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Which of the following is a factor responsible for global business successes?
A. Standardization rather than customization of negotiation procedures across all
cultures
B. Emergence of the English language as the chief medium of negotiations
C. Increased homogenization of cultures across the world
D. Large numbers of skillful international negotiators
E. Avoidance of the use of technology in all areas related to business negotiations
Answer:
Which of the following actions should be taken to begin the search for prospective
middlemen?
A. Short-listing the middlemen
B. Studying the target market
C. Evaluating the available financial resources
D. Designing the sales force required
E. Understanding the mission of the manufacturing firm
Answer:
Which of the following statements regarding the physical arrangements of an
international negotiation setting is true?
A. Russians prefer to talk to everyone separately, and once everyone agrees, to schedule
inclusive meetings.
B. Japanese tend toward a cumulative approach, meeting with one party and reaching
an agreement, then both parties calling on a third party.
C. In high-context cultures, the physical arrangements of rooms are taken casually.
D. Americans tend to want to get everyone together to "hammer out an agreement" even
if opinions and positions are divergent.
E. Japanese tend to shun the practice of higher-level executives being included in
negotiation to indicate interest in a deal.
Answer:
NAFTA differs from Mercosur in that NAFTA:
A. was provided legal basis by the Treaty of Asuncin.
B. is the second-largest common-market agreement in the Americas after Mercosur.
C. includes Argentina, Bolivia, Brazil, Chile, Paraguay, and Uruguay.
D. aims to address and improve all aspects of doing business within North America.
E. aims to establish a common currency for its Latin American members.
Answer:
Which of the following was primarily instrumental in decreasing the historical tension
between People's Republic of China (PRC) and the Republic of China (ROC)?
A. ROC acquiring the UN membership
B. Rise of communism
C. Increase in direct trade
D. American military involvement in peacekeeping
E. ASEAN mandates overruling former hostilities between member nations
Answer:
The process of total quality management (TQM) starts with:
A. providing all customers with technologically advanced products.
B. signing trade agreements with developed countries.
C. involving customers in the product development process.
D. reducing the time taken for the product to reach the market.
E. marketing the products at trade shows and fairs.
Answer:
The seizing of a company's assets without payment is called:
A. confiscation.
B. expropriation.
C. domestication.
D. exchange controls.
E. local-content laws.
Answer:
Which of the following trading partners of the United States became its number one
"trade problem" at the beginning of the 21st century?
A. United Kingdom
B. Japan
C. Germany
D. Canada
E. China
Answer:
Mary is a new international sales representative for an industrial supply company. She
will learn that the inherent nature of industrial goods creates a market where:
A. firms need to incur huge losses to expand their product base.
B. most of the production and sale of goods takes place in the domestic market.
C. product and marketing mix standardization are commonplace.
D. the demand for the goods produced is relatively predictable and stable.
E. the buyer only seeks satisfaction from the product.
Answer:
Which of the following statements reflects the decision-making style of the Americans
in business negotiations?
A. A business negotiation is an opportunity to develop a business relationship with the
goal of long-term mutual benefit.
B. The economic issues are the context, not the content, of the business negotiation
talks.
C. A business negotiation is a problem-solving activity, the best deal for both parties
being the solution.
D. Business issues are discussed at once, in no apparent order, and concessions are
made on all issues at the end of the discussion.
E. Interpersonal and interorganizational bonds take precedence over the bottom line in
business negotiations.
Answer:
Norman, a German national, works as a sales manager for Black Oil Corporation in the
Middle-East. Given the benefits associated with the job, he works on one foreign
assignment after another and rarely returns to the headquarters in Germany. In view of
the given information, we can say that Norman is a:
A. repatriate manager.
B. virtual expatriate.
C. third-country national.
D. professional expatriate.
E. native salesperson.
Answer:
Which of the following is an adverse consequence of globalization?
A. Nationalization of private sector holdings
B. Lower and more competitive oil prices
C. Reduced variety and quality of goods and services
D. Worker exploitation and domestic job losses
E. Provision of loans from the World Bank
Answer:
Which of the following actions does the marketing plan in Phase 3 of the international
planning process begin with?
A. Creating a management performance guide
B. Evaluating host-country constraints
C. Conducting a situation analysis
D. Evaluating home-country constraints
E. Exploring the distribution options
Answer:
Which is the comprehensive free trade agreement among Costa Rica, the Dominican
Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States that
includes a wide array of tariff reductions aimed at increasing trade and employment?
A. DR-CAFTA
B. NAFTA
C. CFTA
D. SAARC
E. Mercosur
Answer:
Pots and Pans Inc., a large U.S. kitchenware distributor, takes a selection of its
inventory twice a year to Vietnam and sells it to CookWell Corp., a large Vietnam-based
kitchen retailer. CookWell, in turn, sells those products through its retail stores in
Vietnam and Thailand. Which of the following best describes the alternative
market-entry strategy that Pots and Pans is engaged in?
A. Franchising
B. Licensing
C. Direct exporting
D. A joint venture
E. Direct foreign investment
Answer:
In general, the rate of diffusion can be postulated as negatively related to _____.
A. relative advantage
B. compatibility
C. trialability
D. complexity
E. observability
Answer:
A direct sales force may be required in a foreign country particularly for _____.
A. big ticket industrial products
B. low-technology products
C. personal care products
D. nonmechanical goods
E. traditional hand-made goods
Answer:
The American Customer Satisfaction Index (ACSI) focuses on:
A. differentiating a product based on its quality.
B. rating a company's quality based on its leadership, strategic planning, and customer
and market focus.
C. the audit of a company's business processes in order to ensure quality.
D. results, that is, quality as perceived by product and service users.
E. the creation of a quality control system that can meet published quality standards.
Answer:
Firms that sell industrial goods in international market should focus on after-sales
services because these services:
A. are almost always more profitable than the actual sale of the goods themselves.
B. require high levels of investment in training and development.
C. ensure that the firm's goods are not liable to lawsuits.
D. cost the firm almost nothing.
E. cannot be outsourced to other companies and must be provided by the firm itself.
Answer:
In _____ translation, a questionnaire is translated from one language to another, and
then a second party translates it again into the original, and the two original language
versions are compared.
A. serial
B. parallel
C. back
D. simultaneous
E. complimentary
Answer:
Which of the following is one of the six Cs of distribution channel strategy?
A. Communication
B. Continuity
C. Capacity
D. Commission
E. Contribution
Answer:
Which of the following relationship skills is necessary during the interfacing activity of
building a strategic alliance?
A. Trust building
B. Creating intimacy
C. Good relationship self-awareness
D. Commitment
E. Partnering
Answer:
Booster Bar, a popular brand of energy bars in Canada, sold its bars singly or in packs
of two in the South Asian markets, instead of their regular multiple-item packaging
containing 10 or 20 bars to make it more affordable for the consumers. Which of the
following requirements of the local market has most likely influenced Booster Bar's
product adaptation in the form of reduction of bar units per package in this scenario?
A. Legal requirements
B. Political requirements
C. Economic requirements
D. Technological requirements
E. Cultural requirements
Answer:
In countries like Japan, a sales force is likely to be most effective if it consists mostly
of:
A. professional expatriates.
B. local nationals.
C. virtual expatriates.
D. third-world nationals.
E. expatriates from Asian countries.
Answer:
Which of the following reflects the relationship between international business and
domestic business?
A. The domestic economic climate has no effect on a company's competitive position in
foreign markets.
B. Domestic businesses must focus on capital mobility toward international businesses
before capital generation.
C. Countries must not restrict foreign investment even if domestic economic conditions
deteriorate.
D. The ability to invest abroad is to a large extent a function of domestic economic
vitality.
E. Domestic businesses are more viable than international businesses as capital tends to
move toward minimum use.
Answer:
In the context of business ethics, which of the following factors majorly kept the
American economy afloat at the turn of the century?
A. Missionaries and religious movements
B. Cultural homogenization
C. Rampant consumerism
D. Closed nature of the economy
E. Market speculators
Answer:
Which of the following is considered to be the most important deterrent to population
control?
A. Financial benefits of having large families
B. Poor enforcement mechanism
C. Lack of awareness about population trends
D. Government welfare schemes for orphans
E. Cultural attitudes that favor large families
Answer:
The most effective long-range solution to a situation where a foreign government is
demanding local participation in a multinational corporation's business activities in the
host country is:
A. joint ventures.
B. licensing.
C. expanding the investment base.
D. planned domestication.
E. political payoffs.
Answer:
The single most important activity of international business negotiations is _____.
A. oration
B. listening
C. presentation
D. etiquette
E. self-disclosure
Answer:
Based on the metaphor for Richard Nisbett's views involving Confucius's worthy
picture, what is his analysis regarding the thought process or perceptual process of
Westerners?
A. Westerners can provide great details about central figures but see relatively little in
the background.
B. Westerners observe things sequentially, thus fail to comprehend the larger picture.
C. Westerners are good at observing details but fail to comprehend the central message.
D. Westerners prefer larger than life figures to convey messages.
E. Westerners can report details about the background and foreground.
Answer:
A(n) _____ means that once the seller has accepted the credit, the buyer cannot alter it
in any way without permission of the seller.
A. open account
B. letter of credit
C. bill of lading
D. bill of regression
E. sales agreement
Answer:
