International Marketing Exam 1
How can "alien status" unfavorably affect a company? A)prejudiced treatment by the host country's politicians and legal authorities B)an inflated balance of trade C)a sharp rise in domestic and international demand D)lower trade tariffs in the host country E)an economic situation of the magnitude of the Great Depression
A
If a country decided to refuse to allow an importer to exchange its national currency for the sellers' currency, it would be an example of a(n) ________ currency. A)blocked B)spot C)embargo D)taxed E)quota
A
In the context of monetary barriers, blockage is ideally accomplished when A)a country refuses to allow an importer to exchange its national currency for the country's currency. B)two countries enter into a voluntary agreement to determine the value of their currencies. C)a country applies a specific unit or dollar limit to a particular type of good. D)money dealers limit the rate at which foreign currencies are exchanged. E)the government of a country imposes a mandatory tax on goods entering at its borders.
A
Rishi, a protectionist, has seen several small businesses go bankrupt because they were unable to compete with the cheaper prices of goods provided by foreign companies. The cell-phone manufacturing industry has just started in the United Kingdom, and Rishi's company is one of the first to try its hand at cell-phone manufacturing. What argument is most likely to be used by Rishi to persuade his government to restrict the import of foreign cell phones from foreign companies? A)protection of an infant industry B)the need to keep money at home C)conservation of natural resources D)national defense E)maintenance of standard of living
A
The ________ account of the balance-of-payments statement is used to record all merchandise exports, imports, and services plus unilateral transfers of funds. A)current B)capital C)credit D)receivables E)reserves
A
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 GATT. D)the spread of communism by the United States. E)the sharp reduction in the production capacity of the United States.
A
What is the major reason behind the failure of American MNCs to completely dominate the European markets as predicted by Servan-Schreiber? A)The resurgence of competition for U.S. businesses from all over the world B)The elimination of import taxes in the European countries C)The restructuring of U.S industries D)The decadence of communism E)The dissolution of colonial powers
A
Which firm has a better chance of accelerating the internationalization process? A) Box-Co has key managers well-networked internationally. B) Ironworks International uses more traditional manufacturing practices. C) Piano Plus primarily focuses all its operations and production capacities to meet the domestic market needs. D) Animal Awareness and Action refrains from using the Internet as its major communication platform. E) Kenilworth Karts has larger home markets and smaller production capacities.
A
Which of the following falls on the plus side of the U.S. balance of payments? A)payments to the United States for insurance B)the costs of goods imported C)spending by American tourists overseas D)new overseas investments E)the cost of foreign military
A
While Heidi's company does not typically sell internationally, they have a temporary surplus in the small appliances they manufacture and decide to promote them in other countries. Which stage of international marketing involvement does this represent? A)infrequent foreign marketing stage B)regular foreign marketing stage C)no direct foreign marketing stage D)international marketing stage E)global marketing stage
A
A balance-of-payments statement for a country reveals A) how rich or poor a country is financially. B) a record of the country's financial condition. C) a comparison of one country's finances to another country's debt. D) a balanced budget for the country. E) the spending power available to the country for specific goods.
B
A specific unit or dollar limit applied to a particular type of good is called a(n) A)trade license. B)quota. C)ad valorem duty. D)predatory price. E)exchange rate.
B
Adaptation on the part of an international marketer is best described as A)a conscious effort to make themselves aware of the home cultural reference in their analyses and decision making. B)a conscious effort to anticipate the influences of both the foreign and domestic uncontrollable factors on a marketing mix and then to adjust the marketing mix to minimize the effects. C)the notion that people in one's own company or country know best how to do things. D)the process of identifying the similarities that exists between the domestic and foreign markets. E)an unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions and then to adjust the marketing mix in order to closely reflect these decisions.
B
After World War II, the United States led efforts to provide financial and industrial development assistance to rebuild Japan and channeled funds to foster economic growth in the underdeveloped world. These efforts were primarily aimed at A)halting the growth of Nazi Germany. B)dampening the spread of communism. C)dampening the spread of capitalism. D)building a stronger defense force. E)creating a worldwide trade bloc to counter the OPEC countries' clout.
B
After World War II, the United States set out to infuse the ideal of capitalism throughout as much of the world as possible. As a result, most of the noncommunist economies in the world A)stagnated. B)grew significantly. C)failed. D)quickly matched the U.S. economy. E)faced high inflation rates.
B
Brett, who is from Ohio, has taken a job in Thailand. Last week, he was confronted with a personnel issue and resolved it by saying that "In the U.S., you would be given one warning and then fired for this type of behavior." Brett did not take into account that company standards might differ in Thailand and the employee was acting appropriately. Which obstacle to international marketing does this demonstrate? A)collectivism B)self-reference criterion C)tragedy of the commons D)individualism E)marketing myopia
B
Ian works for a sports equipment manufacturer in Boston and is responsible for shipping products across the United States. What is one factor that would be uncontrollable for Ian? A)firm characteristics B)competitive structure C)channels of distribution D)price of the product E)promotional measures
B
In order to effectively secure foreign exchange, what is most likely to be used by countries experiencing severe shortages of foreign exchange? A)privatization B)government approval C)spot pricing D)voluntary export restriction E)monopoly
B
Kentax Corporation makes industrial cleaning products and decides to enter the international marketing arena by marketing its products to China, Japan, and South Korea, with separate marketing strategies for each country. Which of the following approaches is most likely used by Kentax Corporation to formulate its international policies and strategies? A)domestic market extension B)multidomestic market C)mass marketing D)regional marketing E)standardized marketing
B
One country refuses to sell goods to its neighboring country based on the belief that the neighboring country harbors radicals and terrorists. In this case, the refusal is referred to as a(n) A)antidumping penalty. B)embargo. C)monetary barrier. D)orderly market agreement. E)voluntary export restraint.
B
What is a defining characteristic of a balance-of-payments statement? A)It is a record of the domestic transactions between the government of a country and the private companies in that country. B)It records all financial transactions between the residents of a country and those of the rest of the world. C)It records the trade policies of the member nations of the WTO. D)It is an annual record of the profitable foreign transactions made by a particular country. E)It is a financial statement in which the credits must exceed the debits.
B
What is one of the most dynamic trends that is affecting current global business strategies? A) the trend toward buying American cars in Europe B) the trend toward the acceptance of the free market system among developing countries C) the trend toward using English as the global language D) the trend toward establishing a world currency E) the trend toward providing aid to developing and less developed nations
B
What strategy was employed by the United States to regain its lost market share for capital goods by the late 1990s? A)funding the competitive developing nations B)restructuring its industries to be more "lean and mean" C)decreasing its exports and increasing its imports D)raising average U.S. tariffs on more than 20,000 imported goods by 60 percent E)provoking increased protectionism from other countries
B
What was the outcome for GATT after the ratification of the Uruguay Round agreements? A) GATT allowed the United States to increase its import tax. B) GATT became part of the World Trade Organization. C) GATT directly led to the uneven distribution of economic power and potential. D) The European Union decided to stay away from the treaty. E) The original purpose was sidelined in favor of political and military intervention between member states.
B
Which account in the balance-of-payments statement is a record of direct investment, portfolio investment, and short-term movement of cash and technology to and from countries? A)current account B)capital account C)credit account D)receivables account E)reserves account
B
Which firm seems better equipped for internationalization? A)a firm that sells its products only to those foreign customers who directly contact the firm B)a firm that has a production capacity that is larger than home market demand C)a firm that focuses its production activities on meeting the demands in the home market D)a firm that has a culturally diverse employee profile but few competitive offerings at the global level E)a firm that has little intention of maintaining a continuous market representation
B
Which scenario best illustrates the political and legal issues faced by companies because of their "alien status" when they attempt to do business in foreign countries? A)a company doing moderate business in international markets because of violent history of its home country B)a company being forced by the local government to share its core competencies in order to continue doing business C)a product not being widely accepted in the foreign market because of its irrelevance to the customers D)a company utilizing an identical promotional campaign it used in the domestic country E)a company not succeeding in a foreign market because its product pricing is above the purchasing power of the local customers
B
Why did the Smoot-Hawley Act play a role in sending the world's economies into the Great Depression? A)It encouraged the majority of world economies to lower tariffs to imported goods. B)It raised U.S. tariffs on thousands of imported goods by more than 60 percent. C)It created an embargo on all agricultural products. D)It divided the United States into factions based on race. E)It forced independent countries to band together to stay economically viable.
B
Compared to the foreign environment variables, which of the following uncontrollable variables is least likely to affect a domestic marketer? A)political forces B)competitive structure C)economic climate D)cultural forces E)legal forces
D
Why does understanding one's own culture require additional study? A)to find out why cultural traits in one's own country does not affect market behavior B)because much of the cultural influence on market behavior is at the subconscious level C)since without which, understanding the cultural traits of one's own country is impossible D)because an average manager must have extensive cultural knowledge of all countries in the world E)because cultural influence on one's own market behavior is generally minimal
B
With respect to the environment in which a business operates, factors such as competition, political and legal forces, and economic climate would all be classified as A)controllable elements. B)uncontrollable elements. C)tractable elements. D)demographic elements. E)cultural elements.
B
A boycott on importing produce from Mexico would be an example of a A)compound duty. B)revenue tariff. C)nontariff barrier. D)specific duty. E)quota embargo.
C
A globally aware manager is characterized by A) using one's home culture's values alone to market one's products in foreign countries B) accepting the cultural ways of another individual as his or her own C) tolerating cultural differences and allowing others to be different and equal D) discarding one's home culture's standards to adopt the global cultural standards E) controlling any influences that the global cultural standards may have on the marketing process
C
A natural off shoot of a person's self-reference criterion is ________ that also creates a concern for the international marketer. A)sympathy B)self-actualization C)ethnocentrism D)empathy E)collectivism
C
A voluntary export restraint is an agreement signed willingly between the importing country and the exporting country for a restriction on the A)overall tax. B)number of businesses eligible for imports. C)volume of exports. D)government's portion of the paid tariff. E)balance-of-payments statements.
C
An exchange permit can stipulate the A)quantity of goods that can be exchanged for a particular sum of foreign currency. B)number of parties that can be involved in an exchange transaction. C)amount to be exchanged that must be deposited in a local bank for a set period. D)quality standards of the goods involved in an exchange. E)number of times one party can avail exchange permits.
C
Exporting countries primarily agree to voluntary export restraints (VERs) to A)minimize exposure in the importing country. B)reduce market competitiveness. C)avoid stiffer quotas being set by the importing country. D)take over local industries of the importing country. E)avoid criminal prosecution.
C
For a company at the ________ stage of internationalization, market segments are defined by income levels, usage patterns, or other factors that frequently span countries and regions. A)domestic market extension B)no direct foreign marketing C)global marketing D)internal marketing E)infrequent foreign marketing
C
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.
C
In the context of stages of international marketing involvement, a company's product reaches a foreign market without any conscious effort on the part of a marketer during which stage of the process? A)infrequent foreign marketing stage B)regular foreign marketing stage C)no direct foreign marketing stage D)international marketing stage E)global marketing stage
C
In the last few years, most of the countries of the world saw a dramatic slowdown in the growth of their economies with the exception of A)the United States. B)Spain. C)China. D)Greece. E)France.
C
In what stage of international marketing involvement do companies primarily focus all their operations and production to service domestic market needs, even though they have a permanent productive capacity devoted to the production of goods to be marketed in foreign markets? A)no direct foreign marketing B)internal marketing C)regular foreign marketing D)international marketing E)financial marketing
C
Kelly Reeves is in charge of a new marketing effort directed toward Peru. In order for her company to market effectively and distribute to all of Peru's major cities, Kelly must devise a logistics plan for crossing the Andes Mountains on a daily basis. Which of these foreign environment uncontrollable variables would be a chief concern as Kelly devises her firm's logistics plan? A)price B)product C)geography and infrastructure D)promotional strategies E)channels of distribution
C
M&G Inc., a company producing musical instruments, had dominated its home market for several years before venturing into international markets. The company was focusing more on international operations until Beige N, a German company in the same business, entered its home market. Beige N started selling good quality products at prices much lower than M&G's and affected its sales adversely. Which of the following elements in the marketing environment has affected the business of M&G Inc. with the market entry of Beige N? A)level of technology B) structure of distribution C)competition in the domestic market D)cultural forces E)promotion of the product
C
Parul believes that her culture and country know how to do things best and she looks down on the cultural habits of other countries. What is Parul exhibiting? A)differentiation B)marketing myopia C)ethnocentrism D)multiculturalism E)pluralism
C
The marketing tasks of an international marketer differ from that of a domestic marketer as the A)international marketer has fewer uncontrollable elements to deal than a domestic marketer. B)level of technology and cultural forces are controllable elements for the international marketer. C)structure of distribution is an uncontrollable element for the international marketer. D)competitive structure is one of the controllable factors for an international marketer. E)international marketer is less concerned about geography and infrastructure than the domestic marketer.
C
The most effective way to control the influence of ethnocentrism and the self-reference criterion is to A)reduce interaction with a culturally diverse audience. B)design products and services in a traditional manner. C)recognize their effects on our behavior. D)learn at least two foreign languages to understand the cultural differences. E)establish beneficial relations with the host country's government.
C
Voluntary export restraints are commonly used in what industry? A) finance B) furniture C) agriculture D) media E) education
C
What argument 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 a low-wage nation D) conservation of natural resources E) maintenance of employment and reduction of unemployment
C
What is a tariff? A)It is a tax levied by a government on goods being exported out of the country. B)It is a tax paid by individual states to the federal government for goods transferred across state lines. C)It is a tax imposed by a government on goods that are imported into the country. D)It is a limit on the amount of goods that can be imported into the country. E)It is a limit on the amount of goods that can be exported out of the country.
C
What is true of firms in the first two stages of international marketing involvement—no direct foreign marketing and infrequent foreign marketing? A)They do not begin internationalization at these stages. B)They take a strategic approach to decision making regarding international expansion .C)They are more reactive in nature and embark on internationalization without planning. D)They intend to maintain a continuous market representation in foreign markets. E)They are a result of dedicated production capacity maintained for foreign markets.
C
What is used to ensure that balance-of-payments records are always in balance? A)sum of squares recording system B)bank reconciliation system C)double-entry bookkeeping system D)archival records system E)multifactor recording system
C
Which one of the following firms/products reflects a global marketing orientation? A) skin-care products aimed at African American women B) a company promoting Latino jazz musicals C) a firm producing highly cost-effective and durable computers to attract students and young people under 25 D) a famous restaurant in Singapore specializing in Eurasian fusion food E) a Japanese to English translation software
C
Which political action is most likely to favor international marketing? A)placing trade embargoes on Cuba owing to widespread political instability in the country B)the U.S. government placing a trade ban on Libya owing to rampant terrorism C)South Africa abolishing apartheid and the U.S. lifting the embargo D)tariff hike for imports established by China E)the U.S. government coupling human rights issues with foreign trade policy
C
Which statement is true of tariffs? A) They strengthen balance-of-payments positions. B) They strengthen supply-and-demand patterns. C) They increase special interests' privileges. D) They strengthen international relations. E) They promote competition.
C
Which were the two major challenges faced by U.S. multinational corporations at the close of the 1960s? A)the creation of the Soviet Union and the higher tariffs on imports B)growing jingoistic nationalism and a negative population growth rate in major international markets C)resistance to direct investment and increasing competition in export markets D)increasing Chinese domination in the manufacturing sector and the falling dollar in global markets E)the decreased demand for U.S. goods in the global market and the growing influence of consumer rights advocacy in the home market
C
________ is a controllable element for an international marketer. A)Level of technology B)Geography and infrastructure C)Channels-of-distribution D)Cultural forces E)Competitive forces
C
________ is a controllable element in both domestic and international marketing environments. A) Economic climate B) Competition within the home country C) Price of products D) Political force E) Foreign policy
C
________ is an unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions. A)Xenocentrism B)Holism C)Self-reference criterion D)Segregation E)Orientalism
C
Following World War II, it is noted that the West created the trade patterns. This was especially true in which one of the following? A)North America B)Europe C)South America D)Asia E)Central America
D
If a country refuses to sell some products to another country, it is utilizing which barrier to trade? A)import credit discriminations B)export subsidies C)voluntary export restraints D)embargoes E)packaging, labeling, or marking standards
D
A firm that is involved with the international marketing stage of marketing involvement will A) have its primary focus of operations and production on servicing domestic market needs. B) reduce foreign sales activity. C) consider profit expectations from foreign markets as a bonus in addition to regular domestic profits. D) plan both marketing and production of goods outside the home market. E) consider international marketing only when there is a surplus of goods.
D
Jason's department is responsible for the business activities designed to plan, price, promote, and direct the flow of his company's small appliance products to consumers in various nations around the world for a profit. What is his department in charge of? A) internal marketing B) importing C) performance appraisal D) international marketing E) domestic trade
D
Marketers must be especially cognizant of ________ for both domestic and international markets because of the dominantly uncontrollable nature of this factor. A)price B)promotion C)research activities D)political/legal forces E)channels of distribution
D
Natasha's company seeks markets all over the world and attempts to sell products that are a result of planned production for markets in various countries. Which stage best characterizes the stage of international marketing involvement for Natasha's company? A)infrequent foreign marketing B)domestic marketing C)no direct foreign marketing D)international marketing E)internal marketing
D
Shondra McDonald, a marketing manager at a hearing aid manufacturing firm, is asked to review the marketing opportunities of her company in a foreign market. She is aware that she can modify certain elements of the marketing environment to suit the foreign market needs. She focuses her attention on the uncontrollable factors that might affect the firm's business prospects. Which of the following uncontrollable elements is most likely to affect the company's business prospects in the foreign market? A)pricing policies in the domestic market B)research methodologies used by her company C) promotional activities required to market the product D)level of technology in the targeted market E)product distribution channels adopted by his company
D
The World Bank estimates that five countries whose share of world trade is barely one-third that of the European Union will, by 2020, have a 50 percent higher share than that of the European Union. Which of these countries is included on this list? A)Canada B)Nigeria C)Netherlands D)Indonesia E)Zimbabwe
D
The system of accounts that records a nation's international financial transactions is most accurately called its A)supply chain management system. B)gross domestic product system. C)net domestic product payments. D)balance of payments. E)net national product systems.
D
The uncontrollable issue of ________ faced by a company abroad is often amplified by the "alien status" of the company, which increases the difficulty of properly assessing and forecasting the dynamic international business climate. A)research B)channel of distribution C)product specification D)politics E)product promotion
D
To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that isolates the self-reference criterion (SRC) influences. What is the first step in this analysis? A)redefining the problem without the SRC influence B)solving the problem for the optimum business goal situation C)isolating the SRC influence in the problem D)defining the business problem or goal in home-country cultural traits, habits, or norms E)examining the isolated SRC influence to see how it complicates the problem
D
What characteristic would impede the ability of a person to assess a foreign market in its true light? A)polycentrism B)pluralism C)xenocentrism D)ethnocentrism E)relativism
D
What event spurred the final downfall of the U.S. economy in 2008 when world trade experienced its deepest decline in more than 50 years? A)The stock market ended at a record high. B)The U.S. and Cuba joined forces. C)The Senate and House failed to compromise on interest rates. D)The housing market collapsed. E)The voters elected a third-party candidate.
