As the prices for the same good are equal in different markets, a product sold in one
country may be exported to another and can undercut the prices charged in that country.
As countries move from agricultural to industrial to services economies, birthrates
increase.
Price escalation could lead to sales of the exported good being confined to a limited
segment of wealthy, price-insensitive customers.
In China, even the largest business contracts between companies are often sent through
the mail for signature.
The Masculinity/Feminity Index (MAS), identified by Geert Hofstede, focuses on risk
orientation.
With respect to international marketing research, cultural differences offer the best
explanation for the unwillingness or the inability of many to respond to research
surveys.
A nation’s balance-of-payments statement records all financial transactions between its
residents and those of the rest of the world during a given period of time.
Sales promotions are long-term IMC efforts directed to the consumer or retailer.
The ideal approach to multicountry marketing research is to have local researchers in
each country, with close coordination between the client company and the local
research companies.
The ability to express attitudes and opinions about a product or concept depends on the
respondent’s ability to recognize the usefulness and value of such a product or concept.
The use of countertrade in international trade:
A. allows trade with countries short of hard currency.
B. reduces a firm’s competitive advantage.
C. could increase the tax liabilities of trading firms.
D. leads to a loss of revenue.
E. is considered unethical.
General Motors, _____, and DaimlerChrysler have created a single online site called
Covisint for purchasing automotive parts from suppliers.
A. Toyota Motor Corporation
B. Honda Motor Company
C. Ford Motor Company
D. Nissan Motor Company
E. Tata Motors
Unisys Corporation’s planning steps for international marketing research calls for
collecting and assessing various types of information. Which of the following types of
information is the organization most likely to be interested in if it gathers information
related to profitability for the division’s products, inflation, business cycle trends, and
the like?
A. Economic and demographic.
B. Cultural, sociological, and political climate.
C. Overview of market conditions.
D. Summary of the technological environment.
E. Competitive situation.
Canada is classified under the category of _____.
A. third world countries
B. least-developed countries
C. more-developed countries
D. newly industrialized countries
E. pre-emerging countries
_____ is/are rapidly becoming a major after-sales service when selling technical
products in countries that demand the latest technology.
A. Promotional pricing
B. Product innovation
C. Capacity utilization efficiency
D. Customer training
E. Warranties
In 1450, the _____ was the first book printed with movable type.
A. Illiad
B. Gutenberg Bible
C. Codex Manesse
D. Scriptorium
E. Odyssey
As businesses grow and professional management develops, there is a shift toward:
A. centralized group decision making.
B. decentralized management decision making.
C. centralized decision making.
D. top-level management decision making.
E. experimental decision making.
A free trade area (FTA) provides its members with a mass market without barriers to
impede the flow of goods and services.
Which of the following is true of firms at the international marketing stage of marketing
involvement?
A. The primary focus of operations and production is to service domestic market needs.
B. As domestic demand increases and absorbs surpluses, foreign sales activity is
reduced or even withdrawn.
C. Profit expectations from foreign markets are seen primarily as a bonus in addition to
regular domestic profits.
D. Planning generally entails production of goods outside the home market.
E. The firm treats the world, including the home market, as one market.
.
For _____ duties to be levied on a good, it must be shown that prices are lower in the
importing country than in the exporting country and that producers in the importing
country are being directly harmed by dumping.
A. countertrade
B. domestic protection
C. countervailing
D. foreign practice
E. import restriction
Explain the importance of follow-up communications and procedures in international
business negotiations.
Language is one of the major barriers to effective communication through advertising.
Explain with an example.
To overcome the problems of inadequate monetary reserves and unstable currencies that
plagued interrnational 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 Programme
List and briefly discuss the various economic risks that international companies must
face when they seek to market abroad.
Describe the role of public relations (PR).