The Export Trading Company Act allows producers of similar products to form export
trading companies in the U.S.
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.
Legal advice is not necessary when entering distribution contracts with middlemen.
In the context of international business negotiations, individual personalities and
backgrounds have no bearing at the negotiation table.
The Roosevelt Corollary is typified by the dictum-whatever is good for the United
States is justifiable.
The first Soviet republics to declare independence were the Baltic States.
Television is an advertising medium where there are no restrictions in most countries.
The geography and infrastructure of a country are uncontrollable factors that influence
the business decisions of a company in an international market.
In _____ pricing, the philosophy is that no unit of a similar product is different from
any other unit in terms of cost and that each unit must bear its full share of the total
fixed and variable cost.
A. full-cost
B. fixed-cost
C. variable-cost
D. demand-based
E. premium
_____ has the potential to become the newest big emerging market (BEM), but its
development will depend on government action and external investment by other
governments and multinational firms.
A. South Africa
B. South America
C. East Asia
D. West Asia
E. South Asia
Which of the following approaches to pricing is suitable when a company has high
variable costs relative to its fixed costs?
A. Full-cost pricing
B. Marginal-cost pricing
C. Cost-plus pricing
D. Demand-based pricing
E. Premium pricing
When countries sell off state-owned enterprises, it usually results in a(n):
A. surge in household expenditure.
B. decline in productivity throughout the private sector.
C. release of capital to invest elsewhere.
D. change in political leadership.
E. increase in unemployment rate.
_____ is probably the most common mistake of North Americans attempting to trade in
the Middle East.
A. Drinking
B. Informality
C. Impatience
D. Excessive negotiation
E. Casual dressing
Relations between governments and MNCs are generally positive if the investment:
A. increases the volume of imports.
B. uses globally produced resources.
C. brings capital, technology, and/or skills.
D. brings in more number of foreign nationals.
E. outsources work back to its home country.
Nexar Energy is advocating the use of solar power to replace all petroleum-based
energy sources. The company holds demonstrations to show how solar power could be
used in all major petroleum-based products-automobiles, power sources, and heating
and cooling. Nexar Energy is employing a strategy of _____, a deliberate attempt to
change the way we do things with respect to energy sources.
A. unplanned change
B. planned change
C. parallel change
D. syncopated change
E. synergistic change
Business customs in which an outsider must not participate are called _____.
A. imperatives
B. electives
C. exclusives
D. absolutes
E. statutes
Marketers of consumer services face four kinds of barriers in the global marketplace.
Which of the following of these barriers is in force when a foreign market requires that
services (such as banking or insurance) originate within the country itself and not from
outside sources?
A. Protectionism.
B. Controls on transborder data flows.
C. Protection of intellectual property.
D. Cultural requirements for adaptation.
E. Language translation barriers.
Four kinds of barriers face consumer services marketers in this growing sector of the
global marketplace: protectionism, controls on transborder data flows, protection of
intellectual property, and cultural requirements for adaptation.
Which of the following is a disadvantage associated with a sales force comprising
expatriate salespeople?
A. Adverse effect on the prestige of the product.
B. Deterioration of product quality.
C. Lack of technological expertise.
D. Inadequate knowledge of the company.
E. Large cultural barriers.
Japanese sales representatives are most satisfied with their jobs when:
A. their values are consistent with those of their company.
B. they receive high salaries and many perks.
C. they are better educated than their colleagues.
D. their technological knowledge is superior to that of others.
E. they do not have to travel too much.
Omega appliances, a Korean company that manufactures kitchen appliances had to alter
the design of its chimneys to suit the needs of the consumers in its Japanese market.
The Japanese preferred compact and efficient appliances to fit their small kitchens. The
component of the product that had to be altered in the above scenario is the _____.
A. packaging component
B. functional component
C. core component
D. technical component
E. support services component
The marketer who expects to be effective in the international marketplace should:
A. be antagonistic toward other cultures.
B. not let the local culture influence their decisions.
C. practice cultural chauvinism.
D. not let market behavior influence their decisions.
E. have a positive outlook on an international assignment.
Which of the following is true of domestication?
A. The ultimate goal of domestication is to force domestic investors to share more of
the profits with the government.
B. The risk of domestication appears to have decreased over the last two decades.
C. Domestication has led to more technologically advanced and competitive businesses.
D. Nowadays, countries often require companies to become domesticated as a condition
for investment.
E. It is the seizing of a company’s assets without payment.
Which of the following substages best characterizes the United States today with
respect to the evolution of the marketing process?
A. Mass production
B. Commercial-transition
C. Self-sufficiency
D. Surplus commodity product
E. Mass distribution
When the value of the dollar is weak relative to the buyer’s currency, sellers generally
employ _____ pricing.
A. competition-based
B. demand-based
C. premium
D. psychological
E. cost-plus
On the basis of Hofstede’s four dimensions, cultures with high Power Distance Index
(PDI) scores tend to be:
A. secular.
B. hierarchical.
C. flat in organization.
D. fragmented.
E. Mexico
Which of the following is a possible outcome of the “alien status” of a company?
A. An increase in protectionist federal policies.
B. A positive balance of trade.
C. A sharp rise in domestic and international demand.
D. A huge trade deficit.
E. An economic situation of the magnitude of the Great Depression.