Which of the following ensures that balance-of-payments records are always in
balance?
A. Sum of squares recording system
B. Bank reconciliation system
C. Double-entry bookkeeping system
D. Archival records system
E. Multifactor recording system
Answer:
A marketer may face lower costs by shipping unassembled goods to a free trade zone
(FTZ) in an importing country because:
A. locally produced components may not be used in production.
B. wages may be lower in the importing country.
C. FTZs levy higher taxes and surcharges on imported goods.
D. ocean transportation rates may not be affected by the weight and volume of the
components.
E. duties may be assessed at a higher rate for unassembled goods.
Answer:
Which of the following is a common term for a form of government in use today?
A. Protectionism
B. Duopoly
C. Oligopoly
D. Capitalism
E. Oligarchy
Answer:
Which of the following accounts for the lion’s share of Mercosur exports to Europe?
A. Clothing and apparel
B. Telecommunication equipment
C. Consumer durables
D. Petroleum and minerals
E. Agricultural and agro-industrial products
Answer:
Marketers use three different techniques to ferret out translation errors in marketing
research questionnaires ahead of time. Which of the following is one of those
techniques?
A. Simultaneous translation
B. Parallel translation
C. Serial translation
D. Linear translation
E. Recentering
Answer:
Which of the following is true of international currencies?
A. Exchange rate volatility index can be used to accurately predict the value of any
currency.
B. The value of all currencies is set by the World Trade Organization.
C. All major currencies are floating freely relative to one another.
D. All currencies are fully backed by gold reserves.
E. The World Bank mandates a fixed exchange rate regime.
Answer:
According to the United Nations’ stages of economic development for classifying
countries with respect to levels of industrialization, a country that is industrially
underdeveloped, agrarian, has subsistence society with rural populations, and has
extremely low per capita income levels falls under the category of _____.
A. first world countries
B. least-developed countries
C. less-developed countries
D. newly industrialized countries
E. frontier markets
Answer:
Which of the following is true of adaptation in international marketing?
A. Willingness to adapt is a crucial attitude in international marketing.
B. Adaptation requires business executives to forsake their ways and change to local
customs.
C. Mere acknowledgement and not tolerance of alien cultures is sufficient in
international marketing.
D. Open tolerance is considered to be an unnecessary concession to foreign cultures.
E. Empathy for foreign cultures may lead to cultural discord.
Answer:
The uncontrollable issue of _____ faced by a company abroad is often amplified by the
“alien status” of the company, which increases the difficulty of properly assessing and
forecasting the dynamic international business climate.
A. research
B. channel of distribution
C. product specification
D. politics
E. product promotion
Answer:
In the context of international marketing, most expatriate failures are caused by lack of:
A. management skills.
B. technical skills.
C. an understanding of cultural differences.
D. knowledge of the product line.
E. knowledge of the company.
Answer:
In the international communications process, the sales force of a company that conveys
the encoded content to the intended receiver acts as a(n) _____.
A. decoder
B. interpreter
C. receiver
D. message channel
E. noise
Answer:
Which of the following is one of the reasons that have hampered the conferences held
by the United Nations Economic Commission for Africa to bring about holistic
integration?
A. Governmental inexperience
B. Depletion of natural resources
C. Excessive influx of products
D. Lack of beneficial funds
E. Excess of cheap labor
Answer:
Civil or code law is derived from _____.
A. English law
B. Economic law
C. Greek law
D. Persian law
E. Roman law
Answer:
Mervin is excited about his new home in the Philippines. Though a native of Los
Angeles, he has been given the opportunity to learn about a new culture, form new
friendships, and capitalize on opportunities that were not available in his previous home
or workplace. In this scenario, he is most likely to go through what is known as _____
as he adjusts to living in the Philippines.
A. acculturation
B. classification
C. naturalization
D. emancipation
E. standardization
Answer:
Adherence to the WTO inevitably means:
A. a definite increase in import tariffs worldwide.
B. the loss of national security to a large extent.
C. reduction in world trade by at least 70 percent.
D. the loss of some degree of national sovereignty.
E. complete stoppage of foreign direct investments.
Answer:
Arbitration clauses require agreement wherein the concerned parties agree:
A. on who is right and who is wrong.
B. on the validity of the litigation issues.
C. to abide by the awards resulting from the arbitration.
D. to not hire a legal counsel to represent them.
E. to not name the arbitrators.
Answer:
A manager hires an agent to obtain a license to build a warehouse in an industrial
district. The agent gets caught offering a bribe to a government official for issue of the
license. Which of the following describes the manager’s liabilities?
A. The manager is not liable since the use of an agent absolves him of any
responsibility.
B. The manager is liable since the agent used part of his fees for bribery, although the
manager was unaware of the agent’s intentions.
C. The manager is not liable if the agent can prove that extortion, rather than bribery,
took place.
D. The manager is liable if he was aware of the fact that part of the agent’s fee will be
used as a bribe.
E. The manager is liable only if the act of building the warehouse at the given location
is illegal.
Answer:
After World War II, the United States led efforts like the Marshall Plan to assist in
rebuilding Europe, financial and industrial development assistance to rebuild Japan, and
funds channeled to foster economic growth in the underdeveloped world. These efforts
were primarily aimed at:
A. halting the growth of Nazi Germany.
B. dampening the spread of communism.
C. dampening the spread of capitalism.
D. building a stronger defense force.
E. creating a worldwide trade bloc to counter the OPEC countries’ clout.
Answer:
Great Britain has epitomized distribution through specialty-type middlemen,
distributors, wholesalers, and retailers. In recent years, however, there has been a trend
toward broader lines, conglomerate merchandising, and mass marketing. This suggests
that a firm that neglects the growth of self-service, scrambled merchandising, or
discounting may find that it has lost large segments of its market only because its
channels no longer reflect the _____ of the market.
A. character
B. continuity
C. control
D. cost
E. capital requirement
Answer:
One approach to defining the pricing policy of dumping is to say that it is a case where
a product is sold in the international market:
A. at a price below the cost of production.
B. only to the premium, price insensitive segment of the market.
C. where the demand for the product is lower than in the domestic market.
D. at a higher price than in the domestic market.
E. at the same price as in the domestic market.
Answer:
Which of the following agencies underwrites trade and investments for U.S. firms?
A. Export-Import Bank
B. The Federal Trade Commission
C. The Agency for International Development
D. Social Security Advisory Board
E. The Overseas Private Investment Corporation
Answer:
Which of the following organizations seems better equipped for internationalization?
A. A firm that sells its products only to those foreign customers who directly contact the
firm
B. A firm that has a production capacity that is much greater than home market demand
C. A firm that focuses its production activities on meeting the demands in the home
market
D. A firm that has a culturally diverse employee profile but few competitive offerings at
the global level
E. A firm that has little intention of maintaining a continuous market representation
Answer:
Pots and Pans Inc., a large U.S. kitchenware distributor, sells its inventory twice a year
to CookWell Corp., a kitchenware retailer in the United States. CookWell, in turn, sells
those products through its retail stores in Vietnam and Thailand. Which of the following
is Pots and Pans most likely engaged in?
A. Franchising
B. Indirect exporting
C. A consortium
D. Direct foreign investment
E. A joint venture
Answer:
_____ stem from shortages of foreign currency held by a country.
A. Exchange controls
B. Local-content laws
C. Price controls
D. Tax controls
E. Production costs
Answer:
Which of the following sources of energy dominates the world’s energy usage?
A. Hydroelectric power
B. Petroleum products
C. Wind energy
D. Geothermal power
E. Nuclear power
Answer:
The primary obstacles to success in international marketing are a person’s _____ and an
associated ethnocentrism.
A. conscious regionalism
B. holism
C. self-reference criterion
D. moral relativism
E. moral nihilism
Answer:
The first objective of _____ is to protect American consumers by ensuring that they
benefit from products and ideas produced by foreign competitors as well as by domestic
competitors.
A. incorporation laws
B. intellectual property laws
C. antitrust laws
D. indemnification laws
E. insurance laws
Answer:
Analysis of which of the following factors is carried out in Phase 2 of the international
planning process?
A. Host-country constraints
B. Product adaptation
C. Company character
D. Situation analysis
E. Budgets
Answer:
Companies in the regular foreign marketing stage:
A. fail to actively seek customers in international markets.
B. market their products in international markets only when there is an extensive
demand.
C. do not, under any circumstance, adapt their products to meet the needs of individual
foreign markets.
D. lack permanent productive capacity that is devoted for production of goods and
services to be marketed in international markets.
E. primarily focus their operations and production to service domestic market needs.
Answer:
Which of the following is possibly the best indicator of a country’s ability to use
technology to leap several stages of economic development in a very short time?
A. The quality of the educational system
B. The size of the population
C. The general economic environment
D. The size and growth rate of the market
E. The level of government regulations
Answer: