One of the most important aspects of LAIA that differs from LAFTA is the differential
treatment of member countries according to their level of economic development
If a product is culturally sensitive, then decisions related to the product are more likely
to be centralized.
Markets constantly change; they are not static but evolve, expand, and contract in
response to marketing effort, economic conditions, and other cultural influences.
Petroleum’s versatility ensures that petroleum-related products still dominate energy
usage.
Of all the elements of the marketing mix, decisions involving advertising are those most
often affected by cultural differences among country markets.
In countries with low-literacy rates, the pictures and symbols on products are literally
taken as instructions and information.
Which of the following is an example of a nontariff trade barrier?
A. Compound duties
B. Revenue tariffs
C. Administrative fees
D. Specific duties
E. Duties
Russia and Eastern European countries have been characterized as being in which of the
following stages of Rostow’s five-stage model of economic growth?
A. The traditional society.
B. Drive to maturity.
C. Preconditions for takeoff.
D. The age of mass consumption.
E. Takeoff.
Price controls are used during inflationary periods to:
A. control the cost of living.
B. restrict exports to foreign countries.
C. negotiate trade contracts favoring the host country.
D. encourage imports.
E. collect taxes on foreign investments.
Which of the following firms has a better chance of accelerating the internationalization
process?
A. International regulatory bodies set export/import limits.
B. The importing country can levy heavier import tariffs to override the VERs.
C. The exporting country sets the limits on the quantity it will export.
D. It is a mandatory tax imposed by a government on goods entering at its borders.
E. It is an absolute restriction against the importation of certain goods.
Which of these is the most advanced and viable of Africa’s regional organizations?
A. Economic Community of West African States.
B. African Development Bank.
C. Southern African Development Community.
D. Organization of African Unity.
E. Economic Community of Central African States.
To the foreign marketer, the similar-but-different feature of cultures has important
meaning in gaining cultural _____.
A. tolerance
B. acceptance
C. leverage
D. empathy
E. heritage
In the case of arbitration:
A. lawsuits are initiated between the conflicting parties.
B. the preliminary step of conciliation is often bypassed.
C. the International Chamber of Commerce has been weak and ineffective.
D. the plaintiff and the defendant select a person each to present their case.
E. the ICC Court does not appoint any member to regulate the private affairs of the two
parties.
The single most important activity of international business negotiations is _____.
A. oration
B. listening
C. presentation
D. etiquette
E. self-disclosure
Under the Antiboycott Law, U.S. companies are forbidden to participate in any
unauthorized foreign boycott. Which of the following situations brought about the
Antiboycott Law in the U.S.?
A. The boycott of Cuba by the U.S.
B. The boycott of South Africa by the world community.
C. The boycott of Israel by the Arab League.
D. The boycott of China by the United States.
E. The boycott of the U.S. by the U.S.S.R. (the wheat embargo).
The basis for _____ is tradition, past practices, and legal precedents set by the courts
through interpretations of statutes, legal legislation, and past rulings.
A. civil law
B. common law
C. code law
D. commercial law
E. criminal law
How do the vast majority of services enter a foreign market?
A. Exporting.
B. Importing.
C. Licensing, franchising, or direct investment.
D. Through brokers.
E. Through agent intermediaries.
The vast majority of services (some 85 percent) enter foreign markets by licensing,
franchising, or direct investment.
According to Lester Thurow, in the British-American “individualistic”kind of
capitalism relationships among government, management, and labor in business
systems are _____.
A. cooperative
B. commensalistic
C. synergistic
D. adversarial
E. conciliatory
Due to differences in culture in different markets, standardized products that are
marketed globally will require:
A. a different advertising appeal.
B. a different primary function.
C. consistent promotional messages.
D. a standardized marketing strategy.
E. standardized secondary attributes.
The process of adjusting to a new culture is known as:
A. diffusion.
B. culture transfer.
C. acculturation.
D. assimilation.
E. transference.
Which of the following traits is important for marketing executives involved in
international negotiations?
A. Optimism
B. Altruism
C. Hypersensitivity
D. Cultural apathy
E. Excessive aggression
_____ is a controllable element in both domestic and international marketing
environments.
A. Economic climate
B. Competition within the home country
C. Price of products
D. Political forces
E. Foreign policies
_____ is an area that should be on a checklist of criteria for evaluating middlemen
servicing a market.
A. Flexibility
B. Hypersensitivity
C. Cultural empathy
D. Productivity
E. Breadth of knowledge