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In general, a capital-abundant country (such as the United States) tends to specialize in
capital-intensive industry and export capital-intensive products, and import
labor-intensive products. This statement is an illustration of the
____________________ of comparative advantage.
a. commodity terms of trade theory
b. supply and demand theory
c. diminishing returns theory
d. factor-sourcing theory
e. factor endowment theory
Several Japanese diaper makers were able to steal market share away from Proctor &
Gamble by selling diapers that were much ______________ than the ones marketed
by P&G, thereby better meeting the desires of Japanese mothers (Japanese homes
have less space than most Europeans or American houses).
a. colorful
b. expensive
c. bulkier
d. thinner
e. rougher
Behavior segmentation criteria includes the following criteria EXCEPT:
a. brand/supplier loyalty.
b. brand equity.
c. usage rate.
d. product penetration.
e. benefits sought.
International law represents __________________ among countries.
a. very loose arrangements
b. contractually binding agreements
c. gentlemen's agreements
d. almost no control of law
e. the best and most recognized legal standards
In the United States, the organization that seeks to help firms considering exports to
other countries is the International Trade Agency (ITA).
Jollibee is a major international player that has its headquarters in ________.
a. Malaysia
b. Indonesia
c. China
d. Philippines
e. India
The United States maintains an economic embargo on Nicaragua.
In global market entry, all of the following are entry decisions that must be made by
management before entering an international market EXCEPT:
a. decide on the time of entry.
b. decide on the target product/market.
c. decide on the goals of the target markets.
d. decide on the mode of entry.
e. decide on the target budget.
Motivation, cultural sensitivity, ethical standards, fairness, and relationship building
are issues relevant to _______________________ considerations.
a. international product
b. international sales strategy
c. international mix
d. intercultural issues with the foreign country
e. global society
Pepsico's 'Water Cellars for Mothers' program to provide safe drinking water in rural
areas of China is an illustration of ___________
a. Cause-related marketing
b. Responsible marketing
c. Green marketing
d. Global advertising
e. Viral marketing
All of the alternatives listed below are ways to safeguard against inflation EXCEPT:
a. modify components, ingredients, parts and/or packaging materials.
b. source materials from low-cost suppliers.
c. lengthen credit terms.
d. include escalator clauses in long-term contracts.
e. quote prices in a stable currency.
Black & Decker is a good example of a company that adopts the _______________
approach to global expansion. The company aims to bring out new products that
cater to common needs and opportunities around the world.
a. product and communication extension--dual extension
b. product invention
c. product extension--communications adaptation
d. product adaptation--communications extension
e. product and communications adaptation--dual adaptation
A phased rollout is less demanding on the company resources whereas
____________________ are not always acceptable.
a. sprinkler rollouts
b. shotgun rollouts
c. staggered rollouts
d. dribble rollouts
e. waterfall rollouts
In 2008, which of the following brands was ranked number one in the world among
the high-tech companies?
a. Microsoft.
b. IBM.
c. Intel.
d. Hewlett Packard.
e. Dell.
In the 1960s, the _______________ was the reserve currency, convertible to gold
under the Bretton Woods Agreement.
a. Australian dollar
b. Canadian dollar
c. U.S. dollar
d. Hong Kong dollar
e. None of the above
The World Economic Forum's Global Competitiveness Report placed
two Asian Tigers (Taiwan and Singapore) among the world's top ______
economies (along with the Finland, United States, Sweden, Denmark, Iceland,
Switzerland, Norway, and Australia).
a. five
b. ten
c. twenty
d. twenty-five
e. thirty
A special case where universal positioning clearly makes sense is the ___________.
a. regional citizen
b. global citizen
c. European citizen
d. Asian citizen
e. none of the above
One strategy used by the new champions to succeed in major markets is:
a. reviving old technology to save money.
b. copying the same model as MNCs from developed markets but with cheaper items.
c. employing the latest technology.
d. training staff in foreign companies first.
e. both a and d
With respect to product categories analyzed on the basis of sales turnover, a
_____________ product is one where the product appeals to a small segment of the
population (which might grow in time).
a. core product
b. cultural product
c. niche item
d. seasonal product
e. filler product
All of the following conditions lend to the development of gray markets EXCEPT:
a. currency fluctuations.
b. differences in market demand.
c. legal differences.
d. opportunistic behavior.
e. foreign trade outlets.
The World Bank was initially intended for:
a. financing postwar reconstruction and development in Japan.
b. financing postwar reconstruction and development in France.
c. financing postwar reconstruction and development in Italy.
d. financing postwar reconstruction and development in Russia.
e. financing postwar reconstruction and development in Europe.
There are a series of key drivers behind transfer pricing decisions. The most
important of these drivers is thought to be:
a. competition in the foreign country.
b. economic conditions in the foreign country.
c. price controls.
d. exchange controls.
e. market conditions in the foreign country.
The Japan External Trade Organization (JETRO) which helps foreign businesses to
export to Japan is affiliated with Japan's _____________________________.
a. Ministry of Business, Trade, and Industry
b. Ministry of Economy, Trade, and Industry
c. Ministry of Economy, Trade, and Technology
d. Ministry of Economy, Trade, and Logistics
e. Ministry of Economy, Trade, and Agriculture
The U.S. trade deficit has pushed the value of the U.S. dollar _______________.
a. forward
b. backward.
c. inward3
d. upward.
e. downward.
All of the following are reasons for international marketers to implement international
market segmentation EXCEPT:
a. country screening.
b. government mandate.
c. global market research.
d. positioning strategy.
e. entry decisions.
