Archives: Quiz

Which of the following is an example of a price-fixing arrangement? A. Price escalation B. Barter houses C. Letters of credit D. Cartels E. Countertrade Answer: In the context of the research process, which of the following should an organization […]

Which of the following best describes the current perception of geographical features such as mountains in the context of economic growth in Europe? A. They provide natural protection from potentially hostile neighbors. B. They are impediments to efficient trade and […]

The _____ of the United States makes it illegal for companies to pay bribes to foreign officials, candidates, or political parties. A. Taft-Hartley Act B. Informed Consumer Standard C. Foreign Corrupt Practices Act D. Best Practices Act E. International Codes […]

The Commonwealth of Independent States is: A. a political alliance with a central government. B. an economic and political alliance with open borders and no central government. C. an economic and political alliance with closed borders and a federal government. […]

Which of the following is the last step in the international planning process? A. Defining target markets and adapting the marketing mix accordingly B. Matching company and country needs C. Adapting the marketing mix according to market segments D. Implementation […]

Which of the following countries is considered to be the world’s most efficient user of energy? A. Canada B. Vietnam C. Japan D. India E. China Answer: She Tales, a women’s clothing company based in Singapore, had to modify its […]

One of the basic elements of the General Agreement on Tariffs and Trade (GATT) is that: A. member nations are exempt from import tariffs to other member nations. B. all tariffs shall be abolished among member nations at the time […]

When countries sell off state-owned enterprises and privatize them, it usually results in a(n): A. lack of accommodation of outside investors. B. decline in productivity throughout the private sector. C. release of capital to invest in strategic areas. D. instant […]

Which of the following institutions has the responsibility to debate and decide which proposals of the Single European Act to accept as binding on European Union members? A. The European Commission B. The European Parliament C. The Council of Ministers […]

Companies following the _____ philosophy insist that no unit of a similar product is different from any other unit in terms of cost and that each unit must bear its full share of the total fixed and variable cost. A. […]

Which of the following is a provision of the commonwealth agreement signed by the Commonwealth of Independent States? A. To reject the powers of the old regimes B. To keep the ruble but allow new currencies C. To create disjointed […]

In the context of international business negotiations, which of the following skills tops the list of negotiator traits? A. Preparation and planning skill B. Observational and oratory skill C. Linguistic and social skill D. Persuasion and intellectual skill E. Informational […]

Which of the following aspects of the negotiation setting is an important consideration as it may eventually determine legal jurisdiction if disputes arise? A. Preliminary research B. Communications channels C. Number of participants D. Number of translators E. Location Answer: […]

In the context of international advertising, companies are moving from the commission system to a _____ system. A. tactical B. standardized C. reward-by-results D. self-regulation E. business-to-business Answer: Which of the following was designed to primarily deal with trade deficits, […]

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 […]

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: FALSE The most severe political risk is confiscation, that is, the seizing of a […]

It is mandatory for importers who want to buy a foreign good from a foreign country to apply for a business permit in that country. Answer: Television is an advertising medium with no restrictions in most countries. Answer: FALSE Companies […]

APEC is a body formed by the major governments of the Asian countries with the primary purpose of protecting their local industries against the market domination by their western counterparts. Answer: When the only marketing functions performed are demand creation […]

The first stage of the business negotiation process is nontask sounding, which includes all those activities that might be described as establishing rapport or getting to know one another. Answer: As a result of the General Agreement on Tariffs and […]

The notion that competition is crucial for efficiency, improvement, and regeneration is fundamental to Western management practices. Answer: In the context of social responsibility and environmental management, the process of controlling industrial wastes leads to the issue of disposal of […]

The GATT became part of the World Trade Organization in 1995 with the ratification of the Uruguay Round agreements. Answer: Sales on open accounts are recommended when shipping is hazardous. Answer: FALSE Sales on open accounts are generally not recommended […]

One of the ways that an industrial firm should manage the inherent volatility of the industrial sector is by increasing advertising expenditure during booms. Answer: The strategy of cultural congruence involves marketing products similar to ones already on the market […]

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: FALSE Competent legal advice […]

The reserves account is a record of direct investment, portfolio investment, and short-term capital movements to and from countries. Answer: Religion has a significant impact on the value systems of a society and the effect of value systems on marketing. […]

Brazil is a fully industrialized country. Answer: Spreading the portfolio of markets served brings important stability of revenues and operations to many global companies. Answer: TRUE Spreading the portfolio of markets served brings important stability of revenues and operations to […]

Multinational market regions are those groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers. Answer: Social planners gained the acceptance for hybrid grains and better sanitation methods through unplanned change among the peoples of […]

The single most important difference between consumer and industrial marketing is the cyclical swings in demand inherent in the latter. Answer: Companies should use the full-cost pricing approach when it has high fixed costs relative to its variable costs. Answer: […]

Liaoning and Jilin provinces of China share borders with North Korea, and both provinces host substantial numbers of Korean minorities. Answer: The sole requirement of an arbitration clause is that the parties agree to abide by the awards resulting from […]

Errors at the receiver end of the international communications process can be avoided if the message is encoded properly. Answer: A major issue that China has to address in its path to economic growth is improving human rights. Answer: TRUE […]

The British, German, and American businesspeople are found to fall in the middle of most scales for dimensions of negotiating behaviors. Answer: The self-reference criterion is closely related to ethnocentrism. Answer: TRUE The self-reference criterion is an unconscious reference to […]

By lowering production costs, subsidies help domestic producers to: A.gain export markets. B.meet import quotas. C.meet voluntary export restraints. D.meet the local content requirement. E.compete in the domestic market against local producers. Answer: According to Max Weber, Protestantism encouraged capitalism’s […]

Which of the following is a support activity in the operations of a firm? A.Research and development B.Customer service C.Marketing and sales D.Creation and maintenance of information systems E.Production Answer: What is meant by economic exposure? A.The extent to which […]

Which of the following firms should concentrate its production in a centralized location? A.Jupiter Inc. operates in an industry where the fixed costs are high and services of supporting industries are of prime importance. B.Star Goal Inc. manufactures consumer products […]

Argonia Republic is in trade surplus with Kamboly. Under the gold standard, which of the following statements is true until a balance-of-trade equilibrium is achieved? A.There will be a net flow of gold from Argonia Republic to Kamboly. B.The money […]

Which of the following allows a firm to educate potential consumers about the features of a product? A.Direct selling B.Mass media advertising C.Pull strategy D.Standardized advertising E.Lag strategy Answer: Hindus see mobility between castes as something that can be achieved […]

Which of the following best exemplifies the global tragedy of the commons? A.A firm exploiting the weak employment standards in a host nation B.A firm dumping its chemical wastes directly into an ocean C.A firm exploiting the weak intellectual property […]

An early entrant find may find itself at a disadvantage if it: A.is trying to realize location and experience curve economies. B.incurs low development costs. C.faces a subsequent change in business regulations in the host-country. D.has a core competence based […]

Which of the following is defined as a central political apparatus that coordinates the economic, social, and foreign policy of the member-states? A.Free trade area B.Political union C.Economic union D.Common market E.Command economy Answer: Which of the following statements is […]

Which of Hofstede’s dimensions focused on how a society deals with the fact that people are unequal in physical and intellectual capabilities? A.individualism versus collectivism B.power distance C.uncertainty avoidance D.masculinity versus femininity E.Confucian dynamism Answer: A lag strategy involves: A.delaying […]

Which of the following staffing policies seeks the best people for key jobs throughout the organization, regardless of nationality? A.Global B.Ethnocentric C.Geocentric D.Polycentric E.Transnational Answer: Which of the following is true of a localization strategy? A.It allows a firm to […]

Which of the following has been declining in the developing nations of the world such as China, India, Russia, Indonesia, Thailand, South Korea, Mexico, and Brazil? A.Economic opportunities for international trade B.Industrialization C.Contribution toward the share of world output D.The […]

Silver Tape Corporation has developed a new type of adhesive tape. Which of the following types of legal protections can grant the company exclusive rights for a defined period to the manufacture, use, or sale of the new adhesive tape? […]

Which of the following indicates that a firm has a full outright stake in an acquisition? A.Anderson Corporations acquires at least 75 percent of a company. B.Sheffield Enterprises acquires at least 60 percent of a company. C.Arthur Enterprises acquires 98 […]

Which of the following has resulted in a dramatic shortening of product life cycles? A.Acceleration of the pace of technological change B.Lack of domestic competition C.Affluence of customers D.An increase in the number of educated consumers E.Removal of trade barriers […]

In stating that all human beings are born free and equal in dignity and rights and that they are endowed with reason and conscience and should act toward one another in a spirit of brotherhood, Article 1 of the Universal […]

Which of the following is an advantage of longer distribution channels? A.Decreased profit margins B.Lower markups C.Lower product prices D.Reduced selling costs in concentrated retail sectors E.Greater market access Answer: Mountland Republic follows a system of social stratification that allows […]

In what type of economy are certain sectors of the economy left to private ownership and free market mechanisms, while in other sectors there is significant state ownership and government planning? A.Command B.Pure market C.Mixed D.Centrally planned E.Laissez-faire Answer: Although […]

Which of the following are unit cost reductions associated with a large scale of output? A.Comparative advantages B.Factor endowments C.Economies of scale D.Diminishing returns E.Absolute advantages Answer: Which of the following statements is true about innovations and entrepreneurship? A.A command […]

China Innovation Inc. is a devout follower of Confucian ethics. Hence, it hires people who live by similar principles. Which of the following is most likely to be a characteristic of this company? A.The conflict between management and labor will […]

Which of the following is a common pitfall that novice exporters come across? A.Poor understanding of the opportunities in the domestic market B.Low unit costs C.Increased economies of scale D.Problems securing financing E.Familiar distribution systems Answer: As a result of […]