Multinational market regions are those groups of countries that seek mutual economic
benefit from reducing interregional trade and tariff barriers.
Answer:
Social planners gained the acceptance for hybrid grains and better sanitation methods
through unplanned change among the peoples of underdeveloped societies.
Answer:
The World Intellectual Property Organization was formed with the primary objective of
overcoming inadequate monetary reserves and dealing with unstable currencies which
were particularly vexing problems in global trade.
Answer:
To receive ISO 9000 certification, a company requests a certifying body to conduct a
registration assessment.
Answer:
The GATT panels were formed to resolve bilateral trade disputes and have both
advisory and enforcement powers.
Answer:
According to some economists, economic prosperity is a factor that leads to the decline
in fertility rates.
Answer:
An expatriate with excellent management and technical skills is sure to excel in any
environment, even if he or she lacks an understanding of cultural differences.
Answer:
The manner in and amount which people consume, the priority of needs and wants they
attempt to satisfy, and the manner in which they satisfy them are functions of their
culture.
Answer:
The availability of minerals and the ability to generate energy are the foundations of
modern technology.
Answer:
The newly industrialized countries have per capita incomes lower than LDCs.
Answer:
In the context of international marketing, training for expatriates focuses on the
company, its products, technical information, and selling methods, while that for local
personnel focuses on foreign sales problems.
Answer:
Recording of historic events by historians belonging to different cultures gives us a
subjective view of history.
Answer:
It is harder to obtain export licenses for products on the export control list than for the
products that are excluded from the export control list.
Answer:
Altitude, humidity, and temperature extremes are climatic features that affect the uses
and functions of products and equipment.
Answer:
The General Agreement on Tariffs and Trade is the most comprehensive multilateral
agreement on intellectual property to date.
Answer:
The PNTR status given to China contributed much toward increasing the import
barriers on American products and services.
Answer:
Four valuesobjectivity, competitiveness, equality, and punctualitythat are held strongly
and deeply by most Americans seem to frequently cause misunderstandings and bad
feelings in international business negotiations.
Answer:
The most significant environmental factor affecting the international market for
industrial goods and services is the degree of standardization.
Answer:
Cultural differences cause four kinds of problems in international business negotiations,
and these problems occur at the levels of language, nonverbal behaviors, values, and
thinking and decision-making processes.
Answer:
With respect to Rostow’s five-stage model of economic development, countries in Stage
5 (the age of mass consumption) are mostly service economies.
Answer:
Cultural imperatives are business customs that need not be recognized and
accommodated.
Answer:
The more developed an economy, the lesser the variety of marketing functions
demanded.
Answer:
The more congruent product perceptions are with current cultural values, the more rapid
product diffusion or acceptance will be.
Answer:
Expropriation and nationalization have often led to nationalized businesses that were
efficient, technologically strong, and competitive in world markets.
Answer:
For most of the 20th century, the predominant approach to governance in the world was
colonialism.
Answer:
Customizing a product to suit the specific needs of a market will enhance the quality of
a product more than just selling products that use the latest technology.
Answer:
Antitrust laws were not enforced in the United States for the better part of the twentieth
century.
Answer:
Administered pricing is an attempt to establish prices for an entire market.
Answer:
Companies from the Netherlands are the leading group of investors in the United States.
Answer:
According to Jared Diamond, a professor of physiology, innovations spread faster north
to south than east to west.
Answer:
In international marketing, the greatest problem in sampling stems from the lack of
adequate demographic data and available lists from which to draw meaningful samples.
Answer:
The ideal approach to multicountry marketing research is to have local researchers in
each country, with close coordination and networking between the client company and
the local research companies.
Answer:
The ties that bind members of the Commonwealth of Independent States stem mainly
from their:
A. agreement to the European Trade Pact.
B. former Soviet membership.
C. UN membership.
D. affiliation to the Eurasian Alliance.
E. WTO membership.
Answer:
Once a researcher has defined the research problem and established research objectives,
the researcher must:
A. effectively communicate the problem and objectives to decision makers.
B. analyze, interpret, and summarize the results.
C. determine the sources of information to fulfill the research objectives.
D. assess the suitability of available statistical methods for analyzing the data.
E. evaluate the cost and benefits of the research effort.
Answer:
Japan was an isolated country before the arrival of _____ in 1853.
A. Marco Polo
B. Admiral Halsey
C. Commodore Perry
D. Admiral Pennington
E. The East India Company
Answer:
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
Answer:
Under common law, the ownership of intellectual property is established by _____.
A. title deeds
B. use
C. tradition
D. patent
E. registration
Answer:
In the context of the communications process in advertising, problems of literacy, media
availability, and types of media create challenges in the communications process at the
_____ step.
A. feedback
B. decoding
C. amplification
D. encoding
E. message selection
Answer:
_____ are the major components in the marketing communications mix for most
companies.
A. Public relations and advertising
B. Direct selling and trade shows
C. Advertising and personal selling
D. Public relations and sales promotions
E. Direct selling and sales promotions
Answer:
Tall Pine Plywood Company has just received a notice that a shipment of plywood (2
metric tons) has been rejected by the customs administration of the recipient country
because the knotholes commonly found on a plywood sheet are too large. Which of the
following categories of nontariff barriers primarily uses such quality issues as a trade
barrier?
A. Quotas
B. Licenses
C. Embargoes
D. Boycotts
E. Standards
Answer:
Which of the following strategies can be effective in forestalling or minimizing the
effect of a total takeover of a multinational corporation’s holdings by a foreign
government?
A. Confiscation
B. Sole proprietorship
C. Expanding the investment base
D. Advertising
E. Leasing
Answer:
Which of the following images is a cultural stereotype that is most likely attributed to
American negotiators by foreign business negotiators?
A. The cowboy
B. The suave, smooth-talker
C. The pretentious connoisseur
D. The ‘stiff upper lip”
E. The samurai
Answer:
Which of the following behaviors of the Spaniards reinforces the view that Spanish
negotiators use a high percentage of commands?
A. Extensive use of silent periods
B. Highest incidence of touching another negotiator
C. Greeting callers on the phone with “diga” (speak)
D. Shunning eye contact with others
E. Wishing others with a “hola” or “bueno”
Answer:
Countries such as Germany allow for greater use of expatriates in international sales
forces. Which of the following is most likely to be the reason for this?
A. Germany is a member of the World Trade Organization.
B. Germany has a relationship-oriented culture.
C. The German language is easy to master.
D. Germany has an information-oriented culture.
E. Germany is a member of the United Nations Organization.
Answer:
Which of the following is most likely to cause the biggest problems for television and
radio advertisers in China?
A. Low levels of television and radio penetration
B. The rigid theocratic rule
C. Lack of common language
D. The rigid adherence to traditional values
E. Lack of investment
Answer:
In the context of the four stages of business negotiations, _____ includes all those
activities that might be described as establishing rapport, but it does not include
information related to the “business” of a meeting.
A. persuasion
B. concessions and agreement
C. negotiation setting
D. task-related exchange of information
E. nontask sounding
Answer:
Phil, a purchasing manager at a departmental store in the United States, is engaged in
negotiations with a Brazilian supplier. Which of the following signals would indicate
that Phil has been making progress in the negotiations with the Brazilians?
A. Lowered bargaining by the Brazilians
B. Involving Brazilian executives of lower ranks to continue the discussions
C. A noticeable decrease in instances of private conversations among the Brazilians
D. Questions by Brazilians that focus primarily on the more general areas of the deal
E. A softening of attitudes and positions of the Brazilians on some of the issues
Answer:
A consortium is different from a joint venture in that a consortium:
A. usually operates in a country in which the participants are already active.
B. typically involves a large number of participants.
C. restricts the right to hold an equity position by its major partners.
D. does not involve the creation of a separate legal entity.
E. is formed mainly for executing short-term projects.
Answer:
Which of the following barriers faced by consumer service marketers is in force when a
foreign market strictly requires that services (such as banking or insurance) originate
within the country itself and not from outside?
A. Protectionism
B. Lack of transborder data flows restrictions
C. Protection of intellectual property
D. Religious requirements for adaptation
E. Language translation barriers
Answer:
Mike grew up learning a great deal about his culture from his school, the church, the
media, and his family. This kind of learning of culture is called:
A. acculturation.
B. socialization.
C. naturalization.
D. emancipation.
E. classification.
Answer:
As an outcome of the Uruguay Round of intergovernmental tariff negotiations on the
General Agreement on Tariffs and Trade, the first multilateral, legally enforceable
agreement covering trade and investment in the services sector was formulated. This is
termed the _____.
A. Trade-Related Aspects of Intellectual Property Rights (TRIPs)
B. Trade-Related Investment Measures (TRIMs)
C. General Agreement on Trade in Services (GATS)
D. Comprehensive Economic Cooperation Agreement (CECA)
E. Trade in Services and Investment Obligations Act (TSIO)
Answer:
In the context of global population trends, a nation needs a fertility rate of about 2.1
children per woman to be able to:
A. reduce its population.
B. maintain its population.
C. encourage immigration.
D. increase its population.
E. discourage immigration.
Answer:
The emergence of pan-European communications media will most likely cause
companies to:
A. opt for localized promotional campaigns.
B. opt for greater customization of promotional efforts.
C. promote their products only in English.
D. use only the Internet as their message channel.
E. choose more standardized promotional efforts.
Answer:
Most toy manufacturers would agree that toys cannot be marketed profitably in
countries without commercial television advertising directed toward children. In this
scenario, commercial television advertising exemplifies the availability of appropriate
_____.
A. demonstrations
B. personal selling services
C. direct mailing services
D. financial aid
E. communication channels
Answer:
Given the greater uncertainties and data limitations associated with foreign markets,
two methods of forecasting demand are particularly suitable for international marketers.
Which of the following is one of those methods?
A. Probabilistic forecasting
B. Expert opinion
C. Simulation
D. Extrapolation
E. Scenario building
Answer:
Which of the following is a characteristic of cultures with high Uncertainty Avoidance
Index (UAI)?
A. They are highly tolerant of ambiguity.
B. They tend to have a low level of anxiety.
C. They have a low level of concern with security and rule following.
D. They take a more empirical approach to understanding and knowledge.
Answer:
Sixty percent of the Japanese population lives in the _____ market area, which
essentially functions as one massive city.
A. Tokyo-Nagoya-Osaka
B. Komaki-Tokoname-Kariya
C. Nagoya-Handa-Seto
D. Nishio-Okazaki-Inazawa
E. Inuyama-Nisshin-Takahama
Answer:
Who are frequently criticized for not representing the best interests of a manufacturer?
A. Global wholesalers
B. Trading companies
C. Consumers
D. Merchant middlemen
E. Brokers
Answer:
_____ seeks “interpretation through the past decisions of higher courts which interpret
the same statutes or apply established and customary principles of law to a similar set of
facts.”
A. Constitutional law
B. Family law
C. Criminal law
D. Civil law
E. Common law
Answer:
_____ is the study of the earth’s surface, climate, continents, countries, peoples,
industries, and resources.
A. Geophysics
B. Geography
C. Cartography
D. Demography
E. Remote sensing
Answer:
The negotiators in the Pearl River Delta are reputed to be _____.
A. much more calculating than traders in Shanghai
B. relatively honest and forthright
C. very poor traders
D. more interested in making long-term gains
E. cut-off from foreign influences
Answer:
Lush Cosmetics Corp., a U.S.-based firm, has recently started exporting cosmetics to
India. Lush has introduced a new range of mineral-based makeup products for the first
time in the Indian market. As Lush has no competitors in this segment of the Indian
cosmetics market, it has set a very high price for its products in order to reach the
premium, price insensitive segment of the market. This is an example of _____.
A. penetration pricing policy
B. psychological pricing policy
C. bundling
D. price skimming
E. cost-based pricing policy
Answer:
In relationship-oriented cultures, _____ speaks quite loudly in both persuasion and the
demonstration of interest in a business relationship.
A. the bottom line
B. profit
C. team strength
D. secrecy
E. rank
Answer:
Describe the relationship between Uncertainty Avoidance Index scores and stress.
Answer:
List the major international conventions designed for mutual recognition and protection
of intellectual property rights.
Answer:
Define international marketing. How it is different from domestic marketing?
Answer:
What is secondary wholesaling?
Answer:
What is a countertrade? What are the problems of countertrading?
Answer:
What are the criteria for selecting international business negotiators?
Answer:
Write a brief note on parallel importing.
Answer:
What is a commonwealth?Discuss the features of this form of economic integration.
Answer:
Explain the importance of follow-up communications and procedures in international
business negotiations.
Answer:
What is a foreign sales corporation?
Answer:
What are the four kinds of problems caused by cultural differences in international
business negotiations?
Answer:
Discuss stability of governments and list the main political causes of instability in
international markets.
Answer:
Explain, with some examples, how climate and topography of a country affect its
economic profile.
Answer:
Why do U.S. multinational companies hesitate to offer women international
assignments? Is this prejudice justified?
Answer:
How should American businessmen approach the decision-making process in
negotiations with their Asian counterparts? What are the important signals of progress
in a business negotiation?
Answer:
How do approaches to complex negotiation tasks differ between Westerners and
Asians?
Answer:
Three factors affect the demand in international industrial markets differently than in
consumer markets. What are these factors?
Answer: