The first stage of the business negotiation process is nontask sounding, which includes
all those activities that might be described as establishing rapport or getting to know
one another.
Answer:
As a result of the General Agreement on Tariffs and Trade, foreign businesses no longer
need to be concerned about the stability or instability of prevailing government policies.
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The most managerially useful aspect of the synthesis of cultural differences is that it
allows us to make predictions about unfamiliar cultures.
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The decisions taken by the World Trade Organization in solving trade disputes among
members are binding ones.
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A cartel exists when various companies producing similar products or services work
together to control markets for the types of goods and services they produce.
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The most effective approach to build global awareness into an organization is to
increase the diversity mix of the employee profile for entry-level jobs.
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Separation allowances are benefits paid when an expatriate manager leaves a company.
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Cultural barriers play a bigger role in services than in merchandise trade.
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Sales promotions are long-term IMC efforts directed to the consumer or retailer.
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Cultures with high Uncertainty Avoidance Index scores tend to have a low level of
anxiety and stress.
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In the context of social institutions such as families, the ratio of male to female children
is affected by latitude but not culture.
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In the context of American sales representatives’ performance, poor performers
typically stay with the company and are seldom fired.
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Northeast China was the industrial and technological center of the country in the 1970s
and 1980s.
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According to the UN classification, industrially developing countries just entering
world trade with relatively low per capita incomes are referred to as more-developed
countries.
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In the Treaty of Amsterdam (1977), the European Union agreed to accommodate the
changes brought about by the monetary union and the admission of new members.
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The United States has granted NTR (normal trade relations) status to Vietnam.
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Sales promotions constitute the major portion of the promotional effort in rural and less
accessible parts of a market.
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Cultures scoring low in Uncertainty Avoidance Index take a more empirical approach to
understanding and knowledge.
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The three typical decision-making patterns are top-level management decisions,
decentralized decisions, and committee or group decisions.
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Licensing is least effective in situations where the technology is unique and the risk is
high.
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In the context of the elements of culture, marriage ceremonies and funerals are good
examples of rituals.
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By the year 1971, the United States was selling more to other countries than it bought
from them; that is, the United States had a favorable balance of trade.
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The feedback step of the international communications process is important as a check
on the effectiveness of the other steps.
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The distinction between bribery and extortion depends on whether the activity resulted
from an offer or from a demand for payment.
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In Phase 2 of the international planning process, the results of an analysis frequently
indicate that the marketing mix would require such drastic adaptation that a decision not
to enter a particular market is made.
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The Power Distance dimension of culture, identified by Geert Hofstede, has proven to
be the most useful of the four dimensions.
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Marketing is a business function requiring high motivation regardless of the location of
the practitioner.
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The Japanese business negotiation style comprises an infrequent use of no and you and
facial gazing, as well as more frequent silent periods.
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The traits that make for successful sales representatives in the United States are
important in other countries as well.
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The Asian financial crisis led to the creation of the ASEAN+3.
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The Japanese have an affinity for united effort.
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The European Union has been an officially established political union since its
inception.
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In a traditional distribution structure, distribution systems are national rather than local
in scope.
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In the context of the different kinds of middlemen, the WTO in 2003 ruled export
management companies to be in violation of international trade rules.
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Sovereignty refers to both the powers exercised by a state in relation to other countries
and the supreme powers exercised over its own members.
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An expatriate with excellent cultural skills does not tolerate ambiguity and upholds the
superiority of his or her culture.
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According to Everett Rogers, the element of time differentiates diffusion from other
types of communication research.
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In a _____ distribution structure, an importer controls a fixed supply of goods and the
marketing system develops around the philosophy of selling a limited supply of goods
at high prices to a small number of affluent customers.
A. domestic
B. traditional
C. manufacturer-oriented
D. service
E. customer-oriented
Answer:
ISO 9000 concerns the:
A. cost-effectiveness of the production of a good.
B. registration and certification of a manufacturer’s quality system.
C. profitability of a production line.
D. ability of a company’s computer system to adapt to SAP, a business management
software.
E. marketing and promotional strategies of a firm.
Answer:
Which of the following best explains the low percentage of women chosen for
international assignments in the United States?
A. The role of women as homemakers and caregivers does not allow for international
assignments.
B. Men are generally more interested to take up international assignments than women.
C. Prejudice faced by American women executives in foreign, male-dominated societies
is exaggerated.
D. There is a widespread belief that traditional roles of women in male-dominated
societies precludes women from being successful in these societies.
E. Expenses involved in sending an unmarried women executive abroad are far higher
than the expenses incurred in sending a married man with family.
Answer:
After World War II, the United States set out to infuse the ideal of capitalism throughout
as much of the world as possible. The _____, aimed at assisting in rebuilding Europe, is
the plan most closely associated with this endeavor.
A. Eisenhower Plan
B. Marshall Plan
C. Bradley Plan
D. Roosevelt Plan
E. Kennedy Plan
Answer:
Which of the following statements is true of tariffs?
A. They strengthen balance-of-payments positions.
B. They strengthen supply-and-demand patterns.
C. They increase special interests’ privileges.
D. They strengthen international relations.
E. They promote competition.
Answer:
Which of the following is the first step toward initiating efficient and effective
international business negotiations?
A. Management of preliminaries such as training and location of talks
B. Preparation and manipulation of negotiation settings
C. Selecting an appropriate negotiation team
D. Managing the process of negotiations
E. Following upon procedures and practices
Answer:
Discuss the features of Mercosur and its role in improving trade associations among
American nations.
Answer:
Under _____, the legal system is generally divided into three separate codes:
commercial, civil, and criminal.
A. constitutional law
B. code law
C. family law
D. religious law
E. traditional law
Answer:
Consumers have broad but somewhat vague stereotypes about specific countries and
specific product categories that they judge “best.” Which of the following would not fit
in the “best” stereotype scheme?
A. English tea
B. Indian cars
C. French perfume
D. Chinese silk
E. Jamaican rum
Answer:
Ten high-technology companies joined forces to produce and market their products in
China. By joining together, these companies were able to enter the Chinese market for
the first time. A good name for this type of arrangement is a consortium.
Answer:
Which of the following is a basic criticism of global financial institutions?
A. They failed to focus on the aim of reducing inequalities between the rich and the
poor countries.
B. They failed to help the Asian countries substantially when they underwent a major
financial crisis in the 1990s.
C. They failed to respect the autonomy of member nations by deeming any bilateral
agreements between members as illegal if made without their approval.
D. They failed to foresee and counter the unintended effects of globalization like
pollution, exploitation, and cultural extinction.
E. They failed to suppress the terrorists who were responsible for the attack in London
that coincided with the G8 summit.
Answer:
Which of the following statements is true about qualitative research?
A. It provides a marketer with responses that can be presented with precise estimations.
B. It studies the dynamic interplay of peoples’ feelings and ideas.
C. It usually involves asking respondents to select a response from a set of choices.
D. Data from qualitative research can be summarized in percentages, averages, or other
statistics.
E. It is generally associated with survey research that involves yes/no questions.
Answer:
Which of the following countries would be characterized as being in Stage 2 of
Rostow’s five-stage model of economic growth?
A. Russia
B. Germany
C. South Korea
D. Czech Republic
E. Vietnam
Answer:
When a company exports a product from the United States to another country, the
company is most likely to be unable to determine the ultimate price of a product if:
A. the channels of distribution are short.
B. the number of middlemen in its distribution channels is low.
C. large orders are placed by retailers.
D. marketing and distribution channel infrastructures are well developed.
E. the middleman markups are not standardized.
Answer:
Analysis of which of the following factors is carried out in Phase 2 of the international
planning process?
A. Company character
B. Budgets
C. Situation analysis
D. Advertising
E. Standards
Answer:
Which of the following approaches is adopted by Westerners when faced with a
complex negotiation task?
A. Dividing the large task into a series of smaller tasks
B. Analyzing the task in a holistic manner with foreign and domestic experts
C. Discussing all issues at once, in no apparent order
D. Making larger than normal concessions in a bid to push the deal through
E. Buying time by tackling peripheral issues first, and then tackling the main task
Answer:
Due to differences in culture in different markets, standardized products that are
marketed globally will most likely require:
A. a different advertising appeal.
B. a different primary function.
C. consistent promotional messages.
D. a standardized marketing strategy.
E. standardized secondary attributes.
Answer:
Which of the following is likely to be the most effective method in making home-office
personnel aware of the problems of foreign operations?
A. Providing cross-cultural training
B. Designing a theoretical course
C. Conducting in-house seminars
D. Holding corporate talk shows
E. Distributing marketing reading materials
Answer:
Which of the following factors will ameliorate explosive population expansion in less
developed countries?
A. Stable worker-to-retiree ratio
B. Free flow of immigration
C. Better senior retirement programs
D. Prenatal sex scanning
E. Provisions for higher pension
Answer:
The first step in bringing about planned change in a society is to:
A. determine which cultural factors conflict with an innovation.
B. create a resistance to the cultural factor hindering acceptance.
C. wait for eventual cultural changes that prove the value of the innovation to the
culture.
D. market products similar to ones already on the market.
E. Introduce a product or service and simply hope for the best.
Answer:
In Russia, products are divided into two categories”ours” and “imported.” This is an
example of:
A. an autarky.
B. ethnocentrism.
C. theocentrism.
D. feudalism.
E. a closed economy.
Answer:
According to Max Weber, at least part of the standard of living in the United States
today can be attributed to the:
A. hard-working Protestant ethic.
B. artificially low price of gasoline.
C. Pearl harbor incident.
D. American black population.
E. slave-labor that formed the basis for early industry.
Answer:
Back translations may not always ensure an accurate translation because of commonly
used idioms in both languages. Which of the following types of translation is used to
overcome this problem?
A. Serial translation
B. Decentering
C. Linear translation
D. Complimentary translation
E. Parallel translation
Answer:
Morton Foods has decided to introduce a new line of turkey products to the American
consumer. Turkey steaks resemble beefsteak in taste and are leaner and healthier for a
variety of reasons. However, the company is concerned that the product will not be
accepted in America. If Morton Foods follows a strategy of _____, they are more likely
to have a successful introduction of the new product.
A. cultural shock
B. cultural adiaphora
C. cultural syncopation
D. cultural congruence
E. reverse culture shock
Answer:
China’s astonishing growth rate has begun to slow recently; however, most analysts see
fast growth continuing for China. All of this growth is primarily dependent on China’s:
A. ability to deregulate industry.
B. ability to prevent the privatization of its state-owned enterprises.
C. preparedness to resist the capitalist wave.
D. ability to put embargoes on foreign investment.
E. ability to uphold its traditional legal system.
Answer:
During which step of the international communications process does the receiver of the
message interpret symbolism transmitted from an information source?
A. Selecting a message
B. Encoding
C. Selecting a message channel
D. Decoding
E. Identifying the sources of noise
Answer:
In the context of U.S. foreign policy in the 19th and the 20th centuries, _____, in its
broadest interpretation, meant that Americans were a chosen people ordained by God to
create a model society.
A. Roosevelt Corollary
B. Monroe Doctrine
C. Hays Corollary
D. Grant Mandate
E. Manifest Destiny
Answer:
According to the United Nations’ stages of economic development for classifying
countries with respect to levels of industrialization, Canada falls under the category of
_____.
A. Third World countries
B. least-developed countries
C. more-developed countries
D. less-developed countries
E. pre-emerging countries
Answer:
Under the premise that law, according to _____, is strictly subordinate to prevailing
economic conditions, such fundamental propositions as private ownership, contracts,
due process, and other legal mechanisms have had to be developed.
A. common law
B. code law
C. Islamic law
D. Marxist-socialist tenets
E. legal tradition
Answer:
Which of the following regions of the world is most affected by aging and thus by a
steadily decreasing worker-to-retiree ratio?
A. Africa
B. North America
C. South America
D. Asia
E. Europe
Answer:
When a government seizes an investment of a foreign investor but some reimbursement
for the assets is made, the government follows a process called:
A. confiscation.
B. expropriation.
C. domestication.
D. exchange controls.
E. local-content laws.
Answer:
Which of the following commodities dominated the trade between Britain and China
during the early 1800s?
A. Bamboo
B. Mother-of-pearl
C. Silk
D. Tea
E. Porcelain
Answer:
In the context of recruiting marketing and sales personnel, which of the following is
true of local nationals?
A. They are not keen on maintaining a cordial relationship at the home office.
B. They lack the knowledge of local culture and prevalent practices.
C. They are better able to lead a company through the maze of unfamiliar referral
networks.
D. They do not communicate with subordinates and customers directly.
E. They normally work for a foreign company in a third country.
Answer:
The marketing tasks of an international marketer differs from that of a domestic
marketer as the:
A. international marketer has fewer uncontrollable elements to deal than a domestic
marketer.
B. level of technology and cultural forces are controllable elements for the international
marketer.
C. structure of distribution is an uncontrollable element for the international marketer.
D. competitive structure is one of the controllable factors for an international marketer.
E. international marketer is less concerned about geography and infrastructure than the
domestic marketer.
Answer:
Which of the following is one of the objectives of engaging in nontask sounding?
A. Determining if a client’s attention is focused on business
B. Obtaining negative feedback on information supplied
C. Draining information from one’s negotiation counterparts
D. Handling objections
E. Preventing loss of face
Answer: