One of the basic elements of the General Agreement on Tariffs and Trade (GATT) is
that:
A. member nations are exempt from import tariffs to other member nations.
B. all tariffs shall be abolished among member nations at the time of membership.
C. the World Court shall review all trade disputes and make final judgments.
D. trade shall be conducted on a nondiscriminatory basis.
E. trade in services and investments will be excluded from the purview of the GATT.
Answer:
Which of the following statements is true of business services?
A. Most business services companies enter international markets to service their local
clients abroad.
B. Services are intangible and so cannot be produced in one country and exported to
another.
C. The removal of trade barriers poses a serious threat to the continued expansion of
international services trade.
D. Firms should avoid providing after-sales services as the costs do not justify the
benefits.
E. The perception of quality of a business service depends solely on the average per
capita income of the buyer’s country.
Answer:
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.
Answer:
Which is the trade group that is part of Europe and Asia and has emerged and persisted
since the dissolution of the Soviet Union comprising of all the republics save the Baltic
states?
A. The European Union East
B. The Commonwealth of Independent States
C. The Eastern Bloc Economic Area
D. The European Free Trade Association
E. The Euro-Soviet Union
Answer:
For an international marketer, the _____ can be altered in the long run and, usually, in
the short run to adjust to changing market conditions, consumer tastes, or corporate
objectives.
A. competitive structure
B. economic climate
C. structure of distribution
D. environmental factors
E. controllable elements
Answer:
Give an account of rural China. How have the multinational companies contributed
toward its development?
Answer:
Which of the following is characteristic of Stage 2 of Rostow’s five-stage model of
economic growth?
A. Industrial demand is mainly associated with natural resources extraction.
B. The goods demanded relate to equipment and supplies to support manufacturing.
C. The focus is more on low-cost manufacturing of a variety of consumer and some
industrial goods.
D. The focus is on design activities and the development of manufacturing techniques.
E. Infrastructure development is the primary requirement in the economy.
Answer:
Which of the following is true of foreign sales corporations?
A. They are commonly called piggybackers.
B. They can only be related to a manufacturing parent and not an independent broker.
C. They virtually control distribution through all levels of channels in Japan.
D. They accumulate, transport, and distribute goods from many countries.
E. They can function as principal or commissioned agents.
Answer:
Which of the following best describes the U.S. government’s policy toward
multinational corporations that are confronted with situations where bribery is an issue?
A. A bribe may be paid as long as it is not a domestic situation.
B. Bribery is justified if it is a documented traditional practice in a country.
C. A bribe can be paid in a foreign country if it is tied to national security.
D. It is illegal for a U.S. citizen to pay a bribe.
Answer:
In the context of social responsibility and environmental management, which of the
following is a by-product of pollution controls?
A. Corporate environmental responsibility
B. Higher tariffs against developing countries
C. The disposal of hazardous waste
D. Reduced availability of petroleum products
E. The emission of greenhouse gases
Answer:
The _____ increases the authority of the institutions of the European Union and is
designed to accommodate the changes brought about by the monetary union and the
admission of new members.
A. Treaty of Rome
B. Single European Act
C. Maastricht Treaty
D. Expansion Act
E. Amsterdam Treaty
Answer:
Which of the following is true regarding the impact of globalization on domestic
markets in the United States?
A. Companies with only domestic markets have been able to sustain their customary
rates of growth.
B. Multinational companies are making more profits from their domestic operations
compared to their earnings from the foreign markets.
C. Only multinational companies with large production facilities have outperformed
their strictly domestic U.S. counterparts.
D. The domestic companies have reduced their manufacturing employment more than
U.S. multinationals.
E. Multinational manufacturing companies in all industries and sizes have outperformed
their domestic counterparts.
Answer:
Which of the following is the main reason for the failure of individual incentives to
motivate employees in Japan?
A. An emphasis on paternalism
B. High corruption levels
C. Practice of cultural chauvinism
D. A democratic form of government
E. Encouragement of individualism
Answer:
Which of the following is true of franchising?
A. It provides an effective blending of skill decentralization and operational
centralization.
B. The franchisee provides market knowledge, capital, and personal involvement in
management.
C. Foreign laws and regulations are usually hostile toward franchising.
D. It is an important form of horizontal market integration.
E. The franchiser has little control on marketing of the products at the point of final
sale.
Answer:
_____ occurs when payments are extracted under duress by someone in authority from
a person seeking only what he or she is lawfully entitled to.
A. Extortion
B. Subornation
C. Lubrication
D. Perjury
E. Bribery
Answer:
In a(n) _____, the seller makes a one-time arrangement with a bank or other financial
institution to take over responsibility for collecting the account receivable.
A. forfaiting transaction
B. factoring transaction
C. barter transaction
D. cash-in-advance payment
E. open account
Answer:
Which of the following is true of the business community’s view about payoffs?
A. The decision to pay a bribe indicated that the business house had large monetary
resources at its disposal.
B. During the 1970s, the United States had strict laws against paying bribes in foreign
countries.
C. Payoffs are not acceptable means even if it is for business profitability and necessity.
D. Payoffs are restricted to the multinational companies headquartered in the United
States.
E. Many global competitors perceive payoffs as a necessary means to accomplish
business goals.
Answer:
_____ is a practical approach to pricing when a company has high fixed costs and
unused production capacity.
A. Full-cost pricing
B. Cost-plus pricing
C. Marginal-cost pricing
D. Demand-based pricing
E. Premium pricing
Answer:
_____ is now Japan’s most important trading partner.
A. Malaysia
B. The United States
C. Bangladesh
D. Bahrain
E. China
Answer:
Because a service is individually produced and is virtually unique, the service is said to
have _____.
A. liquidity
B. coherence
C. equivalence
D. heterogeneity
E. placability
Answer:
Which of the following is true of P-time and M-time?
A. The American desire to get down to business is a manifestation of a P-time culture as
contrary to Japan’s M-time approach.
B. The M-time system gives rise to looser time schedules, unlike P-time.
C. M-time is characterized by the simultaneous occurrence of many things, unlike
P-time.
D. As global markets expand, more businesspeople from P-time cultures are adapting to
M-time.
E. Contrary to P-time businesspeople, interruptions are routine for M-time
businesspeople.
Answer:
The Foreign Corrupt Practices Act (FCPA) was specifically addressed in the _____
section of the Omnibus Trade and Competitiveness act.
A. market access
B. export expansion
C. import relief
D. foreign exchange regulation
E. trade deficit
Answer:
_____ spend more time on social media sites than any users in any other country.
A. Mexicans
B. Americans
C. Israelis
D. Spaniards
E. Italians
Answer:
The ISO 9000 certification allows a company to:
A. hedge its risk from currency fluctuations.
B. bypass all international trade barriers.
C. diversify into other product lines.
D. differentiate its product from its competitors.
E. provide after-sales services.
Answer:
Data collected specifically for a particular research project at hand is known as
secondary data.
Answer:
Which of the following firms/products reflects a global marketing orientation?
A. A skin-lightening cream aimed at African American women
B. A company promoting Latino jazz musicals
C. A firm producing highly cost-effective and durable computers to attract middle-class
consumers
D. A famous restaurant in Singapore that specializes in Oriental food
E. A Japanese to English translation software
Answer:
In relationship-oriented cultures such as France, Mexico, and Japan, sales
representatives:
A. are available to fill vacant positions perennially.
B. tend to be on the bottom rung of the social ladder.
C. are better paid than their U.S. counterparts.
D. lack proper knowledge of their culture.
E. are respected and held in high esteem.
Answer:
_____ refers to both the powers exercised by a state in relation to other countries and
the supreme powers exercised over its own members.
A. Sovereignty
B. Self-governance
C. Ethnocentrism
D. Autocracy
E. Non-interventionism
Answer:
In some countries, maintenance of automobiles is not the norm, and they are not
repaired until they break down. Since the consumer is automatically angry with the
manufacturer when something goes wrong with the vehicle, repair and maintenance has
become a concern of the various automobile manufacturers in this market. In which of
the following components of the product component model would the management
need to make improvements if problems such as the one above are to be solved?
A. The core component
B. The functional component
C. The packaging component
D. The support services component
E. The price component
Answer:
A disadvantage of hiring local nationals is the tendency of headquarters personnel to
ignore their advice. Which of the following is most likely to be the reason for this
tendency?
A. Foreign nationals are not keen on keeping relationships at the home office cordial.
B. Foreign nationals lack the understanding of how home-office politics work.
C. Foreign nationals have a good grasp of the local culture and prevalent practices.
D. Foreign nationals cannot build close contact with subordinates and customers.
E. Foreign nationals have superior technical expertise, which makes people at the
headquarters insecure.
Answer:
Before launching its latest line of health drinks, a beverage manufacturer provided free
samples of the health drinks to a large and culturally diverse set of families. It then
conducted a survey with mostly open-ended questions where the participants were
asked about their first impressions about the drinks. This is an example of _____
research.
A. qualitative
B. analytical
C. quantitative
D. laboratory
E. statistical
Answer: