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Longer channels of distribution are more appropriate for keeping prices under control
than shorter channels of distribution.
Answer:
The most severe political risk is domestication.
Answer:
People from cultures with high Power Distance Index scores are more likely to have a
general distrust of others.
Answer:
When dealing with foreign countries, a marketer should refer to "international
commercial law" for guidance.
Answer:
The Hong Kong SAR government stresses the predominant role of the public sector
over the private sector.
Answer:
A single company can directly control or alter the political environment of the country
within which it operates.
Answer:
Global concern for the environment is limited to industrial pollution, hazardous waste
disposal, and rampant deforestation and excludes issues that focus directly on consumer
products.
Answer:
Deflation causes consumer prices to escalate, and consumers face ever-rising prices that
eventually exclude many of them from the market.
Answer:
Industrial demand is unaffected by changes in consumer demand.
Answer:
Due to their inherent entertainment value, satellite TV and the Internet have become
major communications media in almost all nations.
Answer:
In static economies, consumption patterns change rapidly.
Answer:
Social recognition is a more important motivating factor for an American sales
representative compared to a Japanese salesperson.
Answer:
The role of public relations is to create good relationships with the popular press and
other media to help companies communicate messages to their publicscustomers, the
general public, and governmental regulators.
Answer:
In the context of blocked currency, blockage is accomplished by refusing to allow an
importer to exchange its national currency for the currency of the seller.
Answer:
According to analysts, Japan's long entrenched Liberal Democratic political party was
one of the reasons for the Japanese crisis.
Answer:
The distribution process includes promotion of goods and services by sellers and
resellers.
Answer:
All three Baltic states started off with the same legacy of efficient industry and
American-style capitalist economies.
Answer:
The term product homologation is used to describe the changes mandated by local
product and service standards.
Answer:
Ideally, a website should be translated into the languages of the target market.
Answer:
Newly industrialized countries (NICs) are characterized by markets free from restrictive
trade practices and the presence of significant free market reforms.
Answer:
For international users of heavy construction equipment, the manufacturer's country of
origin is of major importance in purchasing construction equipment.
Answer:
Physical barriers that exist within Europe are nowadays seen as a natural protection
from potentially hostile neighbors.
Answer:
Domestic middlemen are most likely to be used when the marketer desires to minimize
financial and management investment.
Answer:
Economic growth is measured solely in economic goals.
Answer:
When a marketing executive advertises his product in a newspaper, the newspaper acts
as a feedback channel.
Answer:
A case might be made for the temporary protection of markets with excess productive
capacity or excess labor when such protection could facilitate an orderly transition.
Answer:
Checking the consistency of one set of secondary data with other data of known validity
is an effective and often-used way of judging validity.
Answer:
Workers in countries higher in individualism show more commitment than workers in
countries with lower individualism and higher power distance.
Answer:
Around the Asia Pacific Rim, where U.S. companies face unfamiliar legal and cultural
barriers, it is preferable to buy an existing business than to enter into a joint venture.
Answer:
International warfare is fast gaining popularity among nations.
Answer:
According to James Day Hodgson, former U.S. ambassador to Japan, culture is like a
"thicket" that is tough to get through, but effort and patience often lead to success.
Answer:
Protection of an infant industry is recognized by economists as a valid argument in
favor of protectionism.
Answer:
The cost and quality of the product are among the most important criteria by which
purchases are made.
Answer:
The importance of political unity to fully achieve all the benefits of economic
integration has driven European countries to form the World Trade organization (WTO).
Answer:
Which of the following is true of the newspaper industry around the world?
A. In many countries, newspapers hardly have any trouble achieving complete market
coverage.
B. Most U.S. cities have just one or two major daily newspapers.
C. In many countries, advertisements can be run in a newspaper without any time lag.
D. Since there is an indication that the space for advertising is paid for, it is easy to tell
exactly how much advertising appears in a given newspaper.
E. Japan has more than 15 national daily newspapers, but the circulation numbers are
the lowest.
Answer:
What is common among the Asian countries Hong Kong, South Korea, Singapore, and
Taiwan?
A. They were among the first countries in Asia to move from a status of developing
countries to newly industrialized countries.
B. They have a middle class numbering some 250 million, about the population of the
United States.
C. The exports in these countries are growing at a rate of 50 percent annually.
D. They have faced a serious disadvantage in the information age due to their complex
languages.
E. They all have the custom of "baksheesh," a deeply ingrained system of bribery.
Answer:
The negotiators from the Shanghai area are famous for their _____.
A. shrewdness
B. tendency to be closemouthed
C. low spending habits
D. lack of creativity
E. imperialist perspective
Answer:
Apex Corp. is a wholesaler for Global Electronics in the French market. Global
Electronics discovered that Apex Corp. was diverting some of its goods to the English
market. Apex Corp. could get a greater profit in the English market because the goods
were bought by the firm at a cheaper price in France. In the context of the above
scenario, which of the following forms of business is Apex engaged in?
A. Black marketing
B. Parallel importing
C. Backwashing
D. Industrial piracy
E. Smuggling
Answer:
In the context of factors affecting choice of channels, which of the following is one of
the key elements in distribution decisions?
A. Selection of optimum container sizes
B. Volume discounts and rebates
C. Functions performed by middlemen
D. Local advertising modes
E. Target market culture
Answer:
Which of the following is true about the present state of foreign businesses in most
developing countries?
A. Foreign investors are seen as vital partners in economic development.
B. Today, most developing countries have more conservative attitudes toward foreign
investments than before.
C. Foreign firms are expropriated and charged with excessively high tariffs and quotas
by all developing countries.
D. Foreign businesses are not allowed to raise money by means of shares in developing
countries.
E. Foreign investment is banned in most developing countries.
Answer:
Which of the following represents a new and powerful tool of PSAs?
A. Political sanctions
B. Monetary barriers and trade embargoes
C. The Internet and cellphones
D. Local-content laws and questionnaires
E. Export controls
Answer:
The marketing manager for Grand Products wants to export the company's range of
beer products to a Gulf country. However, he discovers that there is a complete
restriction on the import of any form of liquor into that country. This is an accurate
example of a(n) _____.
A. orderly market agreement
B. quota
C. monetary barrier
D. voluntary export restraint
E. boycott
Answer:
Analysis of which of the following factors is carried out in Phase 2 of the international
planning process?
A. Company character
B. Pricing
C. Situation analysis
D. Budgets
E. Standards
Answer:
A major disadvantage of _____ is that they can seldom afford to make the kind of
market investment needed to establish deep distribution for products.
A. export management companies
B. trading companies
C. import associations
D. global retailers
E. complementary marketers
Answer:
Which of the following acts developed by the European Union erases legal and trade
differences that have existed for decades between the member nations?
A. European Sanctity Act
B. European Indemnification Act
C. European Unification Act
D. Single European Market Act
E. Foreign Corrupt Practices Act
Answer:
Which of the following is consistent with the American view of the independent
enterprise?
A. A corporation should fall under the control of the state government.
B. A corporation is an entity that has rules and continuity of existence.
C. The largest proportion of a corporation's profits must go to the personal funds of the
stakeholders.
D. A corporation's employees must be selected on the basis of seniority and not merit.
E. Personal relationships are more important in daily life than work and the company.
Answer:
_____ is a nonbinding agreement between parties to resolve disputes by asking a third
party to mediate differences.
A. Litigation
B. Prosecution
C. Arbitration
D. Conciliation
E. Coercion
Answer:
In the context of the different types of middlemen, which of the following is an example
of a manufacturer's retail store?
A. Toys "R" Us
B. Walmart
C. Costco
D. Benetton
E. IKEA
Answer:
Which of the following statements is true about the consumption of petroleum products
by the United States?
A. America is the largest producer of petroleum products.
B. America is likely to stay self-sufficient for the next several decades.
C. America is the third largest consumer of petroleum products.
D. America has become a major importer of petroleum products.
E. Petroleum products are no longer the largest source of energy for the U.S.
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. Serial translation
C. Back translation
D. Linear translation
E. Recentering
Answer:
George, an American citizen, works as the sales manager at Blue Inc. He is posted at
the company headquarters in the U.S. and manages operations in China. He makes long
visits to conduct business meetings with his colleagues in China. George may be
considered to be a:
A. repatriate.
B. virtual expatriate.
C. third-country national.
D. professional expatriate.
E. local sales manager.
Answer:
The part of the world with the largest portion of people over 65 years is also the part of
the world with the fewest number of people under age 15 years. Which of the following
is most likely to be a possible result of this disparity?
A. A conscious effort to slow down rapid urbanization and industrialization.
B. A larger focus on automation and technology in industries.
C. A heavy tax burden on future workers.
D. An increased focus on lower birth rates through incentives.
E. An increase in migration to other nations.
Answer:
By shipping unassembled goods to a free trade zone (FTZ) in an importing country, a
marketer can typically lower costs because:
A. labor costs are higher in the importing country.
B. the final prices of the goods are adjusted for inflation.
C. use of unassembled goods gives the marketer immunity from dumping penalties.
D. duties are assessed at lower rates for unassembled goods.
E. local content used in production is low.
Answer:
Which of the following is true of the findings of Transparency International's
Corruption Perception Index (CPI)?
A. Lower levels of bribery have been found in nations with a communist past.
B. Higher levels of bribery have been found in low-power distance nations.
C. Higher levels of bribery have been found in low-income nations.
D. Lower levels of bribery have been found in collectivistic cultures.
E. Lower levels of bribery have been found in poor nations.
Answer:
In the context of international law, a _____ state is independent and free from all
external control.
A. bounded
B. sovereign
C. legal
D. liberal
E. neutral
Answer:
In general, tariffs weaken:
A. inflationary pressures.
B. special interests' privileges.
C. balance-of-payments positions.
D. government control in economic matters.
E. the number of reciprocal tariffs by other countries.
Answer:
Which of the following treaties was revised to include a total ban on the export of
hazardous wastes by developed nations?
A. Treaty of Lisbon
B. The Basel Convention
C. The North American Free Trade Agreement
D. ASEAN charter
E. St. Andrews agreement
Answer:
Which of the following is the most important criterion for global market consumers
while purchasing products?
A. Appearance
B. Size
C. Technology
D. Quality
E. Service
Answer:
Many suppliers are adopting ISO 9000 standards because:
A. they can acquire the certification at no extra cost.
B. governments mandate ISO certification for all product categories.
C. they want to be perceived as being environmentally friendly.
D. the WTO expects international suppliers to conform to ISO standards.
E. their buyers require them to be ISO 9000 registered.
Answer:
The primary multinational trade group in Asia is _____.
A. NAFTA
B. COMESA
C. CEFTA
D. SADC
E. ASEAN
Answer:
Which of the following statements regarding industrial goods is true?
A. Industrial goods are always marketed through the same channels as consumer goods.
B. Industrial goods are generally standardized.
C. Industrial goods are meant for direct consumption by the general public.
D. The industrial goods are independent of the level of economic and technological
development of their market.
E. All industrial goods must adhere to ISO 9000 standards.
Answer:
_____ generally involves giving large sums of moneyfrequently not properly accounted
fordesigned to entice an official to commit an illegal act on behalf of the one offering
the bribe.
A. Agent charges
B. Lubrication
C. Extortion
D. Subornation
E. Ransom
Answer:
Which of the following is the principle U.S. agency that supports U.S. business abroad?
A. State Department of Entrepreneurship
B. Better Business Bureau
C. Department of Commerce
D. Department of Foreign Relations
E. Department of Defense
Answer:
It was not until this single market was established that the United States, Japan, and
other countries gave serious thought to creating other alliances. Which of the following
is being referred to here?
A. The European Commission
B. The European Economic Community
C. The Organization for Security and Co-operation in Europe
D. The Asia-Pacific Economic Cooperation
E. The European Community
Answer:
One of the long-term challenges facing the European Union in the next 50 years is:
A. deciding about further enlargement.
B. creation of a common currency.
C. reducing the free flow of capital between its member nations.
D. deciding on how to control the individualistic European population.
E. establishing a court that would settle the disputes among member nations.
Answer:
In Japan, under the Large-Scale Retail Store Law, all proposals for new "large" stores
were first judged by the _____.
A. Transport and Tourism Department
B. Internal Affairs and Business Council
C. Ministry of International Trade and Industry
D. Health and Welfare Committee
E. Local Retailers Union
Answer:
GHB Corp. is a manufacturer of consumer goods. It intends to sell its products in
Vietnam as it is looking to enter into Asian markets. It does not want to make any
equity investment and is keen on minimizing any risk of loss in the foreign market. It is
also willing to settle for a low rate of return. Which of the following types of foreign
market-entry strategies is GHB most likely to follow?
A. Direct foreign investment
B. Joint Venture
C. Indirect exporting
D. Strategic alliance
E. Licensing
Answer:
