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The reserves account is a record of direct investment, portfolio investment, and
short-term capital movements to and from countries.
Answer:
Religion has a significant impact on the value systems of a society and the effect of
value systems on marketing.
Answer:
Level of technology remains unchanged across countries making it a fairly controllable
factor in international marketing.
Answer:
As businesses grow and professional management develops, there is a shift toward
centralized management decision making.
Answer:
International advertisers use foreign national consumer magazines extensively because
they have dependable circulation figures.
Answer:
In an import-oriented distribution structure, supply often exceeds demand.
Answer:
Products from developing countries have the highest quality image.
Answer:
A fundamental premise of Japanese ideology reflects the importance of individualism
and competitive spirit for economic progress.
Answer:
Europe and Asia have a trade group that has emerged and persisted since the dissolution
of the Soviet Union called the Newly Independent States.
Answer:
The Uncertainty Avoidance Index (UAI), one of the four dimensions of culture
identified by Geert Hofstede, focuses on assertiveness and achievement.
Answer:
The possibility of a parallel market occurs whenever price differences are less than the
cost of transportation between two markets.
Answer:
Nations with complementary economic bases are most likely to encounter frictions in
the development and operation of a common market unit.
Answer:
In general, tariffs decrease inflationary pressures.
Answer:
In the context of U.S. foreign policies, the Monroe Doctrine dictated the abstention of
the United States from European political affairs.
Answer:
Tariffs are often used as reprisals against protectionist moves of trading partners.
Answer:
As countries move from agricultural to industrial to services economies, birth rates
increase.
Answer:
The treatment local women receive in their own cultures is a clear indicator of how a
foreign businesswoman will be treated.
Answer:
One of the three variables that affect the rate of diffusion of a product is the perceived
attributes of product innovation.
Answer:
When a culture scores high in Individualism/Collectivism Index, individuals fail to
identify with groups.
Answer:
John refuses to buy Japanese products because he sees this as a way of selling out to a
nation known for its aggressive behavior. John uses a self-reference criterion to make
his decision.
Answer:
In difficult economic and political circumstances or otherwise, online trade shows are a
more than adequate substitute for physical trade shows or trade fairs.
Answer:
Feedback channels must be carefully selected if an encoded message is to reach the
consumer.
Answer:
In the context of international business negotiations, verbal tactics used during
negotiations differ vastly across diverse cultures.
Answer:
Mercosur is the largest common-market agreement in the Americas.
Answer:
High-context cultures score high on power distance and low on individualism.
Answer:
Less developed countries are particularly prone to being both overly optimistic and
unreliable in reporting relevant economic data about their countries.
Answer:
The lack of common standards for manufacturing highly specialized equipment is a
problem in international sales of industrial products.
Answer:
Steps are being taken in common-law countries to codify commercial law even though
the primary basis of commercial law is common law, that is, precedents set by court
decisions.
Answer:
The portion of international business handled on a cash-in-advance basis is not large
and this is typically used when credit is doubtful.
Answer:
The decision to standardize or adapt a product is crucial in delivering quality.
Answer:
The Commonwealth of Independent States (CIS) was formed by Britain because it did
not want to join the European Economic Community (EEC).
Answer:
To understand fully a society's actions and its points of view, one must have an
appreciation for the influence of historical events.
Answer:
The initial aim of a multinational market is to protect businesses that operate within its
borders.
Answer:
Electives are business customs to which adaptation is helpful but not necessary.
Answer:
As a country develops, market behavior changes and eventually it leads to market
segmentation.
Answer:
Trading companies provide the best means for intensive coverage of the market in
Japan.
Answer:
In the context of preparation for international negotiations, a thorough preliminary
research eliminates the need for negotiators to make a list of key facts to reconfirm at
the negotiation table.
Answer:
The Omnibus Trade and Competitiveness Act gives the U.S. president authority to
restrict sales of a country's products in the U.S. market if that country imposes unfair
restrictions on U.S. products.
Answer:
In the context of social responsibility and environmental management, the United States
leads the fight against pollution with the most stringent greenhouse emission standards
in the world.
Answer:
The United States' acquisition of the Panama Canal Zone best exemplifies the _____.
A. Manifest Destiny
B. Hay Manifesto
C. Roosevelt Corollary
D. Gadsden Policy Position
E. Wilson Mandate
Answer:
Rick, a customer relations manager with a leading multinational firm, manages various
operations and deals with numerous domestic and international clients every day.
Despite his hectic schedule, Rick never cuts a meeting short with anyone and frequently
postpones subsequent meetings in order to devote ample time to each of his clients.
Which of the following countries is Rick most likely to be from?
A. Japan
B. Switzerland
C. The United States
D. Germany
E. France
Answer:
The _____ step in the international communications process refers to the information
about the effectiveness of the message that flows from the receiver (the intended target)
back to the information source for evaluation of the effectiveness of the process.
A. message channel selection
B. interpretation
C. encoding
D. decoding
E. feedback
Answer:
In the international communications process, _____ is defined as the interpretation by
the receiver of the symbolism transmitted from an information source.
A. encoding
B. message selection
C. decoding
D. message channel selection
E. feedback evaluation
Answer:
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 has
gained popularity in European countries.
C. Most multinational companies describe their sales compensation plans as global in
nature.
D. Most European companies emphasize more on performance-based incentives than
on base pay, unlike the United States.
E. Most companies establish sales compensation practices locally either at the country
or regional levels.
Answer:
Which of the following is an uncontrollable element for an international marketer?
A. Firm characteristics
B. Channels of distribution
C. Price
D. Research
E. Level of technology
Answer:
_____ pertains to societies in which people from birth onward are integrated into
strong, cohesive groups.
A. Power distance
B. Individualism
C. Uncertainty
D. Collectivism
E. Masculinity
Answer:
Given the fact that NAFTA is now effective among the U.S., Mexico, and Canada, an
American company which has its production plant in Sri Lanka will be willing to
relocate its production plant to Mexico mostly because:
A. it will improve the image of its goods.
B. Mexico has lower wages than Sri Lanka.
C. it will enable the company to get an entirely western consumer base for its products.
D. moving goods from Mexico to the United States is cheaper and faster than moving
them from Sri Lanka.
E. workers in Mexico are more skilled than those in Sri Lanka.
Answer:
An international business negotiator's primary job is collecting information with the
goal of enhancing creativity. Which of the following steps may be taken during a
meeting to ensure that the negotiator is able to do his job well?
A. Appointing different members of the team to provide self-disclosures and
appropriate replies to queries
B. Bringing along junior executives for the purpose of training through observation and
participation
C. Providing additional information to the other party when all the members fall silent
during the meeting
D. Assigning one team member the sole responsibility of taking careful notes and not
worrying about speaking
E. Including higher-rank executives and using informal channels of communication
Answer:
Ben Grissom has decided to use information collected by the U.S. government in his
upcoming research project on cultural trends. This is an example of using a _____ data
source.
A. first-hand
B. secondary
C. primary
D. direct
E. personal
Answer:
In Japanese corporate culture, which of the following is most likely to constitute a
typical significant impediment to averting and responding to a crisis?
A. Employees like to work on their own rather than in a group.
B. Negotiations are avoided at any cost.
C. Decisions are generally taken by lower level employees who directly deal with the
problem.
D. Employees who are lower in the hierarchy find it hard to question their superiors.
E. The process of decision making is extremely complex and time consuming.
Answer:
U.S. firms, their foreign subsidiaries, or foreign firms that are licensees of U.S.
technology cannot sell a product to a country in which the sale is considered by the U.S.
government to affect:
A. the competitive balance of world trade.
B. the competitive balance of free competition inside the U.S.
C. the relationship of the U.S. with the world community.
D. the overall balance of payments of the United States.
E. the national security of the United States.
Answer:
Anthropologist Edward T. Hall tells us that culture is:
A. all-encompassing.
B. relatively minor in the scheme of life.
C. communication.
D. strongly linked to physiology.
E. standard throughout the world.
Answer:
Which of the following U.S. government agencies oversees antitrust enforcement in
international commerce?
A. Department of State
B. Department of Justice
C. Department of Commerce
D. Department of Defense
E. Department of Home Land Security
Answer:
Which of the following statements is true about qualitative research?
A. It provides a marketer with responses that can be presented with precise estimations.
B. It includes recording consumers' first impressions about products.
C. It usually involves asking respondents to select a response from a set of choices.
D. Data from qualitative research can be easily summarized in percentages, averages, or
other statistics.
E. It is generally associated with survey research that involves yes/no questions.
Answer:
While expanding the investment base of a company, which of the following can be used
as a powerful ally in dealing with threats of government takeovers or harassment?
A. Banks that have lent money to the host government
B. The World Trade Organization
C. The International Labor Organization
D. Regional trade blocs
E. Opposing political parties
Answer:
The term "The Greater China" refers to the information technology (IT) corridor in
north China.
Answer:
The United States-Canada Free Trade Area (CFTA) was a customs union like the
European Community.
Answer:
Devonaile Inc. is a small-scale apparel manufacturer in Florida. Devonaile and other
similar firms from Florida collaborate and form a separate company in India as none of
the participants in this collaboration have active operations in the Indian market. The
newly created firm primarily manufactures apparel suited to the tastes and preferences
of the Indian customers. Identify the type of foreign market-entry approach depicted in
this scenario.
A. A franchising agreement
B. A consortium
C. A licensing agreement
D. Direct exporting
E. Indirect exporting
Answer:
In 1600, _____ were brought from South America to Europe, where they quickly spread
to the rest of world and become a staple of agricultural production.
A. tomatoes
B. potatoes
C. shallots
D. peanuts
E. eggplants
Answer:
With references to international marketing research, discuss the various problems
related to the availability and use of secondary data.
Answer:
Which of the following is true of the Tianjin region in China?
A. It is China's largest industrial city.
B. It is China's fastest growing city.
C. It has the closest economic ties with Japan.
D. It is referred to as "Little Moscow."
E. It harbors the world's largest and most modern port facilities.
Answer:
Which of the following trade policy tools makes it mandatory for its importers who
want to buy a foreign good to apply for an exchange permit?
A. Tariff
B. Import quota
C. Blocked currency
D. Government approval
E. Export levy
Answer:
The difference between professional expatriates and virtual expatriates is that:
A. professional expatriates can avoid misunderstandings that arise from cross-cultural
communications.
B. for virtual expatriates, building close contact with customers is much easier.
C. professional expatriates do not incur any extra expense to the company.
D. for virtual expatriates, establishing a good working relationship with subordinates is
much easier.
E. virtual expatriates work from their home branch and do not relocate to the
assignment country.
Answer:
Which of the following events in the history of China has made the country wary of
foreign influences?
A. The Boxer Revolution
B. The Satsuma Rebellion
C. The Nanjing Rebellion
D. The Hong Kong Revolution
E. The Opium Wars
Answer:
With respect to the political risk that can be faced by a company seeking to invest
abroad, which of the following is most severe?
A. Confiscation
B. Expropriation
C. Domestication
D. Exchange controls
E. Local-content laws
Answer:
The _____ was a political protest against the British prohibition of Yankee traders from
dealing directly with merchants in Canton.
A. Hong Kong Revolution
B. Boston Tea Party
C. Taiping Rebellion
D. First Opium War
E. Canton Uprising
Answer:
Which of the following sources of energy has a greater emphasis in North America?
A. Animal wastes
B. Natural gas
C. Coal
D. Oil
E. Wood
Answer:
Which of the following treaties provided the legal basis for Mercosur?
A. The Treaty of Verdun
B. The Treaty of Asuncin
C. The Treaty of Westphalia
D. The Treaty of Versailles
E. The Treaty of Montevideo
Answer:
Which of the following modes of distribution affords the most control over the
distribution channels but often at a cost that is not practical?
A. Complementary marketers
B. Direct sales force
C. Export associations
D. Trading companies
E. Export management companies
Answer:
Qualified and ambitious sales personnel refuse to take up foreign assignments for fear
of hampering their career development. This "out of sight, out of mind" fear is most
closely linked to the problems of:
A. conflict of interests.
B. acculturation.
C. skill redundancy.
D. naturalization.
E. repatriation.
Answer:
Meta Garbon, a manufacturer of sports bicycles, in a bid to tap the enormous market for
bicycles in China promote their cycles as premium sporting and leisure bicycles. They
use various cycling legends and sports celebrities as brand ambassadors and use
television, radio, and newspapers as media. Bicycles in China are used mainly by the
working class for commutation, and the main users of bicycles did not relate to Meta
Garbon's products, and the promotional campaign was a failure. During which of the
following steps of the international communications process did Meta Garbon most
likely go wrong?
A. Information source selection
B. Selection of message channel
C. Encoding
D. Decoding
E. Noise cancellation
Answer:
Briefly discuss the role of PSAs and NGOs.
Answer:
How does cultural diversity influence the IMC process?Give examples.
Answer:
What should be the nature of a training program for international marketing personnel?
Answer:
Which are the areas that come under "The Greater China"?Elaborate on their
inter-relations.
Answer:
How important is adaptation in international marketing? What are the basic criteria to
deal with foreign firms?
Answer:
Write a short note on the Maastricht Treaty.
Answer:
What are the essential features required while making price quotations?
Answer:
Distinguish between the two time systems in the world, as defined by Edward T. Hall.
Answer:
List and briefly discuss the various economic risks that international companies must
face when they seek to market abroad.
Answer:
Why was the International Monetary Fund (IMF) formed? How does the IMF deal with
universally floating rates?
Answer:
Define a global brand. How important are global brands?
Answer:
Explain the significance of radio and television in international advertising.
Answer:
Explain the concept of administered pricing.
Answer:
Describe the essential elements of an international communications process.
Answer:
What is a tariff? What are the three basic ways in which tariffs may be levied?
Answer:
Discuss the terms confiscation, expropriation, and domestication.
Answer:
