In the context of foreign market entry strategies, the advantages of _____ 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. consortia
B. exporting arrangements
C. strategic alliances
D. licensing
E. joint ventures
Answer:
_____ should not be used as a selection criterion for international negotiation teams.
A. Stamina
B. Maturity
C. Flexibility
D. Breadth of knowledge
E. Gender
Answer:
Which of the following is an NGO (nongovernmental organization)?
A. Central Intelligence Agency
B. Peace Corps
C. Millennium Challenge Corporation
D. Oxfam
E. FedEx
Answer:
Which of the following reflects Dutch management professor Geert Hofstede’s
perception of culture?
A. It is a weapon that is often used against the poor.
B. It is a problem-solving tool.
C. It is a bias that is used to justify racial inequality.
D. It is a relationship enhancer.
E. It is a reflection of a nation’s evolution.
Answer:
Which of the following is a requisite for the survival of any economic union?
A. Avoiding potentially significant opportunities for international business
B. Having agreements and mechanisms in place in order to settle economic disputes
C. Including into the union, countries with diverse economies, distinctive monetary
systems, developed agricultural bases, and different natural resources
D. Establishing of a comprehensive agriculture and economic policy
E. Ensuring biased treatment of goods produced within the union
Answer:
In the context of international business negotiations, which of the following steps
should be taken once negotiators have “gotten to yes” in order to generate new ideas?
A. Change the provisions of the signed contract.
B. Conduct a formal signing ceremony.
C. Schedule a review of the agreement.
D. Maintain a flow of communication through letters.
E. Push for signing of the next business deal.
Answer:
The U.S. Congress and businesses have been resisting conversion to the metric system
because they fear:
A. market competition from international firms already using the metric system.
B. consumer backlash and the substitution of international products.
C. that it will promote standardization.
D. that workers will not understand the system.
E. that it will be too costly to implement.
Answer:
David is a Canadian national who has been working for a U.S. company in Japan for
twenty years. David may be considered to be a _____.
A. virtual expatriate
B. native salesperson
C. third-country national
D. professional expatriate
E. local national
Answer:
In the context of cultural values, which of the following statements is true?
A. Countries that are high in individualism and low in uncertainty avoidance tend to be
more innovative.
B. Diffusion of innovations will be fast in countries that are low on individualism and
high on uncertainty avoidance.
C. Based on the experiments done with American and Chinese students, individualistic
cultures tend to respond more favorably to self-focused appeals.
D. Based on the experiments done with American and Chinese students, emotional
appeals tend to attract people from collectivistic cultures.
E. Based on the experiments done with American and Chinese students, individuals
dislike the novelty in relation to their own cultures.
Answer:
The European Commission, the Council of Ministers, the European Parliament, and the
Court of Justice are institutions of the _____.
A. COMECON
B. European Free Trade Area
C. European Economic Area
D. European Union
E. Trans-Pacific Union
Answer:
An important dimension of quality is how well the product:
A. meets the specific needs of the buyer.
B. exceeds competitors’ products.
C. conforms to manufacturer’s specifications.
D. alters the marketing landscape.
E. saves time and labor.
Answer:
The crucial problem confronting a seller in a countertrade negotiation is determining
the _____ for the goods offered as payment.
A. delivery method
B. warranties
C. insurance premiums
D. potential demand
E. the cost
Answer:
According to Canadian law, what is the standard expected by courts in Canada to
determine whether a representation is false or misleading?
A. Denovo standard
B. Credulous person standard
C. Clearly erroneous standard
D. Informed consumer standard
E. Discretionary standard
Answer:
Which of the following statements is true regarding merchant middlemen?
A. They represent the best interests of a manufacturer.
B. They can be controlled better than agent middlemen.
C. They assume trading risks.
D. They work on commission and arrange for sales in the foreign country.
E. They do not take title to manufacturers’ goods.
Answer:
Integrated marketing communications are composed of all of the following EXCEPT:
A. advertising.
B. sales promotions.
C. trade shows.
D. public relations.
E. political rallying.
Answer:
Floral Group Inc., an importing organization in New York, buys perfumes from GS Inc.
in France for $13 a unit. Unknown to GS, Floral Group sells this product in the United
States for $15 a unit. This leads to a loss of revenue for GS Inc. as it also sells its
perfume in the United States but for a higher price of $18. Which of the following best
describes the above scenario?
A. Black-listed importing
B. Direct importing
C. Circular importing
D. Co-mingled importing
E. Parallel importing
Answer:
The responsibility of determining if a license is required rests with the _____.
A. Department of Commerce of the exporting nation
B. regulatory body of the industry
C. exporter
D. U.S. Customs department
E. importing country’s authorities
Answer:
Which of the following conventions is responsible for the promotion of the protection
of intellectual property rights among all the member countries of the UN?
A. The Basel Convention
B. The Madrid Arrangement
C. The Tokyo Agreement
D. The Eurasian Convention
E. The World Intellectual Property Organization
Answer:
Which of the following is true of price quotations for international sale?
A. Price quotations can be made only if it is shown that prices are lower in the
importing country than in the exporting country.
B. Price quotations must specify the currency to be used and the credit terms of the
transaction.
C. The price quotation and contract should define only the quantity of goods and not
necessarily the quality.
D. Price quotations must be quoted only in terms of electronic trade dollars.
E. Price quotations need to specify the transportation charges but need not necessarily
state what type of documentation needs to be used.
Answer:
Identify the two most important steps China has to take to ensure that the road to
economic growth is smooth.
A. Decreasing export barriers and promoting indigenous technology
B. Strengthening the hold of its communist party and promoting innovative thinking
C. Investing in more developing countries and changing its education system
D. Acquiring membership in more regional trade blocs and increasing embargoes
E. Improving human rights and reforming the legal system
Answer:
Identify the substage in the evolution of the marketing process when the only marketing
functions performed are demand creation and physical distribution.
A. Mass production
B. Global distribution
C. Self-sufficient
D. Surplus commodity product
E. Small scale
Answer:
Which of the following is true of the ISO 9000 standards?
A. The ISO 9000 standards apply to specific products.
B. The ISO 9000s guarantee that a manufacturer produces a “quality” product or
service.
C. The ISO 9000 series describes eight quality system models.
D. The ISO 9000 standards are a certification of the quality control system that a
company has in place.
E. The ISO 9000s were originally designed by the International Organization for
Quality in the United States.
Answer:
Which of the following is an essential requirement for already experienced as well as
new firms to succeed in international markets?
A. Adhering strictly to their traditional methods of production and operations
B. Focusing primarily on their production to exclusively meet domestic demand
C. Venturing into multiple markets by investing in all of them at once
D. Committing themselves completely to foreign markets
E. Having beneficial relations with lobbyists of foreign markets
Answer:
Family, religion, school, the media, government, and corporations are all examples of:
A. social institutions.
B. aesthetics.
C. internal variables.
D. external variables.
E. demographic variables.
Answer:
In the context of stages of international marketing involvement, if a marketer is
motivated to initiate an international marketing effort mainly because of temporary
surpluses in the domestic market, then the marketer is most likely to be in the _____.
A. infrequent foreign marketing stage
B. regular foreign marketing stage
C. no direct foreign marketing stage
D. international marketing stage
E. global marketing stage
Answer:
Buyers in country X prefer to use the older, cheaper version of Firm A’s product
although it is bulkier and less user-friendly. Buyers in country Y, however, prefer to use
the newer, lightweight version for its new user interface. Which of the following
statements is the most accurate conclusion from the given information?
A. Firm A needs to revamp its after-sales services.
B. The sales of industrial goods are higher in country X than in country Y.
C. The perception of quality can differ across countries.
D. Country X is a highly industrialized nation.
E. Country Y has a lower average income level compared to country X.
Answer:
Which of the following are driving a strong level of interest in the ISO 9000
certification?
A. Government regulations
B. Marketplace requirements
C. Environmental regulations
D. Trade tariff requirements
E. Protectionism restrictions
Answer:
Which of the following is the second-largest common-market agreement in the
Americas?
A. CFTA
B. NAFTA
C. Mercosur
D. DR-CAFTA
E. SAFTA
Answer:
The industrialized economies in the _____ stage of Rostow’s five-stage model of
economic development focus more on low-cost manufacturing of a variety of consumer
and some industrial goods. They buy from all categories of industrial products and
services.
A. traditional society
B. drive to maturity
C. preconditions to takeoff
D. age of mass consumption
E. takeoff
Answer:
An attempt to lessen political risks by paying those in power to intervene on behalf of
the multinational company is referred to as a _____.
A. subornation
B. protectionism
C. political payoff
D. buyout
E. rake-off
Answer:
In many rural areas, there are no street maps, some streets are not identified, and some
houses are not numbered. Which of the following aspects of market research is this
situation most likely to directly affect?
A. Product enhancement analysis
B. Inventory analysis
C. The optimization process
D. The sampling process
E. The decentralization process
Answer:
Which of the following organizational structures is the most extensive of those usually
adopted by companies?
A. Transnational structure
B. Geographical division structure
C. Region-specific structure
D. Global product division structure
E. Matrix structure
Answer: