Even small changes in consumer demand can sharply affect industrial demand.
In static economies, consumption patterns change rapidly.
The three typical decision-making patterns are top-level management decisions,
decentralized decisions, and committee or group decisions.
Risk of violence is not a consideration in assessing the political vulnerability of a
multinational company’s activities.
International marketing involves selling of a company’s goods and services to
consumers or users in more than one nation for a profit.
Which of the following will aid a manager in understanding the way people of different
countries think and act?
A. A better understanding of global economic trends.
B. A deeper understanding of world market potential.
C. An understanding of foreign investment opportunities.
D. An understanding of microeconomics.
E. A historical perspective.
Groups of countries that seek mutual economic benefit from reducing interregional
trade and tariff barriers are called:
A. multilateral economic associations.
B. cartels.
C. multinational market regions.
D. trade associations.
E. political and cultural associations.
_____ is an economy’s arbitrator between productive capacity and consumer demand.
A. Warehousing
B. Marketing
C. Convergence
D. Procurement
E. Outsourcing
For companies seeking entrance into the complicated Japanese distribution system,
_____ offer one of the easiest routes to success because they virtually control
distribution through all levels of channels in Japan.
A. trade representatives
B. trading companies
C. brokers
D. export management companies
E. complementary marketers
A disadvantage of hiring local nationals is the tendency of headquarters personnel to
ignore their advice. Which of the following is most likely to be the reason for this
tendency?
A. Foreign nationals are not keen on keeping relationships at the home office cordial.
B. Foreign nationals lack the understanding of how home-office politics work.
C. Foreign nationals have a good grasp of the local culture and prevalent practices.
D. Foreign nationals cannot build a close contact with subordinates and customers.
E. Foreign nationals have superior technical expertise which makes people at the
headquarters insecure.
Which of the following forms of terrorism uses the Internet to inflict damage?
A. Germterrorism
B. Bioterrorism
C. Cyberterrorism
D. Ecoterrorism
E. Narcoterrorism
If a country is in Stage 5 (the age of mass consumption) of Rostow’s five-stage model
of economic development, it purchases most of its highest-technology products and
services from _____.
A. Stage 4 suppliers
B. Stage 3 suppliers
C. other Stage 5 suppliers
D. Stage 1 suppliers
E. Stage 2 suppliers
With the expansion of the European Union, existing members fear:
A. retaliation against members by the Soviet Union.
B. a flood of cheap labor into their countries.
C. OPEC will cut off supplies to countries supporting the expansion of the European
Union.
D. new political leaders who will overwhelm the existing leadership.
E. the dilution of the euro.
The key to using expert opinion to help in forecasting demand is _____, that is,
comparing estimates produced by different sources.
A. indemnification
B. simulation
C. morphing
D. modeling
E. triangulation
Most middlemen have little loyalty to their vendors. They handle brands in good times
when the line is making money but quickly reject such products within a season or a
year if they fail to produce during that period. This is an example of problems
associated with which of the following six Cs of channel strategy?
A. Character
B. Continuity
C. Control
D. Cost
E. Capital requirement
Which of the following countries is NOT a member of the Caribbean Community and
Common Market (CARICOM)?
A. Barbados
B. Dominica
C. Grenada
D. Jamaica
E. China
Assembly in the importing country is a way companies attempt to lower prices and
avoid dumping charges. These assembly plants are known as _____ plants.
A. antidumping
B. screwdriver
C. import-oriented
D. export-oriented
E. automated
In the context of controlling middlemen, parallel importing is also known as _____.
A. secondary wholesaling
B. black marketing
C. backwashing
D. industrial piracy
E. smuggling
Which of the following is a way individuals learn culture from social institutions?
A. Anarchy
B. Socialization
C. Cultural apathy
D. Etiquette awareness
E. Social rebellion
In the context of factors affecting choice of channels, one of the key elements in
distribution decisions includes _____.
A. the selection of optimum container sizes
B. volume discounts and rebates
C. the functions performed by middlemen
D. the local advertising modes
E. the target market culture
In the usual _____ procedure, parties select a disinterested and informed party or parties
to serve as a referee to determine the merits of the case and make a judgment that both
parties agree to honor under the law.
A. arbitration
B. informal settlement
C. conciliation
D. litigation
E. coercion