The British, German, and American businesspeople are found to fall in the middle of
most scales for dimensions of negotiating behaviors.
Answer:
The self-reference criterion is closely related to ethnocentrism.
Answer:
In the context of international business negotiations, individual personalities and
backgrounds have no bearing at the negotiation table.
Answer:
Petroleum’s versatility ensures that petroleum-related products still dominate energy
usage.
Answer:
A Korean television manufacturer recently invested in a new television tube plant in
Mexico. This form of international business is aptly named international licensing.
Answer:
In the less individualistic cultures, labor and management are generally hostile.
Answer:
Price escalation could lead to the sales of exported goods being confined to a limited
segment of wealthy, price-insensitive customers.
Answer:
In the context of international business negotiations, generalizations about the
negotiation style of a region such as Asia are very often correct.
Answer:
Continuous improvements in electronic communications have facilitated the expansion
of trade.
Answer:
The European Union was created when the 12 nations of the European Community
ratified the Maastricht Treaty.
Answer:
As cultural and political scenarios vary so widely across nations, there is absolutely no
way to generalize tendencies for products to be politically sensitive.
Answer:
The ability to express attitudes and opinions about a product or concept depends on a
respondent’s ability to recognize the usefulness and value of such a product or concept.
Answer:
The Organization for Economic Cooperation and Development (OECD) estimates that
the economies of the developed world will expand at much faster rates when compared
to the developing economies.
Answer:
In the context of international business negotiations, age and experience are known to
affect the negotiation behaviors of individuals.
Answer:
With the adoption of the euro, price differentials are much easier to spot, and the
consumer can search for the best bargains in brand-name products more easily.
Answer:
Only a limited number of American high-caliber sales personnel are willing to live
abroad for extended periods of time as expatriates.
Answer:
Products that have or are perceived to have an effect on the environment are more likely
to be politically sensitive.
Answer:
In the context of the effect of values on international business negotiations, the Japanese
tend to emphasize hierarchical relationships that leads to hampered internal
communications.
Answer:
A company in the “no direct foreign marketing” stage of international marketing
involvement does not actively cultivate customers outside national boundaries.
Answer:
Exporting is a common market-entry approach for mature international companies with
strong marketing and relational capabilities.
Answer:
Consumers in America tend to respond to rating scales more conservatively than
consumers in Japan.
Answer:
North America is the region of the world most affected by a steadily declining
worker-to-retiree ratio.
Answer:
Adaptation of the nonphysical features of a product can be avoided while trying to
adapt the product to a new culture.
Answer:
Centralization of the marketing research function in the parent country ensures that the
field personnel and resident managers in the foreign country have more intimate
knowledge of the subtleties of the market.
Answer:
In some countries, language is itself thought of as a social institution, with absolutely
no relation to political importance.
Answer:
Consumer perceptions of a quality product often have more to do with
market-perceived quality than performance quality.
Answer:
In the context of international business negotiations, bargaining skill is at the top of
almost everyone’s list of negotiator traits.
Answer:
As part of the worldwide economic growth and rebuilding after World War II, countries
once classified as less developed were reclassified as underdeveloped countries.
Answer:
The most basic level of economic integration and cooperation is the geographical local
federation (GLF).
Answer:
Except for cash in advance, letters of credit afford the greatest degree of protection for
the seller.
Answer:
Companies that are serious about restricting the gray market must establish and monitor
controls that effectively police distribution channels.
Answer:
In Italy and many Latin countries, family generally means only the parents and
children.
Answer:
An e-vendor in a foreign market can generally ignore culture as an important variable
because the commerce is being done via the Internet, which is culturally insensitive.
Answer:
Since expatriates are not locals, they often have a negative effect on the prestige of the
company and its product line in the eyes of foreign customers.
Answer:
Overseas premiums that are paid to the family of expatriates during short-term
assignments if they do not relocate to the foreign country are called:
A. fringe benefits.
B. pension plans.
C. displacement reserves.
D. special assessments.
E. separation allowances.
Answer:
People in Brazil describe themselves as late arrivers, allow greater flexibility in
defining early and late, are less concerned about being late, and are more likely to
blame external factors for their delay. Which system of time do the Brazilian people
most likely operate on?
A. Polychronic
B. Monochromatic
C. Monotheistic
D. Monochronic
E. Sequence
Answer:
In general, the end goal of all _____ is to reduce the impact of price competition or
eliminate it.
A. reciprocal pricing
B. administered pricing activities
C. free trade agreements
D. export-oriented trade strategies
E. price skimming policies
Answer:
_____ is an unconscious reference to one’s own cultural values, experiences, and
knowledge as a basis for decisions.
A. Xenocentrism
B. Holism
C. Self-reference criterion
D. Segregation
E. Orientalism
Answer:
In the context of foreign market entry, _____ serve as a means of transfer of knowledge
rather than equity.
A. consortia
B. contractual agreements
C. strategic alliances
D. foreign direct investments
E. joint ventures
Answer:
Which of the following is the most important reason to encourage foreign investment?
A. To improve the global image of a country
B. To accelerate the development of an economy
C. To evade political tensions between countries
D. To minimize negative political fallouts within the domestic economy
E. To improves ties between the investing country and the host country
Answer:
In _____ decision making, title or position generally takes precedence over the
individual holding the job.
A. committee
B. decentralized
C. top-level management
D. integrated
E. dictatorial
Answer:
The government in Chile recently informed Clint Travis’ company that his retail grocery
chain in Chile would have to be gradually turned over to the people of Chile by the year
2050 as it is a foreign company in Chile. Additionally, starting next year 50 percent of
the board of directors of the Chilean operation of the company must be Chileans. Which
of the following political risk actions is Mr. Travis’ company facing in Chile?
A. Confiscation
B. Expropriation
C. Domestication
D. Patronization
E. Socialization
Answer:
Companies that rely on television infomercials and television shopping are restricted by
the limitations placed on the _____ of television commercials permitted when their
programs are classified as advertisements.
A. length and number
B. religious content
C. subliminal messaging
D. superlative description
E. ethnic derision
Answer:
In the context of the types of domestic middlemen, the WTO in 2003 ruled _____ to be
in violation of international trade rules, thus starting a major trade dispute with the
European Union.
A. foreign sales corporations
B. direct marketing partnerships
C. trading companies
D. export promotion companies
E. Webb-Pomerene export associations
Answer:
Which of the following is the most universal means used by governments to control
birth rates?
A. Family planning
B. Universal access to healthcare
C. High literacy levels
D. Education for women
E. Improved nutrition
Answer:
Which of the following stages of Rostow’s five-stage model of economic growth do
industrialized economies such as Korea and the Czech Republic fit into?
A. Preconditions to takeoff
B. Takeoff
C. Traditional society
D. Drive to maturity
E. The age of mass consumption
Answer:
In the context of recruiting sales and marketing personnel for an international sales
force, there is a clear bias in favor of the locals. The reason for this is most likely that
local nationals:
A. transcend both cultural and legal barriers.
B. have supreme technological expertise.
C. are readily available compared to scarcely available expatriates.
D. have a better understanding of home-office politics.
E. do not accept bribes.
Answer:
Industrial markets differ from consumer markets in that:
A. the demand for industrial goods is more volatile than the demand for consumer
goods.
B. the market for industrial goods is insignificant in comparison to the market for
consumer goods.
C. industrial goods are marketed domestically whereas consumer goods are marketed
internationally.
D. industrial products are always more expensive than consumer products.
E. industrial products use the same level of technology for all products making it
appropriate for all countries whereas consumer goods need to be customized for each
market.
Answer:
Kwok Winn wants to open a new business in his own country, Singapore. He has
decided on a form of licensing that will provide him with a standard package of
products, systems, and management services in order to sell fast food to local residents.
Which of the following best describes the form of business that Mr. Winn has chosen?
A. Direct sales
B. Indirect exporting
C. Joint venture
D. Strategic alliance
E. Franchising
Answer:
_____ has the potential to become the newest big emerging market (BEM), but its
development will depend on government action and external investment by other
governments and multinational firms.
A. South Africa
B. Canada
C. Japan
D. Singapore
E. Britain
Answer:
Wayne works at an overseas branch of his organization. He needs some clarification
about a project. He approaches a senior manager hoping to get a good explanation.
However, he is instructed to follow protocol and sent away. He is also informed that
only the team leads are allowed to approach the senior managers. In this scenario, the
organization is most likely to have a _____ score.
A. high Individualism/Collective Index
B. high Power Distance Index
C. low Individualism/Collective Index
D. low Power Distance Index
E. high Uncertainty Avoidance Index
Answer:
In which of the following stages of international marketing involvement do companies
primarily focus all their operations and production to service domestic market needs,
even though they have a permanent productive capacity devoted to the production of
goods to be marketed in foreign markets?
A. No direct foreign marketing
B. Internal marketing
C. Regular foreign marketing
D. International marketing
E. Financial marketing
Answer:
Which of the following is one of the nations referred to as the Four Asian Tigers?
A. India
B. Thailand
C. South Korea
D. Malaysia
E. Sri Lanka
Answer:
C. K. Prahalad and his associates introduced a new concept into the discussion of
developing countries and marketsbottom-of-the-pyramid markets (BOPMs)consisting
of the 4 billion people across the globe with annual incomes of less than _____.
A. $400
B. $1,200
C. $2,500
D. $3,700
E. $4,200
Answer:
Which of the following statements is true about quantitative research?
A. It includes direct observation of consumers in choice or product usage situations.
B. It studies the dynamic interplay between peoples’ feelings and their resulting actions.
C. It is generally associated with survey research that involves yes/no questions.
D. It includes recording consumers’ first impressions about products.
E. It almost always uses open-ended or in-depth and unstructured responses.
Answer:
According to the product component model, installation, repair and maintenance,
deliveries, and warranties are most likely to be part of the _____ component of the
product.
A. core
B. support services
C. packaging
D. functional
E. styling
Answer:
Which of these is the most advanced and viable of Africa’s regional organizations?
A. Economic Community of West African States
B. African Development Bank
C. Southern African Development Community
D. Organization of African Unity
E. Economic Community of Central African States
Answer:
Janet works for a media agency based in Japan. Janet is helping the integrated
marketing communications (IMC) manager of Siljure, a French cosmetics company,
with the design and content to be used in an upcoming promotional campaign in Japan.
The IMC manager knows what to convey but wants to advertise it in a culturally
relevant manner. Which step of the international communications process is Janet
helping Siljure with?
A. Encoding of the message
B. Choosing an appropriate channel for the message
C. Decoding of the message
D. Providing feedback from customers
E. Reducing noise from competing ad campaigns
Answer:
Which of the following statements is true about the negotiation behavior of Korean
negotiators?
A. They use more silent periods than any other group.
B. They ask the greatest number of questions.
C. They are the most reticent about disclosing information.
D. They use the word no and interrupt more frequently than the Japanese.
E. They use the lowest percentage of aggressive persuasive tactics.
Answer:
Which of the following aspects of communication is more important in a low-context
culture?
A. Explicit communication
B. Nonverbal communication
C. Contextual communication
D. Face-to-face communication
E. Gesture-based communication
Answer:
In 1600, Japan began trading _____ for foreign goods.
A. diamonds
B. gold
C. platinum
D. copper
E. silver
Answer:
The exporter is responsible for selecting the _____ that leads to a description in the
Commerce Control List (CCL), which indicates the exportability status of the item.
A. Entity List Number
B. Priority Number
C. Export License Number
D. Trade Regulations Number
E. Export Control Classification Number
Answer:
If a company wished to alter a product’s platform so that the product could be
manufactured in a variety of forms, to meet local differences in five different foreign
markets, the component of the product component model that is most likely to be under
consideration is:
A. support services.
B. packaging.
C. delivery.
D. ancillary.
E. core.
Answer:
Which of the following groups of negotiators is considered to be the most reticent about
giving information about themselves?
A. Israelis
B. Canadians
C. Germans
D. Americans
E. Chinese
Answer:
Successful economic union requires favorable economic, political, cultural, and
geographic factors. Briefly describe these four factors.
Answer:
What is the fundamental notion of Western management practices? Is it universally
acceptable?
Answer:
Discuss the illusion of similarities facing the international marketer.
Answer:
Compare and contrast back translation and parallel translation.
Answer:
Explain the concept of derived demand. Provide an illustration.
Answer:
In the context of international marketing, how important is a second language for a
manager?
Answer:
Compare conciliation with arbitration.
Answer:
Describe third-country nationals (TCNs). Why do American companies favor
third-country nationals over other English-speaking countries for overseas assignments?
Answer:
International marketers often need to collect certain types of information not normally
collected by domestic marketing researchers. Unisys Corporation gives some guidance
about the kind of information that organizations need to collect in the international
environment. List and briefly discuss each of the five types of information suggested by
the Unisys Corporation model.
Answer:
Identify the two types of licenses required for export.
Answer:
What is the difference between variable-cost pricing and full-cost pricing?
Answer:
What are BOPMs? According to C. K. Prahalad, why have they been ignored by
international marketers?
Answer:
Compare an information-oriented culture like America with a relationship-oriented
culture like Japan.
Answer:
Illustrate how domestic competition affects prospects of an international marketer.
Answer:
In the context of the subjective nature of historical events, contrast the American and
Mexican perspectives on the Monroe Doctrine. Which popular statement typifies the
difference between the perspectives?
Answer:
To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis
that isolates the self-reference criterion influences. List the four steps that make up the
framework for such an analysis.
Answer:
Which are the stages of Rostow’s five-stage model of economic development?
Answer: