In the context of the effect of values on international business negotiations, the Japanese
tend to emphasize hierarchical relationships that leads to hampered internal
communications.
In a free trade zone, payment of import duties is postponed until the product leaves the
free trade zone and enters the country.
To understand fully a society’s actions and its points of view, one must have an
appreciation for the influence of historical events.
Continuous improvements in electronic communications have facilitated the expansion
of trade.
Social recognition is a more important motivating factor for an American sales
representative as compared to a Japanese salesperson.
Uncontrollable and unpredictable influences such as competitive activities and
confusion that detract from the process of communication are called feedback.
The public, face-saving truth is known as honne in Japan.
Brand image is at the very core of business identity and strategy.
Virtual expatriates find it easy to maintain close contact with subordinates and
customers due to advances in communication technology.
Which of the following was a goal of the Export Trading Company Act?
A. To allow U.S. companies to bypass tax laws with respect to international trading.
B. To remove antitrust disincentives to export activities.
C. To bypass trade barriers in foreign countries.
D. To earn the highest possible profits in foreign countries.
E. To combine export shipments within single containers.
The Export Trading Company (ETC) Act allows producers of similar products to form
export trading companies. A major goal of the ETC Act was to increase U.S. exports by
encouraging more efficient export trade services to producers and suppliers to improve
the availability of trade finance and to remove antitrust disincentives to export
activities.
The primary obstacles to success in international marketing are a person’s _____ and an
associated ethnocentrism.
A. regionalism
B. holism
C. self-reference criterion
D. effort at adaptation
E. effort at integration
A market in which the only marketing function performed is exchange is most like to be
classified under the _____ stage.
A. surplus commodity product
B. commercial-transition
C. mass production
D. mass distribution
E. self-sufficient
Which of the following is an additional reason for marketing industrial goods abroad
that does NOT necessarily apply to consumer goods?
A. Increasing sales and profits.
B. Extending product life cycles.
C. Reducing the volatility of demand.
D. Gaining exposure to more customers.
E. Keeping up with the competition.
Which of the following actions must be taken by a negotiator before international
negotiations begin?
A. Asking questions on specific areas of the deal.
B. Planning of concession strategies.
C. Making concessions before reaching an agreement.
D. Rushing the foreign negotiator to come to a decision.
E. Rely only on information obtained from external sources.
Which of the following may best explain why the Japanese have such strong loyalty
toward their companies?
A. Zen philosophy
B. Taoism
C. Confucian philosophy
D. Buddhism
E. Bushido philosophy
In a(n) _____, the seller makes a one-time arrangement with a bank or other financial
institution to take over responsibility for collecting the account receivable.
A. forfaiting transaction
B. factoring transaction
C. barter transaction
D. cash-in-advance payment
E. open account
Apple Computer had difficulties when it first entered the Japanese market with its
Macintosh computers. Some of the computers were returned unused after customers
found the wrapping on the instruction manual damaged. Though this would probably be
no big deal in the U.S., it was certainly a cause for concern in quality-conscious Japan.
To fix the problem, Apple needed to concentrate on which of the following components
of the product component model?
A. Core component.
B. Support services component.
C. Packaging component.
D. Functional component.
E. Global component.
New cola alternatives (Mecca Cola, Muslim Up, Arab Cola, and ColaTurka) sprang up
after the military conflicts in the Middle East in 2003. This is an example that shows
how:
A. Coca-Cola played an important role in easing the cultural divide among the warring
nations.
B. American beverage companies diversify to cater to various markets.
C. specific events in history can influence consumer behavior.
D. businesses exploit cheap human labor during war-times.
E. cultural aspects influence the development and acceptance of products.
Which of the following countries is more likely to exhibit higher levels of bribery?
A. Individualistic cultures.
B. Countries with a strong dependence on international trade.
C. Nations with a communist past.
D. High-income nations.
E. Countries with low-power distance.
Higher levels of bribery have been found in low-income nations and nations with a
communist past, both aspects of the political economy. Additionally, higher levels of
bribery have been found in collectivistic (IDV) and high power distance (PDI)
countries.
Which of these aspects of international marketing is analyzed in Phase 1 of the
international planning process?
A. Company character
B. Product adaptation
C. Advertising
D. Situation analysis
E. Budgets
A(n) _____ means that once the seller has accepted the credit, the buyer cannot alter it
in any way without permission of the seller.
A. open account
B. irrevocable letter of credit
C. bill of lading
D. bill of exchange
E. sales agreement
Which of the following is the main reason for corporations being the forerunners of
innovations in society?
A. The use of propaganda to form “favorable” public opinions.
B. The access they have to ideas from around the world.
C. The understanding that they have of foreign markets.
D. The religious tolerance that they possess as a requisite for foreign trade.
E. The fact that all merchants and traders are required to be literate.
_____ in advertising is a thorny issue, because most member countries of the European
Commission have different interpretations of what constitutes a misleading
advertisement.
A. Discrimination
B. Endorsement
C. Deception
D. Plagiarism
E. Fear mongering
Which of the following events occurred during the Mexican Revolution?
A. Overthrowing of dictator Ernesto Zedillo
B. Youth movement against religion
C. Nationalization of the Mexican oil industry
D. Expulsion of North American businessmen
E. Support of French arms for the revolutionaries
In the context of designing an international sales force, which of the following is true of
Japan?
A. Japan has an information-oriented culture.
B. Japan allows for greater use of expatriates.
C. In Japan, personal selling need not be localized.
D. Japan is not a member of World Trade Organization.
E. In Japan, complete local knowledge is important for salespeople.
Which of the following statements is true regarding NAFTA?
A. It allows the use of standards and technical regulations as obstacles to trade.
B. It was ratified and became effective in 2000.
C. It prohibits U.S. and Canadian financial institutions to open wholly owned
subsidiaries in Mexico.
D. It has three members: Canada, South Africa, and the United States.
E. Under its provisions, Canada, Mexico, and the United States have agreed to
implement uniform customs procedures and regulations.
Ralph Waite is a marketing manager at a video game console manufacturing firm.
Ralph has been asked to review the marketing opportunities of his company in a foreign
market. Ralph is aware that he can modify certain elements of the marketing
environment to suit the foreign market needs. He is primarily focusing his attention on
the factors that are not under his control and might affect their business prospects.
Which of the following uncontrollable elements is most likely to affect the company’s
business prospects in the foreign market?
A. The pricing policies in the foreign market.
B. The trade policies in the home country.
C. The promotional activities required to market the product.
D. The level of technology in the targeted market.
E. The product distribution channels adopted by his company.