A majority of services enter foreign markets by licensing, franchising, or direct
investment.
Foreign investment can be perceived as a threat to sovereignty.
The Foreign Credit Insurance Association underwrites trade and investments for U.S.
firms.
The level of technology in a country is an uncontrollable element for international
marketers.
As global markets continue to homogenize and diversify simultaneously, the best
companies will focus on country as the primary segmentation variable.
One of the core components in the product component model is the product platform.
The European Union is currently an officially established political union.
An important first step in adapting a product to a foreign market is to determine the
degree of newness as perceived by the intended market.
The responsibility of determining if a license is required rests with the exporter.
Which of the following characterizes the variable-cost pricing approach?
A. In this approach, prices are often set on a cost-plus basis, that is, total costs plus a
profit margin.
B. This approach insists that no unit of a similar product is different from any other unit
in terms of cost.
C. This approach insists that each unit must bear its full share of the total fixed and
variable cost.
D. This approach is suitable when a company has high variable costs relative to its fixed
costs.
E. In this approach, any contribution to fixed cost after variable costs are covered is
profit to the company.
The anthropologist, Edward T. Hall tells us that culture is:
A. all-encompassing.
B. relatively minor in the scheme of life.
C. communication.
D. strongly linked to physiology.
E. standard throughout the world.
In settling international commercial transaction disputes, which of the following
methods accounts for the majority of settlements?
A. Criminal suits
B. Conciliation
C. Arbitration
D. Litigation
E. Coercion
Vital Health Products found out that they had to reduce the length of the tread in their
treadmills sold in China owing to the shorter legs of the average Chinese person. By
doing this, Vital has achieved product _____.
A. homologation
B. standardization
C. dilution
D. flexibility
E. repositioning
In which of the following situations is an expatriate sales force most likely to have an
advantage over a native sales force?
A. When selling consulting services.
B. When selling in relationship-oriented countries.
C. When the product caters to a niche market.
D. When the product is highly technical.
E. When the product is global in nature.
Which of the following is an adverse consequence of globalization?
A. Nationalization of private sector holdings.
B. Lower and more competitive oil prices.
C. Reduced variety and quality of goods and services.
D. Worker exploitation and domestic job losses.
E. Provision of loans from the World Bank.
Because of political changes in the late twentieth century, which of the following
countries has had to build from scratch an entire commercial legal system?
A. France
B. Germany
C. Taiwan
D. Russia
E. Saudi Arabia
In the context of culture’s pervasive impact, which of the following is true about
birthrates?
A. A service economy usually has a higher birthrate than an industrial economy.
B. Government policies and birth control technologies have caused a decline in
birthrates.
C. The economic status of a country has minimal impact on the birthrates in that
country.
D. Countries that move from agricultural economies to service economies experience
increased birthrates.
E. Agricultural economies find it hard to support high birthrates than industrial
economies.
Firms that sell industrial goods in the international market should focus on after-sales
services because these services:
A. are almost always more profitable than the actual sale of the good itself.
B. require high levels of investment in training and development.
C. need to be heavily advertised.
D. cost the firm almost nothing.
E. cannot be outsourced to other companies and must be provided by the firm itself.
The distribution channel process includes all activities, beginning with the manufacturer
and ending with the _____.
A. wholesaler
B. agent middlemen
C. merchant middlemen
D. retailer
E. final consumer
Unlike the Japanese, the American sales managers do not have to worry about the
problem of motivating poor performers. Which of the following is the reason for this
situation?
A. The group incentive system balances pay differences and thus is motivating enough.
B. Companies are more focused on long-term loyalty and are willing to compromise on
performance initially.
C. Sales personnel are shifted to areas where their performance levels can meet
expectations.
D. The system of peer-mentoring takes care of the progress of low performers.
E. The team usually does not have any low performers as they either quit or are fired.
Which of the following is true with respect to the dynamics of global population trends?
A. The demand for goods worldwide may have no effect on migration patterns.
B. Changes in the distribution of population among the world’s countries may fail to
influence demand.
C. The global financial crisis has caused migration from rural to urban areas within
countries.
D. Economic growth forecasts and assumptions about fertility rates are independent of
each other.
E. The existence of sheer numbers of people is significant in appraising potential
consumer markets.
In the context of international business negotiations, which of the following skills tops
the list of negotiator traits?
A. Preparation and planning skills.
B. Observational and oratory skills.
C. Linguistic and social skills.
D. Persuasion and intellectual skills.
E. Informational and interpretation skills.
In the context of business ethics, distinguish between bribery and extortion with
examples.
Explain the two different views of what constitutes price decisions.
In the late 1990s, most of the countries of the world saw a slowdown in the
unprecedented and precipit
What are the bases of international legal disputes? Describe the situations and the
authority that addresses the issues.
Which of the following was designed to primarily deal with trade deficits,
protectionism, and the overall fairness of the U.S. trading partners?
A. The Neutrality Pact of 1941.
B. The Omnibus Trade and Competitiveness Act of 1988.
C. The League of Nations Act of 1920.
D. The Hawley-Smoot Tariff Act of 1930.
E. The International Monetary Fund Act.
Give a brief description of the styles of negotiation of the Japanese, the Koreans, and
the French.
Which of the following trade policy tools makes it mandatory for its importers who
want to buy a foreign good to apply for an exchange permit?
A. Tariff
B. Import quota
C. Blocked currency
D. Government approval
E. Export levies