A customs union is the most fully integrated form of regional cooperation.
Countries that suffer the most from major natural calamities are among the poorest in
the world.
One of the deterrents to litigation with respect to disputes in the international business
arena is the fear of creating a poor image and damaging public relations.
Most of the major industrialized countries have sufficient internal population growth to
maintain themselves.
Financial and legal services cannot be regarded as a business service as they only
provide services to the consumers.
The main disadvantage of hiring local nationals for an international sales force is the
tendency of headquarters personnel to ignore their advice.
In many code-law countries, ownership of intellectual property rights is established by
registration rather than by prior use.
The difference between domestic and international marketing lies in the different
concepts of marketing.
In a broad sense, the uncontrollable elements of the foreign business environment
constitute the culture.
A _____ is an agreement between two or more countries to reduce or eliminate customs
duties and nontariff trade barriers among partner countries while members maintain
individual tariff schedules for external countries.
A. political union
B. common market
C. regional cooperation for development (RCD)
D. customs union
E. free trade area (FTA)
In the United States, unrelated individuals keep a certain physical distance between
themselves and others when talking or in groups. Americans do not consciously think
about that distance; they just know what feels right without thinking. Someone from
another culture would not necessarily understand this and would apply their rules for
contact when speaking. The preceding is an illustration of what is called applying a
_____ when reviewing the mentioned social custom of contact.
A. self-space principle
B. segregation principle
C. integration criterion
D. space command criterion
E. self-reference criterion
The adoption of the euro has facilitated which of the following?
A. Increased complexity of online marketing.
B. An increase in parallel imports.
C. An increase in unhealthy and unfair competition.
D. Easily recognizable price differentials.
E. Increased business costs.
Which of the following is NOT one of the factors changing the way countries trade and
prosper in the twenty-first century?
A. The transition from socialist to market-driven economies.
B. Liberalization of trade and investment policies in developing countries.
C. The transfer of public-sector enterprises to the private sector.
D. The rapid development of regional market alliances.
E. The expansion of military interventions around the world.
Analysis of which of the following factors is carried out in Phase 2 of the international
planning process?
A. Company character
B. Distribution
C. Situation analysis
D. Budgets
E. Standards
When Polar Inc., an American fast-food company, wanted to market its burgers and
fries in France, it was asked to accept French wine in return. This is an example of:
A. bargaining.
B. countervailing duties.
C. buy-back.
D. countertrade.
E. bribery.
What is the most profound change for firms at the global marketing stage of
internationalization?
A. Planning involves production of goods outside the home market.
B. Sales to foreign markets are made as and when goods become available.
C. Temporary surpluses marketed in foreign markets is the only element of
internationalization.
D. Companies treat the world, along with home market, as one market.
E. Production capacity exceeds domestic demand.
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. full-cost pricing
D. price skimming
E. psychological pricing
The first objective of these laws is to protect American consumers by ensuring that they
benefit from products and ideas produced by foreign competitors as well as by domestic
competitors. _____ are being discussed in this scenario.
A. Incorporation laws
B. Intellectual property laws
C. Antitrust laws
D. Indemnification laws
E. Insurance laws
Since the government of Nigeria is strapped for cash, it has decided to tax all foreign
investments (such as oil production equipment) by up to forty percent of the appraised
value. The Nigerian government has found that this is the handiest and quickest means
of finding operating funds. The economic risk in discussion here is:
A. exchange controls.
B. local-content laws.
C. tax restrictions.
D. tax controls.
E. price controls.
Firms that have been penalized for bribing by the Foreign Corrupt Practices Act (FCPA)
can reduce the penalties by helping in investigations.
The _____ method for estimating demand assumes that demand for a product develops
in much the same way in all countries as comparable economic development occurs in
each country.
A. reference class forecasting
B. analogy
C. morphing
D. scenario building
E. triangulation
Which of the following companies has been known for its ability to adapt to local needs
and wants in the international marketplace since its inception in 1866?
A. Kodak
B.
C.W. Post
C. R.J. Reynolds Tobacco
D. Ralston Purina
E. Nestl©
Which of these aspects of international marketing is analyzed in Phase 1 of the
international planning process?
A. Budgets
B. Advertising
C. Product adaptation
D. Situation analysis
E. Host-country constraints
What is the effect of education in the culture of a country?
A balance-of-payments statement includes three accounts. Two of those accounts are
the current account and the capital account. What is the third account found on the
balance-of-payments statement?
A. Investment account
B. Receivables account
C. Services account
D. Credit account
E. Reserves account
How should American businessmen approach the decision-making process in
negotiations with their Asian counterparts? What are the important signals of progress
in a business negotiation?