When countries sell off state-owned enterprises and privatize them, it usually results in
a(n):
A. lack of accommodation of outside investors.
B. decline in productivity throughout the private sector.
C. release of capital to invest in strategic areas.
D. instant change in political leadership.
E. continuing drain on future natural resources.
Answer:
Cherry Computers had difficulties when it first entered the Japanese market with its
CheriTec computers. Some of its computers were returned unused after customers
found the wrapping on the instruction manual damaged. Though this would probably be
an insignificant problem in the U.S., it was certainly a cause of concern in
quality-conscious Japan. Which of the following components of the product component
model should Cherry Computers concentrate on to fix this problem?
A. The core component
B. The support services component
C. The packaging component
D. Functional component
E. The design component
Answer:
When the Indian rupee depreciated against the U.S. dollar, PC manufacturers who were
dependent on imported components had to either absorb the increased cost or _____.
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
Answer:
The four social institutions that most strongly influence values and culture are schools,
churches, families, and the media.
Answer:
Which of the following would most likely be characterized as being an imperative
business custom in many cultures?
A. Establishing friendships
B. Knowing to speak and write the native language
C. Adhering to local food habits
D. Conforming to the native religions
E. Having knowledge of the local sport
Answer:
Which of the following has proved to be an important way to break the trade barrier
imposed by the Japanese distribution system?
A. Direct sales through catalogs
B. Large wholesale stores
C. Street corner kiosks
D. Internet shopping
E. Television advertising
Answer:
When confronted with a set of facts, one reacts spontaneously on the basis of
knowledge assimilated over a lifetimeknowledge that is a product of the history of one’s
culture. One seldom stops to think about a reaction; one simply reacts. Thus, when
faced with a problem in another culture, one’s tendency is to react instinctively and refer
to one’s _____ for a solution.
A. self-space principle
B. segregation principle
C. integration criterion
D. space command criterion
E. self-reference criterion
Answer:
When Polar Inc., an American fast-food company, wanted to market its burgers and
fries in France, it was asked to import French wine to the United States in return. This is
an example of:
A. bargaining.
B. countervailing duties.
C. buy-back.
D. countertrade.
Answer:
Which of the following is a disadvantage of decentralized research management?
A. The control hardly rests closer to the market.
B. Various international laws restrict decentralized research.
C. Field personnel and resident managers lack intimate knowledge of the subtleties of
the market.
D. There is unwarranted dominance of large-market studies in decisions about global
standardization.
E. Decentralized research has higher probability of translational errors.
Answer:
Business customs that must be recognized and accommodated are called _____.
A. imperatives
B. electives
C. exclusives
D. exceptionals
E. constraints
Answer:
Which of the following is the most dynamic trend that is affecting current global
business strategies?
A. The trend toward buying American cars in Europe
B. The trend toward the acceptance of the free market system among developing
countries
C. The trend toward using English as the global language
D. The trend toward establishing a world currency
E. The trend toward providing aid to developing and less developed nations
Answer:
If a company is altering the price of its product to compete with the local companies in
the international market, it is most likely focusing on the _____ component of the
product, according to the product component model.
A. core
B. support
C. design
D. maintenance
E. packaging
Answer:
Which of the following characterizes a globally aware manager?
A. Using one’s home culture’s values alone to market one’s products in foreign countries
B. Accepting the cultural ways of another individual as his or her own
C. Tolerating cultural differences and allowing others to be different and equal
D. Discarding one’s home culture’s standards to adopt the global cultural standards
E. Controlling any influences that the global cultural standards may have on the
marketing process
Answer:
In the 1970s, Frank Gibney had called Japan “The Fragile Superpower,” which was
confirmed with the crisis of the 1990s. In his new appraisal, Gibney writes that Japan
has become the victim of _____.
A. social loafing
B. compensating errors
C. being penny-wise and pound-foolish
D. herd behavior
E. one-party sickness
Answer:
Which of the following is true of domestication?
A. The ultimate goal of domestication is to force domestic investors to share more of
the profits with the government.
B. The risk of domestication appears to have decreased over the last two decades.
C. Domestication has always led to more technologically advanced and competitive
businesses.
D. Nowadays, countries often require companies to become domesticated as a condition
for investment.
E. Domestication refers to the seizing of a company’s assets without payment.
Answer:
The behavior of the businesspeople in Taiwan is quite different from that in China and
Japan but similar to that in Korea.
Answer:
Most eastern European countries are privatizing state-owned enterprises, establishing
free market pricing systems, and:
A. introducing autarchic trade policies.
B. increasing trade barriers.
C. wrestling with inflation.
D. making import controls stringent.
E. switching to a socialistic economy.
Answer:
Which of the following is the major reason behind the failure of American MNCs to
completely dominate the European markets as predicted by Servan-Schreiber?
A. The resurgence of competition for U.S. businesses from all over the world
B. The elimination of import taxes in the European countries
C. The restructuring of U.S industries
D. The decadence of communism
E. The dissolution of colonial powers
Answer:
Which of the following technological innovations has had a great impact on the
gender-based determination of responsibilities and roles?
A. Mobile phones
B. Computers
C. Aircrafts
D. Optogenetics
E. Birth control techniques
Answer:
Which of the following is true of the industrialized world’s population?
A. It is increasing at an unprecedented pace.
B. It is in decline and rapidly aging.
C. It mainly consists of young adults.
D. It is similar to the population of developing countries.
E. It has remained constant for a long time.
Answer:
A Korean electronics company had to add detailed instructions about the repair and
replacement of its product to make it easy for the local consumers to maintain it. Which
of the following components of the product is most likely being altered in the given
scenario?
A. The support services component
B. The design component
C. The core component
D. The packaging component
E. The functional component
Answer:
A major goal of the Export Trading Company (ETC) Act was to:
A. allow U.S. companies to bypass tax laws with respect to international trading.
B. remove antitrust disincentives to export activities.
C. bypass trade barriers in foreign countries.
D. earn the highest possible profits in foreign countries.
E. combine export shipments within single containers.
Answer:
Meteora Inc. is planning to enter the Kenyan market by establishing a mobile phone
manufacturing operation in Kenya. Meteora is most likely to have a positive
relationship with Kenyan government through its investment if it:
A. uses locally produced resources.
B. imports phone components from China.
C. establishes an R&D center in California and has all its technology patented there.
D. ensures that its middle and upper management are made of expatriates.
E. bargains for a tax holiday for the next five financial years.
Answer:
Bert Wong has decided to pursue a marketing research effort to acquire information
before his company makes a strategic relocation move to the West Coast. Which of the
following marketing research process steps would be the first step that Bert (and the
marketing researchers) should take as he embarks on the research effort?
A. Define the research problem and establish research objectives.
B. Analyze, interpret, and summarize the results.
C. Determine the sources of information to fulfill the research objectives.
D. Consider the costs and benefits of the research effort.
E. Gather relevant data from secondary or primary sources, or both.
Answer:
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).
Answer:
In _____, police and military are not allowed to vote.
A. Croatia
B. Iran
C. Bolivia
D. Saudi Arabia
E. Peru
Answer:
An important first step in adapting a product to a foreign market is to determine:
A. the degree of newness of the product as perceived by the intended market.
B. the personal ethics of individuals in the target market.
C. the regional political parties present in the domestic market.
D. the language problem of the intended market.
E. the product’s compliancy to irrational beliefs of its potential foreign consumers.
Answer:
The Four Asian Tigers are: China, Thailand, India, and North Korea.
Answer:
Which of the following factors accounts for greater market similarities among industrial
goods customers than among consumer goods customers?
A. The inherent nature of the product
B. The customer motive being individual satisfaction
C. Government control over design specifications
D. Industrial goods being associated with after-sales services
E. The restriction on international sale of industrial goods
Answer:
Unlike the Japanese, the American sales managers do not have to worry about the
problem of motivating poor performers. Which of the following is the reason for this
situation?
A. The group incentive system balances pay differences and thus is motivating enough.
B. Companies are more focused on long-term loyalty and are willing to compromise on
performance initially.
C. Sales personnel are shifted to areas where their performance levels can meet
expectations.
D. The base pay that is higher than their performance based incentive motivates them.
E. The team usually does not have any low performers as they either quit or are fired.
Answer:
Which of the following is a possible unfavorable outcome of the “alien status” of a
company?
A. Prejudiced treatment by the host country’s politicians and legal authorities
B. An inflated balance of trade
C. A sharp rise in domestic and international demand
D. Lower trade tariffs in the host country
E. An economic situation of the magnitude of the Great Depression
Answer:
The long-term goal of the LAIA (Latin American Integration Association), better
known by its Spanish acronym, ALADI, is:
A. to improve the literacy levels in member countries.
B. to reduce the child mortality rates in member countries.
C. to establish a Latin American common market.
D. to establish a common currency for all its member countries.
E. to standardize the industrial production in the member countries.
Answer:
Which of the following is true of the four kinds of problems caused by cultural
differences in international business negotiations?
A. Differences in language are more serious than cultural differences in values.
B. Cultural differences in values are more subtle than differences in language.
C. Differences in language are harder to cure than cultural differences in
decision-making processes.
D. Cultural differences in verbal behaviors are hidden deeper than cultural differences
in nonverbal behaviors.
E. Cultural differences in thinking and decision-making processes is less serious than
differences in language.
Answer: