Nations with complementary economic bases are most likely to encounter frictions in
the development and operation of a common market unit.
In the context of international advertising, search engines have now become crucial
directors of Internet users’ attention.
In the context of social responsibility and environmental management, sustainable
development is about protecting the environment at all costs.
The portion of international business handled on a cash-in-advance basis is not large
and typically is used when credit is doubtful.
One of the drawbacks of satellites is also their strength, that is, their ability to span a
wide geographical region covering many different cultures.
A distinguishing characteristic of the Japanese distribution channel system is that it is
controlled by a few small retailers found in the country.
For a company, the chief advantage of an expatriate sales force is the low cost involved
in the process.
A proper encoding system allows a company to correct errors before substantial damage
occurs.
In the context of the effect of values on international business negotiations, American
buyers achieve better results than Japanese buyers.
Merchant middlemen tend to be more controllable than agent middlemen because they
take title to manufacturers’ goods.
Cultural differences in nonverbal behaviors are almost always hidden below our
awareness.
According to the UN classification, industrially developing countries just entering
world trade with relatively low per capita incomes are referred to as least-developed
countries.
An export management company functions as a low-cost, independent marketing
department with direct responsibility to the parent firm.
The World Court can settle disputes between a company and a government.
Maria Peron’s company treats the world, including the home market in Spain, as one
market. Market segmentation decisions no longer focus on national borders. Instead,
market segments are defined by income levels, usage patterns, and other factors that
span countries and regions. Which of the following stages best characterizes the stage
of international marketing involvement for Ms. Peron’s company?
A. Infrequent foreign marketing
B. Test marketing
C. No direct foreign marketing
D. Internal marketing
E. Global marketing
In the context of designing an international sales force, which of the following is true of
information-oriented cultures?
A. They require the most complete local knowledge possessed only by natives.
B. Personal selling has to be localized for even the most global of corporations.
C. People belonging to such cultures are hostile toward third-country nationals.
D. Such cultures allow for greater use of expatriates in the sales force.
E. Virtual expatriates are more efficient in selling consulting services in these countries.
Which of the following countries has enacted the most stringent green marketing laws
that regulate the management and recycling of packaging waste?
A. South Korea
B. China
C. Germany
D. United States
E. India
In relationship-oriented cultures such as France, Mexico, and Japan, sales
representatives:
A. are available only during the peak hiring season.
B. tend to be on the bottom rung of the social ladder.
C. are better paid than their U.S. counterparts.
D. lack proper knowledge of their culture.
E. are respected and held in high esteem.
From an international firm’s perspective, which of the following is an advantage
associated with virtual assignments?
A. Sales personnel can avoid health risks involved in flying frequently to foreign
countries.
B. Customer relationship structures may be improved due to direct customer
interaction.
C. The extra expense involved in an actual executive move may be avoided.
D. Problems related to low morale of personnel due to living in hotels can be avoided.
E. Misunderstandings due to lack of cultural skills may be avoided.
The government in Chile recently informed Clint Travis’ company that his retail grocery
chain in Chile would have to be gradually turned over to the people of Chile by the year
2050. Additionally, starting next year fifty percent of the board of directors of the
Chilean operation of the company must be Chileans. Which of the following political
risk actions is Mr. Travis’ company facing in Chile?
A. Confiscation
B. Expropriation
C. Domestication
D. Patronization
E. Socialization
Numerous studies indicate a direct link between the literacy rate of a country and its:
A. ability to conduct foreign trade.
B. capability for rapid economic growth.
C. ability to eradicate social prejudices.
D. capability to promote secular political values.
E. potential to support gender equality.
Which of the following actions is important for foreign marketers in order to be
effective in a foreign market?
A. Learning to appreciate the intricacies of cultures different from their own.
B. Ensuring that the promotions for the product are indifferent to social beliefs.
C. Adhering to the prominent prejudices in the foreign society.
D. Creating product differentiation by being indifferent to the culture of the foreign
market.
E. Making the product relate to the most prominent religion in the foreign culture.
When a government seizes an investment of a foreign investor but some reimbursement
for the assets is made, the government is following a process called:
A. confiscation.
B. expropriation.
C. domestication.
D. exchange controls.
E. local-content laws.
In _____, a company has an ongoing relationship with a bank that routinely buys its
short-term accounts receivable at a discount.
A. forfaiting
B. factoring
C. a barter transaction
D. a cash-in-advance transaction
E. an open accounts transaction
Which of the following steps of a communications process is important as a check on
the effectiveness of the other steps?
A. Selecting a proper message.
B. Encoding the message.
C. Selecting an appropriate channel of communication.
D. Decoding the message.E. Feedback.
Ralph Richards has been attempting to solve a problem that his company has with a
contract default by the Dutch government. He has tried conciliation but the two parties
could never find any common ground on which they could begin a fruitful negotiation
for settlement. Which of the following is likely to be the course of action that both the
parties will try next?
A. Mediation
B. Informal settlement
C. Arbitration
D. Litigation
E. Coercion
Ingrid is developing promotional materials and product demonstrations to easily
communicate the benefits of her cleaning products. Ingrid is trying to enhance the
_____ of her products.
A. relative advantage
B. compatibility
C. complexity
D. complexity
E. observability
The Foreign Corrupt Practices Act (FCPA) is specifically addressed in the _____
section of the Omnibus Trade and Competitiveness act.
A. market access
B. export expansion
C. import relief
D. foreign exchange regulation
E. trade deficit
Which of the following is considered as the single most important environmental
element of a country to which the foreign marketer must adjust the marketing task?
A. Political stability
B. Economic level
C. Social norms
D. Literacy level
E. Cultural orientation
The World Bank estimates that five countries whose share of world trade is barely
one-third that of the European Union will, by 2020, have a 50 percent higher share than
that of the European Union. _____ is one of the countries included in this list.
A. Canada
B. Nigeria
C. Netherlands
D. Indonesia
E. Rhodesia
The marketing manager for Grand Products wants to export the company’s range of
beer products to a Gulf country. However, he discovers that there is a complete
restriction on the import of any form of liquor into that country. This is an accurate
example of _____.
A. OMAs
B. quotas
C. tarrifs
D. VERs
E. boycotts
What is green marketing? How does it influence product development?
What is the fundamental notion of Western management practices? Is it universally
acceptable?
Which section of the Omnibus Trade and Competitiveness Act recognizes that foreign
penetration of U.S. markets can cause serious competitive pressure, loss of market
share, and, occasionally, severe financial harm?
A. The market access section.
B. The export expansion section.
C. The import relief section.
D. The foreign exchange regulation section.
E. The trade deficit section.