Which of the following provinces of China shares the closest economic ties with
Russia?
A. Liaoning
B. Jilin
C. Heilongjiang
D. Guangdong
E. Hainan
Answer:
Which of the following methods is considered most effective while resolving disputes
with Chinese business partners?
A. Arbitration
B. Conciliation
C. Coercion
D. Litigation
E. Criminal suits
Answer:
In the context of nontariff barriers, antidumping practices fall under the category of:
A. specific limitations on trade.
B. customs and administrative entry procedures.
C. standards.
D. governmental participation in trade.
E. charges on imports.
Answer:
Which of the following is the top political issue concerning foreign businesses?
A. Demographic profile of political leaders
B. Government policies on infrastructure
C. Economic awareness of political leaders
D. Stability of prevailing government policies
E. Membership of governments in trade treaties
Answer:
What is the most profound change for firms at the global marketing stage of
internationalization?
A. More than half of the multinational firm’s revenue is generated from domestic
markets.
B. Sales to foreign markets are made as and when goods become available.
C. Temporary surpluses marketed in foreign markets is the only element of
internationalization.
D. Companies treat the world, along with home market, as one market.
E. Domestic demand always exceeds the firm’s production capacity.
Answer:
Firms that are unfamiliar with overseas marketing and firms that produce industrial
goods orient their pricing solely on the basis of:
A. cultural differences in perceptions of pricing.
B. market segmentation from market to market.
C. the costs of production of the goods.
D. market segmentation from country to country.
E. competitive pricing in the market.
Answer:
Which of the following statements is true of the Japanese market?
A. The costs of Japanese consumer goods are among the lowest in the world.
B. Manufacturers are independent of wholesalers for a multitude of services to other
members of the distribution network.
C. The Japanese distribution structure supports long-term dealer-supplier relationships.
D. Japanese law favors the establishment of large retail stores.
E. Japanese consumers favor price over personal service.
Answer:
To overcome the problems of inadequate monetary reserves and unstable currencies that
plagued international trading before World War II, the _____ was formed.
A. European Union
B. World Trade Organization
C. Federation of International Trade Associations
D. International Monetary Fund
E. United Nations Development Program
Answer:
Industrial goods are most likely to be standardized if:
A. they are produced by the same firm.
B. the cost of producing each unit is the same.
C. their uses are the same across markets.
D. they are sold to different income groups.
E. they are sold in different countries.
Answer:
Which of the following poses a major challenge to international marketers while
dealing with counterfeiting?
A. The ease with which consumers can tell the difference between real and counterfeit
products
B. The theft of products by pirates during shipping
C. Government regulations legitimizing counterfeiting
D. The collusion between contract manufacturers and illegitimate sellers
E. The widespread availability of duplication software
Answer:
_____ results from the added costs incurred as a result of exporting products from one
country to another.
A. Price deflation
B. Penetration pricing
C. Price escalation
D. Price gouging
E. Predatory pricing
Answer:
Ingrid Cleaners develops promotional materials and product demonstrations to easily
communicate the benefits of its cleaning products. In this scenario, Ingrid Cleaners tries
to enhance the _____ of its products.
A. partibility
B. discordancy
C. vincibility
D. complexity
E. observability
Answer:
Which of the following is a disadvantage associated with a sales force comprising
expatriate salespeople?
A. Adverse effect on the prestige of the product
B. Inability to effectively communicate and influence headquarters’ personnel
C. Lack of technological expertise
D. Inadequate knowledge of the company
E. Large cultural barriers
Answer:
Relations between governments and MNCs are generally positive if the investment:
A. increases the volume of imports.
B. uses globally produced resources.
C. transfers capital, technology, and/or skills.
D. brings in more number of foreign nationals.
E. decreases the volume of exports.
Answer:
Which of the following is a consequence of creation of large mass markets?
A. It will cripple businesses accustomed to mass production and mass distribution.
B. It will increase the significance of small national markets.
C. It will lead to decreased purchasing power.
D. It will increase import tariffs worldwide by at least 70 percent.
E. It will lead to an overall drop in international trade.
Answer:
Ralph Waite, a marketing manager at a video game console manufacturing firm, is
asked to review the marketing opportunities of his company in a foreign market. He is
aware that he can modify certain elements of the marketing environment to suit the
foreign market needs. He focuses his attention on the uncontrollable factors that might
affect their business prospects. Which of the following uncontrollable elements is most
likely to affect the company’s business prospects in the foreign market?
A. The pricing policies in the domestic market
B. The research methodologies used by his company
C. The promotional activities required to market the product
D. The level of technology in the targeted market
E. The product distribution channels adopted by his company
Answer:
As some business services have intrinsic value that can be embodied in some tangible
form, they can be produced in one country and exported to another. Which of the
following is an example of this?
A. Language schools
B. In-flight services on an airplane
C. Operating an automatic teller machine
D. Data processing services
E. Physicians’ services
Answer:
Which of the following statements is true of political sanctions?
A. Political sanctions normally control and rectify situations within a nation.
B. Political sanctions are generally unsuccessful.
C. Political sanctions are illegal.
D. The United Nations encourages boycotts as a means of settling disputes.
E. The use of political sanctions is the most effective way to increase world trade.
Answer:
Discuss the American manager’s attitude toward objectivity in decision making.
Answer:
The fundamental difference between quotas and import licenses as a means of
controlling imports is that:
A. import licenses have greater flexibility over quotas.
B. quotas impose specific limitations on trade, and import licenses take care of
standards.
C. quotas are imposed on export goods, and import licenses are imposed on import
goods.
D. for quotas, the exporting country sets the limits, but licenses are issued by the
importing country.
E. unlike licenses, quotas limit quantities on a case-by-case basis.
Answer:
The United States and other countries require some products (automobiles in particular)
to contain a percentage of “local content” to gain admission to their markets. This is an
example of the stringent usage of _____ to restrict trade.
A. exchange permits
B. embargoes
C. blocked currencies
D. standards
E. antidumping penalties
Answer:
In the international communications process, during _____, the message from the
source is converted into effective symbolism for transmission to a receiver.
A. interpretation
B. scrambling
C. standardizing
D. decoding
E. encoding
Answer:
The United Nations’ classification of stages of economic development has been mainly
criticized because:
A. it no longer seems relevant in the rapidly industrializing world.
B. countries classified as LLDCs are growing at a very rapid rate.
C. It no longer takes into account social overhead capital as an indicator of economic
development.
D. it only focuses on the literacy level in a country.
E. countries that are classified as LDCs are industrializing at a slow rate.
Answer:
Jefferson’s, a firm that specializes in dog food and grooming products, 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
Answer:
Because of political changes in the late twentieth century, which of the following
countries has had to build from scratch an entire commercial legal system?
A. France
B. Germany
C. Taiwan
D. Russia
E. Saudi Arabia
Answer:
Eastern Europe and the Baltic states, satellite nations of the former Soviet Union, have
moved steadily toward adopting aspects of _____.
A. capitalism
B. autocracy
C. Marxist socialism
D. despotism
E. autarchism
Answer:
For most consumer services firms, the mode of entry into a foreign market is licensing,
franchising, strategic alliances, or direct. This is usually done because:
A. services are highly differentiated.
B. services produced cannot be added to inventory.
C. the creation and consumption of services cannot be separated.
D. the inputs used vary to a great extent.
E. services usually do not have any intrinsic value that can be converted into a tangible
form.
Answer:
The opium wars resulted in a loss of confidence in the Chinese government. Which of
the following events was caused by the resulting disorder?
A. The Boxer Revolution
B. The Satsuma Rebellion
C. The Nanjing Rebellion
D. The Taiping Rebellion
E. The Hong Kong Revolution
Answer:
Fengshui is a Chinese _____, considered to be the process that links humans and the
universe to ch’i, the energy that sustains life and flows through our bodies and
surroundings, in and around our homes and workplaces.
A. illusion
B. fairytale
C. belief
D. fable
E. myth
Answer:
What is the most serious threat to the continued expansion of international services
trade?
A. Free trade
B. Capitalism
C. Globalization
D. Foreign trade zones (FTZs)
E. Protectionism
Answer:
Which of the following is true of the effect of differences in culture in business
negotiations?
A. The basic elements of business negotiations differ from country to country.
B. The risk of misunderstanding increases when negotiating with someone from a
different culture.
C. The possibility of misinterpretation is decreased when one uses one’s self-reference
criterion.
D. A standard rule in negotiating is to know your counterpart first.
E. It is important that the self-reference criteria of both business parties surface during
business talks.
Answer: