In the context of international business negotiations, when faced with a complex
negotiation task, most Asians divide the large task up into a series of smaller tasks.
French business negotiators use the lowest percentage of self-disclosure yet, they also
use, by far, the highest percentages of promises and recommendations.
Derived demand can be defined as demand that depends on the size of the market for
the good.
In Marxist-socialist societies, law is subordinate to prevailing economic conditions.
According to some economists, economic prosperity is a factor that leads to decline in
fertility rates.
Strategic planning is conducted at the highest levels of management and deals with
products, capital, research, and long-term and short-term goals of the company.
Buyers in Country X preferred to use the older version of Firm A’s product although it
was bulkier and less user-friendly. Buyers in Country Y, however, preferred to use the
newer, lightweight version for its new user interface. What can be inferred from this
information?
A. Firm A needs to revamp its after-sales services.
B. The sales of industrial goods are higher in Country X than in Country Y.
C. The perception of quality can differ across countries.
D. Country X is a highly industrialized nation.
E. Country Y has a lower average income level compared to Country X.
Wayne is working at the overseas branch of his organization. He needs some
clarification about a project. He approaches a senior manager thinking he would get a
good explanation. However, he is instructed to follow protocol and sent away. Also, he
is informed that only team leads are allowed to approach senior managers. This implies
that the organization has a ______ score.
A. high Individualism/Collective Index
B. high Power Distance Index
C. low Individualism/Collective Index
D. low Power Distance Index
E. high Uncertainty Avoidance Index
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
Which of the following is true of advertising agencies for international advertising?
A. Cross-cultural communication between a foreign client and a local agency can be
problematic.
B. A multinational agency always has the best feel for a market.
C. A multinational agency provides the best cultural interpretation in a situation in
which local modification is required.
D. A local domestic agency may provide a company with a high level of sophistication.
E. Agency commission patterns are consistent throughout the world.
One of the challenges facing the European Union in the next 50 years is:
A. deciding on how to limit the political aspects of union.
B. diluting the value of the euro.
C. strengthening ties with the United Nations.
D. deciding on how to control the individualistic European population.
E. how to control rapid expansion.
Which of the following is true of open accounts?
A. Sales on open accounts are very common method of payment in foreign trade.
B. Sales on open accounts are generally recommended when special merchandise is
ordered by the buyer.
C. Sales on open accounts are not generally recommended when there is political unrest
in the importer’s country.
D. When the country of the importer imposes difficult exchange restrictions, the best
payment arrangement recommended is open accounts.
E. Sales on open accounts are less risky for the seller when it involves new buyers.
Chile, Brazil, Mexico, South Korea, Singapore, and Taiwan are _____ countries.
A. least-developed
B. kinetically-developing
C. parallel-developed
D. newly industrialized
E. rapid-growth
The United States required that 50 percent of all parts used in an automobile
constructed in the United States must contain parts that were manufactured in the
United States. When Toyota Motor Company built automobile manufacturing plants in
Tennessee and Ohio, it faced economic risks associated with _____.
A. exchange controls
B. local-content laws
C. import restrictions
D. tax controls
E. price controls
_____ planning is conducted at the highest levels of management and deals with
products, capital, research, and the long- and short-term goals of the company.
A. Operational
B. Tactical
C. Corporate
D. Strategic
E. Personnel
While expanding the investment base of a company, which of the following can be used
as a powerful ally in dealing with threats of government takeovers or harassment?
A. Banks lending to the host government
B. World Trade Organization
C. International Labor Organization
D. Regional trade blocs
E. Opposing political parties
Modern medicine has thrived in the United States together with the use of herbal
remedies from South America. This is an example of:
A. cultural ombudsmanship.
B. cultural congruence.
C. cultural hegemony.
D. cultural sensitivity.
E. cultural borrowing.
Even though American sellers make lower profits than the Japanese, many American
managers apparently prefer lower profits if those profits are yielded from a more equal
split of the joint profits. This demonstrates that Americans and Japanese have different
views about _____.
A. favoritism
B. competitiveness
C. individualism
D. fairness
E. nepotism
Which of the following statements is true regarding the Internet?
A. The Internet increases the economically optimal size for firms.
B. The Internet increases the transaction costs.
C. The Internet allows for innovative services but at a relatively higher cost.
D. The Internet enables smaller firms in emerging economies to sell into a global
market.
E. The Internet increases the economies of scale from vertical integration.
An international business negotiator’s primary job is collecting information with the
goal of enhancing creativity. Which of the following steps may be taken during a
meeting to ensure that the negotiator is able to do his job well?
A. Appointing different members of the team to provide self-disclosures and
appropriate replies to queries.
B. Bringing along junior executives for the purpose of training through observation and
participation.
C. Providing additional information to the other party when all the members fall silent
during the meeting.
D. Assigning one team member the sole responsibility of taking careful notes and not
worrying about speaking.
E. Including higher-rank executives and using informal channels of communication.
The Uncertainty Avoidance Index measures the tolerance of uncertainty and _____
among members of a society.
A. inequality
B. subjugation
C. ambiguity
D. oppression
E. hierarchy
What is the difference between forfaiting and factoring?
Discuss the price-quality relationship.
What is a countertrade?What are the problems of countertrading?
Compare an information-oriented culture like America with a relationship-oriented
culture like Japan.
Why was Caribbean Community and Common Market (CARICOM) created? What are
its goals?
What are the trends that spur demand for technologically advanced products?