Cultures low in Uncertainty Avoidance Index take a more empirical approach to
understanding and knowledge.
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.
Antitrust laws were not enforced in the United States for the better part of the twentieth
century.
Multinational market regions are those groups of countries that seek mutual economic
benefit from reducing interregional trade and tariff barriers.
Eliminating costly functional features or lowering overall product quality can minimize
price escalation.
The amount of equity required by a company to use different modes of entry in a new
market affects the risk, return, and control that it will have in each mode.
The Phase 3 of the international planning process involves developing a marketing plan
and devising budgets and profit expectations.
In the context of U.S. foreign policies, the Monroe Doctrine dictated the abstention of
the United States from European political affairs.
The business activities of international marketers are not affected by competition in
their domestic market.
The ultimate goal of domestication is to force foreign investors to share more of the
ownership, management, and profits with nationals than was the case before
domestication.
Which of the following relationship skills is necessary during the initiating activity
stage of building a strategic alliance?
A. Commitment
B. Partnering
C. Trust building
D. Creating intimacy
E. Good relationship self-awareness
The difference between professional expatriates and virtual expatriates is that:
A. professional expatriates can avoid misunderstandings that arise from cross-cultural
communications.
B. for virtual expatriates, building a close contact with customers is much easier.
C. professional expatriates do not incur any extra expense to the company.
D. for virtual expatriates, establishing a good working relationship with subordinates is
much easier.
E. virtual expatriates work from their home branch and do not relocate to the
assignment country.
The United Nations’ classification of stages of economic development has been
criticized because it:
A. no longer seems relevant in the rapidly industrializing world.
B. does not take into consideration the level of political stability in a country.
C. does not take into consideration the per capita income level of a country.
D. only focuses on the literacy level in a country.
E. does not take into consideration the level of industrialization of a country.
Which of the following is an example of the primary attribute of a product?
A. The ability of a camera to take a picture.
B. The design and form factor of a phone.
C. The color of a laptop.
D. The prestige associated with driving a car.
E. The eco-friendly functioning of a digital watch.
At the most general level, the _____ represents the most important and comprehensive
trade agreement in history.
A. NAFTA
B. Amsterdam Treaty
C. MERCOSUR
D. WTO
E. ASEAN
In Japan, under the Large-Scale Retail Store Law, all proposals for new “large” stores
are first judged by the _____.
A. Transport and Tourism Department
B. Internal Affairs and Business Council
C. Ministry of International Trade and Industry
D. Health and Welfare Committee
E. Local Retailers Union
The firms at the stage of regular foreign marketing of international marketing
involvement:
A. sell products that are a result of planned production in markets in various countries.
B. primarily focus all their operations and production to service domestic market needs.
C. have a global perspective and view the entire world as one market devoid of any
segments based on nationality.
D. have half their sales revenues coming from international markets.
E. have no intention of maintaining continuous market representation in foreign
markets.
Which of the following agencies or bodies is actively involved in setting rules about
compensation companywide in Europe?
A. Pension committees.
B. Work council.
C. The World Health Organization.
D. The European Union.
E. The World Trade Organization.
Which of the following practices, with respect to motivating sales personnel, is most
common in relationship-oriented countries like Japan?
A. Companies lay greater emphasis on incentives that are based on individual
performance.
B. Companies do not allow local managers to decide the mix between base and
incentive pay.
C. Commissions are measured by sales revenues generated by each employee.
D. Companies are not very tolerant of poor performers and fire them immediately.
E. Companies motivate sales representatives through frequent interaction with
supervisors.
Which of the following statements is true regarding the decision-making processes in
international business negotiations?
A. Asian negotiators prefer to break up a complex, large task into a series of smaller
tasks.
B. The American approach to a complex negotiation task is to discuss all issues at once,
in no apparent order.
C. American negotiators tend to make larger concessions after agreements are
announced.
D. Americans tackle issues such as prices, delivery, and warranty one at a time, with the
final agreement being the sum of smaller agreements.
E. The Western sequential approach and the Eastern holistic approach to
decision-making are found to complement each other.
Which of the following factors differentiates companies with the least amount of
returnee attrition from those with the highest attrition?
A. Specialized expatriate department.
B. Personal career planning for expatriates.
C. Continued cultural training.
D. Increased compensation.
E. Family migration planning.
The advantages of ____, a market-entry strategy, are most apparent when capital is
scarce, import restrictions forbid other means of entry, a country is sensitive to foreign
ownership, or patents and trademarks must be protected against cancellation for nonuse.
A. a consortia
B. exporting arrangements
C. strategic understandings
D. licensing
E. joint ventures
Which of the following 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. A part of the headquarters of the company is set up at the foreign location.
D. A support team along with the expatriate manager is shifted to the foreign location.
E. Legal obligations are imposed on the expatriate sales representatives.
Which of the following 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.
Which of the following technological innovations has had a great impact on the
gender-based determining of responsibilities and roles?
A. Mobile phones
B. Computers
C. Aircraft
D. The Internet
E. Birth control pills
Which of the following is the last step of a market research process?
A. Define the research problem and establish research objectives.
B. Effectively communicate the results to decision makers.
C. Analyze, interpret, and summarize the results.
D. Consider the costs and benefits of the research effort.
E. Gather the relevant data from secondary or primary sources, or both.
In international business, global marketing strategies are almost always implemented
through _____ with business partners and customers from foreign countries.
A. video-conferencing
B. face-to-face negotiations
C. online collaborations
D. international treaties
E. a memoranda of cooperation
Which of the following is the best means of solving the problem of language on the
Internet?
A. Using minimal language in websites and using graphics and diagrams to convey
messages.
B. Using language translation software to translate communication in all languages.
C. Having country-specific websites so that everyone can communicate in their own
language.
D. Using foreign language blocking software to screen international communications.
E. Training employees to communicate in all languages used by foreign customers.
Which key provision of NAFTA restricts Japan from assembling autos in Mexico and
avoiding U.S. or Canadian tariffs and quotas, unless the auto had a specific percentage
of Mexican (i.e., North American) content?
A. Services
B. Standards
C. Rules of origin
D. Intellectual property
E. Government procurement
Which of the following is a method of demand forecasting that is particularly suitable
for international marketers?
A. Probabilistic forecasting
B. Analogy
C. Simulation
D. Extrapolation
E. Scenario building