In the context of distribution patterns, wholesaling shows a greater diversity in its
structure than does retailing.
In the context of blocked currency, blockage is accomplished by refusing to allow an
importer to exchange its national currency for the currency of the seller.
Workers in countries higher in individualism show more commitment than workers in
countries with lower individualism and higher power distance.
Cultural imperatives are business customs that are generally similar across cultures.
In the decentering method of translation for questionnaires, more than two translators
are used for the back translation; the results are compared, differences discussed, and
the most appropriate translation is selected.
In the context of international business negotiations, Guanxi, or personal connections is
key for negotiators working in Western countries.
Convenience samples are generally used when detailed social, geographic, and
economic information is available for the sampling universe.
As the U.S. trade deficit has grown, pressures have begun to push the value of the dollar
to higher levels.
The decisions of the European Court of Justice can be appealed in national courts.
Among three kinds of distances that international marketers must traverse, time zones
have the greatest influence on the success of their commercial efforts abroad.
Pressure from nationalist and self-interest groups affect the stability of a government.
Marketing research is a general noneconomic review of conditions affecting the
marketing division’s business.
The presence of large, accessible markets with low tariffs has contributed to the
economic growth of newly industrialized countries (NICs).
The newly industrialized countries have per capita incomes lower than LDCs or MDCs.
In the U.S., if a middleman is terminated, the company is required to pay one percent of
the middleman’s average annual compensation, multiplied by the number of years the
middleman served, as a final settlement.
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.
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.
Which of the following is a trait of a person with good cultural skills?
A. They have a clear set of principles and do not tolerate ambiguity.
B. They are proud of their culture and practice cultural chauvinism.
C. They monitor the behavior of their employees and remain judgmental.
D. They convey a sincere interest in people and their culture.
E. They do not allow their culture and values to influence one’s judgment.
Which of the following statements is true with respect to the economic effects of
controlling population growth?
A. Fertility rates increase proportionately to the rate of economic growth.
B. A decline in fertility rate is a function of economic prosperity.
C. Lower male-female ratios favor higher fertility rates.
D. Developing nations tend to have lower fertility compared to developed nations.
E. Higher population growth rates have resulted in increased global trade.
A European chocolate manufacturer received several complaints from customers about
the quality of its product when it began selling them in a tropical country. The firm had
to re-package its chocolate bars in an extra plastic wrapper to protect it from the heat
and dust. Which of the following factors in the local market dictated product adaptation
in the current scenario?
A. Legal requirements.
B. Economic requirements.
C. Political requirements.
D. Climatic requirements.
E. Technological requirements.
If the supply of a good in a market is limited, a company may follow a _____ approach
to maximize revenue and to match demand to supply.
A. penetration pricing
B. psychological pricing
C. variable-cost pricing
D. full-cost pricing
E. price skimming
Janet works for a media agency based in Japan. Janet is helping the IMC manager of
Siljure, a French cosmetics company, with the design and language to be used in an
upcoming promotional campaign in Japan. The IMC manager knows what to convey
but wants to advertise it in a culturally relevant manner. Which step of the IMC process
is Janet helping Siljure with?
A. Encoding of the message.
B. Choosing an appropriate channel for the message.
C. Decoding of the message.
D. Providing feedback from customers.
E. Reducing noise from competing ad campaigns.
The aesthetics of a culture must be taken into account by marketers when:
A. styling the product and its packaging.B. determining the linguistic distance of a
culture.C. assessing if a culture is individualistic or collectivistic.D. trying to quantify
the influence media has on the culture.E. trying to comply with the rituals of a culture.
In Thailand, it is required that any milk products sold in the country must contain at
least 50 percent milk from Thai dairy farmers. Which of the following economic risks
faced by international producers of milk is illustrated in this situation?
A. Exchange controls
B. Local-content laws
C. Import restrictions
D. Tax controls
E. Price controls
The _____ was a political protest against the British prohibition of Yankee traders from
dealing directly with merchants in Canton.
A. Hong Kong Revolution
B. Boston Tea Party
C. Taiping Rebellion
D. First Opium War
E. Canton Uprising
Which of the following is essential while making 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.
In Japan, _____ refers to the factual truth, irrespective of the damage it might do to the
all-important social relationships within and between Japanese companies.
A. kanban
B. honne
C. keiretsu
D. zaibatsu
E. tatemae
Which of the following statements is true of political sanctions?
A. Political sanctions normally control and rectify situations within a nation.
B. Political sanctions are generally not very successful.
C. Political sanctions are illegal.
D. The United Nations encourages boycotts as a means of settling disputes.
E. Political sanctions are least effective against consumer goods.
Which of the following characterizes the business philosophy of the Japanese
distribution channels?
A. Loyalty
B. Direct sales
C. Fast delivery
D. Variety
E. Price competition
Which of the following is true of the effect of differences in culture in business
negotiations?
A. The basic elements of business negotiations differ from country to country.
B. The risk of misunderstanding increases when negotiating with someone from a
different culture.
C. The possibility of misinterpretation is decreased when one uses one’s self-reference
criterion.
D. A standard rule in negotiating is to know your counterpart first.
E. The negotiator’s cultural background need not have a bearing on the business talks.
Which of the following is an essential requirement for companies to succeed in
international markets?
A. Binding strictly to their traditional methods of operations to succeed in international
markets.
B. Focusing primarily on their production to meet the demands at home.
C. Venturing into multiple markets at once.
D. Committing themselves completely to foreign markets.
E. Focusing on improving the domestic market to invest the returns in international
markets.
Which of the following was a customs union before becoming a common market?
A. NAFTA
B. OECD
C. The European Steel and Coal Community
D. The European Union
E. The Council for Mutual Economic Assistance
Most eastern European countries are privatizing state-owned enterprises, establishing
free market pricing systems, and:
A. permitting greater government control/intervention in foreign trade.
B. increasing trade barriers.
C. Africa.
D. making import controls stringent.
E. switching to a socialistic economy.