Brazil is a fully industrialized country.
Answer:
Spreading the portfolio of markets served brings important stability of revenues and
operations to many global companies.
Answer:
Harry Jordan’s company has just entered into an agreement with a German firm to
create a separate legal entity. This new firm will be allowed to conduct business and
actively compete in various European Union markets. A good description of the new
company is a joint venture.
Answer:
Utilitarian ethics is the ethical principle that focuses on the optimization of the
“common good.”
Answer:
Due to the greater uncertainties and data limitations associated with foreign markets,
two methods of forecasting demand are particularly suitable for international marketers:
probabilistic forecasting and reference class forecasting.
Answer:
To be a success in the global marketplace today, the best companies will focus on
country as the primary segmentation variable.
Answer:
In high-context cultures, where personal relationships are crucial, high-level business
executives must stay in touch with their foreign counterparts.
Answer:
Age and gender have been the most obvious international market segmentation
variables, particularly for Americans.
Answer:
One of the core components in the product component model is the product platform.
Answer:
Polychronic time is characterized by “a great involvement with people.”
Answer:
Hong Kong was designated as China’s first Special Economic Zone.
Answer:
In the context of international marketing research, the environments within which the
research tools are applied are often different in foreign markets.
Answer:
In the context of international business negotiations, in most places in the world,
collectivistic, high-context cultures do not consider personalities and substance as
separate issues.
Answer:
The uncontrollable factors a company has to deal with decreases with the number of
foreign markets in which it operates.
Answer:
According to Philip Parker, a marketing professor, there are strong correlations between
latitude and the per capita GDP of countries.
Answer:
In much of the underdeveloped world, human labor is the prevalent source of energy.
Answer:
Phase 3 of the international planning process involves developing a marketing plan and
deciding budgets and profit expectations.
Answer:
In the context of international business negotiations, the style of Israeli negotiators is
the most aggressive of all cultures.
Answer:
Eliminating costly functional features or lowering overall product quality can minimize
price escalation.
Answer:
Nationalistic feelings are directly proportional to the growth of domestic economy.
Answer:
As traditional channel structures are changing, importers and retailers are also
becoming involved in new product development.
Answer:
Barring Latin America, the risks of confiscation and expropriation have lessened over
the last two decades.
Answer:
In recent years, the United States has emerged as Japan’s single largest trading partner,
surpassing the Southeast Asian countries.
Answer:
The Export Trading Company Act allows producers of similar products to form export
trading companies.
Answer:
Green marketing is the term frequently used to identify a marketer’s efforts to reduce its
dependency on U.S. dollars as the standard for international exchange.
Answer:
The sector that was hit the hardest during the Japanese recession was the real estate
sector.
Answer:
Of all the elements of the marketing mix, decisions involving advertising are those most
often affected by cultural differences among country markets.
Answer:
Cybersquatters buy and register descriptive nouns, geographic names, names of ethnic
groups and pharmaceutical substances, and other similar descriptors and hold them until
they can be sold at an inflated price.
Answer:
It is illegal for U.S. citizens to pay a bribe unless it is a common practice in the host
country.
Answer:
The most often used form of qualitative questioning is the survey questionnaire that
contains questions with a set of choices from which respondents select their responses.
Answer:
Most high-context cultures operate on monochronic time.
Answer:
Abolition of apartheid in South Africa is an example of a positive effect on foreign
policy, an uncontrollable element, in an international marketing scenario.
Answer:
The strength of a firm’s backing is the key to success for both women and men in
international business.
Answer:
An export management company functions as a low-cost, independent marketing
department with direct responsibility to the parent firm.
Answer:
Pressure from nationalist and self-interest groups affect the stability of a government.
Answer:
The egalitarian values of American society dictate that American sellers give complete
deference to the needs and wishes of buyers.
Answer:
The form of law found in the United States and England is classified as civil or code
law.
Answer:
In Stage 1 (the traditional society) of Rostow’s five-stage model of economic
development, the most important industrial demand is associated with labor.
Answer:
In the context of retail patterns, direct marketing works well in affluent markets as well
as in markets with underdeveloped distribution systems.
Answer:
Simon Peters, a senior manager at Celise Export Logistics, goes to France to negotiate a
deal with the company’s French partners. He dresses casually in a t-shirt and jeans. His
French counterparts call off the meeting and accuse him of taking a casual attitude
toward negotiations. In this scenario, dressing formally during business meetings is
probably a cultural _____ for the French.
A. imperative
B. elective
C. exclusive
D. oddity
E. rarity
Answer:
Business customs to which adaptation is helpful but not necessary are called _____.
A. imperatives
B. electives
C. exclusives
D. individualistic axioms
E. standardized axioms
Answer:
The _____ of the balance-of-payments statement is most likely to record all
merchandise exports, imports, and services plus unilateral transfers of funds.
A. current account
B. capital account
C. credit account
D. receivables account
E. reserves account
Answer:
Which of the following factors was primarily responsible for the excess in production
capacity in the United States after World War II?
A. The United States government raised the tariffs on most imports by 60%.
B. Many firms from other nations shifted their production facilities to the United States.
C. Domestic demand was at a historic low and resulted in excess capacity.
D. The returning military after World War II increased the labor supply in the United
States.
E. The implementation of the Marshall Plan dampened the overseas demand.
Answer:
A firm whose marketing orientation is based on the belief that consumers and
businesses alike will not buy enough without prodding is _____ oriented.
A. distribution
B. buying
C. production
D. time
E. selling
Answer:
Which of the following modes of foreign market entry offers the most control and the
highest potential return for a company?
A. Exporting
B. Joint venture
C. Contractual agreement
D. Strategic alliance
E. Direct foreign investment
Answer:
Which of the following traits is primarily important for marketing executives involved
in international negotiations?
A. Optimism
B. Altruism
C. Hypersensitivity
D. Cultural apathy
E. Excessive aggression
Answer:
In the infrequent foreign marketing stage of international marketing involvement, firms:
A. sell products that are a result of planned production in markets in various countries.
B. no longer make market segmentation decisions on the basis of national borders.
C. have a global perspective and view the entire world as one market.
D. have more than half their sales revenues coming from international markets.
E. have no intention of maintaining continuous market representation in foreign
markets.
Answer:
Which of the following elements of the international communications process
comprises of external influences such as competitive advertising, other sales personnel,
and confusion at the receiving end that can detract from the ultimate effectiveness of the
communication?
A. Selecting a message source
B. Encoding
C. Selecting a message channel
D. Decoding
E. Noise
Answer:
Derived demand can be defined as demand that is:
A. independent of price.
B. independent of consumer wants and needs.
C. dependent on another source.
D. highly volatile.
E. highly responsive to factors other than price.
Answer:
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. General Foods
C. R.J. Reynolds Tobacco
D. Ralston Purina
E. Nestl
Answer:
What is the function of a countervailing duty?
A. To balance revenues against costs
B. To restrict the amount a country will import
C. To increase revenues from parallel imports
D. To increase the amount a country will export
E. To permit the use of foreign currency within the country
Answer:
Japanese sales representatives are most satisfied with their jobs when:
A. their values are consistent with those of their company.
B. they receive high salaries and many perks.
C. they are better educated than their colleagues.
D. their technological knowledge is superior to that of others.
E. their ideas that do not conform to the company’s goals are well-received.
Answer:
Which of the following countries has hierarchical, relationship-based corporate culture?
A. Germany
B. France
C. South Korea
D. Switzerland
E. Australia
Answer:
Which of the following is the most comprehensive multilateral agreement on
intellectual property to date and covers a full range of rights that are embodied in
current international agreements?
A. World Intellectual Property Organization Charter
B. Trade-Related Aspects of Intellectual Property Rights Agreement
C. Inter-American Convention Agreement
D. The Madrid Arrangement
E. Paris Agreement for the Protection of Industrial Property
Answer:
A culture that is high context, has collectivism, has a high power distance, and uses
polychronic time is _____.
A. information-oriented
B. relationship-oriented
C. self-oriented
D. power-oriented
E. kinship-oriented
Answer:
The World Court can adjudicate disputes between _____.
A. governments
B. a company and a government
C. two companies
D. a citizen and a government
E. trade associations of two countries
Answer:
The _____ effect refers to the possibility that the place of manufacture may affect
product or brand image.
A. Doppler
B. polar
C. transfer
D. misinformation
E. country-of-origin
Answer:
Several nations, frustrated with the slow progress of the most recent round of WTO
trade negotiations, are:
A. negotiating bilateral trade agreements.
B. forming a rival organization.
C. refusing to accept all the rules and regulations imposed by the WTO.
D. using legal means to sue the WTO.
E. opting out of membership in the WTO.
Answer:
Alex’s research focuses on exploring countries that have different languages,
economies, social structures, behavior, and attitude patterns. In this case, Alex is most
likely engaged in _____ research.
A. geographical
B. anthropological
C. psychological
D. sociological
E. multicultural
Answer:
In the context of business ethics, many people in sub-Saharan Africa view Western
_____ as a kind of exploitation that prevents treatment of AIDS for millions.
A. medical missionaries
B. grants-in-aid
C. R-rated movies
D. intellectual property laws
E. lower trade tariffs
Answer:
Which of the following statements is true about the Internet?
A. The Internet further increases the advantage of rich economies over the poor ones.
B. The Internet increases market transaction costs.
C. The Internet allows for innovative services but at a relatively higher cost.
D. The Internet enables smaller firms in emerging economies to sell into a global
market.
E. The Internet decreases the economies of scale from vertical integration.
Answer:
Which of the following is the most likely reason that continual training is more
important in foreign markets than in domestic ones?
A. Slow adaptation of foreign markets to innovative products
B. Technological inferiority of domestic products
C. The need to establish the superiority of domestic cultures
D. Lack of technical knowledge among expatriate salespersons
E. Lack of routine contact with the parent company
Answer:
Estimating market potential in less-developed countries involves additional challenges,
but most of the difficulty arises from the _____.
A. coexistence of three distinct kinds of markets in each country
B. dependence of the markets on the industrialized sectors
C. lower wage rates of the workforce
D. high fluctuation in the currency rate
E. higher concentration of population residing in the urban areas
Answer:
A company focusing its efforts on making its new innovation more user-friendly than
before is working on the _____ of the product.
A. docibility
B. partibility
C. complexity
D. discordancy
E. observability
Answer:
Which country announced that it would seek free trade with the United States
immediately after the ratification of the United States-Canada Free Trade Area (CFTA)?
A. Germany
B. Australia
C. Mexico
D. The United Kingdom
E. China
Answer:
In the context of Latin American trade progress, which of the following was a result of
state ownership?
A. Inclusion of foreign and domestic private ownership
B. Efficient state treasuries
C. Efficient public companies
D. Predictable regulatory environments
E. Inflated public-sector bureaucracies
Answer:
Which of the following acronyms refers to the international forum that was created for
member countries to engage in the negotiation of tariffs and other barriers to trade?
A. UNHCR
B. GATT
C. WMO
D. NPT
E. UNDP
Answer:
In the context of task-related exchange of information, _____ negotiators are reluctant
to voice objections lest they damage the all-important personal relationships.
A. Mexican
B. American
C. German
D. British
E. Israeli
Answer:
In the context of global compensation, which of the following strategies should be
practiced?
A. A similar framework should be created for jobs with different responsibilities.
B. The support of senior sales executives should not be sought before taking action.
C. Local managers should not decide the mix between base and incentive pay.
D. Consistent communication and training themes should be used worldwide.
E. The incentive plan should be designed centrally and dictated to local offices.
Answer:
The encoding step causes problems even with a “proper” message. Explain with an
example.
Answer:
How can a manager construct a marketing program designed for optimal adjustment to
the uncertainty of the business climate?
Answer:
Describe how countries are facing the threat of environmental issues through green
marketing legislation.
Answer:
List the four dimensions of cultural values as given by Hofstede.
Answer:
List the opportunities offered by economic integration.
Answer:
Describe voluntary export restraints.
Answer:
Discuss how compensation plans of American companies vary substantially around the
globe.
Answer:
Briefly describe the different types of business customs.
Answer:
What are the various marketing functions performed when the marketing process in a
country is in the commercial-transition substage?
Answer:
Discuss the political factors behind the Japanese crisis of 1990.
Answer:
What are the four forms of law and what are the heritages linked to these forms of law?
Answer:
Define country-of-origin effect. How can a company overcome this effect?
Answer:
In the context of planned and unplanned cultural change, discuss the methods used by
marketers to overcome resistance to change in an international marketing scenario.
Answer:
Language is one of the major barriers to effective communication through advertising.
Explain with an example.
Answer:
What are the three areas covered by the Omnibus Trade and Competitiveness Act of
1988 that are considered critical in improving U.S. trade?
Answer:
Will leaving the country make an American businessman immune to U.S. laws?
Answer:
List the effects of imposing tariffs.
Answer:
What are sales promotions?
Answer:
Write a short note highlighting the key features of quantitative research.
Answer: