According to James Day Hodgson, former U.S. ambassador to Japan, culture is like a
“thicket” that is tough to get through, but effort and patience often lead to success.
Subornation payments accompany requests for a person to do a job more rapidly or
more efficiently.
In the context of the different kinds of middlemen, in 2003, the WTO ruled export
management companies to be in violation of international trade rules.
Agent middlemen work on commission and do not take title to the merchandise.
Personal career planning for the expatriate is a significant strategy that helps companies
prevent returnee attrition.
Which of the following established the parameters of the creation of a common
currency for the European Union?
A. The Economic and Monetary Union of the European Union.
B. The Single European Act of the Treaty of Rome.
C. The European Commission of the European Union.
D. The European Common Judicial Council.
E. The European Economic Council.
Which of the following is a criterion for adaptation when dealing with individuals,
firms, or authorities in foreign countries?
A. Profit motive
B. Cultural apathy
C. Hypersensitivity
D. Flexibility
E. Time-consciousness
Which of the following questions should a marketing researcher ask when trying to
establish the reliability of secondary data sources in the international arena?
A. How much does the data cost?
B. What language is used in the host country?
C. Does the host country’s government encourage marketing research?
D. How were the data collected?
E. Was the data available on the Internet?
Adherence to the WTO means:
A. more avenues for outsourcing.
B. loss of national security to a large extent.
C. procurement of economies of scale.
D. loss of some degree of national sovereignty.
E. limited scope for foreign direct investments.
In the context of the elements of culture, rituals are patterns of behavior and interaction
that are:
A. learned and repeated.
B. scientifically verified for effectiveness.
C. enforced by governments.
D. unique to each individual.
E. universally accepted as proper behavior.
Which of the following statements is true regarding MDCs (more-developed
countries)?
A. These countries are just entering world trade.
B. Majority of its population stay in rural areas.
C. These countries have high per capita incomes.
D. These countries have little world trade involvement.
E. These countries have mainly agrarian economies.
In the context of international advertising, global mass media advertising is a powerful
tool for _____.
A. relationship orientation
B. long-term performance
C. product stability
D. emotional appeal
E. cultural change
In the context of international advertising, companies are moving from the commission
system to a _____ system.
A. tactical
B. standardized
C. reward-by-results
D. self-regulation
E. business-to-business
The _____ has reduced or eliminated internal tariffs and adds a common external tariff
on products imported from countries outside the group.
A. political union
B. common market
C. regional cooperation for development (RCD)
D. customs union
E. free trade area (FTA)
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.
Which of the following subjects is explored after developing information in the
international planning process?
A. Company character.
B. Home-country constraints.
C. Geography.
D. Host-country constraints.
E. The mode of entry.
In the context of international business negotiations, even small companies can possess
great power in negotiations if they have:
A. influence at headquarters.
B. a larger negotiating team.
C. less to lose and more to gain from the deal.
D. many good alternatives and their larger counterparts do not.
E. the advantage of location and time limits.
Every type of economic union shares the development and enlargement of market
opportunities as a basic orientation. Which of the following best describes the primary
way market opportunities are enlarged by economic unions?
A. Preferential tariff treatment for participating members.
B. A common economic defense force with costs shared by all members.
C. Formulation of cartels.
D. Seeking economic dominance through boycotts of rivals.
E. Movement towards a common language as a means to overcoming economic
hurdles.
The most effective way to control the influence of ethnocentrism and the SRC is to:
A. reduce interaction with culturally diverse audience.
B. ask for feedback on every possible occasion.
C. recognize their effects on our behavior.
D. learn at least two foreign languages to understand the cultural differences.
E. ask for second opinion in a decision-making scenario.
A _____ is the intermediate step in the transition from a free trade area to a common
market.
A. political union
B. cartel
C. regional cooperation for development (RCD)
D. customs union
E. monopsony
In which of the following countries is the ownership of IP rights established by prior
use?
A. Japan
B. Brazil
C. Saudi Arabia
D. Jordan
E. United States
The creation of a free trade zone leads to:
A. a decline in exports.
B. an increase in taxes and duties levied on a good.
C. reduced price escalation.
D. a fall in imports.
E. higher labor costs and overheads.
Which of the following aspects of communication is more important in a low-context
culture?
A. Explicit communication
B. Nonverbal communication
C. Contextual communication
D. Face-to-face communication
E. Implicit communication