One of the consistencies that marketers can look forward to when marketing products
abroad is that almost all labeling laws worldwide are essentially the same.
Setting the right price for a product can be the key to success or failure in the
international marketplace.
The single most important difference between consumer and industrial marketing is the
cyclical swings in demand inherent in the latter.
When the only marketing functions performed are demand creation and physical
distribution, the marketing process is said to be in the mass distribution substage.
Polychronic time is characterized by “a great involvement with people.”
Research has revealed that smaller home markets and larger production capacities
appear to favor internationalization.
With respect to Rostow’s five-stage model of economic development, in Stage 1 (the
traditional society), the most important industrial demand is associated with labor.
In countries where large shares of the population are moving into middle-income
classes, penetration pricing becomes irrelevant as a tool to stimulate market growth.
The United States is a major exporter of petroleum products.
Considering the United Nations’ stages of economic development for classifying
countries with respect to levels of industrialization, Brazil falls under the group of
more-developed countries (MDCs).
In the context of international business negotiations, verbal tactics used during
negotiations differ vastly across diverse cultures.
One of the trends that spurred the demand for technologically advanced products was
the disintegration of the Soviet empire.
We are less likely to evaluate a person’s behavior in terms of what is familiar to us
because we use our self-reference criterion (SRC).
With respect to Rostow’s five-stage model of economic development, countries in Stage
5 (the age of mass consumption) are mostly service economies.
_____ provide(s) the facilities for a manufacturer to exhibit and demonstrate products
to potential users and to view competitors’ products.
A. Catalogs
B. Direct mail
C. Web sites
D. Trade shows
E. Specialty advertising
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.
Which of the following is the last step in the international planning process?
A. Defining target markets and adapting the marketing mix accordingly.
B. Matching company or country needs.
C. Adapting the marketing mix according to market segments.
D. Implementation and control.
E. Developing the marketing plan.
Linguistic distance is an important factor that helps in determining differences in values
across countries and the amount of trade between countries because:
A. the closer the languages the tougher the interactions.
B. crossing “wider” language differences increases transaction costs.
C. the more distant a language from the other, the more valuable the brand becomes in
the new territory.
D. major languages have ‘syntactical superiority” over minor languages that help in
brand positioning.
E. a “neutral’ language is required to address the differences arising out of linguistic
distances.
Which of the following is true of sales compensation practices across the globe?
A. Most companies in Japan have adopted the U.S. system with its emphasis on
commissions based on individual performance.
B. Government intervention in pay determination aimed at leveling pay scales, is
gaining popularity in European countries.
C. Most multinational companies describe their sales compensation plans as global in
nature.
D. The International Labor Organization plays a key role in determining compensation
practices worldwide.E. Most companies establish sales compensation practices locally
either at the country or regional levels.
A _____ is a business relationship established by two or more companies to cooperate
out of mutual need and to share risk in achieving a common objective without forming
a separate legal entity.
A. direct sales group
B. consortia
C. franchising organization
D. strategic international alliance
E. joint venture
According to the United Nations’ stages of economic development for classifying
countries with respect to levels of industrialization, a country that is industrially
underdeveloped, agrarian, has subsistence society with rural populations and extremely
low per capita income levels falls under the category of _____.A. first world countries
B. least-developed countries
C. less-developed countries
D. newly industrialized countries
E. big emerging markets
One of the most important aspects of LAIA that differs from LAFTA, its predecessor,
is:
A. the differential treatment of member countries according to their level of economic
development.
B. the inclusion of rules of origin.
C. the exclusion of tariff barrier.
D. that members are forbidden from establishing bilateral trade agreements among
member countries.
E. introduction of a common currency for the member countries.
Which of the following aspects of international business negotiations is considered to
be the most difficult?
A. Agreeing on the number of participants in the negotiation.
B. Finding the best alternative to a negotiated agreement.
C. Actual conduct of the face-to-face meeting.
D. Deciding on the location and physical arrangements.
E. Selection of the appropriate negotiation team.
With reference to the communication process in advertising, using the Internet as a
medium when only a small percentage of an intended market has access to it, is an
example of an error related to:
A. feedback.
B. decoding.
C. message channel selection.
D. encoding.
E. message selection.
Briefly describe the causal factors and social processes that determine and form culture
and cultural differences.
In the context of product adaptation, what is product homologation?
The _____ of the balance-of-payments statement is most likely to record all
merchandise exports, imports, and services plus unilateral transfers of funds.
A. current account
B. capital account
C. credit account
D. receivables account
E. reserves account
In the context of negotiation teams, why is team work particularly important for
American negotiators?
Distinguish between the two time systems in the world, as defined by Edward T. Hall.
List the various uses of the Internet in international marketing research.
Which of the following agreements makes it possible for firms to challenge the
restrictions in Indonesia that prohibit foreign firms from opening their own wholesale
or retail distribution?
A. Trade-Related Aspects of Intellectual Property Rights (TRIPs)
B. Trade-Related Investment Measures (TRIMs)
C. General Agreement on Trade in Services (GATS)
D. Marrakesh Agreement
E. Stockholm Agreement
Describe the two basic factors that account for greater market similarities among
industrial goods customers than among consumer goods customers.
Which of the following is the most popular way to circumvent WTO guidelines and
impose new duties?A. Antidumping duties
B. Boycotts
C. Orderly market agreements
D. Voluntary export restraints
E. Embargoes
You have just been hired as a consultant by Orange Mobility to advise them on how to
enter the South African market. You have decided that direct foreign investment would
be the best mode for Orange Mobility to follow at this point in time. Write a
one-paragraph memo that outlines the benefits of direct foreign investment in a country.