The single most important difference between consumer and industrial marketing is the
cyclical swings in demand inherent in the latter.
Answer:
Companies should use the full-cost pricing approach when it has high fixed costs
relative to its variable costs.
Answer:
In a broad sense, the uncontrollable elements of the foreign business environment
constitute the culture.
Answer:
High Power Distance Index countries are more egalitarian than low Power Distance
Index countries.
Answer:
The Mercosur envisioned central institutions similar to those of the European Union
institutions.
Answer:
Confucian philosophy, taught throughout Japan’s history, emphasizes the basic virtue of
loyalty to the country.
Answer:
Most problems in collecting primary data in international marketing research stem from
the excessive cost of primary research in these markets.
Answer:
Global competition has put more power in the hands of the seller.
Answer:
Joint ventures are similar in structure and organization to minority holdings by a
multinational company (MNC) in a local firm.
Answer:
The principal agency that supports U.S. business abroad is the Department of
Commerce (DOC).
Answer:
The trend toward privatization is currently a major economic phenomenon in
industrialized as well as in developing countries.
Answer:
One of the major consequences of the Maastricht Treaty (1992) was that the 12
members of the European Union agreed to dissolve the Union.
Answer:
In the context of distribution structures, one of Walmart’s strengths is its ability to
influence foreign governments.
Answer:
It is not possible to obtain measures of linguistic distance for every country and every
person.
Answer:
Economic development means rapid economic growth and increases in consumer
demand.
Answer:
The ultimate goal of domestication is to force foreign investors to share more of the
ownership, management, and profits with nationals than was the case before
domestication.
Answer:
The quality of an infrastructure directly affects a country’s economic growth potential.
Answer:
Acculturation refers to the process of becoming an agent of change by innovating.
Answer:
In the context of international business negotiations, when faced with a complex
negotiation task, most Asians divide the large task up into a series of smaller tasks.
Answer:
Disputes relating to commercial transactions must be settled in courts and cannot be
settled informally.
Answer:
Using foreign-country middlemen moves the manufacturer away from the market and
the company becomes less involved with problems of language, physical distribution,
communications, and financing.
Answer:
Ten new countries joined the European Union in 2004 followed by Bulgaria and
Romania in 2007.
Answer:
Saudi Arabia permits women to vote if they are at least 18 years old and married or 21
years old if single.
Answer:
The Informed Consumer Standard is used in the consumer protection courts in Canada
and it places the onus of making the right decisions on the buyer who is expected to
have substantial knowledge of the industry and its products.
Answer:
When a message from a source is converted into effective symbolism for transmission
to a receiver, the message is said to have been decoded.
Answer:
Price controls are only targeted at nonessential products.
Answer:
The blueprint for the European Union began with the Treaty of Rome in 1957.
Answer:
The Omnibus Trade and Competitiveness Act of 1988 focuses on assisting businesses to
be more competitive in world markets as well as on correcting perceived injustice in
trade practices.
Answer:
Expatriates working in high-tax countries prefer direct income instead of fringe benefits
as part of their compensation package.
Answer:
The adoption of universal quality standards would mean that the perceptions of
industrial product quality would also be standardized.
Answer:
Most of the major industrialized countries have sufficient internal population growth to
maintain themselves.
Answer:
For a marketer, one’s own religion is most often the best guide to another’s beliefs.
Answer:
The uncontrollable factors affecting international marketing are limited to political
forces, economic climate, and competitive structure.
Answer:
Which of the following statements is true of the legal instruments used by the European
Union?
A. The European Union issues regulations that are binding against the member states if
the national courts of the member states agree to the regulations.
B. The European Union must confer with the United Nations before issuing directives
against member states.
C. The European Union directs all disputes involving the European Union law to the
International Court of Justice.
D. The European Union has the authority to issue regulations that bind the member
states directly.
E. The European Union requires the approval of individual nations to address binding
decisions against an enterprise of that nation.
Answer:
Which aspect of Japanese culture, predicted by many to favor bribery, makes Japan’s
success in reducing corruption more remarkable?
A. Relationship-orientation
B. Mechanistic inclination
C. Patriarchal nature
D. Information-orientation
E. Task orientation
Answer:
Which of the following is true about international corporate planning?
A. It only addresses marketing and advertising questions.
B. It specifically deals with a company’s products, capital, and research.
C. It predominantly deals with the tactical issues of marketing.
D. It is essentially long term in nature.
E. It refers to the plans that are made at the local level.
Answer:
In Thailand, it is required that any milk product sold in the country by a foreign
company must use the milk produced by Thai dairy farmers. Which of the following
economic risks is faced by the international producers of milk products in this situation?
A. Exchange controls
B. Local-content laws
C. Export restrictions
D. Tax controls
E. Price controls
Answer:
MedUmbrella Inc. provides a broad and diverse range of services for the healthcare
industry. It also manufactures a wide variety of hospital equipment. It wants to
experience rapid growth and intends to have an organizational structure to better face
global competition. Which of the following organizational structures will suit
MedUmbrella best?
A. A global product division structure
B. A geographical division structure
C. A matrix structure
D. A pyramid structure
E. A hierarchical structure
Answer:
In the context of the stage of persuasion in business negotiations, the most powerful
persuasive tactic is to:
A. use more promises and recommendations.
B. enforce more punishments and use more commands.
C. use more self-disclosures.
D. ask more questions.
E. use more rewards and normative appeals.
Answer:
Which of the following is one of the multilateral free trade agreements signed by the
United States?
A. CETA
B. NAFTA
C. NATO
D. MERCOSUR
E. LAFTA
Answer:
Which of the following is most likely the reason for corporations being the forerunners
of innovations in society?
A. They own the media, which is a requisite for foreign trade.
B. They have access to ideas from around the world.
C. They are not part of social institutions.
D. They all possess religious intolerance, which is a requisite for foreign trade.
E. They require all members to be literate.
Answer:
Academic studies of the causes and consequences of bribery, conducted by
Transparency International (TI), indicate corruption is greater in:
A. high income nations.
B. democratic rather than communist nations.
C. countries with high individualism.
D. countries with low Power Distance Index.
E. collectivistic nations.
Answer:
The most universal survey research problem in foreign countries is the _____ barrier.
A. technological
B. legal
C. cultural
D. literacy
E. language
Answer:
As businesses grow and professional management develops, there is a shift toward:
A. authoritarian decision making.
B. decentralized management decision making.
C. hit-or-miss decision making.
D. tentative decision making.
E. experimental decision making.
Answer:
_____ is an economy’s arbitrator between productive capacity and consumer demand.
A. Warehousing
B. Marketing
C. Convergence
D. Procurement
E. Outsourcing
Answer:
Which of the following strategies to minimize political vulnerability and risk has the
advantage of engaging the power of several investors and banks in the host country
whenever any kind of government takeover or harassment is threatened?
A. Joint ventures
B. Licensing
C. Expanding the investment base
D. Sole proprietorship
E. Political bargaining
Answer:
The _____ is a multicountry agreement that has established a regional patent system
that allows any nationality to file a single international application for a European
patent.
A. Madrid Arrangement
B. Paris Convention
C. TRIPs Agreement
D. Basel Convention
E. European Patent Convention
Answer:
_____ required the United States, Canada, and Mexico to remove all tariffs and trade
barriers over 15 years, and beginning in 2008, all tariff barriers were officially dropped.
A. Mercosur
B. LAIA
C. CARICOM
D. NAFTA
E. DR-CFTA
Answer:
Which of the following best defines virtual expatriates?
A. They stay and work abroad for a short period of one to two months and then return
to their home country.
B. They work in a foreign culture and blend to such an extent that they may more
closely resemble a local than an expatriate.
C. They work abroad in one country after another for the greater part of their career.
D. They are expatriates from their own countries working for a foreign company in a
third country.
E. They manage operations in foreign countries but do not move there.
Answer:
_____ refers to an increase in national production that is reflected by an increase in the
average per capita gross domestic product (GDP) or gross national income (GNI).
A. Economic repression
B. Economic duress
C. Economic equilibrium
D. Economic development
E. Economic sustainability
Answer:
A product is said to be compatible if:
A. it provides greater value to the manufacturers than to the consumers.
B. the degree of social repercussions associated with it is high.
C. its benefits can be communicated easily.
D. it has a higher degree of complexity compared with its counterparts’.
E. it complies with the accepted norms, values, and culture of the local market.
Answer:
Which of the following characterizes the variable-cost pricing approach?
A. In this approach, prices are often set on a cost-plus basis, that is, total costs plus a
profit margin.
B. This approach insists that no unit of a similar product is different from any other unit
in terms of cost.
C. This approach insists that each unit must bear its full share of the total fixed and
variable cost.
D. This approach is suitable when a company has high variable costs relative to its fixed
costs.
E. In this approach, any contribution to fixed cost after variable costs are covered is
profit to the company.
Answer:
In the context of the Mexican-American War, the president of Mexico, the cabinet, and
the diplomatic corps assemble at the Mexico City fortress every September 13 to recall
the defeat that led to the _____.
A. “despojo territorial”
B. “la prdida de comercio”
C. “destruccin de la propiedad”
D. ‘soldados mutilados”
E. “los nios sin hogar”
Answer:
Which of the following agencies is dedicated to helping U.S. business compete in a
global marketplace?
A. Commodity Futures Trading Commission (CFTC)
B. The Federal Trade Commission (FTC)
C. The Small Business Administration (SBA)
D. The United States International Trade Commission (USITC)
E. The International Trade Administration (ITA)
Answer:
Using newspapers or magazine ads as a channel of communication when the majority
of the intended users are illiterate is an example of ineffective _____ in the
communications process.
A. feedback
B. media channel selection
C. noise
D. market selection
E. message selection
Answer:
Which of the following countries is the world’s top polluter, at present, in almost all
respects?
A. Brazil
B. China
C. Sudan
D. Afghanistan
E. Zimbabwe
Answer:
The training of foreign employees is likely to be most effective when:
A. it is handled by trainers who communicate in languages alien to the employees.
B. it is tailored to the employees’ ways of learning.
C. national differences are ignored during motivational sessions.
D. the superiority of their culture is emphasized over others.
E. it is different from the familiar ways of nonverbal communication.
Answer:
The idea of Manifest Destiny was used to justify the U.S. annexation of _____.
A. Virginia
B. Ohio
C. Pennsylvania
D. California
E. Carolina
Answer:
A country has reached a level of economic development where the manufacturing of
both semidurable and nondurable consumer goods has just begun. Also, the goods
demanded relate to equipment and supplies to support manufacturing. Which of the
following stages of Rostow’s five-stage model of economic growth does the country fit?
A. The traditional society
B. Drive to maturity
C. Preconditions for takeoff
D. Takeoff
E. The age of mass consumption
Answer:
Which of the following statements is true regarding an import-oriented distribution
structure?
A. The importer-wholesaler traditionally performs most of the marketing functions.
B. The relationship between the importer and any middleman is similar to that found in
a mass-marketing system.
C. Several independent agencies providing functions such as advertising, marketing
research, financing are part of this distribution structure.
D. The idea of a channel as a chain of intermediaries performing specific activities is
common.
E. This distribution system is national in scope.
Answer:
Essentially, a free trade area (FTA) provides its members with:
A. complete political integration.
B. a mass market without trade barriers among partner countries.
C. a regional cooperation for social development.
D. a common market that eliminates all external tariffs.
E. a market that offsets higher nontrade barriers with lower external tariff.
Answer:
In the context of the evolution of the marketing process, which of the following would
be considered to be the most fundamental substage (first substage)?
A. Surplus commodity product
B. Commercial-transition
C. Mass production
D. Mass distribution
E. Self-sufficient
Answer:
A company uses _____ when the objective is to reach a segment of the market that is
relatively price insensitive and thus willing to pay a premium price for the value
received.
A. penetration pricing
B. everyday low pricing
C. predatory pricing
D. price skimming
E. psychological pricing
Answer:
Lower prices to the buyer may also mean lower tariffs, because most tariffs are levied
on a(n) _____ basis.
A. specific
B. alternative
C. accrual
D. shorter, lower
E. ad valorem
Answer:
ASEAN+3 is a forum for ASEAN ministers plus ministers from China, Japan, and
_____.
A. the United States
B. South Korea
C. Russia
D. Australia
E. New Zealand
Answer:
Direct mail is an unpopular medium in Chile because:
A. the literacy level in Chile is extremely low.
B. the letter carrier must collect additional postage for every item delivered.
C. it uses paper; hence, it is considered as a threat to the environment.
D. its reach is extremely limited.
E. it is subject to complicated government regulations.
Answer:
Which of the following statements is true about the status of protests against global
financial institutions?
A. Organized protests against global financial institutions have been catching the
attention of the world since the establishment of the IMF in 1945.
B. The sole focus of the anticapitalist protestors has been the environmental impact of
globalization and the need for stability.
C. The “antisweatshop” campaigns by students in America have translated into changes
in policy.
D. The entire gamut of anticapitalist protests have been weak and ineffectual in the face
of the tremendous power of global financial institutions.
E. The protests against global financial institutions have been organized yet nonviolent
as a rule.
Answer:
A textile manufacturing company is trying to solve a dispute with one of its raw
material suppliers over a breach of contract. After the failure of the initial attempts to
solve the dispute in a friendly informal manner, the companies have approached an
international commission to appoint an informed party to act as a referee and make a
judgment that both parties will honor. Which of the following dispute resolution
methods is being used by the companies in the above scenario?
A. Litigation
B. Arbitration
C. Mediation
D. Coercion
E. Judicial intervention
Answer:
Write a short note on the import-oriented distribution structure.
Answer:
Describe export management companies. What are their advantages and disadvantages?
Answer:
Briefly describe the causal factors and social processes that determine and form culture
and cultural differences.
Answer:
How can immigration be helpful to the industrialized world?
Answer:
List out the events or trends that will shape international business beyond today’s
bumpy roads and into the future.
Answer:
Discuss the economic growth of the member nations of ASEAN.
Answer:
Write a short note on virtual expatriates. What are the disadvantages associated with
virtual expatriates?
Answer:
What are the conditions under which relations between governments and MNCs are
generally positive?
Answer:
Elaborate on the two major events of 2000 that had a major impact on China’s economy.
Answer:
What is complementary marketing?
Answer:
In the context of product adaptation, what is product homologation?
Answer:
Give a brief description of the styles of negotiation of the Japanese, the Koreans, and
the French.
Answer:
What are the advantages and disadvantages of using an expatriate sales force?
Answer:
List and briefly explain the domestic environment uncontrollables that influence an
international marketer.
Answer:
Explain the significance of social media as a marketing tool.
Answer:
Write a short note on the expert opinion method of demand forecasting.
Answer: