Liaoning and Jilin provinces of China share borders with North Korea, and both
provinces host substantial numbers of Korean minorities.
Answer:
The sole requirement of an arbitration clause is that the parties agree to abide by the
awards resulting from the process of arbitration.
Answer:
Leasing helps guarantee better maintenance and service on overseas equipment.
Answer:
Strategic planning is conducted at the highest levels of management and deals with
products, capital, research, and the long-and short-term goals of a company.
Answer:
Companies that use pricing to achieve marketing objectives use pricing as a static
element.
Answer:
If data have been already collected by some other agency, then such data sources are
known as secondary data sources.
Answer:
A commonwealth of nations is an organization providing for the strongest possible
economic integration relationship.
Answer:
In the context of international advertising, search engines have now become crucial
directors of Internet users’ attention.
Answer:
The level of political stability in a country is the single most important environmental
element to which the foreign marketer must adjust the marketing task.
Answer:
An advantage of a matrix organization structure in international business is that it
permits management to respond to the conflicts that arise among functional activity,
product, and geography.
Answer:
The liberalization of trade and investment policies in developing countries are changing
the way countries will trade and prosper in the 21st century.
Answer:
Setting the right price for a product can be the key to success or failure in international
markets.
Answer:
A country can leap several stages of economic development by using technology as
economic leverage.
Answer:
The majority of business customs fit into the cultural elective category.
Answer:
Economically prosperous countries do not display strong nationalistic feelings.
Answer:
The Japanese distribution structure is similar to the one found in the United States or in
Europe.
Answer:
Compensation packages in eastern European countries typically involve a substantially
greater emphasis on performance-based incentives than in the United States.
Answer:
Cartels have the ability to maintain control of markets for indefinite periods.
Answer:
The process of evaluating the uncontrollable elements in an international marketing
program involves substantial doses of cultural, political, and economic shock.
Answer:
An important first step in adapting a product to a foreign market is to determine the
degree of newness as perceived by the intended market.
Answer:
In the context of the effect of values on international business negotiations, American
buyers achieve better results than Japanese buyers.
Answer:
One of the reliability problems faced by a marketing researcher who seeks to do
secondary research in a foreign market is that official statistics are sometimes too
optimistic.
Answer:
One of the consistencies that marketers can look forward to when marketing products
abroad is that almost all labeling laws worldwide are essentially the same.
Answer:
Domestic cartelization is legal in the United States.
Answer:
To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis
that emphasizes the need for ethnocentrism.
Answer:
A certain level of piracy is beneficial for some companies as it provides an unplanned
product trial.
Answer:
Relations between governments and MNCs are generally negative even if the
investment made by the MNCs improves the balance of payments by increasing exports
or reducing imports.
Answer:
Much of American trade policy has depended on the happenstance of cotton being the
original source of the Virginia colony’s economic survival in the 1600s.
Answer:
Political sanctions are the most effective means of achieving the goal of forcing a
country to accept the demands of the boycotting country.
Answer:
In dealing with unfamiliar markets, marketers must be aware of the frames of reference
they are using in making their decisions.
Answer:
For most companies, trade shows and direct selling are the major components in the
marketing communications mix.
Answer:
In relationship-oriented cultures, sales representatives tend to be on the bottom rung of
the social ladder.
Answer:
In the context of foreign market entry, licensing is least suitable when capital is scarce.
Answer:
Incorrect decisions taken in Phase 2 of the international planning process lead to
products inappropriate for the intended market or costly mistakes in pricing,
advertising, and promotion.
Answer:
For managers selling capital equipment and big-ticket industrial services, understanding
the concept of derived demand is absolutely fundamental to their success.
Answer:
Observational research typically excludes systematic monitoring of chat rooms, blogs,
and personal websites to assess consumers’ opinions about products and services.
Answer:
Quotas strictly permit importing on a case-by-case basis.
Answer:
Markets constantly change; they are not static but evolve, expand, and contract in
response to marketing effort, economic conditions, and other cultural influences.
Answer:
Good quality as interpreted by a highly industrialized market is the same as that
interpreted by standards of a less industrialized nation.
Answer:
The channel process includes all activities, beginning with the manufacturer and ending
with the _____.
A. wholesaler
B. agent middlemen
C. merchant middlemen
D. retailer
E. final consumer
Answer:
Markets that are geographically large, have strong growth rates, are regional economic
drivers, and represent sizable markets for a wide range of products are known as _____.
A. frontier markets
B. big emerging markets
C. two-sided markets
D. niche markets
E. grey markets
Answer:
Which of the following will expand demand for industrial goods and business services
in Latin America?
A. The increase of import tariff by 70 percent
B. The adoption of Marxist-socialist policies
C. The privatization of state-owned enterprises
D. The increased use of labor in place of capital in production
E. The decline of economic growth in Asia
Answer:
Explain the difference between joint ventures and consortia.
Answer:
Which of the following approaches to pricing is most suitable when a company has
high variable costs relative to its fixed costs?
A. Full-cost pricing
B. Marginal-cost pricing
C. Variable-cost pricing
D. Demand-based pricing
E. Premium pricing
Answer:
In the context of monetary barriers, blockage is ideally accomplished when:
A. a country refuses to allow an importer to exchange its national currency for the
country’s currency.
B. two countries enter into a voluntary agreement to determine the value of their
currencies.
C. a country applies a specific unit or dollar limit to a particular type of good.
D. money dealers limit the rate at which foreign currencies are exchanged.
E. the government of a country imposes a mandatory tax on goods entering at its
borders.
Answer:
In the context of cultural reactions when engaging in e-commerce, the color red is
associated with socialism in _____.
A. the United States
B. China
C. Brazil
D. Uruguay
E. Spain
Answer:
Multinational market groups form:
A. a large organization that promotes harmony by mutual agreement to a common
peace treaty.
B. large markets that provide potentially significant opportunities for international
business.
C. a conglomerate that seeks to undertake foreign trading ventures as one company.
D. a nonprofit entity that works together to aid the development of underdeveloped
countries.
E. regional trading blocs without trade restrictions internally but with borders protected
from outsiders.
Answer:
Which of the following is a type of domestic middleman?
A. Sole proprietors
B. Export management companies
C. Foreign distributors
D. Lessors
E. Joint ventures
Answer:
Which of the following is true about Professor Jared Diamond’s ideas regarding the
influence of geography on history and cultural values?
A. People in the plains are more likely to invade than those settled in higher altitudes.
B. Historically, societies in the north have been more developed than those in the south.
C. Civilizations near major rivers are more developed than those settled near major
oceans.
D. Historically, innovations spread faster east to west than north to south.
E. Historically, invasions by warrior tribes have always happened from west to east.
Answer:
Which part of China is considered, by other Chinese, to be the most conservative both
in terms of behavior and language?
A. Hong Kong
B. Mainland China
C. Beijing
D. Shanghai
E. Taiwan
Answer:
A tax imposed by a government on goods entering at its borders is most accurately
termed as a(n) _____.
A. boycott
B. asterisk bill
C. tariff
D. quota
E. writ
Answer:
In which of the following countries is the ownership of IP rights established by prior
use?
A. Japan
B. Brazil
C. Saudi Arabia
D. Jordan
E. United States
Answer:
Which of the following agencies or bodies is actively involved in setting rules about
compensation companywide in Europe?
A. Pension committees
B. Work councils
C. The World Health Organization
D. The European Union
E. The World Trade Organization
Answer:
Cultures with high _____ scores tend to have a high level of anxiety and stress and a
concern with security and rule following.
A. Power Distance Index
B. Individualism/Collectivism Index
C. Distance from English Index
D. Uncertainty Avoidance Index
E. Masculinity/Femininity Index
Answer:
_____ is probably the most common mistake of North Americans attempting to trade in
the Middle East.
A. Accepting drinks when offered
B. Interacting informally
C. Exhibiting steadfastness
D. Attempting to speak the local language
E. Dressing casually
Answer:
_____ are considered to be the foundation of the Japanese distribution system.
A. Consumers
B. Brokers
C. Manufacturers
D. Small retailers
E. Wholesalers
Answer:
Which of the following is true of the standard of living of the eight most populous
countries of the Asia/Pacific region?
A. The Japanese rail system is the most underdeveloped in the world.
B. In the Philippines, most people travel by train.
C. As a result of communism, China and Vietnam place low emphasis on health.
D. The Japanese healthcare system produces the longest lifespans in the world.
E. Consumption patterns indicate that the Chinese place much lower emphasis on
education compared with Indians.
Answer:
Which of the following is one of the advantages of a sales force consisting of expatriate
sales representatives?
A. They possess greater technical training.
B. They transcend cultural and legal barriers.
C. They cost less to be maintained in a foreign location.
D. The cultural gap can be easily narrowed.
E. They have a better understanding of distribution channels.
Answer:
What do barter houses do?
A. They specialize in trading goods acquired through barter arrangements.
B. They negotiate barter arrangements with countries that accept the U.S. currency as a
countertrade.
C. They specialize in bartering with third countries for unused raw material.
D. They direct bartered goods to the World Trade Organization for its approval.
E. They review disputes in barter arrangements at the request of the International Court
of Justice.
Answer:
Which of the following international conventions was established to recognize
intellectual property rights?
A. The Paris Convention
B. The Munich Agreement
C. The Tokyo Convention
D. The Eurasian Convention
E. The Kyoto Protocol
Answer:
Which of the following statements regarding national stereotypes is true?
A. Americans are the best negotiators because they will spend days trying to get to
know their opponents.
B. The image of a cowboy used as a cultural stereotype reflects the organizational
loyalty of Americans.
C. Negotiations are conducted between people rather than national stereotypes.
D. The Japanese are the worst negotiators because they think everything works in
foreign countries as it does in Japan.
E. Negotiations should be carried out based on the stereotypes of the parties involved in
a transaction regardless of the cultural differences between them.
Answer:
To deal with the problems in analyzing and interpreting research information in
international market, a marketing researcher must possess three talents. Which of the
following is one of those talents?
A. The ability to work within assigned budget
B. Creative talent for adapting research methods
C. Proven talent to use and apply advanced statistics
D. Superior logical ability and thorough knowledge of the language of the home
country
E. The ability to extrapolate home-country data
Answer:
A free trade area (FTA) provides its members with a mass market without barriers to
impede the flow of goods and services.
Answer:
The process of adjusting to a new culture is known as:
A. diffusion.
B. culture transfer.
C. acculturation.
D. assimilation.
E. transference.
Answer:
Companies in the _____ countries have a strong paternalistic orientation, and assume
that individuals will work for one company for the majority of their lives.
A. more hierarchical
B. more egalitarian
C. more individualistic
D. low Uncertainty Avoidance Index
E. more democratic
Answer:
Carolyn, who is interested in marketing her company’s diet products in Asia, studies the
acceptable behavior, norms, and values in Asian markets. In this scenario, Carolyn
studies her product’s _____ in the Asian markets.
A. partibility
B. compatibility
C. dissidence
D. billability
E. docibility
Answer:
When formal arbitration organizations receive requests for arbitration, they initially
attempt to resolve the issue by:
A. coercion.
B. prosecution.
C. direct legal intervention.
D. litigation.
E. conciliation.
Answer:
Which of the following laws is primarily found in the United States, England, Canada,
and other countries once under English influence?
A. Code law
B. Common law
C. Religious law
D. Civil law
E. Universal law
Answer:
The answers to which of the following questions is generated in Phase 2 of the
international marketing process?
A. Are there identifiable market segments that allow for common marketing mix tactics
across countries?
B. Have objectives and goals been established?
C. Have all budgets been determined within the constraints of resources?
D. Are pre-existing channels of distribution in the new market mature enough to
support the proposed expansion?
E. Have responsibilities been established for implementation and control?
Answer:
Research has shown that commitment of workers to their companies tended to be higher
in countries:
A. higher in individualism and lower in power distance.
B. higher in collectivism and lower in individualism.
C. lower in individualism and higher in power distance.
D. higher in power distance and higher in individualism.
E. higher in collectivism and higher in power distance.
Answer:
In the context of the elements of culture, briefly discuss the concept of linguistic
distance.
Answer:
How does cultural sensitivity lead to successful foreign marketing?
Answer:
Describe the role of public relations (PR).
Answer:
Discuss the Export Trading Company (ETC) Act.
Answer:
Discuss the expansion of the European Union. What are some of the issues faced by
existing members as a result of the expansion?
Answer:
Ranzan Inc. has invested in a country showing signs that it will use domestication in the
near future to force foreign investors to share more of the profits with the government.
Cite and describe a strategy to deal with this potential of domestication that Ranzan
could follow to ensure that its business remains profitable.
Answer:
Describe the two basic contractual agreements that most companies follow in their
attempt to enter a foreign market.
Answer:
Why is the international marketer’s task more difficult than that of the domestic
marketer?
Answer:
In the context of business ethics, distinguish between bribery and extortion with
examples.
Answer:
Compare the American and Japanese approaches during the four stages of business
negotiations.
Answer:
What has become the primary vehicle for doing business in many foreign countries?
Explain and justify your answer.
Answer:
What are the reasons for the low morale and growing amount of attrition among
returning expatriates?
Answer:
In the context of U.S. foreign policy during the 19th and the 20th centuries, discuss the
Roosevelt Corollary.
Answer:
In the context of social responsibility and environmental management, what is
sustainable development?
Answer:
What are the various issues that must be taken into consideration by an e-vendor?
Answer: