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For countervailing duties to be invoked, it must be shown that prices are higher in the
importing country than in the exporting country.
Answer:
Legal advice is not necessary when entering distribution contracts with middlemen.
Answer:
A reason for the failure of marketing communications is that the message received by
the intended audience is not understood because of different cultural interpretations.
Answer:
From a sociological point of view, any idea perceived as new by a group of people is an
innovation.
Answer:
Parallel method of translation is typically inaccurate because of commonly used idioms
in both languages involved in the translation.
Answer:
The responsibility of determining if a license is required rests with the exporter.
Answer:
While countries have standards for products produced within its borders, there are no
such standards that are applicable to imported goods.
Answer:
An international marketer must deal with at least two levels of uncontrollable
uncertainty.
Answer:
Bottom-of-the-pyramid markets (BOPMs) are always defined by national borders.
Answer:
One of the deterrents to litigation with respect to disputes in the international business
arena is the fear of creating a poor image and damaging public relations.
Answer:
Countertrading does not benefit countries that face a shortage of hard currencies with
which to trade.
Answer:
High transaction costs associated with the use of the Internet prevents smaller firms in
emerging countries from selling into a global market.
Answer:
In bills of exchange, the buyer assumes all the risk until the payment is made.
Answer:
The Chinese central government spends almost 50 percent of its budget for the rural
poor who amount to almost three-fourths of the Chinese population.
Answer:
In Europe, work councils are involved in setting compensation rules for sales people.
Answer:
Antidumping laws were specifically designed to prevent foreign producers from
investing in the U.S. markets.
Answer:
Local salespeople are better able to lead a company through the maze of unfamiliar
distribution systems and referral networks of a foreign land.
Answer:
The U.S. Department of Commerce has mandated that all U.S. government purchases
are to be conducted using the metric system.
Answer:
The packaging component consists of the physical productthe platform that contains the
essential technologyand all its design and functional features.
Answer:
Chinese cultures are high on Power Distance Index and low on
Individualism/Collective Index.
Answer:
The WTO is wholly dedicated to making trade among nations more efficient.
Answer:
The behavior of channel members in the distribution process is the result of the
interactions between the cultural environment and the marketing process.
Answer:
The growth of free trade areas that are tariff-free among members but have a common
tariff for non-members creates an opportunity that can be capitalized on by direct
investment.
Answer:
Planned domestication can be profitable and operationally expedient for the foreign
investor.
Answer:
Subornation payments accompany requests for a person to do a job more rapidly or
more efficiently.
Answer:
Most companies today limit their search for senior-level executive talent to their home
countries.
Answer:
The Agency for International Development underwrites trade and investments for U.S.
firms.
Answer:
As the price of a particular product remains the same in different markets, the product
sold in one country may be exported to another and undercut the prices charged in that
country.
Answer:
A physical distribution system involves only the physical movement of goods.
Answer:
The international marketer must rely on experience and marketing research to ascertain
middleman costs because no convenient source of data on middleman costs is available.
Answer:
A customs union is the most fully integrated form of regional cooperation.
Answer:
Deflation results in ever-decreasing prices, creating a positive result for consumers, but
both put pressure to lower costs on everyone in the supply chain.
Answer:
Sam just ate cookies and, therefore, feels justified in refusing food offered by his
Middle Eastern host. In this instance, Sam's self-reference criterion has just saved him
from making a cultural blunder.
Answer:
The _____, a cornerstone of early U.S. foreign policy, dictated that no further European
colonization in the New World would be accepted.
A. Madison Corollary
B. Monroe Doctrine
C. Hays Corollary
D. Wilson Policy Position
E. Manifest Destiny
Answer:
Which of the following events, leading to the overthrowing of the dictator D'az, is
particularly remembered for the expulsion of foreignersmost notably North American
businessmen who were the most visible of the wealthy and influential entrepreneurs?
A. The Madero Rebellion
B. The Mexican Revolution
C. The Los Nios Rebellion
D. The Mexican-American War
E. The San Patricios Revolution
Answer:
Which of the following statements is true regarding an export management company
(EMC)?
A. It acts as a middleman for firms with relatively large international sales volume.
B. It operates under its own name while providing services to another firm.
C. It does not have direct responsibility to the parent firm.
D. It acts as a middleman for firms willing to involve their own personnel in
international functions.
E. It calls for minimum investment from the parent firm to get into international
markets.
Answer:
The aesthetics of a culture must be taken into account by marketers when:
A. styling their product and its packaging.
B. determining the linguistic distance of the culture.
C. assessing if the culture is individualistic.
D. trying to quantify the influence the media has on the culture.
E. assessing if the culture is collectivistic.
Answer:
In Japanese business organizations, subordinates do not pass along bad news to their
superiors. This lack of internal communications can be attributed to:
A. the Japanese emphasis on individualism.
B. the Japanese emphasis on hierarchical relationships.
C. the Japanese emphasis on competition and individualism.
D. the insistence on solving problems at the point of origin and not escalating them.
E. Guanxi, the Japanese practice of personal connections.
Answer:
Which of the following policies was used in the formation of a provisional government
in Cuba in 1906?
A. The Manifest Destiny
B. The Hay Manifesto
C. The Wilson Mandate
D. The Roosevelt Corollary
E. The Gadsden Policy Position
Answer:
The _____ measures customers' satisfaction and perceptions of quality of a
representative sample of America's goods and services.
A. ISO 9000
B. ICE
C. Net Promoter Score (NPS)
D. American Customer Satisfaction Index (ACSI)
E. American Price Index (API)
Answer:
Which of the following aspects of international business negotiations is considered to
be the most difficult?
A. Agreeing on the number of participants in the negotiation
B. Finding the best alternative to a negotiated agreement
C. Actual conduct of the face-to-face meeting
D. Deciding on the location and physical arrangements
E. Selection of the appropriate negotiation team
Answer:
In the context of international advertising, it has been observed that advertising
expenditures are generally _____.
A. linear
B. supplemental
C. mutually reinforcing
D. cyclical
E. constrained
Answer:
Which of the following statements is true of the European Parliament?
A. It has extensive budgetary powers that allow it to be involved in major EU
expenditures.
B. It serves as a purely consultative body.
C. It is responsible for debating and deciding which proposals of the Single European
Act to accept as binding on EU members.
D. It initiates policy and supervises its observance by member states.
E. It is responsible for challenging any measures incompatible with the Treaty of Rome.
Answer:
Which of the following has become the primary vehicle for business-to-business
promotion and selling in many foreign countries?
A. Trade shows
B. In-office visits by sales teams
C. TV advertising
D. Local radio advertising
E. Transit media
Answer:
Nontaxable perks such as a company vehicle given to an expatriate is an example of
a(n):
A. overseas premium.
B. family compensation.
C. special assessment.
D. fringe benefit.
E. separation allowance.
Answer:
While developing an international advertisement campaign, which of the following is
the first step of the process?
A. Compose and secure a budget based on what is required to meet goals.
B. Specify the goals of the communication.
C. Select effective media.
D. Execute the campaign.
E. Perform marketing research.
Answer:
The most fully integrated form of regional cooperation is called a:
A. political union.
B. common market.
C. regional cooperation for development (RCD).
D. customs union.
E. free trade area (FTA).
Answer:
Which of the following presents the correct picture of the outcome of increased world
trade after the 1950s, contrary to Servan-Schreiber's prediction?
A. Third World countries have been excluded from this economic growth leading to
stark imbalances in wealth.
B. The European Union has become the center of world trade, taking the position away
from the United States.
C. The United States has continuously maintained the positive balance of trade it
attained during the 1950s.
D. Economic power and potential has become more evenly distributed among the
countries of the world.
E. SDRs and gold have lost their utility as the basic medium of financial exchange and
most monetary statistics have started relating to the U.S. dollar.
Answer:
Which of the following is a trait of a person with good cultural skills?
A. They have a clear set of principles and do not tolerate ambiguity.
B. They take pride in their culture and practice cultural chauvinism.
C. They monitor the behavior of their employees and judge them accordingly.
D. They convey a sincere interest in people and their culture.
E. They try to propagate their culture and make others follow them.
Answer:
Complementary marketing is commonly known as _____.
A. backhauling
B. demand shifting
C. piggybacking
D. shape shifting
E. skimming
Answer:
C. K. Prahalad has cited two primary misconceptions behind the international marketers
ignoring the bottom-of-the-pyramid markets. One of the reasons is that the products and
services developed for more affluent consumers are not appropriate for these markets.
Which of the following is the other misconception?
A. Unwillingness of consumers in the bottom-of-the-pyramid markets to buy
international products.
B. The lack of uniformity in bottom-of-the-pyramid markets.
C. The heavy taxation system in bottom-of-the-pyramid markets allows little profit.
D. Consumers in the bottom-of-the-pyramid markets lack both money and technology.
E. Consumers in the bottom-of-the-pyramid markets are characterized by conservative
traditions and culture.
Answer:
In the context of sources of data, commercial sources, trade associations, management
groups, and state and local governments are examples of _____.
A. first-hand data
B. secondary data
C. primary data
D. personal data
E. direct data
Answer:
Considering the specific characteristics of Japan's culture, which of the following
strategies would be most successful in motivating employees in Japanese organizations?
A. Individual commission systems
B. Group bonus schemes
C. Company cars
D. Birthday gift vouchers
E. Best employee awards
Answer:
China's longest border is with Russia.
Answer:
Which of the following is true with regard to the Internet?
A. The Internet is strongly restricted by global and national boundaries.
B. The existing cyberlaws incorporate the uniqueness of the Internet successfully.
C. The dynamics of cross-border transactions, censorship, and piracy have been
curtailed successfully with cyberlaws.
D. The individual-country laws, which may or may not include private protection, are
used in the absence of uniform and internationally accepted cyberlaws.
E. The taxes are collected by transporting services like FedEx in sale of goods using the
Internet site as a platform to consumers in another country.
Answer:
The only way to avoid linguistic problems in advertising communication is by:
A. creating an entirely new advertisement for the new market.
B. using only English in all media promotions.
C. developing a new version of the product for the new market.
D. in-country testing with the target consumer group.
E. using facial expressions and physical gestures in the advertisement.
Answer:
The Islamic law prohibits the payment of _____.
A. taxes
B. profits
C. interest
D. equity
E. accounting fees
Answer:
What are the two dimensions that help in defining the quality of a product of quality?
A. Consumer choice quality and process quality
B. Market-perceived quality and performance quality
C. Product quality and market quality
D. Actual quality and assumed quality
E. Absolute quality and relative quality
Answer:
Which of the following countries rejected the euro?
A. Austria
B. Greece
C. Finland
D. Denmark
E. Spain
Answer:
Of all the multinational market groups, none has been more secure in its cooperation or
more important economically than the:
A. Newly Independent States.
B. Economic Community of West African States.
C. Commonwealth of Independent States.
D. European Union.
E. Trans-Pacific Union.
Answer:
Which of the following factors affects the choice of distribution channels?
A. Distance from manufacturer
B. Language spoken in the target market
C. Available distribution intermediaries
D. Consumer literacy levels
E. Country's per capita income
Answer:
Which of the following is a criterion for adaptation when dealing with individuals,
firms, or authorities in foreign countries?
A. Ability to resist varying tempos
B. Zero tolerance
C. Hypersensitivity
D. Flexibility
E. Lack of curiosity
Answer:
For managers selling capital equipment and big-ticket industrial services, understanding
the concept of _____ is absolutely fundamental to their success.
A. availability heuristic
B. bank effect
C. Baskerville effect
D. derived demand
E. catapult demand
Answer:
How important is the family in the success of an expatriate manager?
Answer:
What is price escalation?Explain.
Answer:
What is the impact of global competition on the business strategies in the marketplace?
Answer:
Why must the balance-of-payments record always be in balance? What does a balanced
record signify?
Answer:
Discuss the differences between corporate, strategic, and tactical planning.
Answer:
Describe how communication infrastructures are an integral part of international
commerce.
Answer:
List the major agreements reached during the Uruguay Round of GATT negotiations.
Which was the most notable achievement of the Uruguay Round?
Answer:
What is the effect of education on the culture of a country?
Answer:
What is the significance of balance-of-payments figures?
Answer:
List the countries referred to as the Asian Tigers. Why are they referred to as the Asian
Tigers?
Answer:
You have just been hired as a consultant by Orange Mobility to advise them on how to
enter the South African market. You have decided that direct foreign investment would
be the best mode for Orange Mobility to follow at this point in time. Write a
one-paragraph memo that outlines the benefits of direct foreign investment in a country.
Students' answers may vary.
Answer:
Describe the regular foreign marketing stage of international marketing involvement.
Answer:
Briefly explain the benefits of global marketing operations.
Answer:
What are the various factors that influence product adaptation in new markets?
Answer:
Compare the differences between "prior use" and "registration" ownership of IP rights
with an example.
Answer:
Discuss APEC's role in international trade.
Answer:
List out the five characteristics of an innovation that assist in determining the rate of
acceptance or resistance of the market to a product.
Answer:
If a product is culturally sensitive, then decisions related to the product are more likely
to be centralized.
Answer:
In an international advertising process, what factors must be considered by an advertiser
while selecting a medium?
Answer:
