which option for
entering the global marketplace?
A) exporting
B) joint venture
C) direct investment
D) franchising
E) licensing
157) According to Figure 7-4 above, point C would most likely represent which option for
entering the global marketplace?
A) exporting
B) joint venture
C) direct investment
D) licensing
E) franchising
158) According to Figure 7-4 above, point D would most likely represent which option for
entering the global marketplace?
A) exporting
B) joint venture
C) direct investment
D) franchising
E) licensing