________________________ can be deterred by strong entry barriers.
a. Potential new entrants to the market
b. The bargaining power of suppliers
c. The bargaining power of buyers
d. The threat of substitute products or services
e. Existing rivals or competitors
People in India watching CNN and Star TV now know instantaneously what is
happening in the world. Such information access creates demand that would not have
existed before and it restricts the power of governments to influence consumer choice.
This would is an example of:
a. stable demand structure in the international marketplace.
b. the explosion of information technology that has changed global competition.
c. a growing travel industry.
d. how the Japanese are changing global competition.
e. how the government’s of the world distrust the mass media.
Suppose that a consumer electronics company wants to estimate the market size for
VCRs in Poland but does not have much information about that market. Instead, it
chooses Hungary (a country for which it does have information) and uses it as an
indicator for the market in Poland. This method of determining market size most
resembles which of the following methods?
a. analogy method
b. Latin square
c. trade audit
d. chain ratio method
e. cross-sectional regression analysis
Civil laws regulating business contracts and transactions are usually called:
a. business law.
b. code law.
c. confederation law.
d. commercial law.
e. contract law.
__________________ uses the market mechanism as a cue for setting transfer prices.
a. Local-currency price stability (LCPS) pricing
b. Pricing-to-market (PTM)
c. Market-based pricing
d. Countertrade pricing
e. Nonmarket-based pricing
The European Commission defined corporate social responsibility as a concept
whereby ______________ in their business operations.
a. Social an environmental concerns
b. Cultural and environmental concerns
c. Political and cultural concerns
d. Social and political concerns
With respect to joint ventures, the ________________ argument is illustrated by
not only shared capital and risk but possible contributions brought in by the local
partner in land, raw materials, expertise on the local environment, and access to
local distribution networks.
a. demand
b. parallel management
c. consensus management
d. domestication
e. synergy
Import tariffs and quotas, nontariff barriers, export subsidies, and local content
requirements are all examples of which kind of industry globalization driver?
a. cost forces
b. competitive forces
c. quality forces
d. government forces
e. market forces
With respect to sales force structure, the ______________________ sales force has
each salesperson sell only one product or product line (even when selling to a single
customer).
a. territorial
b. product
c. customer
d. matrix
e. ‘open plan’
Prices in the U.S. often end in 9 or 5. Those in China:
a. end in the auspicious number 3.
b. do not end in 4 because it connotes death.
c. end in 5 or 9 like the U.S..
d. end in 8.
e. have no pattern whatsoever.
To make findings of cross-country market research projects meaningful, it is
paramount to pursue ________________ (where scores from subjects of different
countries should have the same meaning and interpretation).
a. time evaluation
b. scalar equivalence
c. polar equivalence
d. bias equivalence
e. focus equivalence
Differences in the competitive situation across countries will usually lead to:
a. cross-border price differentials.
b. local price differentials.
c. domestic price differentials.
d. intra-company price differentials.
e. company-based price differentials.
The problem with tight exchange controls is that often they promote a
_________________________.
a. black market
b. white market
c. flat market
d. slim market
e. regular market
The ________________ volume of international trade in currencies exceeds the
annual value of the trade in goods and services.
a. daily
b. weekly
c. monthly
d. annual
e. none of the above
A(n) _______________________ is a bill for the goods stating basic information
about the transaction, including a description of the merchandise, total cost of the
goods sold, addresses of the buyer and seller, and delivery and payment.
a. bill of disclosure
b. term of sale
c. payment statement
d. commercial invoice
e. bill of lading
In collectivist societies, the interests of the ____________ take center stage.
a. individual
b. company
c. group
d. businessman
e. city
______________________ is very popular in advertising circles.
a. Household segmentation
b. Lifestyle segmentation
c. Monetary segmentation
d. Fiscal segmentation
e. Economic segmentation
Successful ________________ policy requires development of universal products,
or products that demand no more than a cosmetic change for adaptation to
differing local needs and use conditions.
a. core product
b. global product
c. regional product
d. quality product
e. local product with core components
The traditional logistics strategy involves ____________________ based on
forecasting and inventory speculation.
a. supply and demand
b. anticipatory demand management
c. inventory volume equations
d. purchasing ratios
e. microeconomic principles
Which of the following colors have universal meanings globally?
a. white
b. blue
c. green
d. black
e. only a, b and c