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One of the ways that an industrial firm should manage the inherent volatility of the
industrial sector is by increasing advertising expenditure during booms.
Answer:
The strategy of cultural congruence involves marketing products similar to ones already
on the market in a manner as similar as possible with existing cultural norms, thereby
minimizing resistance.
Answer:
An irrevocable, confirmed letter of credit means that a U.S. bank accepts responsibility
to pay the seller regardless of the financial situation of the buyer or foreign bank.
Answer:
A distinguishing characteristic of the type of capitalism common in Chinese culture is
the emphasis on guanxi as the coordinating principle among firms.
Answer:
Traditional channels in developing countries evolved from economies with a strong
dependence on imported manufactured goods.
Answer:
With respect to the international planning process, the marketing plan begins with a
situation analysis and culminates in the selection of an entry mode and a specific action
program for a market.
Answer:
A product that exceeds performance expectations can also be considered to be of poor
quality.
Answer:
The form of law found in Germany, France, and Japan is called civil or code law.
Answer:
Considering the United Nations' stages of economic development for classifying
countries with respect to levels of industrialization, Brazil falls under the group of
more-developed countries (MDCs).
Answer:
In the context of global marketing, a product's country of origin cannot affect its brand's
image significantly.
Answer:
In the context of social responsibility and environmental management, the Basel
Convention identified safe dumping zones for hazardous wastes exported by developed
nations.
Answer:
The United States and other countries require some products to contain a percentage of
"local content" to gain admission to their markets.
Answer:
Countries that suffer the most from major natural calamities are among the poorest in
the world.
Answer:
Formality being a way of life in the United States, even the smallest contracts between
companies often involves a formal signing ceremony.
Answer:
In the United States, if a middleman is terminated, the company is required to pay 1
percent of the middleman's average annual compensation multiplied by the number of
years the middleman served as a final settlement.
Answer:
Effective advertising and proper positioning of products can help brands to ameliorate a
less-than-positive country stereotype.
Answer:
Quotas are more flexible than import licenses.
Answer:
In the context of social responsibility and environmental management, the idea of
sustainable development is quite popular in the United States owing to the cultural
characteristics of the Americans.
Answer:
Patent rights, trademark rights, and the rights to use technological processes are granted
in foreign licensing.
Answer:
Japanese sales representatives are motivated more by the social pressure of their peers
than by the prospect of making more money based on individual effort.
Answer:
The ISO 9000 certification guarantees that each product or service produced by a
company is of the highest quality.
Answer:
The inability of a manager's spouse to adjust to a different cultural environment
adversely affects the expatriate's effectiveness in a foreign assignment.
Answer:
Risk of violence is not a consideration in assessing the political vulnerability of a
multinational company's activities.
Answer:
Foreign investment can be perceived as a threat to sovereignty.
Answer:
Moving their businesses outside the political boundaries of the home country exempts
the companies from the home-country laws.
Answer:
One of the trends that spurred the demand for technologically advanced products was
the disintegration of the Soviet empire.
Answer:
The World Court can settle disputes between a company and a government.
Answer:
After World War II, the United States provided assistance to other countries to develop
their markets and improve global trade though it gained no returns on these initiatives.
Answer:
Virtual expatriates find it easy to maintain close contact with subordinates and
customers.
Answer:
If conciliation is not used to settle a difference in an international business dispute or an
agreement cannot be reached, the next step is litigation.
Answer:
Many countries have domestication as a condition for investment.
Answer:
One of Japan's advantages over other countries is its language; the syntax of the
Japanese language is similar to that of certain programming languages.
Answer:
As George Platt examines markets that might match his company's investment
requirements, he is particularly interested in the fact that the European Community has
an extensive transportation network. This network seems to draw all the member
nations closer together. Which of the following critical factors for ensuring an effective
economic union is Mr. Platt most likely examining when reviewing transportation
networks?
A. Cultural factors
B. Trade factors
C. Political factors
D. Geographic proximity
E. Economic factors
Answer:
Which of the following is true of code-law systems?
A. They represent a legal system that is not all-inclusive.
B. They establish ownership of intellectual property by prior use rather than
registration.
C. They originate from tradition, past practices, and legal precedents set by the courts
through interpretations of statutes, legal legislation, and past rulings.
D. They sometimes fail to consider agreements to be enforceable unless properly
notarized or registered.
E. They fail to consider unforeseeable human acts such as riots as acts of nature.
Answer:
By the year 1971, the United States was witnessing a(n):
A. increase in protectionist federal policies.
B. positive balance of trade.
C. sharp rise in domestic and international demand for all its goods.
D. huge trade deficit.
E. economic situation of the magnitude of the Great Depression.
Answer:
Which of the following is one of the major events that account for the vigorous
economic growth of the ASEAN countries and their transformation from cheap-labor
havens to industrialized nations?
A. The ASEAN governments' decision to shift their economies from manufacturing
based to commodity based.
B. North Korea's emergence as a major provider of technology and capital necessary to
upgrade manufacturing capability.
C. A bilateral trade agreement between the United States and Vietnam leading to the
granting of NTR status to Vietnam.
D. Hong Kong becoming a special administrative region (SAR) of the People's
Republic of China.
E. The ASEAN governments' commitment to deregulation, liberalization, and
privatization of their economies.
Answer:
List the four phases of the international planning process.
Answer:
Of all the elements of the marketing mix, decisions involving _____ are those most
often affected by cultural differences among country markets.
A. direct selling
B. public relations
C. trade shows
D. advertising
E. sales promotion
Answer:
_____, a practice often used by companies to maintain high retail margins to encourage
retailers to maintain the exclusive-quality image of a product, can create a favorable
condition for parallel importing.
A. Exclusive distribution
B. Speculative distribution
C. Intensive distribution
D. Lateral distribution
E. Dual distribution
Answer:
A _____ involves complete political and economic integration, either voluntary or
enforced.
A. political union
B. common market
C. regional cooperation for development (RCD)
D. customs union
E. free trade area (FTA)
Answer:
The most useful information on how cultural values influence various types of business
and market behavior comes from work done by:
A. Sigmund Freud.
B. George Gallup.
C. Geert Hofstede.
D. Ayn Rand.
E. Milton Friedman.
Answer:
Which of the following makes the South African market an important base for serving
nearby African markets that are too small to be considered individually?
A. The rise of communism in South Africa
B. The South African market's developed infrastructure
C. The economic embargo imposed by the United Nations
D. The existence of inward-looking trade and investment policies
E. The South African government's nationalization initiative
Answer:
_____ refers to a partnership of two or more participating companies that have joined
forces to create a separate legal entity to facilitate doing business in a country where
none of the participants are currently active.
A. A consortium
B. A franchise pact
C. A license arrangement
D. Indirect exporting
E. Direct foreign investment
Answer:
Which of the following is considered to be the most common complaint heard from
American managers in terms of the negotiation behavior of foreign clients?
A. The insistence on exchanging business cards to establish the rank of the negotiators
B. The overt emphasis laid on punctuality and the tendency to waste time
C. The lack of feedback, positive as well as negative, regarding the negotiations
D. Foreign clients and partners breaking into side conversations in their native
languages
E. Frequent instances of facial gazing and touching that distract their counterparts
Answer:
Which of the following makes Walmart's transactions with suppliers highly efficient
and lowers its cost of operations?
A. Clean business reputation
B. Internal Internet-based system
C. Ability to beat competitors
D. Outreach programs to placate small retailers
E. Ability to influence foreign governments
Answer:
Code law is also known as _____.
A. business law
B. common law
C. religious law
D. civil law
E. universal law
Answer:
The Global Harmonization Task Force is an international effort that is attempting to:
A. harmonize standards for several international industrial sectors.
B. promote free trade among developing and developed nations.
C. equalize wages among countries.
D. increase double testing of goods and services.
E. equalize the perception of quality across countries.
Answer:
The special drawing rights (SDRs) developed by the IMF are in effect:
A. black gold.
B. exchange permits.
C. floating currencies.
D. paper gold.
E. virtual dollars.
Answer:
CARICOM established the CSME (CARICOM Single Market and Economy) with the
major goal of:
A. establishing central institutions similar to those of the European Union institutions.
B. forming a political union.
C. implementing a common currency for all member nations.
D. increasing nontariff barriers.
E. implementing uniform customs procedures.
Answer:
Sole Tales, a shoe manufacturer in Puerto Rico, shipped its entire production to San
Francisco and brought it back to its home country to market it as "Made in the U.S."
The manufacturer knew for a fact that people would prefer buying products made in the
U.S. rather than those domestically produced. The factor that is influencing the
perception of the customers in the given scenario is called the _____.
A. Doppler effect
B. comparative advantage effect
C. country-of-origin effect
D. mass effect
E. placebo effect
Answer:
The Webb-Pomerene Act of 1918 made it possible for American business firms to join
forces in export activities without being subject to the _____.
A. Sherman Antitrust Act
B. Federal Communications Act
C. Trade Commission Act
D. Food, Drug, and Cosmetics Act
E. Robinson-Patman Act
Answer:
_____ planning is conducted at the highest levels of management and deals with
products, capital, research, and the long- and short-term goals of a company.
A. Market
B. Tactical
C. Single-use
D. Strategic
E. Personnel
Answer:
Economic planners are often more _____ oriented than marketing oriented.
A. production
B. advertising
C. logistics
D. theory
E. distribution
Answer:
Omigar Appliances, a Korean company that manufactures kitchen appliances, alters the
design of its chimneys to suit the needs of its Japanese consumers. The Japanese prefer
compact and efficient appliances to fit their small kitchens. The component of Omigar's
chimneys that is most likely altered in this scenario is the _____.
A. packaging component
B. invisible component
C. core component
D. ancillary component
E. support services component
Answer:
Within the same country, some foreign businesses may fall prey to politically induced
harassment, while others may be placed under a government umbrella of protection and
preferential treatment. Which of the following is the factor that explains this difference?
A. The level of domestication achieved
B. The differences in level of technology between the two countries
C. The cultural differences between the host nation and the business's home country
D. The import tariffs set by the host country
E. The evaluation of a company's contribution to the nation's interest
Answer:
Which of the following is a critical element associated with using a particular type of
middleman?
A. Knowledge of the culture of the target market
B. Number of employees
C. Mode of transportation for moving goods
D. Influence over the target market
E. Cash-flow patterns
Answer:
Big Donuts has already reviewed its objectives and capabilities, established the
screening criteria for reviewing potential foreign markets, and examined a series of
environmental factors for the markets in which it plans to operate. What should Big
Donuts do next as it proceeds with the international planning process?
A. Match the company to a country's needs.
B. Evaluate the marketing mix to target markets.
C. Modify the company's position to communication objectives.
D. Develop a marketing plan.
E. Implement and control information obtained in the initial examination.
Answer:
The Arab states on the Persian Gulf, Egypt, and Morocco have worked out an
agreement on the Gulf Arabian Free Trade Area (GAFTA).
Answer:
Which of the following is most likely to be true of a company that views prices as an
active instrument of accomplishing marketing objectives?
A. The company sets prices to achieve specific objectives.
B. The company follows market prices to achieve specific objectives.
C. The company exports only excess inventory.
D. The company views its export sales as an insignificant source of revenue.
E. The company places a low priority on foreign business.
Answer:
The ancient Greeks conceived three fundamental forms of government. Which of the
following refers to a government ruled by one?
A. Aristocracy
B. Monarchy
C. Democracy
D. Monopoly
E. Oligarchy
Answer:
Which of the following statements most accurately reflects the feelings of most
Mexicans toward the United States?
A. Mexicans trust and favor the United States above other trading partners.
B. Mexicans prefer Europeans over the United States with respect to trade.
C. Mexico considers the United States a protector who will help it emerge as a world
power.
D. Mexicans see the United States as a threat to their political, economic, and cultural
independence.
E. Mexicans see the United States as a land of abundant opportunity and good fortune.
Answer:
A survey of U.S. manufacturers shows that 95 percent of respondents with Indian
operations plan on expanding, and none say they are leaving. Which of the following is
primarily behind this new trend?
A. India's government machinery is one of the most efficient in the world.
B. Living standards for expatriates in India are comparable to the world's best.
C. India offers cheap qualified labor and a massive market.
D. India's proximity to China makes sourcing of parts easier.
E. There is a lack of competitiveness among local firms in India.
Answer:
Which of the following is a reason for East Asia's economic success?
A. The availability of an extraordinarily rich land
B. The existence of a common currency
C. The implementation of Marxist-socialist policies
D. The rise of autocracy
E. The emphasis placed on education and healthcare
Answer:
Which of the following regions is considered as the information technology (IT)
corridor in north China?
A. Beijing-Tianjin
B. Heilongjiang
C. Liaoning
D. The Jilin River Delta
E. Fujian
Answer:
A multinational company, with its headquarters in the U.S., wants to sell its new
high-technology product in Germany. For effective selling, the sales force for this
company should consist mostly of:
A. local German nationals.
B. illegal aliens living in the U.S.
C. temporary, freelancing German sales personnel.
D. American expatriates.
E. third-culture people from Japan.
Answer:
An American buyer is negotiating with a British supplier for the purchase of raw
materials for production of heavy machinery in the United States. Before exchanging
any information pertaining to the business of the meeting, he spends a few minutes
talking to the British negotiator on topics such as World Cup soccer, the recently
concluded general elections, and the English weather. The American buyer is engaging
in the first stage of a business negotiation known as:
A. persuasion.
B. nontask sounding.
C. setting an agenda.
D. assessment of business terms.
E. appraisal of current affairs.
Answer:
Describe the popularity of a marketing orientation as compared to a product orientation.
Answer:
Explain how the "alien status" of a company amplifies the political and legal issues
faced by the company in a foreign market.
Answer:
In the context of products and services for consumers, what is the importance of quality
while marketing products?
Answer:
Briefly explain the concept of a multinational market region.
Answer:
What is economic development?
Answer:
What are the specific characteristics and skills that a company should look for when
selecting sales and marketing personnel for international marketing positions?
Answer:
In the context of authority and decision making, briefly describe the shift from
centralized to decentralized decision making.
Answer:
What is the regional cooperation for development?
Answer:
In the context of cultural change, write a short note on the resistance to change in
different cultures.
Answer:
In the context of the elements of culture, illustrate the differences in "Asian and
Western" thought as discussed by Richard Nisbett.
Answer:
What are the two basic factors that account for greater market similarities among
industrial goods customers than among consumer goods customers?
Answer:
Discuss the functions of the institutions under the European Union.
Answer:
What are the bases of international legal disputes? Describe the situations in it and the
authority that addresses the issues.
Legal disputes can arise in three situations: between governments, between a company
and a government, and between two companies. The World Court can adjudicate
disputes between governments, whereas the other two situations must be handled in the
courts of the country of one of the parties involved or through arbitration. Unless a
commercial dispute involves a national issue between nation states, the International
Court of Justice or any similar world court does not handle it. Because there is no
"international commercial law," the foreign marketer must look to the legal system of
each country involvedthe laws of the home country, the laws of the countries within
which business is conducted, or both. When international commercial disputes must be
settled under the laws of one of the countries concerned, the paramount question in a
dispute is: Which law governs?
Answer:
How has Japan's history influenced its contemporary behavior and culture?
Answer:
What is green marketing? How does it affect product development?
Answer:
Briefly describe the three accounts of a balance-of-payments statement.
Answer:
