Companies following the _____ philosophy insist that no unit of a similar product is
different from any other unit in terms of cost and that each unit must bear its full share
of the total fixed and variable cost.
A. full-cost pricing
B. fixed-cost pricing
C. variable-cost pricing
D. demand-based pricing
E. premium pricing
Answer:
A French company sells its products to a large retailer in France, who in turn sells the
products all over Europe and Asia. This is an example of indirect exporting.
Answer:
People from which of the following cultures are more likely to have a general distrust
of others (not those in their groups) because power is seen to rest with individuals and
is coercive rather than legitimate?
A. Cultures with a high Individualism/Collective Index score
B. Cultures with a high Power Distance Index score
C. Cultures with a low Individualism/Collective Index score
D. Cultures with a low Power Distance Index score
E. Cultures with a high Uncertainty Avoidance Index score
Answer:
In international business, global marketing strategies are almost always implemented
through _____ with business partners and customers from foreign countries.
A. telephonic conversations
B. face-to-face negotiations
C. direct mails
D. internet forums
E. e-mails
Answer:
Which of the following statements is true of the European Court of Justice?
A. It initiates policy and supervises its observance by member states.
B. Its decisions require approval by the top three nations of the European Union.
C. Its decisions are final and cannot be appealed in national courts.
D. It primarily has a consultative role in interpreting the nuances of the EU law.
E. It can amend and adopt Union legislation.
Answer:
_____ is the process by which innovation spreads.
A. Diffusion
B. Filtering
C. Dissolution
D. Flighting
E. Liquidation
Answer:
Even though American sellers make lower profits than the Japanese, many American
managers apparently prefer lower profits if those profits are yielded from a more equal
split of the joint profits. This demonstrates that Americans and Japanese have different
views about _____.
A. favoritism
B. collectivism
C. individualism
D. fairness
E. nepotism
Answer:
Which of the following is the primary reason for an expatriate’s failure to function
effectively in a foreign assignment?
A. Differing customer expectations on product features
B. Lack of personal career planning
C. Lack of aesthetic appeal of the foreign country
D. Unsuccessful family adjustment
E. Interference from work councils
Answer:
Companies with marketing facilities or contacts in different countries with excess
distribution capacity or a desire for a broader product line sometimes take on additional
lines for international distribution. The formal name for such activities is _____.
A. skimming
B. backhauling
C. complementary marketing
D. export marketing
E. demand shifting
Answer:
In code-law countries, the ownership of intellectual property is determined by _____.
A. heredity
B. nature of use
C. duration of usage
D. registration
E. indemnification
Answer:
To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis
that isolates the self-reference criterion influences. Which of the following should be
the first-step to avoid the aforementioned errors?
A. Redefining the problem without the SRC influence
B. Solving the problem for the optimum business goal situation
C. Isolating the SRC influence in the problem
D. Defining the business problem or goal in home-country cultural traits, habits, or
norms
E. Examining the isolated SRC influence to see how it complicates the problem
Answer:
If the supply of a product in a market is limited, a company may follow a _____
approach to maximize revenue and to match demand to supply.
A. penetration pricing
B. psychological pricing
C. variable-cost pricing
D. predatory pricing
E. price skimming
Answer:
Which of the following is a strategy that international companies use to encourage sales
personnel to accept foreign assignments?
A. International experience is considered important to join top management.
B. It is made mandatory for all sales personnel to take up expatriate positions.
C. Part of the headquarters of the company is set up at the foreign location.
D. Companies unfailingly provide employment for the employee’s spouse in a top
position.
E. Legal obligations are imposed on the expatriate sales representatives.
Answer:
Give a brief account of the four major regional economies of China.
Answer:
Which of the following institutions is responsible for challenging any measures
incompatible with the Treaty of Rome and for passing judgment, at the request of a
national court, on the interpretation or validity of points of European Union Law?
A. The International Court of Justice
B. The European Court of Justice
C. The International Criminal Court
D. The European Common Judicial Council
E. The European Security Council
Answer:
_____ includes an understanding of how a society’s culture and economy are affected as
a nation struggles to supply its people’s needs within the limits imposed by its physical
makeup.
A. Remote sensing
B. Geography
C. Cartography
D. Demography
E. Geomatics
Answer:
Which of the following is an example of a nontariff trade barrier?
A. Compound duties
B. Revenue tariffs
C. Fees for administrative and custom entry procedures
D. Specific duties
E. Taxes imposed by governments on goods entering at its borders
Answer:
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.
Answer:
Martin is comparing the characteristics of his company’s water filters with those that are
already being marketed in the local market. He realizes that there is lot of scope for his
filters as they are functionally more advanced, have a longer life, and can also be
marketed at a competitive price than those of other sellers in the local market. The
innovation characteristic of Martin’s product that will help in wide acceptance of his
product in the local market is its _____.
A. partibility
B. defectibility
C. docibility
D. relative advantage
E. vincibility
Answer:
Which of the following can be considered by American negotiators as a signal of
progress in a business relationship with foreigners?
A. Absence of questions on specific areas of a deal
B. A hardening of attitudes and positions on some issues
C. A lesser frequency of talk among themselves in their own language
D. Higher-level foreigners being included in the discussions
E. Decreased bargaining and use of the higher-level and formal channels of
communication
Answer:
What was the most apparent reciprocal impact of the foreign economic assistance given
by the United States?
A. European countries formed an alliance to counter the OPEC countries’ clout.
B. Outflow of labor to the recipient countries increased dramatically.
C. All recipient countries appointed Americans to manage their central banks.
D. Purchases of U.S. agricultural products, manufactured goods, and services by the
recipient countries increased.
E. Distribution of economic power and potential became more uneven.
Answer:
A disadvantage when using home-country middlemen as intermediaries in the
distribution process is the:
A. large financial investment required.
B. limited control over the distribution process.
C. large managerial investments required.
D. limited number of retailers in the foreign country who can be reached.
E. large amount of commission.
Answer:
In general, price decisions are viewed in two ways. Which of the following is one of
them?
A. Pricing entirely depends on factors that are often beyond the control of a company.
B. Pricing is more a phenomenon of luck than planning.
C. Pricing is an active instrument of accomplishing marketing objectives.
D. The less control a company has over the final selling price of a product, the better it
is able to achieve its marketing goals.
E. The broader a company’s product line, the less complex is the process of controlling
prices to the end user.
Answer:
Which of the following is considered to be an important competitive marketing tool in
Europe?
A. ISO 9000 certification
B. ICE certification
C. ACSI certification
D. AERA certification
E. NCME certification
Answer:
In the year 2009, Germany became the world’s biggest exporter ahead of China.
Answer:
One of the drawbacks of satellites, which is also their strength, is:
A. the cost of creating a high quality ad for satellite television.
B. the limited market penetration of satellite television.
C. the number of intermediaries required for satellite service transmission.
D. the government regulations placed on satellite advertising.
E. their ability to span a wide geographical region.
Answer:
Which of the following is true of commercial relationships in countries with
collectivistic and high-context cultures?
A. The commercial relationship is limited to a one-time provision of the goods or
service.
B. Efficiency and innovation matter more than long-term relationship building.
C. Trust is a crucial aspect of commercial relationships.
D. The focus of the relationship is on price and value-for-money.
E. Customer loyalty is fleeting and short-lived.
Answer:
Which of the following firms has a better chance of accelerating the internationalization
process?
A. A firm with key managers well networked internationally
B. A firm with more traditional manufacturing practices
C. A firm that primarily focuses all its operations and production capacities to meet the
domestic market needs
D. A firm that refrains from using the Internet as its major communication platform
E. A firm with larger home markets and smaller production capacities
Answer:
Which of the following forms of terrorism is most likely to use the Internet to inflict
damage?
A. Germterrorism
B. Bioterrorism
C. Cyberterrorism
D. Ecoterrorism
E. Narcoterrorism
Answer:
Building a strategic international alliance (SIA) takes several steps to be successful. The
first step in building strategic alliances is called dating.
Answer:
Which of the following is one of the primary reasons behind the persistence of
economic stagnation in Japan in the 1990s?
A. The caste system
B. Inept political apparatus
C. Aggressive internal competition
D. Theocratic rule
E. Lack of natural resources
Answer: