Which of the following institutions has the responsibility to debate and decide which
proposals of the Single European Act to accept as binding on European Union
members?
A. The European Commission
B. The European Parliament
C. The Council of Ministers
D. The European Court of Justice
E. The European Committee of the Regions
Answer:
Which of the following elements in the marketing environment poses a challenge to
both domestic and international marketers due to its dominantly uncontrollable nature?
A. Price
B. Promotion
C. Research activities
D. Political/legal forces
E. Channels of distribution
Answer:
A toy manufacturer conducted a survey to estimate the market demand for its
specialized wood-based toys in a foreign country. For the survey, it interviewed all the
families in four rural towns of that country but it did not have sufficient information to
make the distinction between those with children and those without children. The
market demand forecast based on this survey failed to match the actual demand for the
toys. Which of the following is the most likely reason for this failure?
A. Difficulty in defining the research objective
B. Unwillingness of the respondents to reply to survey questions
C. Difficulty in translating the responses
D. Inappropriate sample selection due to lack of adequate demographic data
E. Lack of appropriate methods for analyzing the data
Answer:
Identify an accurate statement about Hong Kong, post its turnover to the People’s
Republic of China.
A. After becoming a special administrative region of the People’s Republic of China,
Hong Kong has lost its autonomy.
B. The Hong Kong government negotiates bilateral agreements and makes major
economic decisions on its own.
C. The central government in Beijing has no jurisdiction over matters related to foreign
affairs and defense of Hong Kong.
D. The Hong Kong dollar has ceased to be freely convertible after its turnover to the
People’s Republic of China.
E. The Hong Kong SAR government openly opposes economic policies that stresses the
predominant role of the private sector.
Answer:
In the context of linguistic distance, which of the following languages is the most
distant from English?
A. French
B. German
C. Spanish
D. Arabic
E. Thai
Answer:
Simone, a specialist in product design, is responsible for a product’s functional design.
With respect to the product component model, in which of the following component
categories would Simone’s talents most likely be used?
A. Core
B. Support services
C. Packaging
D. Invisible
E. Auxiliary
Answer:
Which of the following is true of an expatriate sales force?
A. In relationship-based cultures, an expatriate sales force proves to be most efficient.
B. An expatriate sales force is unsuitable when a company wants to sell
high-technology products.
C. An expatriate sales force is found to be lacking in knowledge regarding the product
line of the company.
D. Information-oriented cultures do not respond favorably to an expatriate sales force.
E. When selling requires an extensive background of information, an expatriate sales
force is the best choice.
Answer:
When marketers first introduced the personal digital assistant (PDA) to the American
consumers, they most likely performed the role of _____ because the cultural impact of
the product became widespread.
A. gatekeepers
B. conciliators
C. agents of socialization
D. agents of change
E. arbitrators
Answer:
Uruguay is a member of NAFTA.
Answer:
If there is a substantial amount of capital leaving a country, which of the following is
the country most likely to implement to control the situation?
A. Exchange controls
B. Local-content laws
C. Import restrictions
D. Tax controls
E. Price controls
Answer:
Which of the following is the reason why global retailers like IKEA, Costco, Sears
Roebuck, and Walmart are becoming major domestic middlemen for international
markets?
A. They maintain their core marketing approaches while localizing the array of
products, promotions, and other peripheral aspects of their operations.
B. They work under the names of the manufacturers and function as low-cost,
independent marketing departments with direct responsibility to the parent firms.
C. They have minimum investment costs as they do not commit to investing in
company personnel.
D. They serve as the producer’s export department but have a short-term relationship,
cover only one or two markets, and operate on a straight commission basis.
E. They offer reduction of export costs, demand expansion through promotion, trade
barrier reduction, and improvement of trade terms through bilateral bargaining.
Answer:
In the context of international business negotiations, even small companies can possess
great power in negotiations if they have:
A. no influence at headquarters.
B. a larger negotiating team.
C. more to lose and less to gain from a deal.
D. many good alternatives and their large-company counterparts do not.
E. the advantage of negotiating in a foreign land.
Answer:
Which of the following will best aid a manager in understanding the way people of
different countries think and act?
A. A sound financial background
B. Better political connections
C. An understanding of foreign investment opportunities
D. An understanding of macroeconomics
E. Knowledge of the foreign country’s history
Answer:
Which of the following is true about strategic planning?
A. It is conducted at the lowest levels of management.
B. It deals with a company’s products and capital.
C. It excludes the research component of a company.
D. It is designed to solely address marketing and advertising questions at the local level.
E. It is most commonly referred to as market planning.
Answer:
Which of the following most accurately represents the “three direct links” leading to the
establishment of One China?
A. Transportation, trade, and communications.
B. Culture, language, and religion.
C. History, language, and transportation.
D. Federal bodies, education, and trade.
E. Technology, natural resources, and people.
Answer:
Based on Hofstede’s four dimensions, in which of the following cultures is the
“virtually social” activity of online chatting most likely to be acceptable?
A. One in which individualism reigns supreme
B. One in which collectivism is adopted
C. One that reflects a “we” mentality
D. One that generally subjugates the individual to the group
E. One in which people from birth onward are integrated into strong, cohesive groups
Answer:
In the context of culture’s pervasive impact, which of the following is true about birth
rates?
A. A service economy usually has a higher birth rate than an industrial economy.
B. Government policies and birth control technologies may have caused a decline in
birth rates.
C. The economic status of a country has minimal impact on the birth rates in that
country.
D. Countries that move from agricultural economies to service economies experience
increased birth rates.
E. Agricultural economies support higher birth rates than industrial economies.
Answer:
Which of the following could be the least acceptable behavior in a business setting,
especially in a cross-cultural scenario?
A. Correcting someone in public
B. Staying away from greeting another man with a kiss (a custom in some countries)
C. Refusing to eat foods that disagree with one’s palate
D. Refusing to drink alcoholic beverages for personal reasons
E. Not raising one’s voice in an argument
Answer:
Fredrick Keeble, an American manager, took his Swiss client out for a traditional
American dinner. The client did not seem to eat much. After dinner, he asked his client
if he had enjoyed the dinner. Which of the following responses would indicate that the
client comes from a low-context culture?
A. No, I did not like the food.
B. Yes, but it was a little too oily.
C. No, dinner was good but I have an upset tummy.
D. Yes, it was lovely, thanks.
E. Yes, unfortunately I was not very hungry.
Answer:
Which of the following is true of the distribution process?
A. It does not involve the physical handling and distribution of goods.
B. It includes activities related to the promotion of goods and services.
C. The ownership title remains with the distributor even on completion of the
transaction.
D. It includes buying and selling negotiations.
E. The behavior of channel members is not affected by the cultural environment.
Answer:
Which of the following countries is considered to be the least aggressive with respect to
negotiation behavior?
A. France
B. Germany
C. China
D. Taiwan
E. Japan
Answer:
Which of the following social institutions has comparatively the least impact on
culture?
A. The media
B. School
C. The government
D. Family
E. Religion
Answer:
According to Lester Thurow, in the British-American “individualistic” kind of
capitalism, relationships among government, management, and labor in business
systems are _____.
A. cooperative
B. commensalistic
C. synergistic
D. adversarial
E. conciliatory
Answer:
Systematic monitoring of chat rooms, blogs, and personal websites to assess consumers’
opinions about products and services is known as _____.
A. tomography
B. serigraphy
C. vitreography
D. netnography
E. lithography
Answer:
Which of the following characterizes the business philosophy of the Japanese
distribution channels?
A. Loyalty
B. Direct sales
C. Fast delivery
D. Variety
E. Price competition
Answer:
Which of the following is the most likely reason for Americans to seek third-country
nationals for their international sales forces?
A. They transcend legal and cultural barriers.
B. They are thoroughly knowledgeable about a country’s business structure.
C. They are able to speak several languages.
D. They cost less to maintain than a staff of local nationals.
E. They can lead a company better through unfamiliar referral networks than local
nationals.
Answer:
Which of the following factors spurs demand for technologically advanced products in
the world?
A. An increase in the size of the global unskilled labor force
B. Large fiscal deficits in developed nations
C. Expanding economic and industrial growth in Asia
D. The increase in the average age in Europe
E. The opening of the Trans-Arctic route
Answer:
A toy manufacturer has excellent sales figures for its toys in country P but inadequate
figures in the neighboring country R. In country P, per capita consumption is known to
increase at a predictable ratio as per capita gross domestic product (GDP) increases. If
per capita GDP is known for country R, per capita demand for the toys can be estimated
using the relationships established in country R. Which of the following methods of
forecasting does this example illustrate?
A. Probabilistic forecasting
B. Reference class forecasting
C. Expert opinion
D. Analogy
E. Linear regression
Answer:
Which of the following is the stereotype of businesspeople in the Northeast of China?
A. Loud and argumentative
B. Cold and businesslike
C. Aggression
D. Dishonesty
E. Forthrightness
Answer:
Russia and Eastern European countries fit in which of the following stages of Rostow’s
five-stage model of economic growth?
A. The traditional society
B. Drive to maturity
C. Preconditions for takeoff
D. The age of mass consumption
E. Takeoff
Answer:
In the context of international marketing research, which of the following is one of the
two basic types into which marketing research methods can be grouped?
A. Analytical research
B. Qualitative research
C. Descriptive research
D. Deductive research
E. Exploratory research
Answer:
_____ might be classified as an aspect of sales promotions or public relations, though
their connections to advertising are also manifest.
A. Corporate entrepreneurship
B. Corporate sustainability
C. Corporate governance
D. Corporate espionage
E. Corporate sponsorship
Answer:
According to Dutch management professor Geert Hofstede, culture can be referred to as
the:
A. ‘software of the mind.”
B. “defining factor of life.”
C. “conflict of civilization versus the masses.”
D. “tool of the elite.”
E. “art’s triumph over banality.”
Answer:
Developed by the International Monetary Fund to cope with universally floating
exchange rates, _____ represent an average base of value derived from the value of a
group of major currencies.
A. exchange permits
B. special drawing rights
C. floating currencies
D. gold rates
E. dollar parities
Answer: