Dutch management professor Geert Hofstede argues that culture provides a guide for
humans on how to think and behave.
Answer:
Due to the great differences in the roles played by women across cultures, gender
should be used as a selection criterion for international negotiation teams.
Answer:
A government boycott is a partial restriction against the purchase and importation of
certain goods and/or services from other countries.
Answer:
In the context of planning for global markets, the planning process is a primary medium
of organizational learning.
Answer:
In the context of evaluating and controlling sales representatives, the primary control
tool used by American sales managers is the incentive system.
Answer:
For selling in relationship-oriented countries, a sales force consisting of American
expatriates proves to be most efficient.
Answer:
Easy accessibility of volumes of secondary data is the biggest advantage that Internet
now provides to international marketing researchers.
Answer:
For many industrial products, the revenue from associated services exceeds the revenue
from the products themselves.
Answer:
From the marketing perspective, the ideal market segment size, if customer satisfaction
is the goal, is one.
Answer:
In the 1970s, the market segmentation argument in global marketing was framed as
“global integration versus local responsiveness.”
Answer:
In quantitative research, if questions are asked, they are almost always open-ended or
in-depth.
Answer:
For firms producing products and services for industrial markets, the chief reason for
venturing abroad is the prospect of high profits with no risk.
Answer:
Islamic law defines a complete system that prescribes specific patterns of social and
economic behavior for all individuals.
Answer:
Due to advancements in technology, it is easy to determine if a cyberattack has been
launched by a rogue state, a terrorist, or a hacker as a prank.
Answer:
The business community’s defense against payoffs was that they were a way of life
throughout the world.
Answer:
With respect to international marketing research, cultural differences among countries
offer the best explanation for the unwillingness or the inability of many to respond to
research surveys.
Answer:
A product whose design reflects the needs and expectations of the buyerno more, no
lessis a quality product.
Answer:
The sales of industrial goods are driven by the buyer’s need to make profits.
Answer:
The foreign policies of a country have a direct effect on a firm’s international marketing
success.
Answer:
The amount of equity required by a company to use different modes of entry in a new
market affects the risk, return, and control that it will have in each mode.
Answer:
Agent middlemen work on commission and do not take title to the merchandise.
Answer:
In countries where large shares of the population are moving into middle-income
classes, penetration pricing becomes irrelevant as a tool to stimulate market growth.
Answer:
In the context of U.S. foreign policies, the Roosevelt Corollary paved the way for
non-American intervention in Latin American affairs.
Answer:
The actual attributes of an innovation is a variable that affects the rate of diffusion of a
product.
Answer:
With _____, the seller assumes all risk until the actual dollars are received.
A. open accounts
B. irrevocable letters of credit
C. bills of exchange
D. factoring agreements
E. forfaiting contracts
Answer:
Which of the following was the most significant move of the 1980s that contributed
toward international cooperation among trading nations?
A. Formation of the United Nations Development Program
B. Creation of the United Nations
C. Establishment of the World Trade Organization
D. Signing of the Montreal Protocol
E. Negotiation of the General Agreement on Tariffs and Trade
Answer:
Firms that have been penalized for bribing by the Foreign Corrupt Practices Act (FCPA)
can reduce the penalties by helping in investigations.
Answer:
Two major events that occurred in 2000 had a profound effect on China’s economy. One
of these is the United States granting normal trade relations (NTR) to China on a
permanent basis (PNTR). Which of the following is the other one?
A. Inclusion in the board of the World Bank
B. Admission to the World Trade Organization
C. Signing of the new ASEAN pact
D. The handover of Hong Kong by the British to China
E. Inclusion of Hong Kong as a special administrative region (SAR) of China
Answer:
Which of the following arguments regarding the need for protectionism is recognized
by economists as valid?
A. Need to keep money at home
B. Encouragement of capital accumulation
C. Industrialization of underdeveloped countries
D. Conservation of natural resources
E. Maintenance of employment and reduction of unemployment
Answer:
Restrictions on cross-border data flows are potentially the most damaging to industries
that:
A. are fragmented.
B. focus on domestic production.
C. generate revenue from the sale of physical products across borders.
D. rely on information transfers across countries.
E. are concentrated in nature.
Answer:
Harry Johnson Tractor Corp. wishes to expand its presence in Eastern Europe. Toward
that end, it has selected the countries where it will market its products. It has also
selected a mode of entry. It is now in the process of implementing specific plans. Which
of the following phases of the international planning process is Harry Johnson Tractor
Corp. currently in?
A. Phase 1
B. Phase 2
C. Phase 3
D. Phase 4
E. Phase 5
Answer:
Which of the following forms of business relationships lets a company grant patent
rights, trademark rights, and the rights to use technological processes to another
company in a foreign country?
A. Licensing
B. Exporting arrangements
C. Joint ventures
D. Consortia
E. Strategic alliances
Answer:
Which of the following is an example of comparative advertising?
A. An ad using a scantily clad model to promote a soft drink
B. An ad showing a celebrity smoking his preferred brand of cigarettes
C. An ad showing a dog choosing one brand of dog food over another
D. An ad showing the superiority of synthetic materials used in its products as
compared to cotton
E. An ad using shocking or taboo material to promote a product
Answer:
One disadvantage of decentralized research management is possible ineffective
communications with _____.
A. field personnel
B. home-office executives
C. customers
D. local agencies
E. resident managers
Answer:
New cola alternatives (Mecca Cola, Muslim Up, Arab Cola, and Cola Turka) sprang up
after the military conflicts in the Middle East in 2003. This is an example that shows
how:
A. Coca-Cola played an important role in easing the cultural divide among the warring
nations.
B. Coca-Cola catered to new markets through standardization.
C. specific events in history can influence consumer behavior.
D. businesses exploit cheap human labor during war times.
E. technology influences marketing practices.
Answer:
Which section of the Omnibus Trade and Competitiveness Act recognizes that foreign
penetration of U.S. markets can cause serious competitive pressure, loss of market
share, and, occasionally, severe financial harm?
A. The market access section
B. The export expansion section
C. The import relief section
D. The foreign exchange regulation section
E. The trade deficit section
Answer:
Which of these aspects of international marketing are analyzed in Phase 1 of the
international planning process?
A. Home-country constraints
B. Budgets
C. Situation analysis
D. Promotions
E. Product adaptations
Answer:
The rapid growth of war-torn economies and previously underdeveloped countries,
coupled with large-scale economic cooperation and assistance that followed World War
II, led to:
A. the rise of new global marketing opportunities.
B. the decrease in demand for American goods worldwide.
C. the dissolution of the GATT.
D. the spread of communism by the United States.
E. the sharp reduction in the production capacity of the United States.
Answer:
Modern medicine has thrived in the United States together with the use of herbal
remedies from South America. This is an example of:
A. cultural ombudsmanship.
B. cultural shock.
C. cultural hegemony.
D. cultural sensitivity.
E. cultural borrowing.
Answer:
All of the following are specific objectives of sales promotion EXCEPT:
A. immediate purchase.
B. consumer introduction to the store.
C. gaining retail point-of-purchase displays.
D. building brand loyalty.
E. encouraging stores to stock the product.
Answer:
In the _____ method, successive translation and retranslation of a questionnaire takes
place, each time by a different translator, and the version that is finally used and its
translation have equally comprehensive and equivalent terminologies in both languages.
A. serial translation
B. triangulation
C. linear translation
D. netnography
E. decentering
Answer:
_____ occurs when host countries gradually cause the transfer of foreign investment to
national control and ownership through a series of government decrees by mandating
local ownership and greater national involvement in a company’s management.
A. Confiscation
B. Expropriation
C. Domestication
D. Democratization
E. Socialization
Answer:
Which of the following is true of the CFTA?
A. It was designed to establish similar literacy levels in North American states.
B. It created several independent commercial markets for goods and services.
C. It was a customs union like the European Community.
D. It involved both economic and political unions.
E. It provided only for the elimination of tariffs and other trade barriers between the
United States and Canada.
Answer:
If a country is in Stage 5 (the age of mass consumption) of Rostow’s five-stage model
of economic development, it purchases most of its highest-technology products and
services from _____.
A. Stage 4 suppliers
B. Stage 3 suppliers
C. Stage 5 suppliers
D. Stage 1 suppliers
E. Stage 2 suppliers
Answer:
Which of the following is an example of the primary function of a product?
A. The ability of a camera to take a picture
B. The design and form factor of a phone
C. The color of a laptop
D. The prestige associated with driving a car
E. The shape of speakers
Answer:
France is higher on Hofstede’s Power Distance Index (PDI) than the United States and
formality still reigns in France. Which of the following American business practices
would be most unacceptable to the French?
A. Slipping in colloquial French words during business meetings
B. Trying to emulate the French way of business thinking
C. Showing enthusiasm at business negotiations
D. Using first names in business encounters
E. Exhibiting stubbornness while negotiating
Answer:
It is helpful for a foreign market researcher to have a skeptical attitude in handling both
primary and secondary data.
Answer:
What has been the impact of women joining the workforce in growing numbers for the
past thirty years on American culture?
A. An increase in the desire for large families among the American population
B. An increase in the underestimation of women in the American culture
C. A decrease in economic development
D. A decrease in the influence of family on American culture
E. A decrease in the number of single-person households in the country
Answer:
Which of the following statements is true of universal standards in the sale of
international products?
A. The idea of universal standards is being resisted in developing countries.
B. Firms that adhere to universal standards find the costs to be greater than the benefits.
C. The international market for industrial goods uses the imperial system as a universal
standard.
D. All governments mandate universal standards.
E. The lack of universal standards limits the expansion of industries.
Answer:
With the expansion of the European Union, existing members fear:
A. retaliation by the Soviet Union against them.
B. a flood of cheap labor into their countries.
C. that OPEC will cut off supplies to countries supporting the expansion of the
European Union.
D. free movement of capital amongst the member nations.
E. that they would need to close the borders between member nations.
Answer:
The perception of quality:
A. is specified by the government.
B. depends solely on the customer.
C. is defined by universal quality standards.
D. depends on the manufacturer’s specifications.
E. are the same for most industrial goods.
Answer:
In the context of foreign market entry, _____ are long-term, nonequity associations
between a company and another in a foreign market.
A. consortia
B. exporting arrangements
C. direct foreign investments
D. contractual agreements
E. joint ventures
Answer:
Linguistic distance is an important factor that helps in determining differences in values
across countries and the amount of trade between countries because:
A. the closer the languages the tougher the interactions.
B. crossing wider language differences increases transaction costs.
C. the more distant a language from the other, the more valuable the brand becomes in
the new territory.
D. major languages have syntactical superiority over minor languages that help in brand
positioning.
E. a neutral language is required to address the differences arising out of linguistic
distances.
Answer:
The European Union was created when the 12 nations of the European Community
ratified the _____.
A. Kent Treaty
B. Paris Treaty
C. Rome Treaty
D. Cannes Treaty
E. Maastricht Treaty
Answer:
Which of the following is true of a sovereign state?
A. It is obligated to be a member of the World Trade Organization.
B. Its political and economic systems are determined by the United Nations
Development Programme.
C. It enjoys full legal equality with other states.
D. Its territory is governed by the United Nations.
E. It is bounded by external control.
Answer:
The washing machines marketed by Taichi failed in Asian markets as those countries
lacked the skills necessary to repair and maintain its products. Also, the washing
machine spares available in local markets were not compatible with these machines.
This product failure is most likely to be a result of lack of attention by the company to
the _____ component of the product.
A. core
B. price
C. packaging
D. support services
E. style
Answer: