Test 3

_____ classifies a country's stage of economic development on the basis of its level of industrialization into three categories and the three categories are MIDCs, LDCs, and LLDCs.

The United Nations

During the early market growth of many countries, the first large open market was _____.

The United States

E-commerce is more developed in _____ than the rest of the world, partly because of the lower cost of access to the Internet than found elsewhere.

The United States

Which of the following countries is a part of the free trade area known as CFTA?

The United States

Which of the following is an example of the primary function of a product?

The ability of a camera to take a picture

The first meeting of the members of the ASEAN+3 was devoted to devising a system whereby the member countries could:

Defend their currencies against future attack

Uncontrollable and unpredictable influences such as competitive activities and confusion that detract from the process of communication are called feedback.

False

Uruguay is a member of NAFTA.

False

Using foreign-country middlemen moves the manufacturer away from the market and the company becomes less involved with problems of language, physical distribution, communications, and financing.

False

When a marketing executive advertises his product in a newspaper, the newspaper acts as a feedback channel.

False

When a message from a source is converted into effective symbolism for transmission to a receiver, the message is said to have been decoded.

False

When the marketing process in a country is in the commercial-transition substage, the only marketing function performed is physical distribution.

False

With some exceptions, usually a majority of the population of less developed countries can be reached readily through the traditional mass medium of advertising.

False

The most rapidly growing economies in the Asia Pacific region during the 1980s and 1990s, Hong Kong, South Korea, Singapore, and Taiwan are often referred to as the _____.

Four Dragons

A _____ is an agreement between two or more countries to reduce or eliminate customs duties and nontariff trade barriers among partner countries while members maintain individual tariff schedules for external countries.

Free trade area

One of the reasons that channels of distribution often pose longevity problems is that most middlemen _____.

Have little loyalty to their vendors

Newly industrialized countries (NICs) differ from less-developed countries in that NICs:

Have moved away from restrictive trade practices and instituted significant free market reforms.

Dynamic economies differ from static economies in that dynamic economies:

Have rapidly changing consumption patterns.

Which of the following is a requisite for the survival of any economic union?

Having agreements and mechanisms in place in order to settle economic disputes

A disadvantage when using home-country middlemen as intermediaries in the distribution process is the:

Limited control over the distribution process

According to the United Nations' stages of economic development for classifying countries with respect to levels of industrialization, a country that is industrially underdeveloped, agrarian, has subsistence society with rural populations, and has extremely low per capita income levels falls under the category of _____.

Least-developed countries

Companies that rely on television infomercials and television shopping are restricted by the limitations placed on the _____ of television commercials permitted when their programs are classified as advertisements.

Length and number

According to the United Nations' stages of economic development for classifying countries with respect to levels of industrialization, _____ consist of industrially developing countries just entering world trade with relatively low per capita income.

Less-developed countries

The three contiguous provinces in Northeast China _____, Jilin, and Heilongjiang have long represented a cohesive unit in terms of culture and the political economy.

Liaoning

Which of the following is a long-term challenge that the European Union is facing?

Limiting the political aspects of the Union

_____ allows ESPN to fill visual real estate—blank walls, streets, stadium sidings—with computer-generated visuals that look like they belong in the scene.

Princeton Video Imaging

In Spain, a new medium for advertising called Publicoche includes:

Private cars that are painted with advertisements.

An especially effective promotional tool when a product concept is new or has a very small market share is _____.

Product sampling

Economic planners are often more _____ oriented than marketing oriented.

Production

_____ is a subject area that should be on the checklist of criteria for evaluating middlemen servicing a market.

Productivity

According to C. K. Prahalad, which of the following represents the misconception that leads international markets to ignore the bottom-of-the-pyramid markets?

Products developed for more affluent consumers are not appropriate for BOPMs.

_____ suffer(s) from issues such as difficulty in assessing taxes, unfair competition, import duties, and privacy.

The Internet

Which of the following is the primary reason behind the inaccessibility of most of the 1.3 billion potential consumers?

The distribution network is poor or absent

The feedback step of the international communications process is important as a check on the effectiveness of the other steps.

True

The first Soviet republics to declare independence were the Baltic states.

True

The initial aim of a multinational market is to protect businesses that operate within its borders.

True

The liberalization of trade and investment policies in developing countries are changing the way countries will trade and prosper in the 21st century.

True

The most advanced and viable of Africa's regional organizations is called the Southern African Development Community.

True

The quality of an infrastructure directly affects a country's economic growth potential.

True

The role of public relations is to create good relationships with the popular press and other media to help companies communicate messages to their publics—customers, the general public, and governmental regulators.

True

The trend toward privatization is currently a major economic phenomenon in industrialized as well as in developing countries.

True

Trading companies provide the best means for intensive coverage of the market in Japan.

True

Traditional channels in developing countries evolved from economies with a strong dependence on imported manufactured goods.

True

What is occurring in the BEMs is analogous to the situation after World War II when tremendous demand was created during the reconstruction of Europe.

True

When the only marketing functions performed are demand creation and physical distribution, the marketing process is said to be in the mass distribution substage.

True

While developing an international advertisement campaign, the last step of the process is evaluating the campaign relative to the goals specified.

True

With the adoption of the euro, price differentials are much easier to spot, and the consumer can search for the best bargains in brand-name products more easily.

True

At the most general level, the _____ represents the most important and comprehensive trade agreement in history.

WTO

Which of the following is a cultural hurdle in the path of China becoming a vast market in the long run?

Xenophobia

_____ is known as China's Silicon Valley.

Zhongguancun

Liaoning and Jilin provinces of China share borders with North Korea, and both provinces host substantial numbers of Korean minorities.

True

Multinational market regions are those groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers.

True

Newly industrialized countries (NICs) are characterized by markets free from restrictive trade practices and the presence of significant free market reforms.

True

Northeast China was the industrial and technological center of the country in the 1970s and 1980s.

True

Of all the elements of the marketing mix, decisions involving advertising are those most often affected by cultural differences among country markets.

True

One of the drawbacks of satellites is also their strength, that is, their ability to span a wide geographical region covering many different cultures.

True

One of the most important aspects of LAIA that differs from LAFTA is the differential treatment of member countries according to their level of economic development.

True

Privatization of industries released immediate capital to invest in strategic areas.

True

Problems of literacy, media availability, and types of media create problems in the international communications process at the encoding step.

True

Sales promotions are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation.

True

Sales promotions constitute the major portion of the promotional effort in rural and less accessible parts of a market.

True

Ten new countries joined the European Union in 2004 followed by Bulgaria and Romania in 2007.

True

The Asian financial crisis led to the creation of the ASEAN+3.

True

The Commonwealth of Independent States is a loose economic and political alliance with open borders but no central government.

True

The DR-CAFTA includes a wide array of tariff reductions aimed at increasing trade and employment.

True

The European Union was created when the 12 nations of the European Community ratified the Maastricht Treaty.

True

The Export Trading Company Act allows producers of similar products to form export trading companies.

True

The Hong Kong dollar is freely convertible.

True

The Japanese have an affinity for united effort.

True

The UN classification has been criticized because it no longer seems relevant in the rapidly industrializing world.

True

The United States has granted NTR (normal trade relations) status to Vietnam.

True

The WTO is wholly dedicated to making trade among nations more efficient.

True

The behavior of channel members in the distribution process is the result of the interactions between the cultural environment and the marketing process.

True

The blueprint for the European Union began with the Treaty of Rome in 1957.

True

Which of the following is true of the APEC?

It promotes economic cooperation

Which of the following is true of the CFTA?

It provided only for the elimination of tariffs and other trade barriers between the United States and Canada

In the context of integrated marketing communications, which of the following best defines public relations?

It the creation of good relationships with popular press to help communicate messages to their customers, the general public, and governmental regulators.

Which of the following is true of privatization of state-owned enterprises?

It was done in order to stop the drain on national budgets due to inefficient state-owned enterprises.

Which of the following is a consequence of creation of large mass markets?

It will increase the significance of small national markets

C. K. Prahalad and his associates introduced a new concept into the discussion of developing countries and markets—bottom-of-the-pyramid markets (BOPMs)—consisting of the 4 billion people across the globe with annual incomes of less than _____.

$1,200

Which of the following is the weakest of political unions that is mostly based on economic history and a sense of tradition?

A commonwealth

In the context of consumer products, which of the following is the major limitation of the Internet?

Coverage of the Internet

_____ is a free trade group formed by Argentina, Brazil, Paraguay, and Uruguay.

Mercosur

The rural population, which accounts for almost three-fourths of the Chinese population, usually receives about _____ percent of the central government budget.

10

The true consumer market in China is probably limited to no more than _____ percent of those who live in the more affluent cities.

25

Due to differences in culture in different markets, standardized products that are marketed globally will most likely require:

A different advertising appeal

With the expansion of the European Union, existing members fear:

A flood of cheap labor into their countries

Similarity of cultures can make or break an economic union. Although there is great cultural diversity in the European Union, key members share _____ and are commonly aware of being European.

A long-established Christian heritage

Essentially, a free trade area (FTA) provides its members with:

A mass market without trade barriers among partner countries.

One of the first factors that gave the European Union an edge over others in the process of becoming a common market was:

A well-developed transportation network.

One of the major consequences of the Maastricht Treaty (1992) was that the 12 members of the European Union agreed to dissolve the Union.

False

_____ is a unique forum that has evolved into the primary regional vehicle for promoting trade liberalization and economic cooperation, and includes all the major economies around the Pacific Rim, from Russia to Chile to Australia, the most dynamic, fastest growing economies in the world.

APEC

The primary multinational trade group in Asia is _____.

ASEAN

During the Asian financial crisis, the leading financial powers seemingly either declined to take part in the rescue operations, as the United States did in Thailand, or proposed unattainable solutions. The result was the creation of _____.

ASEAN+3

China's astonishing growth rate has begun to slow recently; however, most analysts see fast growth continuing for China. All of this growth is primarily dependent on China's:

Ability to deregulate industry

Two major events that occurred in 2000 had a profound effect on China's economy. One of these is the United States granting normal trade relations (NTR) to China on a permanent basis (PNTR). Which of the following is the other one?

Admission to the World Trade Organization

Of all the elements of the marketing mix, decisions involving which of the following is most often affected by cultural differences among country markets?

Advertisement of the product

Of all the elements of the marketing mix, decisions involving _____ are those most often affected by cultural differences among country markets.

Advertising

_____ are the major components in the marketing communications mix for most companies.

Advertising and personal selling

_____ in countries can distort media choice by changing the cost ratios of various media.

Advertising taxation

ECOWAS, SADC, and EAC are active regional cooperative groups in _____.

Africa

Which of the following accounts for the lion's share of Mercosur exports to Europe?

Agricultural and agro-industrial products

NAFTA differs from Mercosur in that NAFTA:

Aims to address and improve all aspects of doing business within North America.

The _____ increases the authority of the institutions of the European Union and is designed to accommodate the changes brought about by the monetary union and the admission of new members.

Amsterdam Treaty

Which of the following is an example of comparative advertising?

An ad showing a dog choosing one brand of dog food over another

The Commonwealth of Independent States is:

An economic and political alliance with open borders and no central government

James Barker is the marketing manager of a firm with small international sales volume. He is looking for a middleman who can take responsibility for promotion of the company's products, credit arrangements, physical handling, and market research. Also, the middleman must be able to provide information on financial, patent, and licensing matters. In addition, the middleman should agree to work under the name of the firm. Which of the following types of middlemen would be the best choice for Mr. Barker if he wants to meet his objectives?

An export management company

The _____ initiates policy and supervises its observance by member states, and it proposes and supervises execution of laws and policies.

European Commission

Which of the following countries was involved in the formation of the free trade group Mercosur?

Argentina

Of all the multinational market groups, none has been more secure in its cooperation or more important economically than the:

European Union

Most newly industrialized countries (NICs) have moved away from restrictive trade practices and instituted significant free market reforms. As a result, these countries have:

Atracted both trade and foreign direct investment.

Which of the following factors affects the choice of distribution channels?

Available distribution intermediaries

The European Commission, the Council of Ministers, the European Parliament, and the Court of Justice are institutions of the _____.

European Union

Alexia is geographically large and represents a sizable market for a wide range of products. It has a strong growth rate and is considered as the regional economic driver. Based on this information, Alexia can be classified as a _____.

Big emerging market

Markets that are geographically large, have strong growth rates, are regional economic drivers, and represent sizable markets for a wide range of products are known as _____.

Big emerging markets

The first Soviet republics to declare independence from the Soviet Union were the _____.

Baltic states

Grameen Bank is a private commercial enterprise in _____.

Bangladesh

This region in China is the political and R&D center of China. The 75-mile corridor in this region hosts some 5,000 Chinese high-tech companies, and more than 1,000 international IT companies. Perhaps the key to this region is the quality of its higher education. Identify the region in discussion.

Beijing-Tianjin

Which of the following regions is considered as the information technology (IT) corridor in north China?

Beijing-Tianjin

In the context of the different types of middlemen, which of the following is an example of a manufacturer's retail store?

Benetton

IBM entered into a venture with the Chinese Railways Ministry that allowed IBM to set up a national network of IBM service centers in railway stations that has enabled IBM to ship computer parts via the railroad around the country within 24 hours. This venture was dubbed the _____.

Blue Express

C. K. Prahalad and associates introduced the concept of a global market, not necessarily defined by national borders but rather by the pockets of poverty across countries, and consisting of 4 billion people across the globe with annual incomes of less than $1,200. They refer to these consumers, concentrated in the LDCs and LLDCs, as _____ markets.

Bottom-of-the-Pyramid

All of the following are specific objectives of sales promotion EXCEPT:

Building brand loyalty

Which of the following is most closely associated with negotiators from the Beijing area?

Bureaucratic sloth

Which of the following is the last step in an international advertising campaign?

Evaluating the campaign relative to the goals specified

Bahamas is a member of _____.

CARICOM

Though now disbanded, which of the following was considered to be the most notable enforced political union of the last 40 years?

COMECON

Owing to the deeply corrupt system, most of the U.S. manufacturers in India are leaving for other countries or pulling their money back home.

False

Which of the following countries has 100 percent literacy rate?

Canada

The three members of the North American Free Trade Agreement (NAFTA) are:

Canada, Mexico, and the United States

Which of the following is one of the highest costs of doing business in China?

Capital required to maintain effective distribution

Eastern Europe and the Baltic states, satellite nations of the former Soviet Union, have moved steadily toward adopting aspects of _____.

Capitalism

The success of the Caribbean Free Trade Association led to the creation of the _____.

Caribbean Community and Common Market

Which of the following is a critical element associated with using a particular type of middleman?

Cash-flow patterns

Chapter 10

Chapter 10

Chapter 11

Chapter 11

Chapter 15

Chapter 15

Chapter 16

Chapter 16

Chapter 9

Chapter 9

Great Britain has epitomized distribution through specialty-type middlemen, distributors, wholesalers, and retailers. In recent years, however, there has been a trend toward broader lines, conglomerate merchandising, and mass marketing. This suggests that a firm that neglects the growth of self-service, scrambled merchandising, or discounting may find that it has lost large segments of its market only because its channels no longer reflect the _____ of the market.

Character

Which of the following countries has the largest number of retailers?

China

_____ is now Japan's most important trading partner.

China

The emergence of pan-European communications media will most likely cause companies to:

Choose more standardized promotional efforts.

Estimating market potential in less-developed countries involves additional challenges, but most of the difficulty arises from the _____.

Coexistence of three distinct kinds of markets in each country

The transitional sector differs from the modern urban sector in that the transitional sector:

Consists of population that moves from the country to the large cities.

Sales promotions are short-term efforts directed to the consumer or retailer to achieve specific objectives such as:

Consumer product trial or immediate purchase

According to the evolution of the marketing process, when the only marketing functions performed are demand creation, physical distribution, and market information analysis, the marketing process is in the _____ substage.

Commercial-transition

A _____ agreement eliminates all tariffs and other restrictions on internal trade, adopts a set of common external tariffs, and removes all restrictions on the free flow of capital and labor among member nations.

Common market

Which of these levels of economic integration has no restrictions on internal trade and free flow of capital among member nations and lacks only political unity to become a political union?

Common market

A (n) _____ of nations is a voluntary organization providing for the loosest possible relationship that can be classified as economic integration.

Commonwealth

When the Soviet Union dissolved, the _____ emerged that had 12 members that agreed to a loose economic and political alliance with open borders but no central government.

Commonwealth of Independent States

Most toy manufacturers would agree that toys cannot be marketed profitably in countries without commercial television advertising directed toward children. In this scenario, commercial television advertising exemplifies the availability of appropriate _____.

Communication channels

Companies with marketing facilities or contacts in different countries with excess distribution capacity or a desire for a broader product line sometimes take on additional lines for international distribution. The formal name for such activities is _____.

Complementary marketing

Which of the following arrangements is undertaken when a firm wants to keep its seasonal distribution channels functioning throughout the year?

Complementary marketing

Which of the following was Japan's greatest hindrance to the development of software innovations appropriate for world markets?

Complex language

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?

Consumers in the bottom-of-the-pyramid markets lack both money and technology.

Most middlemen have little loyalty to their vendors. They handle brands in good times when the line is making money but quickly reject such products within a season or a year if they fail to produce during that period. This is an example of problems associated with which of the following six Cs of distribution channel strategy?

Continuity

Which of the following is one of the six Cs of distribution channel strategy?

Continuity

_____ might be classified as an aspect of sales promotions or public relations, though their connections to advertising are also manifest.

Corporate sponsorship

Which of the following countries is a member of the free trade agreement DR-CAFTA?

Costa Rica

The _____ is the decision-making body of the European Union that can enact into law all proposals by majority vote except for changes in tax rates on products and services, which require unanimous vote.

Council of Ministers

With respect to advertising, _____ is especially important when a budget is small or where there are severe production limitations.

Creativity

Which of the following countries is a member of the Latin American Integration Association (LAIA, aka ALADI)?

Cuba

A _____ has reduced or eliminated internal tariffs and adds a common external tariff on products imported from countries outside the group.

Customs union

A _____ is an intermediate step in the transition from a free trade area to a common market.

Customs union

In the context of international advertising, it has been observed that advertising expenditures are generally _____.

Cyclical

During which step of the international communications process does the receiver of the message interpret symbolism transmitted from an information source?

Decoding

In the international communications process, _____ is defined as the interpretation by the receiver of the symbolism transmitted from an information source.

Decoding

Which of the following is NOT a factor that has contributed to the rapid economic growth of NICs (newly industrialized countries)?

Decrease in labor population

Which is the comprehensive free trade agreement among Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States that includes a wide array of tariff reductions aimed at increasing trade and employment?

DR-CAFTA

_____ at the southern tip of the Liaodong Peninsula in China is the focus of bi-national relationships and has one of the world's largest and most modern port facilities.

Dalian

_____ in advertising is a thorny issue, because most member countries of the European Commission have different interpretations of what constitutes a misleading advertisement.

Deception

One of the long-term challenges facing the European Union in the next 50 years is:

Deciding about further enlargement

Sales promotions are long-term IMC efforts directed to the consumer or retailer.

False

Which of the following countries rejected the euro?

Denmark

Of the seven steps involved in international advertising, _____ almost always represents the most daunting task for international marketing managers.

Developing messages

In the context of the use of the Internet in international marketing channels, technically, e-commerce is a form of _____ selling.

Direct

_____ is often the approach of choice in markets with insufficient or underdeveloped distribution systems.

Direct Marketing

In which of the following modes of distribution in the foreign market will a company have to make maximum financial investment?

Direct sales force

Which of the following modes of distribution affords the most control over the distribution channels but often at a cost that is not practical?

Direct sales force

Which of the following has proved to be an important way to break the trade barrier imposed by the Japanese distribution system?

Direct sales through catalogs

Economic planners are most likely to be least concerned with the problems related to _____.

Distribution

_____ has long been considered the most effective nontariff barrier to the Japanese market.

Distribution in Japan

Home-country middlemen are also known as _____ middlemen.

Domestic

According to the UN classification, industrially developing countries just entering world trade with relatively low per capita incomes are referred to as more-developed countries.

False

Nations with complementary economic bases are most likely to encounter frictions in the development and operation of a common market unit.

False

Which of the following treaties provided the legal basis for Mercosur?

The Treaty of Asunción

One of Japan's advantages over other countries is its language; the syntax of the Japanese language is similar to that of certain programming languages.

False

_____ is one of the important reasons behind the fact that there is no one-growth strategy for China.

Each region in China being at a different stage economically

The adoption of the euro has facilitated which of the following?

Easily recognizable price differentials

The level of market development roughly parallels the stages of _____.

Economic Development

_____ refers to an increase in national production that is reflected by an increase in the average per capita gross domestic product (GDP) or gross national income (GNI).

Economic Development

Which of the following is considered as the single most important environmental element of a country to which the foreign marketer must adjust the marketing task?

Economic Level

Which of the following is the biggest threat to the fast pace of growth China is experiencing?

Economic volatility accompanied by fast growth

Cremics, a multinational drug manufacturing company, used a saffron trident in a promotional campaign for one of its drugs in India. The saffron trident, a religious symbol in India, was meant to indicate the three levels of efficacy of the drug but mistakenly conveyed a religious message to Indians. This miscommunication indicates a problem associated with which of the following steps of an international communications process?

Encoding

In the context of the communications process in advertising, problems of literacy, media availability, and types of media create challenges in the communications process at the _____ step.

Encoding

In the international communications process, during _____, the message from the source is converted into effective symbolism for transmission to a receiver.

Encoding

Janet works for a media agency based in Japan. Janet is helping the integrated marketing communications (IMC) manager of Siljure, a French cosmetics company, with the design and content to be used in an upcoming promotional campaign in Japan. The IMC manager knows what to convey but wants to advertise it in a culturally relevant manner. Which step of the international communications process is Janet helping Siljure with?

Encoding of the message

Nations with complementary economic bases are least likely to:

Encounter frictions in the development and operation of a common market unit.

Which of the following is the best way to stimulate economic development and growth from within developing countries?

Encouraging networked entrepreneurial activities

Yugoslavia has been facing internal strife due to:

Ethnic divisions

The Economic and Monetary Union provision of the Maastricht Treaty established the parameters of the creation of the _____.

Euro

What is happening in BEMs today is analogous to what happened in:

Europe after World War II

When the marketing process is characterized by mass distribution, all of the following marketing functions are performed EXCEPT _____.

Exchange

A major disadvantage of _____ is that they can seldom afford to make the kind of market investment needed to establish deep distribution for products.

Export management companies

Which of the following is a type of domestic middleman?

Export management companies

Which of the following is an indicator of economic development?

Extent of social overhead capital

A commonwealth of nations is an organization providing for the strongest possible economic integration relationship.

False

A customs union is the most fully integrated form of regional cooperation.

False

A distinguishing characteristic of the Japanese distribution channel system is that it is controlled by a few small retailers found in the country.

False

A physical distribution system involves only the physical movement of goods.

False

A proper encoding system allows a company to correct errors before substantial damage occurs.

False

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.

False

All three Baltic states started off with the same legacy of efficient industry and American-style capitalist economies.

False

An e-vendor in a foreign market can generally ignore culture as an important variable because the commerce is being done via the Internet, which is culturally insensitive.

False

As they were closest to foreign influences, negotiators in Taiwan are considered to be the most liberal.

False

At present low value-added manufacturing in textiles and heavy equipment manufacturing industries account for the vast majority of Shanghai's industrial employment.

False

Bottom-of-the-pyramid markets (BOPMs) are always defined by national borders.

False

Brazil is a fully industrialized country.

False

China is now the biggest market for personal computers.

False

Considering the United Nations' stages of economic development for classifying countries with respect to levels of industrialization, Brazil falls under the group of more-developed countries (MDCs).

False

Contests, sweepstakes, and sponsorship of special events such as concerts are techniques used for maintaining and improving public relations.

False

Domestic middlemen offer many advantages for companies with large international sales volume.

False

Due to their inherent entertainment value, satellite TV and the Internet have become major communications media in almost all nations.

False

Economic growth is measured solely in economic goals.

False

Europe and Asia have a trade group that has emerged and persisted since the dissolution of the Soviet Union called the Newly Independent States.

False

Export management companies work under their own names.

False

Feedback channels must be carefully selected if an encoded message is to reach the consumer.

False

For most companies, trade shows and direct selling are the major components in the marketing communications mix.

False

High transaction costs associated with the use of the Internet prevents smaller firms in emerging countries from selling into a global market.

False

Historically, standards have been used to effectively increase market access.

False

Hong Kong was designated as China's first Special Economic Zone.

False

Humility and indirection are more emphasized in northern than in southern China.

False

In a traditional distribution structure, distribution systems are national rather than local in scope.

False

In an import-oriented distribution structure, supply often exceeds demand.

False

In recent years, the United States has emerged as Japan's single largest trading partner, surpassing the Southeast Asian countries.

False

In static economies, consumption patterns change rapidly.

False

In the United States, if a middleman is terminated, the company is required to pay 1 percent of the middleman's average annual compensation multiplied by the number of years the middleman served as a final settlement.

False

In the context of distribution patterns, wholesaling shows a greater diversity in its structure than does retailing.

False

In the context of distribution structures, one of Walmart's strengths is its ability to influence foreign governments.

False

In the context of international advertising, advertisers prefer global television (satellite broadcasts) due to the availability of accurate market data in most countries.

False

In the context of international advertising, an advertiser should ideally exclude availability, cost, and coverage of media.

False

In the context of the different kinds of middlemen, the WTO in 2003 ruled export management companies to be in violation of international trade rules.

False

In the context of the distribution structure in Japan, it has been observed that Japanese consumers favor cheaper prices over personal service.

False

In the year 2009, Germany became the world's biggest exporter ahead of China.

False

Industrial advertisers rarely use direct mail for advertising.

False

International advertisers use foreign national consumer magazines extensively because they have dependable circulation figures.

False

Legal advice is not necessary when entering distribution contracts with middlemen.

False

Merchant middlemen tend to be more controllable than agent middlemen because they take title to manufacturers' goods.

False

Mercosur is a free trade group formed by the United States of America.

False

Mercosur is the largest common-market agreement in the Americas.

False

Television is an advertising medium with no restrictions in most countries.

False

The Arab states on the Persian Gulf, Egypt, and Morocco have worked out an agreement on the Gulf Arabian Free Trade Area (GAFTA).

False

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.

False

The Commonwealth of Independent States (CIS) was formed by Britain because it did not want to join the European Economic Community (EEC).

False

The Council of Ministers of the European Union can enact into law all proposals involving changes in tax rates on products and services by majority vote.

False

The European Union has been an officially established political union since its inception.

False

The European Union is most accurately described as a free trade area.

False

The Four Asian Tigers are: China, Thailand, India, and North Korea.

False

The Hong Kong SAR government stresses the predominant role of the public sector over the private sector.

False

The Japanese distribution structure is similar to the one found in the United States or in Europe.

False

The Mercosur envisioned central institutions similar to those of the European Union institutions.

False

The PNTR status given to China contributed much toward increasing the import barriers on American products and services.

False

The United States is now Japan's most important trading partner, even ahead of China.

False

The United States-Canada Free Trade Area (CFTA) was a customs union like the European Community.

False

The decisions of the European Court of Justice can be appealed in national courts.

False

The distribution channel process includes all activities, beginning with the manufacturer and ending with the retailer.

False

The distribution process includes promotion of goods and services by sellers and resellers.

False

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).

False

The level of political stability in a country is the single most important environmental element to which the foreign marketer must adjust the marketing task.

False

The marketing process substage in the United States economy from 1950 to the present is mass production.

False

The more developed an economy, the lesser the variety of marketing functions demanded.

False

The most basic level of economic integration and cooperation is the geographical local federation (GLF).

False

The newly industrialized countries have per capita incomes lower than LDCs.

False

The sector that was hit the hardest during the Japanese recession was the real estate sector.

False

The term "The Greater China" refers to the information technology (IT) corridor in north China.

False

Tianjin is China's largest industrial city.

False

The institutions of the European Union form a(n) _____ pattern.

Federal

The _____ step in the international communications process refers to the information about the effectiveness of the message that flows from the receiver (the intended target) back to the information source for evaluation of the effectiveness of the process.

Feedback

Which of the following steps of the international communications process is important as a check on the effectiveness of the other steps?

Feedback

The channel process includes all activities, beginning with the manufacturer and ending with the _____.

Final consumer

Half of Shanghai's GDP is derived from its _____.

Financial Services Industries

More household money goes for _____ in emerging markets than in developed markets.

Food

General Motors, _____, and DaimlerChrysler have created a single online site called Covisint for purchasing automotive parts from suppliers.

Ford Motor Company

Which of the following is true about the present state of foreign businesses in most developing countries?

Foreign investors are seen as vital partners in economic development.

A(n) _____ is a domestic middleman set up in a foreign country or U.S. possession that can obtain a corporate tax exemption on a portion of the earnings generated by the sale or lease of export property.

Foreign sales corporation

In the context of the types of domestic middlemen, the WTO in 2003 ruled _____ to be in violation of international trade rules, thus starting a major trade dispute with the European Union.

Foreign sales corporations

The ties that bind members of the Commonwealth of Independent States stem mainly from their:

Former Soviet membership

Which of the following is the stereotype of businesspeople in the Northeast of China?

Forthrightness

In the context of factors affecting choice of channels, which of the following is one of the key elements in distribution decisions?

Functions performed by middlemen

As George Platt examines markets that might match his company's investment requirements, he is particularly interested in the fact that the European Community has an extensive transportation network. This network seems to draw all the member nations closer together. Which of the following critical factors for ensuring an effective economic union is Mr. Platt most likely examining when reviewing transportation networks?

Geographic proximity

Which of the following is a fully industrialized country?

Germany

All of the following statements are true about Mercosur EXCEPT that:

Germany is a member of Mercosur

Which of the following is one of the reasons that have hampered the conferences held by the United Nations Economic Commission for Africa to bring about holistic integration?

Governmental inexperience

Which of the following countries is NOT a member of the Caribbean Community and Common Market (CARICOM)?

Guatemala

Which of the following provinces of China shares the closest economic ties with Russia?

Heilongjiang

In the context of international advertising, _____ is the neon capital of the world.

Hong Kong

Which of the following statements is true of the European Court of Justice?

Its decisions are final and cannot be appealed in national courts.

CARICOM established the CSME (CARICOM Single Market and Economy) with the major goal of:

Implementing a common currency for all member nations.

Which of the following distribution structures is also known as a traditional distribution structure?

Import-oriented

Identify the two most important steps China has to take to ensure that the road to economic growth is smooth.

Improving human rights and reforming the legal system

South Africa is most likely to experience rapid economic growth in as few as 10 years owing to:

Its industrial base.

The only way to avoid linguistic problems in advertising communication is by:

In-country testing with the target consumer group.

Which of the following was primarily instrumental in decreasing the historical tension between People's Republic of China (PRC) and the Republic of China (ROC)?

Increase in direct trade

A survey of U.S. manufacturers shows that 95 percent of respondents with Indian operations plan on expanding, and none say they are leaving. Which of the following is primarily behind this new trend?

India offers cheap qualified labor and a massive market

Which of the following is one of the primary reasons behind the persistence of economic stagnation in Japan in the 1990s?

Inept political apparatus

In the context of Latin American trade progress, which of the following was a result of state ownership?

Inflated public-sector bureaucracies

In the international communications process, an international marketing executive with a product message to communicate specifically acts as a(n) _____.

Information source

Meta Garbon, a manufacturer of sports bicycles, in a bid to tap the enormous market for bicycles in China promote their cycles as premium sporting and leisure bicycles. They use various cycling legends and sports celebrities as brand ambassadors and use television, radio, and newspapers as media. Bicycles in China are used mainly by the working class for commutation, and the main users of bicycles did not relate to Meta Garbon's products, and the promotional campaign was a failure. During which of the following steps of the international communications process did Meta Garbon most likely go wrong?

Information source selection

Paved roads, railroads, seaports, communication networks, and financial networks are illustrations of _____.

Infrastructure

Which of the following makes Walmart's transactions with suppliers highly efficient and lowers its cost of operations?

Internal Internet-based system

Which of the following is especially vulnerable as EU member states decide which area of regulation should apply to these services?

Internet services

_____ spend more time on social media sites than any users in any other country.

Israelis

What is the reason for Estonia's economic growth since independence from the Soviet Union to handily outpace the other Baltic nations?

It adopted the freest trading regime of the three Baltic nations

Which of the following is true of the Maastricht Treaty?

It allows for the free movement of goods throughout the member states of the European Union.

Which of the following statements is true regarding an export management company (EMC)?

It calls for minimum investment from the parent firm to get into international markets

Which of the following statements is true of the European Parliament?

It has extensive budgetary powers that allow it to be involved in major EU expenditures.

Which of the following is true of the distribution process?

It includes buying and selling negotiations

Which of the following is true of a physical distribution system?

It includes transportation mode, inventory quantities, and packing

Which of the following is true of the Tianjin region in China?

It is China's fastest growing city

The United Nations' classification of stages of economic development has been mainly criticized because:

It no longer seems relevant in the rapidly industrializing world.

Which of the following is a characteristic feature of privatization of state-owned enterprises?

It often leads to modernization.

The most important advantage of Northeast China that mainly contributed toward its being the industrial and technological center of the country in the 1970s and 1980s is:

Its juxtaposition with China's most important industrial neighbors.

Which of the following statements is true about NAFTA?

Its provisions require Canada, Mexico, and the United States to implement uniform customs procedures and regulations.

Liaoning province of Northeast China has the closest economic ties with _____.

Japan

Which of the following Asian countries was the first to move from a status of developing country to a newly industrialized country?

Japan

Which of the following provinces of China shares the closest economic ties with South Korea?

Jilin

Which of the following is most likely to cause the biggest problems for television and radio advertisers in China?

Lack of common language

Multinational market groups form:

Large markets that provide potentially significant opportunities for international business.

Which of the following characterizes the business philosophy of the Japanese distribution channels?

Loyalty

The European Union was created when the 12 nations of the European Community ratified the _____.

Maastricht Treaty

Which of the following treaties allows for the free movement of goods, persons, services, and capital throughout the member states of the European community.

Maastricht Treaty

The World Trade Organization is wholly dedicated to _____.

Making trade among nations more efficient

The national language of China is standard _____, but more than 56 dialects and other languages are spoken across the country.

Mandarin

A _____ provides a selling service for a manufacturer, has a short-term relationship, and operates on a straight commission basis.

Manufacturer's export agent

A(n) _____ is an individual agent middleman or an agent middleman firm providing a selling service for manufacturers that covers only one or two markets.

Manufacturer's export agent

_____ is an economy's arbitrator between productive capacity and consumer demand.

Marketing

Which of the following substages best characterizes the United States today with respect to the evolution of the marketing process?

Mass distribution

Identify the substage in the evolution of the marketing process when the only marketing functions performed are demand creation and physical distribution.

Mass production

The marketing process in the U.S between 1885 and 1914 mainly focused on _____.

Mass production

Using newspapers or magazine ads as a channel of communication when the majority of the intended users are illiterate is an example of ineffective _____ in the communications process.

Media channel selection

Who are frequently criticized for not representing the best interests of a manufacturer?

Merchant middlemen

_____ take title to manufacturers' goods and assume the trading risks.

Merchant middlemen

Which of the following is the second-largest common-market agreement in the Americas?

Mercosur

In the international communications process, the sales force of a company that conveys the encoded content to the intended receiver acts as a(n) _____.

Message channel

In the context of the communication process in advertising, using the Internet as a medium when only a small percentage of an intended market has access to it is an example of an error related to:

Message channel selection

Which country announced that it would seek free trade with the United States immediately after the ratification of the United States-Canada Free Trade Area (CFTA)?

Mexico

Which of the following countries has been identified by the Department of Commerce as a BEM (big emerging market)?

Mexico

In Japan, under the Large-Scale Retail Store Law, all proposals for new "large" stores were first judged by the _____.

Ministry of International Trade and Industry

According to the United Nations' stages of economic development for classifying countries with respect to levels of industrialization, Canada falls under the category of _____.

More-developed countries

According to the United Nations' stages of economic development for classifying countries with respect to levels of industrialization, which category does an industrialized country with high per capita income fall under?

More-developed countries

In the context of distribution patterns, the rate of change in retailing around the world appears to be directly related to the _____.

Speed of economic development

Which of the following is true of the newspaper industry around the world?

Most U.S. cities have just one or two major daily newspapers

Given the fact that NAFTA is now effective among the U.S., Mexico, and Canada, an American company which has its production plant in Sri Lanka will be willing to relocate its production plant to Mexico mostly because:

Moving goods from Mexico to the United States is cheaper and faster than moving them from Sri Lanka.

Groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers are called:

Multinational market regions.

Which of the following countries has the most egregious control over advertising, where each medium has its own censorship board that passes judgment on any advertising even before it is submitted for approval by the Ministry of Information.

Myanmar

Which of the following is one of the multilateral free trade agreements signed by the United States?

NAFTA

Which of the following is the largest common-market agreement in the Americas?

NAFTA

_____ required the United States, Canada, and Mexico to remove all tariffs and trade barriers over 15 years, and beginning in 2008, all tariff barriers were officially dropped.

NAFTA

In the 1970s, Frank Gibney had called Japan "The Fragile Superpower," which was confirmed with the crisis of the 1990s. In his new appraisal, Gibney writes that Japan has become the victim of _____.

One-party sickness

Eastern Europe and the Baltic states, satellite nations of the former Soviet Union, have moved steadily toward establishing post-communist market reforms. This implies that:

New business opportunities are emerging in this region

Chile, Brazil, Mexico, South Korea, Singapore, and Taiwan are examples of _____ countries.

Newly industrialized

Which of the following elements of the international communications process comprises of 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?

Noise

The Czech Republic, Hungary, the Slovak Republic, and Poland have become members of the _____.

OECD

What is the tenet that China follows to ensure that Hong Kong's exuberant capitalism is retained despite the communist leanings of mainland China?

One country, two systems

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?

Parallel importing

Aside from the United States, _____ is the most important single national market.

People's Republic of China

While developing an international advertisement campaign, which of the following is the first step of the process?

Perform marketing research

Complementary marketing is commonly known as _____.

Piggybacking

Which of the following is the basic requisite for the development of a supranational market arrangement?

Political amenability among countries

Integrated marketing communications are composed of all of the following EXCEPT:

Political rallying

A _____ involves complete political and economic integration, either voluntary or enforced.

Political union

The most fully integrated form of regional cooperation is called a:

Political union

Every type of economic union shares the development and enlargement of market opportunities as a basic orientation. Which of the following best describes the primary way market opportunities are enlarged by economic unions?

Preferential tariff treatment for participating members

In the context of cultural reactions when engaging in e-commerce, the color red is associated with socialism in _____.

Spain

Which of the following elements of integrated marketing communications is related to encouraging the press to cover positive stories about companies and managing unfavorable rumors, stories, and events?

Public relations

_____ are considered to be major communications media in most countries due to their inherent entertainment value.

Radio and television

Certain advertising media are forbidden by government edict to accept some advertising materials. Such restrictions are most prevalent in:

Radio and television broadcasting

In the communications process in advertising, during the _____ stage, a consumer takes certain actions to respond to a decoded message.

Receiver

The most basic economic integration and cooperation is the:

Regional cooperation for development (RCD)

The negotiators in the Pearl River Delta are reputed to be _____.

Relatively honest and forthright

When countries sell off state-owned enterprises and privatize them, it usually results in a(n):

Release of capital to invest in strategic areas.

A major goal of the Export Trading Company (ETC) Act was to:

Remove antitrust disincentives to export activities.

In the context of international advertising, companies are moving from the commission system to a _____ system.

Reward-by-results

The Treaty of _____ established the European Economic Community (EEC) in 1957 and called for common external tariffs and the gradual elimination of intramarket tariffs, quotas, and other trade barriers.

Rome

Which of the following key provisions of NAFTA restricts Japan from assembling autos in Mexico and avoiding U.S. or Canadian tariffs and quotas, unless the auto had a specific percentage of Mexican (i.e., North American) content?

Rules of Origin

In-store demonstrations, samples, coupons, contests, and sweepstakes are examples of _____ devices.

Sales promotions

In the context of controlling middlemen, parallel importing is also known as _____.

Secondary wholesaling

In the context of the evolution of the marketing process, which of the following would be considered to be the most fundamental substage (first substage)?

Self-sufficient

This city has an advantage of being close to Hong Kong, an international service center. As a manufacturing base for a wide range of industries, this city can use Hong Kong as a trade platform to expand the global market. In addition, foreign enterprises can supply industrial products to this city through Hong Kong. With their mainland experience, international exposure, and business acumen, Hong Kong companies and personnel are capable of helping foreign companies reduce their investment and management risks in this city. Identify the city.

Shenzhen

_____, a boomtown bordering Hong Kong and a fishing village just 20 years ago, has replaced the provincial capital Guangzhou to lead the local economy.

Shenzhen

The Webb-Pomerene Act of 1918 made it possible for American business firms to join forces in export activities without being subject to the _____.

Sherman Antitrust Act

The negotiators from the Shanghai area are famous for their _____.

Shrewdness

_____ are considered to be the foundation of the Japanese distribution system.

Small retailers

Blogs, virtual worlds, and video sharing are examples of media commonly known as _____.

Social media

_____ has the potential to become the newest big emerging market (BEM), but its development will depend on government action and external investment by other governments and multinational firms.

South Africa

ASEAN+3 is a forum for ASEAN ministers plus ministers from China, Japan, and _____.

South Korea

Which of the following is at present the center of trade links with north China and the Asian republics of the former Soviet Union?

South Korea

Which of the following is one of the nations referred to as the Four Asian Tigers?

South Korea

Which of these is the most advanced and viable of Africa's regional organizations?

Southern African Development Community

Which of the following is true of state ownership?

State ownership has resulted in complicated and unpredictable regulatory environments.

With respect to the political factors that affect supranational markets, which of the following is one of the most cherished possessions of any nation?

State sovereignty

Which of the following actions should be taken to begin the search for prospective middlemen?

Studying the target market

A market in which the only marketing function performed is exchange is most likely to be classified under the _____ stage.

Surplus commodity product

_____ has replaced Nanjing, to become Jiangsu province's number one economy and foreign trade center.

Suzhou

Which part of China is considered, by other Chinese, to be the most conservative both in terms of behavior and language?

Taiwan

Which of the following, according to experienced exporters, is the only way to select a middleman?

Talk personally to ultimate consumers to find whom they consider to be the best distributors

Which of the following is one of the major events that account for the vigorous economic growth of the ASEAN countries and their transformation from cheap-labor havens to industrialized nations?

The ASEAN governments' commitment to deregulation, liberalization, and privatization of their economies

Which is the trade group that is part of Europe and Asia and has emerged and persisted since the dissolution of the Soviet Union comprising of all the republics save the Baltic states?

The Commonwealth of Independent States

Which of the following institutions drafted the Maastricht Treaty that was presented to the European Union member states for ratification?

The Council of Ministers

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?

The Council of Ministers

Immediately after World War II, a shattered Japanese nation arrived at a consensus goal for national recovery. That consensual goal provided the incentive for its spectacular progress, decade after decade. Then during the late 1980s, the Japanese people stepped back and looked around at their manifest achievement. It was easy to conclude they had reached their coveted goal. So the question for them became, "all right, what's next?" This theory tries to explain the Japanese crisis of the 1990s. Which of the following theories are we talking about?

The Cultural Causation theory

Which of the following provisions established the parameters of the creation of a common currency for the European Union?

The Economic and Monetary Union provision of the Maastricht Treaty

Which of the following institutions is responsible for challenging any measures incompatible with the Treaty of Rome and for passing judgment, at the request of a national court, on the interpretation or validity of points of European Union Law?

The European Court of Justice

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?

The European Economic Community

Which of the following European Union institutions originally had only a consultative role but can now amend and adopt Union legislation?

The European Parliament

Which of the following was a customs union before becoming a common market?

The European Union

Which of the following statements is true of the legal instruments used by the European Union?

The European Union has the authority to issue regulations that bind the member states directly.

Which of the following is the term used to refer to both the People's Republic of China (PRC) and the Republic of China (ROC) or Taiwan?

The Greater China

This region in China includes three cities of over 5 million inhabitants (Hong Kong, Guangzhou, and Shenzhen); five cities with more than 1 million inhabitants (Zhuhai, Huizhou, Foshan, Zhongshan, and Dongguan); and a number of cities that each contain approximately half a million inhabitants, such as Macau. Identify the region.

The Greater Pearl River area

Identify an accurate statement about Hong Kong, post its turnover to the People's Republic of China.

The Hong Kong government negotiates bilateral agreements and makes major economic decisions on its own

Which of the following statements is true about the Internet?

The Internet enables smaller firms in emerging economies to sell into a global market.

Which of the following statements is true of the Japanese market?

The Japanese distribution structure supports long-term dealer-supplier relationships

Which of the following is true of the standard of living of the eight most populous countries of the Asia/Pacific region?

The Japanese healthcare system produces the longest lifespans in the world

Negotiators from this region in China have been the closest to foreign influences, which has yielded their special forms of entrepreneurship and spontaneity. They are excellent traders and particularly interested in making short-term gains. Identify the region.

The Pearl River Delta

_____ contains Hong Kong, Macau, Guangzhou, and Shenzhen and is considered as the world's manufacturing base for the IT industry.

The Pearl River Delta

Which of the following makes the South African market an important base for serving nearby African markets that are too small to be considered individually?

The South African market's developed infrastructure

Which of the following is true of advertising agencies for international advertising?

The cross-cultural communication between a foreign client and a local agency can be problematic.

One of the most important aspects of LAIA that differs from LAFTA, its predecessor, is:

The differential treatment of member countries according to their level of economic development.

Which of the following is a reason for East Asia's economic success?

The emphasis placed on education and healthcare

Political explanations of Japan's crisis during the 1990s identified two villains. One of them was the country's long entrenched Liberal Democratic Political Party. Which of the following is the other one?

The hidebound Japanese bureaucracy

Which of the following statements is true regarding an import-oriented distribution structure?

The importer-wholesaler traditionally performs most of the marketing functions

Which of the following is NOT one of the factors directly changing the way countries trade and prosper in the twenty-first century?

The increase in military capabilities of countries around the world

Direct mail is an unpopular medium in Chile because:

The letter carrier must collect additional postage for every item delivered

Which of the following statements is true of a traditional distribution structure?

The marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers.

Which of the following kinds of market sectors is also known as the "new middle class"?

The modern sector

One of the drawbacks of satellites, which is also their strength, is:

Their ability to span a wide geographical region

Which of the following is true of the marketing opportunities in Greater China?

There are extreme differences in economic well-being, cultures, and political structures.

Which of the following statements is true about MDCs (more-developed countries)?

These countries have high per capita incomes.

Which of the following statements is true of sales promotions?

They are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation

Which of the following statements is true regarding merchant middlemen?

They assume trading risks

Which of the following is true of foreign sales corporations?

They can function as principal or commissioned agents

Which of the following is true of large multinational markets?

They employ coordinated programs to foster economic growth

All of the following are traits of big emerging markets (BEMs) EXCEPT:

They import less than smaller markets.

Which of the following is the reason why global retailers like IKEA, Costco, Sears Roebuck, and Walmart are becoming major domestic middlemen for international markets?

They maintain their core marketing approaches while localizing the array of products, promotions, and other peripheral aspects of their operations

What is common among the Asian countries Hong Kong, South Korea, Singapore, and Taiwan?

They were among the first countries in Asia to move from a status of developing countries to newly industrialized countries

Which of the following statements is true regarding agent middlemen?

They work on commission and arrange for sales in the foreign country.

_____ is China's third largest industrial city after Shanghai and Beijing.

Tianjin

For companies seeking entrance into the complicated Japanese distribution system, _____ offer one of the easiest routes to success because they virtually control distribution through all levels of channels in Japan.

Trading companies

In a _____ distribution structure, an importer controls a fixed supply of goods and the marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers.

Traditional

The long-term goal of the LAIA (Latin American Integration Association), better known by its Spanish acronym, ALADI, is:

To establish a Latin American common market.

Which of the following is one of the primary targets of ASEAN Vision 2020?

To implement fully and as rapidly as possible the ASEAN Free Trade Area.

Which of the following is a provision of the commonwealth agreement signed by the Commonwealth of Independent States?

To keep the ruble but allow new currencies

The assault on advertising of _____ is escalating, as evidenced by the World Health Organization launching a global campaign against it.

Tobacco

Sixty percent of the Japanese population lives in the _____ market area, which essentially functions as one massive city.

Tokyo-Nagoya-Osaka

Which of the following statements about advertising laws around the world is correct?

Toy, tobacco, and liquor advertising is restricted in numerous countries

Iran, Pakistan, and Turkey, formerly the Regional Cooperation for Development (RCD), have renamed their regional group the Economic Cooperation Organization (ECO).

True

Which of the following most accurately represents the "three direct links" leading to the establishment of One China?

Transportation, trade, and communications

A free trade area (FTA) provides its members with a mass market without barriers to impede the flow of goods and services.

True

A major issue that China has to address in its path to economic growth is improving human rights.

True

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.

True

According to analysts, Japan's long entrenched Liberal Democratic political party was one of the reasons for the Japanese crisis.

True

Agent middlemen work on commission and do not take title to the merchandise.

True

Among three kinds of distances that international marketers must traverse, time zones have the greatest influence on the success of their commercial efforts abroad.

True

An export management company functions as a low-cost, independent marketing department with direct responsibility to the parent firm.

True

An important objective of the member countries of the United Nations is bringing about mutual economic development.

True

As a country develops, market behavior changes and eventually it leads to market segmentation.

True

As traditional channel structures are changing, importers and retailers are also becoming involved in new product development.

True

At the most general level, the WTO represents the most important and comprehensive trade agreement in history.

True

Big emerging markets are of major political importance within their regions.

True

Channels of distribution often pose longevity problems.

True

China's "one country, two systems" agreement with Hong Kong guarantees the latter a high degree of autonomy.

True

China's longest border is with Russia.

True

Competitive advertising is a source of noise in the international communications process.

True

Different cultures often seek the same value or benefits from the primary function of a product.

True

Domestic middlemen are most likely to be used when the marketer desires to minimize financial and management investment.

True

Economic development means rapid economic growth and increases in consumer demand.

True

Errors at the receiver end of the international communications process can be avoided if the message is encoded properly.

True

Ideally, a website should be translated into the languages of the target market.

True

In the Treaty of Amsterdam (1977), the European Union agreed to accommodate the changes brought about by the monetary union and the admission of new members.

True

In the context of advertising, a marketer's self-reference criterion (SRC) affects the ultimate success of the communication.

True

In the context of international advertising, search engines have now become crucial directors of Internet users' attention.

True

In the context of retail patterns, direct marketing works well in affluent markets as well as in markets with underdeveloped distribution systems.

True

In the traditional distribution structure, independent agencies that provide facilitating functions are nonexistent or underdeveloped.

True

In view of China's size, diversity, and political organization, it is not possible to have one-growth strategy for China.

True

In the context of media planning and analysis, billboards are especially useful in countries:

With high literacy rates

Most eastern European countries are privatizing state-owned enterprises, establishing free market pricing systems, and:

Wrestling with inflation