Centralization of the marketing research ensures that the field personnel and resident
managers have more intimate knowledge of the subtleties of the market.
The degree of economic development can be used as a rough measure of a country’s
industrial market.
The importance of political unity to fully achieve all the benefits of economic
integration has driven European countries to form the World Trade organization (WTO).
Different cultures often seek the same value or benefits from the primary function of a
product.
The Commonwealth of Independent States (CIS) was formed by Britain because it did
not want to join the European Economic Community (EEC).
Religion has a significant impact on the value systems of a society and the effect of
value systems on marketing.
Relations between governments and MNCs are generally negative, even if the
investment improves the balance of payments by increasing exports or reducing
imports.
The ISO 9000 certification guarantees that each product or service produced by a
company is of the highest quality.
Patent rights, trademark rights, and the rights to use technological processes are granted
in foreign licensing.
Cultural electives are business customs in which an outsider must not participate.
International business negotiations are conducted keeping national stereotypes in mind.
Businesspeople in low-context cultures use email more often than those in high-context
cultures.
Quantitative research is helpful in revealing the impact of sociocultural factors on
behavior patterns and in developing research hypotheses that can be tested in
subsequent studies.
A case might be made for temporary protection of markets with excess productive
capacity or excess labor when such protection could facilitate an orderly transition.
The Japanese distribution structure is similar to the one found in the U.S. or in Europe.
One of the possible reasons for manufacturing in a third country could be an attempt to
_____.
A. standardize middlemen margins
B. reduce the credit risk of the seller
C. reduce the capital-labor ratio
D. increase the inputs used in manufacturing
E. reduce manufacturing costs
Of the seven steps involved in international advertising, _____ almost always
represents the most daunting task for international marketing managers.
A. developing messages
B. selecting effective media
C. executing the campaign
D. composing and securing a budget
E. specifying the goals of the communication
Adam Smith in his Wealth of Nations stated, “By pursuing his own interest he
frequently promotes that of the society more effectually than when he really intended to
promote it.”What behavior does this notion attempt to justify?
A. Collectivism
B. Loyalty
C. Greed
D. Competitiveness
E. Cooperation
Which of the following is an example of comparative advertising?
A. An ad using a scantily clad model to promote a soft drink.
B. An ad showing a celebrity smoking his preferred brand of cigarettes.
C. An ad showing a dog choosing one brand of dog food over another.
D. An ad showing the superiority of synthetic materials used in its products as
compared to cotton.
E. An ad using shocking or taboo material to promote a product.
The manner in which the United States acquired land for the Panama Canal Zone
typifies a U.S. foreign policy, _____, -whatever is good for the United States is
justifiable.
A. Manifest Destiny
B. Hay Manifesto
C. Roosevelt Corollary
D. Gadsden Policy Position
E. Wilson Mandate
Which of the following treaties was revised to include a total ban on the export of
hazardous wastes by developed nations?
A. Treaty of Lisbon
B. The Basel Convention
C. The North American Free Trade Agreement
D. ASEAN charter
E. St. Andrews agreement
The most basic economic integration and cooperation is the:
A. political union.
B. common market.
C. regional cooperation for development (RCD).
D. customs union.
E. free trade area (FTA).
A manager hires an agent to obtain a license to build a warehouse in an industrial
district. The agent was caught offering a bribe to a government official for issue of the
license. Which of the following describes the manager’s liabilities?
A. The manager is not liable since the use of an agent absolves him of any
responsibility.
B. The manager is liable since the agent used part of his fees for bribery, although the
manager was unaware of the agent’s intentions.
C. The manager is not liable if the agent can prove that extortion, rather than bribery,
took place.
D. The manager is liable if he was aware of the fact that part of the agent’s fee would be
used as a bribe.
E. The manager is liable only if the act of building the warehouse at the given location
is illegal.
In the international arena, the greatest problem in sampling stems from:
A. the lack of adequate demographic data from which meaningful samples can be
drawn.
B. the lack of expertise in designing sampling layouts for a non-domestic market.
C. the higher probability of foreign government intervention in the sampling process.
D. the inability of international market researchers to speak foreign languages.
E. the difficulty in determining sample size suitable for the relevant foreign market.
In a _____ market, it is essential for a company to keep prices low and raise brand
value to win the trust of consumers.
A. fragmented
B. monopolistic
C. competitive
D. deflationary
E. consolidated
In Spain, a new medium for advertising called Publicoche includes:
A. lasers projected onto clouds.
B. private cars that are painted with advertisements.
C. buses fitted with television sets showing promotional messages.
D. financing of popular sporting and entertainment events.
E. hot air balloons printed with promotional messages.
Which of the following is true of foreign sales corporations?
A. They are commonly called piggybackers.
B. They can only be related to a manufacturing parent and not an independent broker.
C. They virtually control distribution through all levels of channels in Japan.
D. They accumulate, transport, and distribute goods from many countries.
E. They can function as a principal or a commissioned agent.
Arbitration clauses require agreement wherein the concerned parties agree:
A. on who is right and who is wrong.
B. on the validity of the litigation issues.
C. to abide by the awards resulting from the arbitration.
D. to not hire a legal counsel to represent each of the parties involved.
E. to not name the arbitrators.
A culture that is high context, has collectivism, high power distance, and uses
polychronic time is _____.
A. information-oriented
B. relationship-oriented
C. hierarchy-oriented
D. power-oriented
E. task-oriented
In the context of the Internet in international marketing channels, technically,
e-commerce is a form of _____ selling.
A. direct
B. parallel
C. dual
D. mass
E. targeted
In relationship-oriented cultures, ____ speaks quite loudly in both persuasion and the
demonstration of interest in the business relationship.
A. the bottom line
B. profit
C. team strength
D. secrecy
E. rank
Which of the following is one of the reasons that has hampered the conferences held by
the United Nations Economic Commission for Africa to bring about holistic
integration?
A. Governmental inexperience.
B. Depletion of natural resources.
C. Excessive influx of products.
D. Lack of beneficial funds.
E. Excess of cheap labor.
The United Nations Economic Commission for Africa (ECA) has held numerous
conferences but has been hampered by governmental inexperience, undeveloped
resources, labor problems, and chronic product shortages.
When the Indian rupee depreciated against the U.S. dollar, PC manufacturers who were
dependent on imported parts had to _____ in order to retain their profit margins.
A. raise the quantity of inputs they used in production
B. give discounts to their customers
C. increase the wages that they paid to labor
D. increase the production of PCs
E. raise the price of PCs
The system of accounts that records a nation’s international financial transactions is
most accurately called its:
A. supply chain management system.
B. gross domestic product system.
C. net domestic product payments.
D. balance of payments.
E. net national product systems.
In the context of U.S. foreign policy during the 19th and the 20th centuries, discuss the
Roosevelt Corollary.
Why was the IMF formed? How does the IMF deal with universally floating rates?
_____ is a new nontariff barrier that was designed to prevent foreign producers from
using predatory pricing.
A. Quota
B. Embargo
C. Import license
D. Antidumping law
E. License
What is price escalation? Explain.
List the four phases of the international planning process.
What is the significance of balance of payments figures?
What is economic development?