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1. Describe the sociocultural forces that affect international marketing strategy.
2. In what ways can a nation restrict the flow of imported goods?
3. Describe how economic and competitive forces affect international marketing strategies.
4. What marketing and ethical problems can bribes create in international marketing transactions?
5. What effects are technological forces having on international marketing? What opportunities exist in the global
marketplace that marketers can exploit with regard to technology?
6. What effect is NAFTA having on the international trade of the following countries: United States, Canada, and
Mexico?
7. Explain why the modes of entry into an international market are a major issue for managers to consider.
8. In what ways can businesses become involved in international marketing activities?
9. How do globalized marketing strategies differ from customized marketing strategies? What are the implications of each
for marketing managers?
10. Describe the difficulties encountered in standardizing the marketing mix globally.
11. Before the 1990s, most firms entered international markets
a.
globally and quickly.
b.
incrementally and slowly.
c.
incrementally and quickly.
d.
domestically and slowly.
e.
regionally and quickly.
12. According to your text, ____ are small technology-based firms operating in international markets almost immediately
after their establishment and realizing as much as 70 percent of their sales outside the domestic home market.
a.
"natural globals"
b.
"multinational corporations"
c.
"born globals"
d.
"born multinationals"
e.
"multinational enterprises"
13. Approximately ____ of the world's purchasing power is outside of the United States.
a.
1/10
b.
1/3
c.
2/3
d.
1/2
e.
9/10
14. The forces that affect foreign markets may differ dramatically from those affecting domestic markets. This makes a
careful ____ a critical part of a successful international marketing strategy.
a.
political analysis
b.
regulatory analysis
c.
social audit
d.
environmental analysis
e.
marketing analysis
15. When Starbucks decided to expand into the international markets of India, Japan, and Argentina, management realized
that there would be significant differences in the standards of living, credit, buying power, and income distribution in
those countries. Starbucks is currently examining the ____ forces in its environmental analysis.
a.
economic
b.
cultural
c.
ethical
d.
technological
e.
legal
16. In China, the price of imported Scotch is $30 per glass as opposed to Scotch from China which is $3. Which of the
following do you think accounts for the difference in price?
a.
Exchange control
b.
Balance of trade
c.
Import tariff
d.
Embargo
e.
Export tariff
17. Which of the following is often used to raise revenue for a country and/or to protect domestic products?
a.
Quota
b.
Warning label
c.
Embargo
d.
Import tariff
e.
Exchange control
18. If Tasmania levied a duty on all goods purchased from the United States and other countries outside its borders that
were brought into Tasmania, its businesses and citizens would be paying a(n)
a.
embargo.
b.
import tariff.
c.
travelers' tax.
d.
export tax.
e.
foreign duty.
19. If Germany, in an attempt to bolster the sales of its own auto manufacturers, decided to limit the number of
automobiles that could be brought in from other countries, Germany would be using a(n)
a.
embargo.
b.
boycott.
c.
exchange control.
d.
import tariff.
e.
quota.
20. Italy currently limits the number of Coach bags that can be imported during a one-year period, since Coach bags are
made in New York, USA. This is an example of a(an) ____
a.
exchange control limit.
b.
embargo.
c.
quota.
d.
import tariff.
e.
supply limit.
21. When a glove manufacturer in China is allowed to sell only a certain number of plastic gloves to Japan, that firm is
facing a(n)
a.
tariff.
b.
embargo.
c.
restrictive product standard.
d.
quota.
e.
balance of trade restriction.
22. The United States' prohibition against importing cigars from Cuba is an example of a(n)
a.
health control.
b.
quota.
c.
embargo.
d.
exchange control.
e.
import control.
23. Government restrictions on the amount of a particular country's currency that can be bought or sold are known as
a.
embargoes.
b.
quotas.
c.
exchange controls.
d.
import controls.
e.
balance of trade controls.
24. ____ can force businesspeople to buy and sell foreign products through a central agency, such as a central bank.
a.
Embargoes
b.
Export tariffs
c.
Quotas
d.
Import tariffs
e.
Exchange controls
25. Which of the following is used to help maintain a more favorable balance of trade by a country?
a.
Limiting imports
b.
Limiting exports
c.
Establishing exchange controls
d.
Increasing gross domestic product
e.
Changing political systems
26. The ____ is the difference in value between a nation's exports and its imports.
a.
net trade value
b.
export/import ratio
c.
gross domestic product
d.
balance of payments
e.
balance of trade
27. The gross domestic product is
a.
a measure of the profit made by all firms in a nation.
b.
the average annual earnings per person in a nation.
c.
a measure of the types of products produced by a nation.
d.
an overall measure of a nation's economic standing.
e.
a ratio of domestic products to products produced in foreign countries.
28. The country with the highest GDP is
a.
Japan.
b.
the United Kingdom.
c.
Brazil.
d.
the United States.
e.
China.
29. In considering the viability of potential international markets for Pepsi products, PepsiCo is advised to take into
account ____, which provides insight into market potential.
a.
per capita gross domestic product
b.
gross domestic product
c.
the quantity of exports
d.
the quantity of imports
e.
total consumer income
30. The Mont Blanc Company plans to export expensive consumer gift items to Germany. The best overall economic
measure of market potential would be Germany's
a.
gross domestic product.
b.
gross domestic product per capita.
c.
gross national product.
d.
balance of trade.
e.
unemployment rate.
31. Caterpillar, maker of large construction equipment in the U.S., would like to better understand factors that would
affect its ability to export its products to various countries. Which of the following forces determine how trade barriers
affect Caterpillar's marketing efforts?
a.
Political and legal
b.
Economic
c.
Industrial and Technological
d.
Technological and Legal
e.
Economic and political
32. Special interest groups and regulatory bodies are ____ forces that must be taken into account in international
marketing.
a.
socioeconomic
b.
technological
c.
economic
d.
social and ethical
e.
political and legal
33. Select the true statement.
a.
Legislation regulating marketing in many foreign countries is being eased.
b.
A government's attitude toward cooperation with importers has little impact on marketing to that country.
c.
Refusing to give payoffs and bribes in some foreign countries may put a marketer at a competitive
disadvantage.
d.
Bribes and payoffs are considered unethical in all countries and cultures.
e.
Bribes and payoffs are supported by U.S. trade policies under certain conditions.
34. The Foreign Corrupt Practices Act of 1977 makes it illegal for U.S. firms to
a.
attempt to make large payments or bribes to influence policy decisions of foreign governments.
b.
offer foreign businesses any type of incentive for purchasing their company's products and services.
c.
change their ethical standards when dealing with foreign firms.
d.
give even small tips or gifts in countries where such gifts are customary business practices.
e.
introduce any type of corruption into foreign businesses that have higher ethical standards than those of the
U.S. firm.
35. If a certain country considered handshakes in business transactions to be taboo and preferred to use nodding, this
would be an example of differences in ____ forces.
a.
sociocultural
b.
political
c.
sales
d.
ethical
e.
regulatory
36. When products are introduced into one nation from another, acceptance is far more likely
a.
if prices are set very low.
b.
when bribes are paid to local officials to aid distribution.
c.
if there are similarities between the two cultures.
d.
if packaging is adjusted to match local preferences.
e.
when retailers are given incentives to push the products.
37. Marketers of computer software, music CDs, and books are particularly affected by cultural differences in
a.
socioeconomic status of citizens.
b.
advances in technology.
c.
differences in cross-cultural exchange behavior.
d.
ethical codes of conduct for businesses.
e.
standards regarding intellectual property.
38. Many companies choose to standardize their ____ across national boundaries to maintain a consistent and well-
integrated corporate culture.
a.
technology
b.
ethical behavior
c.
language
d.
dress code
e.
products
39. In many developing countries around the world, technology is enabling opportunities to "leapfrog" existing
technology. What does this mean?
a.
These countries are able to forgo current technological advances in order to wait for even better technology to
be developed.
b.
More advanced technology is reaching these countries even though they lack technological infrastructures.
c.
Technological advances are often offered at prices considerably lower than in well-developed countries.
d.
The technology in developing countries is rapidly surpassing the technology in well-developed countries.
e.
The existing technological infrastructures in these countries are rapidly being replaced by newer, more
advanced technology.
40. The unconscious reference to one's own cultural values, experiences, and knowledge when encountering new and
different cultures is known as
a.
the "when-in-Rome" approach.
b.
the Fraedrich Principle.
c.
cultural relativism.
d.
the self-reference principle.
e.
the self-reference criterion.
41. ____ refers to the idea that morality varies from one culture to another and that business practices are therefore
differentially defined as right or wrong by particular cultures.
a.
The self-reference criterion
b.
Global ethics
c.
Economic relativism
d.
Cultural relativism
e.
Moral relativism
42. Maquiladoras are
a.
exchange controls from central banks in Latin American countries.
b.
production facilities in north-central Mexican states.
c.
import-export agents of the Mexican government.
d.
global marketing programs established in Latin American countries.
e.
freight forwarders from Mexico.
43. The agreement between the United States, Canada, and Mexico that merges these three countries into one marketplace
is called
a.
EU.
b.
MERCOSUR.
c.
APEC.
d.
NAFTA.
e.
GATT.
44. Walmart is currently expanding its stores into Canada and Mexico. This expansion is being facilitated by the
a.
European Union.
b.
North American Free Trade Agreement.
c.
Pacific Rim Unification Act.
d.
International Retail Alliance Association.
e.
Latin American Free Trade Association.
45. One of the effects of NAFTA is the simplification of country-of-origin rules. This will likely hinder the international
trade activities of
a.
Canada.
b.
Japan.
c.
Brazil.
d.
Cuba.
e.
Panama.
46. Which of the following is not true of NAFTA?
a.
The agreement has a long adjustment phase-in time period.
b.
Increased competition should lead to a more efficient market.
c.
It will provide additional opportunities for the United States in long-term affiliations with other countries in
the Western hemisphere.
d.
Provides protection for intellectual property among its members.
e.
Business licensing requirements have been increased.
47. Another name for the European Union is
a.
the Common Market.
b.
the European Market.
c.
the Euro.
d.
NAFTA.
e.
AECO.
48. The unification of Europe through the European Union (EU)
a.
produced the largest single market in the world.
b.
calls for greater customization of products and attention to regulations and restrictions of European countries.
c.
means that members of the EU have become more heterogeneous in their needs and wants.
d.
required the countries to be segmented into many different markets.
e.
permits virtually free trade among the member nations of the EU.
49. All of the following European countries use a common currency, the _____, except for _____, which uses its own
currency.
a.
euro; France
b.
euro; England
c.
dollar; England
d.
euro; Germany
e.
euro; Austria
50. Johnston Chemicals' president is very excited about the possibility of the firm's British subsidiary having access to
customers in the entire EU. He realizes that it will be some time before this area truly becomes one market, primarily
because of differences in which of the following?
a.
Available advertising media
b.
Cultural factors
c.
Legal challenges
d.
Technological advances
e.
Economic environmental factors
51. The trade alliance that includes Brazil, Argentina, Chile, and other countries is known as
a.
OPEC.
b.
APEC.
c.
MERCOSUR.
d.
NAFTA.
e.
the Common Market.
52. Which of the following alliances/agreements is the United States not a part of?
a.
NAFTA
b.
APEC
c.
GATT
d.
WTO
e.
MERCOSUR
53. The Southern Common Market (MERCOSUR) includes
a.
countries from southern Africa.
b.
both India and Indonesia.
c.
Australia and New Zealand.
d.
countries in South America.
e.
southern China and India.