D
What factor was primarily responsible for the excess in production capacity in the United States after World War II? A)The United States government raised the tariffs on most imports by 60%. B)Many firms from other nations shifted their production facilities to the United States. C)Domestic demand was at a historic low and resulted in excess capacity. D)The returning military after World War II increased the labor supply in the United States. E)The implementation of the Marshall Plan dampened the overseas demand.
D
What is an accurate description of the relationship between international business and domestic business? A)The domestic economic climate has no effect on a company's competitive position in foreign markets. B)Domestic businesses must focus on capital mobility toward international businesses before capital generation. C)Countries must not restrict foreign investment even if domestic economic conditions deteriorate. D)The ability to invest abroad is to a large extent a function of domestic economic vitality. E)Domestic businesses are more viable than international businesses as capital tends to move toward minimum use.
D
What is an essential requirement for experienced, as well as new, firms to succeed in international markets? A) adhering strictly to their traditional methods of production and operations B) focusing primarily on their production to exclusively meet domestic demand C) venturing into multiple markets by investing in all of them at once D) committing themselves completely to foreign markets E) having beneficial relations with lobbyists of foreign markets
D
What is considered the most critical difference between domestic marketing and international marketing? A)the difference in marketing principles being followed B)the different concepts of marketing C)the difference in marketing theories being followed D)the environment in which marketing plans must be implemented E)the basic processes used to market products and services
D
What is the most effective way to achieve organizational global awareness? A)hiring entry-level employees based on the sole criterion of global awareness B)organizing frequent employee trips to foreign cultures to increase their sensitivity C)increasing the diversity mix of the front-level employee profile D)having a culturally diverse senior executive staff or board of directors E)promoting social networking as a means to improve inter-cultural communication
D
What is the most profound change for firms at the global marketing stage of internationalization? A)More than half of the multinational firm's revenue is generated from domestic markets. B)Sales to foreign markets are made as and when goods become available. C)Temporary surpluses marketed in foreign markets is the only element of internationalization. D)Companies treat the world, along with home market, as one market. E)Domestic demand always exceeds the firm's production capacity.
D
What trade policy tool makes it mandatory for its importers who want to buy a foreign good to apply for an exchange permit? A) tariff B) import quota C) blocked currency D) government approval E) export levy
D
What was the most apparent reciprocal impact of the foreign economic assistance given by the United States following World War II? A)European countries formed an alliance to counter the OPEC countries' clout. B)Outflow of labor to the recipient countries increased dramatically. C)All recipient countries appointed Americans to manage their central banks. D)Purchases of U.S. agricultural products, manufactured goods, and services by the recipient countries increased. E)Distribution of economic power and potential became more uneven.
D
When considering the stages of international marketing involvement, it is important to remember that A)a firm essentially progresses through the stages in a linear order. B)the international marketing stage is a direct result of temporary surpluses caused by variations in production levels or demand. C)a larger home market with a smaller production base favors internationalization. D)a firm may be in more than one stage simultaneously. E)at the global marketing level, a firm focuses on market segmentation based on geographical borders.
D
Which statement 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.
D
Active Bicycle Company has just received notice that a shipment of 300 bicycles has been rejected by the customs administration of the recipient country because the bikes did not include a metal plate surrounding the chain. What category of nontariff barriers primarily uses such quality issues as a trade barrier? A)quotas B)licenses C)embargoes D)boycotts E)standards
E
Angelica Wu is preparing a marketing plan for her company for the upcoming year's business activities. She knows that she should begin her plan by examining the variables she has some control over. These controllable variables would include price, product, channels-of-distribution, and A)level of technology. B)political forces. C)competition. D)economic climate. E)promotion.
E
For an international marketer, the ________ can be altered in the long run and, usually, in the short run to adjust to changing market conditions, consumer tastes, or corporate objectives. A)competitive structure B)economic climate C)structure of distribution D)environmental factors E)controllable elements
E
How did GATT prevent the repeat of the economic disaster that occurred after World War I? A)It provided short-term loans to struggling nations. B)It promoted dumping policies to allow stronger ties between member nations. C)It fostered isolationism for nations that were market leaders. D)It provided for a third party, the United Nations, to negotiate peace treaties. E)It provided a forum for member countries to negotiate a reduction of tariffs and other barriers to trade.
E
How has globalization impacted domestic markets in the United States? A)Companies with only domestic markets have been able to sustain their customary rates of growth. B)Multinational companies are making more profits from their domestic operations compared to their earnings from the foreign markets. C)Only multinational companies with large production facilities have outperformed their strictly domestic U.S. counterparts. D)The domestic companies have reduced their manufacturing employment more than U.S. multinationals. E)Multinational manufacturing companies in all industries and sizes have outperformed their domestic counterparts.
E
In the infrequent foreign marketing stage of international marketing involvement, firms A)sell products that are a result of planned production in markets in various countries. B)no longer make market segmentation decisions on the basis of national borders. C)have a global perspective and view the entire world as one market. D)have more than half their sales revenues coming from international markets. E)have no intention of maintaining continuous market representation in foreign markets.
E
Marta's company treats the world, including the home market in Spain, as one market. Market segmentation decisions no longer focus on national borders. Instead, market segments are defined by income levels, usage patterns, and other factors that span countries and regions. Which of the following stages best characterizes the stage of international marketing involvement for Marta's company? A)infrequent foreign marketing B)test marketing C)no direct foreign marketing D)internal marketing E)global marketing
E
People seldom stop to think about a reaction; they simply react. Thus, when faced with a problem in another culture, their tendency is to react instinctively and refer to their ________ for a solution. A)self-space principle B)segregation principle C)integration criterion D)space command criterion E)self-reference criterion
E
Post-World War II, worldwide economic growth was in strong evidence and countries that were once classified as less developed were reclassified as A)communist countries. B)free trade economies. C)tier-II countries. D)developed countries. E)newly industrialized countries.
E
The ________ of the balance-of-payments statement is used to record increases or decreases in foreign exchange and increases or decreases in liabilities to foreign central banks. A)current account B)capital account C)credit account D)receivables account E)reserves account
E
The marketing manager for Glorious Products wants to export the company's line of fashion boots to an EU country. However, she discovers that there is a complete restriction on the import of any form of leather into that country. This is an example of A)an orderly market agreement. B)a quota. C)a monetary barrier. D)a voluntary export restraint. E)a boycott.
E
The tariff on certain goods is based on the percentage of the determined value of the item being imported. What type of tariff is this? A)compound duty B)quota duty C)specific duty D)reciprocal duty E)ad valorem duty
E
Tomas is a manager at a frozen food company and wants to understand the way people in different countries think and act so that the company can respond to their needs appropriately. What is the best aid he can use to accomplish this? A)a sound financial background B)better political connections C)an understanding of foreign investment opportunities D)an understanding of macroeconomics E)knowledge of the foreign country's history
E
Watson's, a firm that specializes in dog food and grooming products, has a very well-established domestic market. The company does not actively sell its products outside national borders but provides goods to customers who contact them directly or place orders with them through the Internet. Watson's is currently in the ________ stage of international marketing involvement. A)frequent foreign marketing B)active foreign marketing C)global marketing D)regular foreign marketing E)no direct foreign marketing
E
What factor is favorable when determining whether or not a company should consider internationalization efforts? A)A company currently has large home markets but smaller production capacities. B)A company has home country managers who have never worked outside of the home country. C)A company wants to pair with an existing international company to access technology. D)A company has minimal storage and transportation capabilities. E)A company has high-technology resources already in place.
E
What is an uncontrollable element for an international marketer? A) firm characteristics B) channels-of-distribution C) price D) research E) level of technology
E
What occurs in the balance of payments account when international payments are greater than receipts? A) a tariff B) inflation C) recession D) a credit E) a deficit
E
Which of the following falls on the minus side of the U.S. balance of payments? A)payments to the United States for insurance B)payments of dividends and interest on investments abroad C)return on capital invested abroad D)new foreign investments in the United States E)spending by American tourists overseas
E
