The laws regulating direct selling in China are unusually detailed compared to others
around the world.
Deflation results in ever-decreasing prices, creating a positive result for consumers, but
both put pressure to lower costs on everyone in the supply chain.
Licensing is a form of exporting.
In the committee decision setup, every committee member must be convinced of the
merits of the proposition or product in question.
It is not possible to obtain measures of linguistic distance for every country and every
person.
As traditional channel structures are changing, importers and retailers are also
becoming involved in new product development.
Four values-objectivity, competitiveness, equality, and punctuality-that are held
strongly by most Americans seem to frequently cause misunderstandings in
international business negotiations.
One of the most significant factors affecting the international market for industrial
goods and services is the degree of standardization.
Which of the following is an advantage of virtual expatriates?
A. They can bond well and work better with their subordinates in the foreign country.
B. They can establish closer relationships with their customers in the foreign country.
C. Their families do not have to be uprooted from their home country.
D. They possess complete local knowledge about cultural practices in the foreign
country.
E. They can avoid cross-cultural communications problems with their foreign
colleagues.
_____ seeks “interpretation through the past decisions of higher courts which interpret
the same statutes or apply established and customary principles of law to a similar set of
facts.”
A. Constitutional law
B. Family law
C. Criminal law
D. Civil law
E. Common law
_____ is a typical payment procedure for established customers where the goods are
delivered, and the customer is billed on an end-of-the-month basis.
A. An open account
B. A letter of credit
C. A bill of exchange
D. Cash in advance
E. Forfaiting
A firm whose marketing orientation is based on the belief that consumers and
businesses alike will not buy enough without prodding is _____ oriented.
A. distribution
B. process
C. production
D. product
E. selling
Economic planners are often more _____ oriented than marketing oriented.A.
production
B. human resource
C. logistics
D. theory
E. distribution
Which of the following accounts for the lion’s share of Mercosur exports to Europe?
A. Clothing and apparel.
B. Telecommunication equipment.
C. Consumer durables.
D. Petroleum and minerals.
E. Agricultural and agro-industrial products.
The _____ structure is the most extensive of the usually adopted organizational
structures, and is becoming increasingly popular with companies as they reorganize for
global competition.
A. global product division
B. geographical division
C. hierarchical
D. pyramid
E. matrix
A consortium is different from a joint venture in that a consortium:
A. usually operates in a country in which the participants are already active.
B. typically involves a large number of participants.
C. restricts the right to hold an equity position by its major partners.
D. does not involve the creation of a separate legal entity.
E. is formed mainly for executing short-term projects.
Which of the following ethical principles tries to optimize the “common good”or
benefits of all constituencies?
A. Secularism and philanthropy
B. Rights of the parties
C. Justice or fairness
D. Utilitarian ethics
E. Self-reference frame
_____ is the term used to describe the changes mandated by local product and service
standards.
A. Product localization
B. Product blending
C. Product standardization
D. Product dilution
E. Product homologation
_____ is the conscious effort on the part of the international marketer to anticipate the
influences of both the foreign and domestic uncontrollable factors on a marketing mix
and then to adjust the marketing mix to minimize the effects.
A. Standardization
B. Adaptation
C. Segregation
D. Segmentation
E. Projection
Which of the following is one of the six Cs of distribution channel strategy?
A. Communication
B. Continuity
C. Capacity
D. Commission
E. Contribution
Which of the following is true of countertrading?
A. Frequently there is inadequate time to conduct a market analysis in a countertrade
negotiation.
B. Identifying countries that have a history of countertrading is one of the major
problems with countertrades.
C. The use of countertrading to sell a good implies that the demand for the good is
highly elastic.
D. Countertrading does not benefit countries that face a shortage of hard currencies
with which to trade.
E. The U.S. dollar is the reserve currency that is used in countertrades.
With respect to the environment in which a business operates, factors such as
competition, political and legal forces, economic climate, would all be classified as:
A. controllable elements.
B. uncontrollable elements.
C. predictable elements.
D. demographic elements.
E. cultural elements.
The final step in the European Community’s march to union was the ratification of the
_____ Treaty (1992).
A. Rome
B. Berlin
C. Maastricht
D. Barcelona
E. Athens
_____ are long-term, nonequity associations between a company and another in a
foreign market.
A. Consortia
B. Exporting arrangements
C. Strategic understandings
D. Contractual agreements
E. Joint ventures
Which of the following is possibly the best indicator of a country’s ability to use
technology to leap several stages of economic development in a very short time?
A. The quality of the educational system.
B. The size of the population.
C. The general economic environment.
D. The size and growth rate of the market.
E. The level of government regulations.
With regard to resistance to change, observations indicate that those innovations most
readily accepted are those that:
A. cater to the values of the predominant religion of the society.
B. propagate faith in a set of beliefs different from the existing beliefs.
C. are apathetic to the existing cultural beliefs.
D. hold the greatest interest within the society and those that are least disruptive.
E. offer some insight into the aesthetics of the existing culture.
Which of the following is a physical attribute of a product that is essential for its
primary function?
A. Colors
B. Prices
C. Components
D. Designs
E. Sizes
Companies from _____ lead in foreign investment in the United States.
A. Kingdom of Saudi Arabia
B. Russia
C. China
D. United Kingdom
E. Canada