The reserves account is a record of direct investment, portfolio investment, and
short-term capital movements to and from countries.
In the context of planning for global markets, the planning process is a primary medium
of organizational learning.
For companies today, becoming international is a luxury only some can afford.
The possibility of a parallel market occurs whenever price differences are lesser than
the cost of transportation between two markets.
For countervailing duties to be invoked, it must be shown that prices are higher in the
importing country than in the exporting country.
In various cultures of the world, acceptance for hybrid grains was obtained through
unplanned change.
According to Jared Diamond, a professor of physiology, innovations spread faster north
to south than east to west.
Understanding one’s own culture normally requires no additional study.
The level of political stability in a country is the single most important environmental
element to which the foreign marketer must adjust the marketing task.
Which of the following strategies to minimize political vulnerability and risk has the
advantage of engaging the power of several investors and banks in the host country
whenever any kind of government takeover or harassment is threatened?
A. Joint ventures
B. Licensing
C. Expanding the investment base
D. Sole-proprietorship
E. Political bargaining
With reference to the North American Free Trade Agreement (NAFTA), explain the
term €rules of origin’.
In countries like Japan, a sales force is likely to be most effective if it consists mostly
of:
A. professional expatriates.
B. local nationals.
C. virtual expatriates.
D. third world nationals.
E. expatriates from Asian countries.
Jefferson’s is a firm that specializes in dog food and grooming products. The company
has a very well-established domestic market. The company does not actively sell its
products outside national borders but provides goods to customers who contact them
directly or place orders with them through the Internet. Jefferson’s is currently in the
_____ stage of international marketing involvement.
A. frequent foreign marketing
B. active foreign marketing
C. global marketing
D. regular foreign marketing
E. no direct foreign marketing
_____ is a nonbinding agreement between parties to resolve disputes by asking a third
party to mediate differences.
A. Litigation
B. Prosecution
C. Arbitration
D. Conciliation
E. Coercion
Which of the following primary relationship activities in building strategic alliances
involves bringing key executives into action and creating trust through face-to-face
time?
A. Dating
B. Initiating
C. Committing
D. Imaging
E. Interfacing
Bahamas is a member of _____.
A. CARICOM
B. NAFTA
C. CFTA
D. LAIA
E. Mercosur
Building a strategic international alliance (SIA) takes several steps to be successful. The
first step in building strategic alliances is called “dating.”
In the context of evaluating and controlling sales representative, the primary control
tool used by American sales managers is the:
A. threat of termination.
B. quota system.
C. incentive system.
D. attraction of a foreign assignment.
E. threat of foreign postings.
A major trade-off when using home-country middlemen is:
A. the large financial investment required.
B. the limited control over the entire distribution process.
C. the large managerial investments required.
D. the limited number of retailers in the foreign country who can be reached through
the home-country middlemen.
E. the large amount of commission charged by the home-country middlemen.
Harry and his team have undertaken a marketing research study to help their company
expand in the Eastern European region. Which of the following marketing research
process steps is Harry likely to end his research efforts with?
A. Define the research problem and establish research objectives.
B. Analyze, interpret, and summarize the results.
C. Effectively communicate the results to decision makers.
D. Consider the costs and benefits of the research effort.
E. Gather the relevant data from secondary or primary sources, or both.
Which of the following acts developed by the European Union erases legal and trade
differences that have existed for decades between the member nations?
A. European Sanctity Act
B. European Indemnification Act
C. European Unification Act
D. Single European Market Act
E. Foreign Corrupt Practices Act
Which of the following countries would be characterized as being in Stage 2 of
Rostow’s five-stage model of economic growth?
A. Russia
B. Sudan
C. South Korea
D. Czech Republic
E. Vietnam
Why it is important to bring along a senior executive to an international business
negotiation?
A. Influence at headquarters is crucial to success.
B. The flexible position of the organization is indicated.
C. The specific technical details of the deal can be discussed.
D. Information can be collected with the goal of enhancing creativity.
E. A larger number of nodding heads can exercise greater influence.
Write a short note on virtual expatriates. What are the disadvantages associated with
virtual expatriates?
List the major international conventions designed for mutual recognition and protection
of intellectual property rights.
Write a short note highlighting the key features of quantitative research.
Discuss the export trading company act (ETC).
Identify the two types of licenses required for export.
Describe the concept of nationalism and list some of the ways it manifests.
What is secondary wholesaling?
Exporting countries primarily agree to voluntary export restraints (VERs) to:A. gain
greater exposure in the home country.
B. reduce market competitiveness.
C. avoid the chances of stiffer quotas and tariffs.
D. take over local industries.
E. avoid criminal prosecution.
Why is the international marketer’s task more difficult than that of the domestic
marketer?