Final Quiz Study

A group of international firms decide to set the prices of a key chemical ingredient that is used in the production of fertilizers. They do this by restricting the quantity produced of the chemical and allocating market territories to each firm. In other words, these firms are called _____. a. A cartel b. Middlemen c. An industry lobby d. A trade union e. An advocacy group

A cartel

Which of the following is true of tariffs? a. A product can be modified to qualify for a lower tariff rate within a tariff classification. b. Tariffs and other forms of import taxes serve to treat both foreign and domestic goods equally without any discrimination. c. An ad valorem duty is a flat charge per physical unit imported. d. A specific duty is levied as a percentage of the value of the goods imported. e. A tariff is levied for the purpose of decreasing government spending.

A product can be modified to qualify for a lower tariff rate within a tariff classification.

In the context of global compensation, which of the following is a favorable practice? a. Creating a similar framework for jobs with different responsibilities. b. Assuming that cultural differences can be managed through an incentive plan. c. Allowing local managers to decide the mix between base and incentive pay. d. Requiring consistency on every performance measure within the incentive plan. e. Designing the incentive plan centrally and dictating to local offices.

Allowing local managers to decide the mix between base and incentive pay.

Which of the following is true of foreign trade zones (FTZ)? a. When an item leaves an FTZ and is imported officially into the host country of the FTZ, all duties and regulations are removed. b. An FTZ is a tax-free enclave and not considered part of the country as far as import regulations are concerned. c. In a free port or FTZ, payment of import duties are not postponed until the product leaves the FTZ area and enters the country. d. An FTZ is subject to stricter income and corporate tax laws as compared to the rest of the country. e. Firms that are located in an FTZ usually resort to dumping of goods.

An FTZ is a tax-free enclave and not considered part of the country as far as import regulations are concerned.

Which of the following best describes encoding in the international communications process? a. An international marketing executive creating a product message to communicate. b. Conversion of the message from the source into effective symbolism for transmission to a receiver. c. Sales force and/or advertising media conveying the encoded message to the intended receiver. d. Target population receiving the message resulting in consumer activity. e. Flowing of information from receiver back to the information source.

Conversion of the message from the source into effective symbolism for transmission to a receiver.

Jeff Foods Ltd., a British corporation, produces and sells a variety of potato chips. When the firm wanted to set up a chips factory in Romania, the Romanian government asked Jeff Foods to accept Romanian wine in order to be allowed to do so. This is an example of _____. a. Free trade b. Countervailing trade c. Buy-back d. Countertrade e. Bribery

Countertrade

Which of the following is true of dumping? a. Dumping is the process of selling products in a foreign market at a price above their cost of production. b. Dumping is the process of selling goods in a foreign market above the price of the same or similar goods in the home market. c. Dumping usually results when home-country demand exceeds production capacity in the country. d. Countervailing duties can be levied if it is shown that domestic producers are being directly harmed by dumping of foreign goods. e. Dumping results when foreign goods of poor quality are sold in the domestic market.

Countervailing duties can be levied if it is shown that domestic producers are being directly harmed by dumping of foreign goods.

Errors such as Pepsi's "Come Alive" slogan being interpreted as "Come out of the grave", and Chevrolet's brand name for the Nova model (which means new star) being translated into Spanish as No Va!, meaning "it doesn't go" are examples of problems associated with _______ in the international communications process. a. Feedback b. Decoding c. Noise d. The message channel e. The information source

Decoding

The chief disadvantages of a(n) _____ sales force are the high cost, cultural and legal barriers, and the limited number of high-caliber personnel willing to live abroad for extended periods. a. Expatriate. b. Local national. c. Host country national. d. Third-country national. e. Repatriate.

Expatriate

Which of the following is true of exclusive distribution? a. It reduces the incentives for parallel importing. b. It discourages retailers from providing extra services to customers. c. It is often used by companies to maintain high retail margins. d. It is used to make goods available at all possible outlets in a region. e. It is most often used for commodities like rice and wheat.

It is often used by companies to maintain high retail margins.

Which of the following is an important skill in international business negotiations? a. Independent attitude b. Listening ability c. Cultural immunity d. Ethnocentrism e. Doublespeak

Listening ability

Which is the next step after selection of an appropriate negotiation team for efficient and effective international business negotiations? a. Management of preliminaries such as training and location of talks. b. Preparation and manipulation of negotiation settings. c. Moving to the negotiation table. d. Managing the process of negotiations. e. Appropriate follow-up procedures and practices.

Management of preliminaries such as training and location of talks.

_____ may diminish the role of advertising in the promotional program and may force marketers to emphasize other elements of the promotional mix. a. Linguistic limitations b. Cultural diversity c. Media limitations d. Excessive competition e. Regulated comparative advertising

Media limitations

_____ comprises external influences, such as competitive advertising, other sales personnel, and confusion at the receiving end that can detract from the ultimate effectiveness of the communication. a. Noise b. Feedback c. The advertising media d. The information source e. Decoding

Noise

Which of the following is the first step of the international business negotiations process? a. Task-related exchange of information b. Nontask sounding c. Persuasion d. Concession e. Agreement

Nontask sounding

"Americans make decisions based upon the bottom line and on cold, hard facts." This statement reflects the American notion of the importance of: a. Objectivity. b. Competitiveness. c. Equality. d. Hierarchy. e. Procrastination.

Objectivity.

Artemis Inc. increased its market share by intentionally offering products at low prices. This policy helped the firm acquire and hold its share of market as a competitive maneuver. Which of the following pricing policies was used by Artemis Inc.? a. Variable-cost pricing b. Price skimming c. Benefits pricing d. Value pricing e. Penetration pricing

Penetration pricing

Which term relates to situations in which the ultimate prices in a foreign market are raised by shipping costs, insurance, administrative costs, or exchange rate fluctuations? a. Price discrimination b. Price skimming c. Price escalation d. Price sensitivity e. Elasticity of demand

Price escalation

A company charges a premium on its latest cell phone to tap the cell phone market that is found to be relatively price insensitive. Which pricing policy is the company following? a. Variable cost pricing b. Price skimming c. Benefits pricing d. Fixed-cost pricing e. Penetration pricing

Price skimming

In the context of the process of international communications, effective communication demands the existence of a "________" between the sender and the receiver. a. Psychological overlap b. Similar language c. Common market d. Similar culture e. Geographical overlap

Psychological overlap

Karen, an American citizen, who works for a multinational company, is preparing to return to the U.S. after completing a three-year assignment in Germany. What is this process called? a. Expatriation b. Gentrification c. Indemnification d. Repatriation e. Restitution

Repatriation

_____ is/are short-term efforts directed to the consumer or retailer to achieve such specific objectives as consumer product trial or immediate purchase, consumer introduction to the store or brand, gaining retail point-of-purchase displays, encouraging stores to stock the product, and supporting and augmenting advertising and personal sales efforts. a. Trade shows b. Public relations c. Direct selling d. Advertising campaigns e. Sales promotions

Sales promotions

Short-term assignments for expatriates involve payments of overseas premiums, sometimes called _____ allowances, if the family does not go along. a. Adjustment b. Separation c. Cultural d. Rehabilitation e. Cost-of-living

Separation

Which of the following consists of consumer-generated content? a. Television advertisements b. Direct mail marketing c. Radio advertisements d. Social media marketing e. Sponsored search results

Social media marketing

In the context of international business negotiations, representing Japanese negotiators as having a samurai kind of company loyalty is an example of: a. Misogyny. b. Activism. c. Egoism. d. Stereotyping. e. Racism.

Stereotyping.

Which of the following is typically true of third country-nationals (TCNs)? a. They transcend cultural and legal barriers. b. They are better paid than their U.S. counterparts. c. They are expatriates who work from their home country. d. U.S. firms have to pay double tax when hiring TCNs. e. TCNs are sought because they speak several languages and know an industry or foreign country well.

TCNs are sought because they speak several languages and know an industry or foreign country well.

Which of the following media has changed the pace and reach of word-of-mouth advertising? a. Television b. Radio c. The Internet d. Magazines e. Direct mail

The Internet

A clothing company sold its denims in developing nations at low prices to compete in the local market. It soon found that these discounted denims were being exported to several other countries where they were in direct competition with the same denims sold for higher prices by the same firm. In the other countries, these denims are a part of: a. The firm's retail chain. b. The used goods market. c. The counterfeit goods market. d. The vertical market. e. The gray market.

The gray market.

Which of the following statements is true regarding expatriates? a. The number of companies relying on expatriate personnel is declining as the volume of world trade increases. b. They add to the prestige of the product line in the eyes of foreign customers. c. In relationship-based cultures, an expatriate sales force proves to be more efficient. d. An expatriate sales force should be avoided when selling in an information-oriented culture. e. Their influence is often reduced by their lack of understanding of how office politics influence decision making.

They add to the prestige of the product line in the eyes of foreign customers.

Which of the following is an advantage of hiring local nationals in the sales force? a. They are less likely to accept any form of bribe. b. They are better able to lead a company through the maze of unfamiliar distribution systems. c. They are more knowledgeable about the company and its product line. d. They are likely to have superior technical expertise. e. They are more efficient in communicating with headquarters.

They are better able to lead a company through the maze of unfamiliar distribution systems.

Which of the following is an advantage multinational advertisement agencies have over local agencies? a. They provide the best cultural interpretation when local modification is sought. b. They have the best feel for specific regional market. c. Their level of sophistication is comparatively weak. d. Their cross-cultural communications with foreign clients are more problematic. e. They are better able to provide a coordinated worldwide advertising campaign.

They are better able to provide a coordinated worldwide advertising campaign.

Which of the following qualities is desirable for international marketing personnel? a. They should have a culturally superior attitude. b. They must take decisions that are not influenced by the habits of the market. c. They must be culturally indifferent to prevent distractions. d. They should be hypersensitive to behavioral variations in different countries. e. They must work independently without constant recourse to the home office.

They must work independently without constant recourse to the home office.

Expatriates from their own countries working for a foreign company in another country are known as: a. Virtual expatriates. b. Host country nationals. c. Repatriates. d. Local nationals. e. Third-country nationals.

Third-country nationals.

Why have bodies like the International Advertising Association developed self-regulatory codes to ensure that the majority of ads conform to standards set for "honesty, truth, and decency?" a. To prevent the spread of consumerism. b. To prevent government intervention. c. To increase efficacy of advertising. d. To reduce unnecessary competition. e. To prevent the spread of Americanism.

To prevent government intervention.

Neil is a U.S. national, who is posted at his company headquarters in the U.S. He is in charge of the native sales force operating in France. In view of the given information, we can say that Neil is a: a. Host-country national. b. Third-country national. c. Virtual expatriate. d. Local national. e. Repatriate.

Virtual expatriate.