The GATT became part of the World Trade Organization in 1995 with the ratification of
the Uruguay Round agreements.
Answer:
Sales on open accounts are recommended when shipping is hazardous.
Answer:
Commercial sources, trade associations, management groups, and state and local
governments are good sources of primary data for a researcher.
Answer:
When foreign currencies can be traded for more dollars, U.S. products and companies
are more expensive for the foreign customer and exports decrease.
Answer:
Capitalism is the most serious threat to the continued expansion of international
services trade.
Answer:
In the context of U.S. foreign policies, the Roosevelt Corollary was an extension of the
policy of the Monroe Doctrine.
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The DR-CAFTA includes a wide array of tariff reductions aimed at increasing trade and
employment.
Answer:
In countries with low-literacy rates, the pictures and symbols on products are literally
taken as instructions and information.
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The first Soviet republics to declare independence were the Baltic states.
Answer:
Tactical planning is essentially long term, incorporating generalized goals for an
enterprise as a whole.
Answer:
An exchange permit issued by a government can stipulate an unfavorable rate of
exchange depending on the desires of the government.
Answer:
Businesspeople in low-context cultures use e-mail more often than those in
high-context cultures.
Answer:
The main disadvantage of hiring local nationals for an international sales force is the
tendency of headquarters personnel to ignore their advice.
Answer:
The most advanced and viable of Africa’s regional organizations is called the Southern
African Development Community.
Answer:
Legal ownership in one country does not necessarily mean ownership in other
countries.
Answer:
In a free trade zone, payment of import duties is postponed until the product leaves the
free trade zone and enters the country.
Answer:
The Commonwealth of Independent States is a loose economic and political alliance
with open borders but no central government.
Answer:
Trade shows are the most important channel of advertising for consumer goods.
Answer:
The Individualism/Collective Index, identified by Geert Hofstede, refers to the
preference for behavior that promotes one’s self-interest.
Answer:
The most universal survey research problem in foreign countries is fear of government
reprisal.
Answer:
Derived demand can be defined as demand dependent on another source.
Answer:
The political and legal environment is a controllable element for international marketers
because of their potent ability to lobby and influence legislation in foreign markets.
Answer:
Among three kinds of distances that international marketers must traverse, time zones
have the greatest influence on the success of their commercial efforts abroad.
Answer:
Industrial advertisers rarely use direct mail for advertising.
Answer:
Japan is an exceptional place because on almost every dimension of negotiation style
considered the Japanese are on or near the end of the scale.
Answer:
Different cultures often seek the same value or benefits from the primary function of a
product.
Answer:
In the context of advertising, a marketer’s self-reference criterion (SRC) affects the
ultimate success of the communication.
Answer:
Services such as insurance and dry cleaning are classified as tangible.
Answer:
Political and legal forces, economic climate, and competition are some of the domestic
environment’s controllable factors.
Answer:
Competitive advertising is a source of noise in the international communications
process.
Answer:
Merchant middlemen tend to be more controllable than agent middlemen because they
take title to manufacturers’ goods.
Answer:
Personal career planning for the expatriate is a significant strategy that helps companies
prevent returnee attrition.
Answer:
A proper encoding system allows a company to correct errors before substantial damage
occurs.
Answer:
The global marketing concept views the marketplace as consisting of one primary
domestic market that is complimented by several smaller regional markets.
Answer:
A majority of services enter foreign markets by licensing, franchising, or direct
investment.
Answer:
Which of the following is true of culture?
A. It is a set of texts considered to be sacred.
B. It is a society’s accepted basis for responding to external and internal events.
C. It is a branch of philosophy dealing with beauty and taste.
D. It is the philosophical study of being and knowing.
E. It is a set of written rules governing socially acceptable behavior.
Answer:
In Japan, _____ refers to the factual truth, irrespective of the damage it might do to the
all-important social relationships within and between Japanese companies.
A. kanban
B. honne
C. keiretsu
D. zaibatsu
E. tatemae
Answer:
An exchange permit can stipulate the:
A. quantity of goods that can be exchanged for a particular sum of foreign currency.
B. number of parties that can be involved in an exchange transaction.
C. amount to be exchanged that must be deposited in a local bank for a set period.
D. quality standards of the goods involved in an exchange.
E. number of times one party can avail exchange permits.
Answer:
_____ is considered complete as a result of catchall provisions found in most of this
type of law systems.
A. Common law
B. Code law
C. Islamic law
D. Marxist-socialist tenets
E. The English legal tradition
Answer:
Dynamic economies differ from static economies in that dynamic economies:
A. need not match marketing efforts with the market needs and wants.
B. have rapidly changing consumption patterns.
C. have a highly predictable and loyal consumer base.
D. define marketing as typically nothing more than a supply effort.
E. do not require a marketer to be prepared for economic shifts and emerging markets.
Answer:
Which of the following is true of the marketing opportunities in Greater China?
A. It has an efficient distribution and channel system and so companies can save on
infrastructure building.
B. There are extreme differences in economic well-being, cultures, and political
structures.
C. Unlike the United States, luxury cars sell better in rural areas of the west.
D. The economic system of China is based entirely on capitalist principles.
E. Selling consumer products in China requires little cultural nuance.
Answer:
South Africa is most likely to experience rapid economic growth in as few as 10 years
owing to:
A. the rise of communism.
B. its induction into the ASEAN.
C. its industrial base.
D. the economic embargo laid upon it by the UN.
E. the decoupling of small African markets from it.
Answer:
Which of the following instances is most likely a manifestation of nationalism?
A. Membership in bilateral trade treaties
B. Call to buy a global counterpart’s products
C. Restrictions on imports
D. Removal of tariffs and quotas
E. Focus on global security
Answer:
Home-country middlemen are also known as _____ middlemen.
A. area
B. local
C. merchant
D. domestic
E. regional
Answer:
Stopping or refusing to trade with another nation for political reasons is called:
A. monopolizing.
B. boycotting.
C. confiscation.
D. democratization.
E. expropriation.
Answer:
Which of the following statements is true of a traditional distribution structure?
A. The distribution system is national in scope.
B. The relationship between the importer and any middleman is similar to that found in
a mass-marketing system.
C. The idea of a channel as a chain of intermediaries performing specific activities and
each selling to a smaller unit beneath it until the chain reaches the ultimate consumer is
common.
D. Independent agencies providing functions such as advertising, marketing research,
and financing are part of this distribution structure.
E. The marketing system develops around the philosophy of selling a limited supply of
goods at high prices to a small number of affluent customers.
Answer:
Illustrate the “one country, two systems” approach of China.
Answer:
C. K. Prahalad and associates introduced the concept of a global market, not necessarily
defined by national borders but rather by the pockets of poverty across countries, and
consisting of 4 billion people across the globe with annual incomes of less than $1,200.
They refer to these consumers, concentrated in the LDCs and LLDCs, as _____
markets.
A. subsistence
B. third-world
C. underdeveloped
D. bottom-of-the-pyramid
E. peripheral
Answer:
Adam Smith in his TheWealthofNations stated, “By pursuing his own interest he
frequently promotes that of the society more effectually than when he really intended to
promote it.” What behavior does this notion attempt to justify?
A. Collectivism
B. Loyalty
C. Welfare mentality
D. Competitiveness
E. Cooperation
Answer:
_____ refers to being attuned to the nuances of culture so that a new culture can be
viewed objectively, evaluated, and appreciated.
A. Cultural shock
B. Cultural apathy
C. Counter culture
D. Cultural sensitivity
E. Culture transfer
Answer:
In studies conducted at Ford Motor Company and AT&T, some traits were found to be
important predictors of negotiator success with international clients and partners. Which
of the following was one of these traits?
A. Ability to function without team assistance
B. Influence at headquarters
C. Appreciation of external factors in negotiations
D. Ability to command attention from an audience
E. Willingness to take copious notes during negotiations
Answer:
Which of the following is the final step in an international commercial dispute when all
the other methods have failed?
A. Conciliation
B. Encouraging one’s government to force the other party to comply
C. Restarting the arbitration process
D. Litigation
E. Coercion
Answer:
Which of the following is a characteristic of a professional expatriate?
A. They work abroad for a period of one month and then return to the home office.
B. They work for a foreign company in a third country for a short period.
C. They work abroad in country after country for the greater part of their careers.
D. They work in their home branches for most of their careers.
E. They manage operations in other countries but do not move there.
Answer:
With regard to resistance to change, observations indicate that those innovations most
readily accepted are those that:
A. cater to the values of the predominant religion of the society.
B. propagate faith in a set of beliefs different from the existing beliefs.
C. are apathetic to the existing cultural beliefs.
D. hold the greatest interest within the society and those that are least disruptive.
E. offer some insight into the aesthetics of the existing culture.
Answer:
What is the tenet that China follows to ensure that Hong Kong’s exuberant capitalism is
retained despite the communist leanings of mainland China?
A. Absolute plutocracy
B. Sovereignty of the provinces
C. Theocracy
D. Noninterventionist approach
E. One country, two systems
Answer:
Which of the following statements is true with respect to the economic effects of
controlling population growth?
A. Fertility rates increase proportionately to the rate of economic growth.
B. A decline in fertility rate is a function of economic prosperity.
C. Lower male-female ratios favor higher fertility rates.
D. Developing nations tend to have lower fertility compared to developed nations.
E. Higher population growth rates have resulted in increased global trade.
Answer:
The marketing process in the U.S between 1885 and 1914 mainly focused on _____.
A. mass distribution
B. self-sufficiency
C. mass production
D. surplus commodity product
E. commercial-transition
Answer:
GreatW, a wine company, had to market its products with a different name in a foreign
market as it was mandatory to translate the name into the local language. Which of the
following factors has most likely influenced the compulsory change of GreatW’s
product name in the foreign market in this scenario?
A. Legal requirement
B. Climatic requirement
C. Technological requirement
D. Monetary requirement
E. Economic requirement
Answer:
Nuan, a television manufacturer in Korea, had to simplify its televisions before
introducing it to the Zimbabwean markets, as the country lacked the skills to repair the
product in case of a malfunction. The local salesforce too did not have the sufficient
knowledge about the installation of the product. The factor that is influencing product
adaptation in this scenario is ________.
A. legal requirements
B. climatic requirements
C. political requirements
D. cultural requirements
E. technological requirements
Answer:
Code law is based upon _____.
A. the interpretation through the past decisions of higher courts
B. the established and customary principles of law and their legal precedence
C. an all-inclusive system of written rules of law
D. the interpretation of the Koran
E. the codes of English law that apply in all countries under English influence
Answer:
Which of the following events occurred during the Mexican Revolution?
A. The overthrowing of dictator Ernesto Zedillo
B. The youth movement against religion
C. The nationalization of Mexican oil industry
D. The expulsion of North American businessmen
E. The support of French arms for revolutionaries
Answer:
S&F Advertising Agency has just signed a contract with Miracle Inc., a
multimillion-dollar cosmetics company, to make advertisements for Miracle’s products.
Miracle wants S&F to come up with creative ideas for its recent expansion into South
Asian markets of India and Indonesia. In order to accommodate Miracle, S&F has now
opened offices in two Indian cities and one Indonesian city. In this context, S&F is a
_____.
A. head hunter
B. client follower
C. bargain hunter
D. bet padder
E. risk avoider
Answer:
Which of the following is true of the Maastricht Treaty?
A. It serves as a deterrent for the political unification of the European countries.
B. It restricts movement of goods between the United Kingdom and France.
C. It allows for the free movement of persons between the United States and Canada.
D. It allows for the free movement of goods throughout the member states of the
European Union.
E. It is the first European treaty whose terms have been universally accepted.
Answer:
In the context of selecting sales and marketing personnel, which of the following is the
most important quality that a recruiter should consider while hiring marketing
personnel?
A. They should have little cultural empathy as this might distract them from their main
purpose.
B. When working in a foreign country, they must be capable of taking decisions that are
not influenced by the habits of the market.
C. They should be able to represent a culturally superior image of their country and its
products.
D. They should be hypersensitive to the behavioral variations in different countries.
E. They should possess a considerable breadth of knowledge of many subjects both on
and off the job.
Answer:
Which of the following strategies is most effective in minimizing political risks for a
multinational corporation in situations in which the technology is unique and the risk is
high?
A. Trade embargo
B. Licensing
C. Expanding the investment base
D. Planned confiscation
E. Expropriation
Answer:
The finance minister of a developing country demands a heavy payment for the
approval of a multi-million dollar contract with a foreign company. This demand for the
lump sum payment is called _____.
A. extortion
B. subornation
C. lubrication
D. larceny
E. malfeasance
Answer:
In view of China’s size, diversity, and political organization, it is not possible to have
one-growth strategy for China.
Answer:
Which of the following is one of the highest costs of doing business in China?
A. Money required for the transportation of goods
B. Money required for obtaining appropriate permits
C. Cost of local advertising
D. Capital required to maintain effective distribution
E. Cost of customizing products for the Chinese market
Answer:
Which of the following countries or group of countries has been at the forefront of the
“green movement”?
A. The United States
B. Japan
C. Europe
D. OPEC countries
E. NAFTA countries
Answer:
A _____ policy is used to stimulate market and sales growth by deliberately offering
products at low prices.
A. penetration pricing
B. variable-cost pricing
C. premium pricing
D. price skimming
E. full-cost pricing
Answer:
What is the reason for the failure of individual incentives to motivate employees in
Japan?
Answer:
Discuss the meaning and nature of cartels. Are these groups beneficial?State an
example.
Answer:
In the context of negotiation preliminaries, list the seven aspects of the negotiation
setting that must be manipulated ahead of time, if possible.
Answer:
List and briefly describe the various factors that promote the economic growth of newly
industrialized countries (NICs)?
Answer:
List the six steps in the research process.
Answer:
Write a short note on the analogy method of demand forecasting.
Answer:
“The construction of dams is a good example of how an attempt to harness nature for
good has a bad side.” Explain.
Answer:
What are the various advantages and disadvantages of the decentralization of the
international marketing research function?
Answer:
Why do historical records tend to be subjective? Why is a proper understanding of this
concept essential for a marketer?
Answer:
Explain the two different views of what constitutes price decisions.
Answer:
Explain the impact of the Internet on the economic development.
Answer:
Assume that you are a consultant for a telecom giant based in the United States that
wishes to create a joint venture with a Japanese electronics company. The joint venture
is expected to enter and compete in the Scandinavian market. Suggest an organizational
structure that would be most suitable for this joint venture. Also, comment on why the
structure might be a good one to use.
Students’ answers may vary.
Answer:
Briefly describe the modus operandi of cybersquatters.
Answer:
What are the arguments in favor of protectionism? Which of them are generally
recognized as valid by economists?
Answer: