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APEC is a body formed by the major governments of the Asian countries with the
primary purpose of protecting their local industries against the market domination by
their western counterparts.
Answer:
When the only marketing functions performed are demand creation and physical
distribution, the marketing process is said to be in the mass distribution substage.
Answer:
In the context of international advertising, advertisers prefer global television (satellite
broadcasts) due to the availability of accurate market data in most countries.
Answer:
A nation's balance-of-payments statement records all financial transactions between its
residents and those of the rest of the world during a given period of time.
Answer:
High-context cultures place great importance on the verbal aspects of communication.
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The statements made by the parties during conciliation may be used as evidence in the
subsequent litigation.
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As both special drawing rights (SDRs) and the U.S. dollar have lost their utility as the
basic medium of financial exchange, most monetary statistics relate to gold rather than
dollars.
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For an American company, one of the disadvantages of recruiting a U.S. home-country
national for a foreign sales assignment is the cost of double taxation.
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Marketers with little or no understanding of a religion may readily offend deeply
because the influence of religion is often quite strong.
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China's "one country, two systems" agreement with Hong Kong guarantees the latter a
high degree of autonomy.
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Owing to the deeply corrupt system, most of the U.S. manufacturers in India are leaving
for other countries or pulling their money back home.
Answer:
In the context of the distribution structure in Japan, it has been observed that Japanese
consumers favor cheaper prices over personal service.
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Export management companies work under their own names.
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In a balance-of-payments record, if the credit and debit offset each other, it means that a
nation is in particularly good financial condition.
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In many code-law countries, ownership of intellectual property rights is established by
registration rather than by prior use.
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Quotas, boycotts, monetary barriers, and market barriers are examples of tariff barriers.
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A voluntary export restraint (VER) is generally imposed under the threat of stiffer
quotas and tariffs being set by the importing country if a VER is not established.
Answer:
For a company, the chief advantage of an expatriate sales force is the low cost involved
in the process.
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Nationalism can take an anti-foreign business bias.
Answer:
French business negotiators use the lowest percentage of self-disclosure, yet they also
use, by far, the highest percentages of promises and recommendations.
Answer:
When there are alternative products in a market, all of which meet performance quality
standards, the product chosen is the one that meets market-perceived quality attributes.
Answer:
In the context of distribution patterns, wholesaling shows a greater diversity in its
structure than does retailing.
Answer:
Domestic middlemen offer many advantages for companies with large international
sales volume.
Answer:
Channels of distribution often pose longevity problems.
Answer:
The Mexicans' attitude toward their American neighbors may be summed up in the
statement"Geography has made us neighbors, tradition has made us friends."
Answer:
The Roosevelt Corollary is typified by the dictumwhatever is good for the United States
is justifiable.
Answer:
While developing an international advertisement campaign, the last step of the process
is evaluating the campaign relative to the goals specified.
Answer:
The political details and the ramifications of political and legal events are often more
transparent in a domestic situation than they are in a foreign market.
Answer:
In the context of motivating sales personnel, expatriate managers fear that they will lose
opportunities for promotion because they will be forgotten by the home office.
Answer:
The geography and infrastructure of a country are uncontrollable factors that influence
the business decisions of a company in an international market.
Answer:
Political and social activists have no impact on the normal flow of trade.
Answer:
Understanding one's own culture normally requires no additional study.
Answer:
Which of the following countries has an inefficient oil usage pattern chiefly due to
outdated technology?
A. Africa
B. Latin America
C. China
D. North America
E. Japan
Answer:
Which of the following is an additional reason for marketing industrial goods abroad
that does NOT necessarily apply to consumer goods?
A. Bypassing import tariffs
B. Avoiding sales tax
C. Reducing the volatility of demand
D. Acquiring ISO certification
E. Acquiring ACSI certification
Answer:
Business customs in which an outsider must not participate are called _____.
A. imperatives
B. electives
C. exclusives
D. absolutes
E. statutes
Answer:
Business-to-business marketers frequently misinterpret the concept of quality. Which of
the following examples best illustrates this idea?
A. Farmers in developing countries prioritize ease of maintenance over efficiency of a
farm vehicle.
B. Accountants in the Middle East often use the abacus rather than a calculator.
C. Some Japanese firms do not do business with many U.S. suppliers because their
packaging is faulty.
D. Products that are imported into a country are usually customized for the users in the
country.
E. ISO 9000 standards are universally accepted as a guarantee of the suitability of
products in consumer applications.
Answer:
What was the overall end result of the Mexican War of 1846-1848?
A. Mexico was forced to cede California to the U.S.
B. The U.S. and Mexico signed a non-aggression pact.
C. Mexico gave up California and the U.S. gave up Baja California.
D. Mexico paid the U.S. $5 million for war damages.
E. The U.S. signed a pledge to not invade Mexico again.
Answer:
Which of the following, according to experienced exporters, is the only way to select a
middleman?
A. Conduct a background check on all the distributors available in the target market
B. Issue a request-for-proposal to all distributors in the target market and evaluate their
responses
C. Consult other manufacturers of similar products and select the distributor
recommended by them
D. Consult trade organizations and select the distributor recommended by them
E. Talk personally to ultimate consumers to find whom they consider to be the best
distributors
Answer:
Which of the following is true of franchising?
A. It is an important form of horizontal market integration.
B. The franchiser has little control on marketing of the products at the point of final
sale.
C. Foreign laws and regulations are friendly toward franchising.
D. It provides an effective blending of skill decentralization and operational
centralization.
E. The franchiser provides market knowledge, capital, and personal involvement in
management.
Answer:
_____ is rapidly becoming a major after-sales service when selling technical products in
countries that demand the latest technology.
A. Promotional pricing
B. Product innovation
C. Capacity utilization efficiency
D. Customer training
E. Warranty
Answer:
Which of the following provinces of China shares the closest economic ties with South
Korea?
A. Liaoning
B. Jilin
C. Heilongjiang
D. Guangdong
E. Hainan
Answer:
In the context of designing an international sales force, which of the following is true of
Japan?
A. Japan has an information-oriented culture.
B. Japan allows for greater use of expatriates.
C. In Japan, personal selling need not be localized.
D. Japan is not a member of the World Trade Organization.
E. In Japan, complete local knowledge is important for salespeople.
Answer:
Immediately after World War II, a shattered Japanese nation arrived at a consensus goal
for national recovery. That consensual goal provided the incentive for its spectacular
progress, decade after decade. Then during the late 1980s, the Japanese people stepped
back and looked around at their manifest achievement. It was easy to conclude they had
reached their coveted goal. So the question for them became, "all right, what's next?"
This theory tries to explain the Japanese crisis of the 1990s. Which of the following
theories are we talking about?
A. The Cultural Causation theory
B. The Power Shift theory
C. The Third Way theory
D. The Hybridity theory
E. The Cultural Capital theory
Answer:
In the last few years, most of the countries of the world saw a dramatic slowdown in the
growth of their economies with the exception of _____.
A. the United States
B. Spain
C. China
D. Greece
E. France
Answer:
With respect to advertising, _____ is especially important when a budget is small or
where there are severe production limitations.
A. class distinction
B. politicization
C. inventory analysis
D. creativity
E. following a formula
Answer:
A characteristic of committee decision making is that:
A. it is only found in small businesses.
B. the committees always operate on a decentralized basis.
C. it is based on rank and hierarchy.
D. it is rarely employed in Asian countries.
E. it is by group or consensus.
Answer:
Which of the following distribution structures is also known as a traditional distribution
structure?
A. Export-oriented
B. Import-oriented
C. Manufacturer-oriented
D. Service-oriented
E. Customer-oriented
Answer:
Which of the following statements about American and Japanese buyer-seller
relationships is true?
A. American sellers tend to treat American buyers as equals.
B. Japanese ideals dictate that buyers give complete deference to the wishes and needs
of sellers.
C. American buyers will generally "take care of" American sellers or Japanese sellers
more than any others do.
D. Most Americans will, by nature, treat Japanese buyers less frequently as equals.
E. Americans score the lowest among all the cultural groups on the individualism scale.
Answer:
On a tour to Australia in 1992, George Bush Sr. flashed the victory sign at the
Australian public, with the palm facing inwards, which was considered a rude gesture.
This is an example of cultural differences causing problems at the level of:
A. thinking processes.
B. values.
C. language.
D. nonverbal behaviors.
E. decision-making processes.
Answer:
Which of the following is a defining characteristic of a balance-of-payments statement?
A. It is a record of the domestic transactions between the government of a country and
the private companies in that country.
B. It records all financial transactions between the residents of a country and those of
the rest of the world.
C. It records the trade policies of the member nations of the WTO.
D. It is an annual record of the profitable foreign transactions made by a particular
country.
E. It is a financial statement in which the credits must exceed the debits.
Answer:
_____ 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 force
E. Foreign policy
Answer:
Which of the following statements on the roles of men and women in international
business negotiations is true?
A. In general, women are more comfortable speaking up in a meeting than men to
maintain intimacy with their foreign counterparts.
B. Men are more comfortable talking one-on-one than women, owing to the social
stigma associated with such practices.
C. The negotiation style of American women is a lot closer to that of the Japanese than
that of American men.
D. In countries where women do not participate in management, American female
negotiators are first considered incompetent.
E. It is not particularly important for female executives to establish personal rapport at
restaurants and other informal settings.
Answer:
Liaoning province of Northeast China has the closest economic ties with _____.
A. Japan
B. South Korea
C. Russia
D. United Kingdom
E. North Korea
Answer:
Understanding one's own culture requires additional study:
A. to find out why cultural traits in one's own country does not affect market behavior.
B. as much of the cultural influence on market behavior is at the subconscious level.
C. without which understanding the cultural traits of one's own country is impossible.
D. because an average manager must have extensive cultural knowledge of all countries
in the world.
E. as cultural influence on one's own market behavior is generally minimal.
Answer:
Which of the following would be considered an advantage of leasing equipment rather
than owning it?
A. Lease revenue tends to fluctuate greatly.
B. Leased equipment rarely breaks down.
C. Leasing helps guarantee better maintenance on overseas equipment.
D. Leasing keeps companies from using experimental equipment.
E. Leasing is less risky than outright sale of equipment.
Answer:
_____ is a free trade group formed by Argentina, Brazil, Paraguay, and Uruguay.
A. NAFTA
B. Caricom
C. Mercosur
D. SACU
E. DR-CAFTA
Answer:
Randall, a protectionist, has seen several small businesses go bankrupt because they
were unable to compete with the cheaper prices of goods provided by foreign
companies. The cell-phone manufacturing industry has just started in the United
Kingdom, and Randall's company is one of the first to try its hand at cell-phone
manufacturing. Which of the following arguments is most likely to be used by Randall
to persuade his government to restrict the import of foreign cell phones from foreign
companies?
A. Protection of an infant industry
B. The need to keep money at home
C. Conservation of natural resources
D. National defense
E. Maintenance of standard of living
Answer:
Why are German and Japanese firms generally better at managing market volatility than
American firms?
A. Their emphasis is on beating competitors.
B. They value employees highly and eschew layoffs.
C. They maintain limited product lines.
D. They reduce prices faster and raise advertising expenditures during booms.
E. They consider market share to be a strategic goal.
Answer:
What was the outcome for the GATT after the ratification of the Uruguay Round
agreements?
A. The GATT allowed the United States to increase its import tax.
B. The GATT became part of the World Trade Organization.
C. The GATT directly led to the uneven distribution of economic power and potential.
D. The European Union decided to stay away from the treaty.
E. The original purpose was sidelined in favor of political and military intervention
between member states.
Answer:
In the international arena, the greatest problem in sampling stems from the:
A. lack of adequate demographic data from which meaningful samples can be drawn.
B. lack of expertise in designing sampling layouts for a nondomestic market.
C. higher probability of foreign government intervention in the sampling process.
D. inability of international market researchers to speak foreign languages.
E. difficulty in determining sample size suitable for the relevant foreign market.
Answer:
Which were the two major challenges faced by U.S. multinational corporations at the
close of the 1960s?
A. The creation of the Soviet Union and the higher tariffs on imports
B. Growing jingoistic nationalism and a negative population growth rate in major
international markets
C. Resistance to direct investment and increasing competition in export markets
D. Increasing Chinese domination in the manufacturing sector and the falling dollar in
global markets
E. The decreased demand for U.S. goods in the global market and the growing
influence of consumer rights advocacy in the home market
Answer:
Which of the following is an uncontrollable factor for a marketer in a domestic
environment?
A. Firm characteristics
B. Competitive structure
C. Channels of distribution
D. Price of the product
E. Promotional measures
Answer:
Which of the following elements of integrated marketing communications is related to
encouraging the press to cover positive stories about companies and managing
unfavorable rumors, stories, and events?
A. Public relations
B. Direct selling
C. Trade shows
D. Personal selling
E. Sales promotion
Answer:
Which of the following falls on the minus side of the U.S. balance of payments?
A. Payments to the United States for insurance
B. Payments of dividends and interest on investments abroad
C. Return on capital invested abroad
D. New foreign investments in the United States
E. Spending by American tourists overseas
Answer:
In the context of controlling middlemen, parallel importing is also known as _____.
A. secondary wholesaling
B. black marketing
C. backwashing
D. industrial piracy
E. smuggling
Answer:
Which of the following countries was involved in the formation of the free trade group
Mercosur?
A. Australia
B. China
C. Argentina
D. Russia
E. Thailand
Answer:
