IM TEST
Suppose you have a friend from India who is a lifelong vegetarian and who does not like McDonald's because the company sells hamburgers in many countries. Which of the following describes your friend?
"vegetarianism" represents a value, "dislike McDonald's" represents an attitude
extending tax incentives to Boeing for in-state manufacture of the 777x jetliner.
1) In 2014, the EU filed a complaint that the government of Washington state violated international trade rules by:
c. Customs union.
11) The form of economic cooperation that calls for 1) eliminating internal barriers to trade and 2) establishing common external barriers is known as a(n): C) Customs union.
c. customs union
12) ________ builds upon the elimination of internal tariff barriers, the establishment of common external barriers, and the free flow of factors. C) Customs union
d
13) Arrange the following in order from lowest to highest level of economic integration. A) customs union→economic union→free trade area→common market B) economic union→customs union→common market→free trade area C) common market→free trade area→economic union→customs union D) free trade area→customs union→common market→economic union E) common market→economic union→customs union→free trade area
b. GATT
2) The World Trade Organization, which came into existence on January 1, 1995, is the successor of another organization with the abbreviation: B) GATT.
a
23) ________ is gaining a reputation as a manufacturing center as well as the world's number one producer of flat-screen TV sets. A) Mexico B) Canada C) Brazil D) Panama E) Argentina
a
24) Custom unions or a common market does not create a free trade area as compared to NAFTA due to: A) no common external tariffs. B) decreased production costs. C) reduced competition. D) ease of exporting commodities. E) creation of a continental demand.
d
34) Implementation of the Central American Free Trade Agreement with the United States created a free trade area known as DR-CAFTA that includes all SICA members except: A) Honduras. B) Guatemala. C) Nicaragua. D) Panama. E) Costa Rica.
c
35) The Secretariat for Central American Integration is headquartered in: A) El Salvador. B) Honduras. C) Guatemala City. D) Nicaragua. E) Costa Rica.
b
37) The country that withdrew from the original members of the Andean Community is: A) Bolivia. B) Chile. C) Ecuador. D) Peru. E) Venezuela.
b
39) The "Common Market of the South" in Latin America is used to describe: A) SICA. B) Mercosur. C) Andean Community. D) CARICOM. E) FTAA.
c. annually
4) Trade ministers representing the WTO member nations meet ________ to work on improving world trade. C) annually
c
51) The original six members of the ASEAN (Association of Southeast Asian Nations) included all of the following countries except: A) Singapore. B) Thailand. C) India. D) Philippines. E) Brunei.
a
52) Which one of the ASEAN members has the World's second-largest container port? A) Singapore B) Thailand C) India D) Philippines E) Brunei
c
54) For the past 40 years Bhutan, a kingdom of 754,000 people in the Himalaya mountains, has relied on the following measure: A) GNI. B) GDP. C) GNH. D) GNP. E) GTE.
a
66) The introduction of the euro by EU resulted in multifaceted advantages which include: A) elimination of costs associated with currency conversion. B) fixed exchange rate worldwide. C) elimination of paper currency and coins. D) withdrawal of French Francs from circulation. E) a choice for using local or European currency.
d
67) European countries will definitely benefit by having an FTA with the United States. However there are some sticky points which need resolution. All of the following points need consideration except: A) that the EU restricts the import of most genetically modified crops, which are common in the United States. B) further reduction of tariffs which now average between 2 and 3 percent. C) a variety of regulations that hamper cross-border investment and purchasing. D) the US government would like easing of restrictions for purchasing European goods. E) the name "Parmesan" applied to the "cows-milk" cheese.
b
68) The new country which joined the EU at the beginning of 2015 is: A) Slovakia. B) Lithuania. C) Latvia. D) Slovenia. E) Cyprus.
e
69) Markets of Central and Eastern Europe present interesting opportunities and challenges. Companies such as 3M International, McDonald's, Philips Electronics, and Henkel are moving into the region for all of the following reasons except: A) that region is an important new source of growth. B) that the first company to penetrate a country market often emerges as leader. C) wage rates are much lower than those in Spain, Portugal, and Greece. D) that region offers attractive locations for low-cost manufacturing. E) core products and Western brand names need changes are appropriate for business.
e
70) Management strategic options pertaining to products that are facilitated by a single European market include: A) standardized packaging and labeling. B) consolidated production. C) shift from brand to benefit segmentation. D) seeking marketing economies. E) all of the above
e
71) Because they are in transition, the markets of Central and Eastern Europe present interesting opportunities and challenges which include: A) new sources of growth. B) first mover advantage. C) exporting as an entry mode. D) lower wage rate. E) all of the above
c
72) The enlargement of the EU has impacted marketing strategies in the Eurozone countries by: A) making it difficult to export food products from one country to another. B) increasing the cost of production since the euro replaced local currency. C) shifting products from one market to another in the event of shortages. D) reduced tariffs and quotas for products imported from non-EU members. E) having less flexibility in the placement of factories.
c
73) The markets of Central and Eastern Europe present interesting opportunities and offer attractive opportunities for low-cost manufacturing due to: A) their location being close to the sea. B) the cultural similarities. C) wage rates being lower than in Spain, Portugal and Greece. D) strict laws and regulations. E) prohibitive tariffs and export restrictions.
c
74) According to EU regulations, Kraft parmesan cheese cannot be sold in Europe because: A) it is expensive when compared to local products. B) it is considered genetically modified agricultural product. C) terms such as "Parmesan" is used on the package labels.. D) it does not contain salt and an enzyme. E) it contains synthetic cellulose powder.
c
79) Political and social instability in the Middle Eastern region can primarily be attributed to: A) desert conditions and lack of agricultural land. B) cultural differences among nations. C) a wide gap between rich and poor nations due to oil revenues. D) lack of water purification facilities. E) the "Arab Spring."
c
80) The Gulf Cooperation Council (GCC) includes all of the following countries except: A) Kuwait. B) Saudi Arabia. C) Iraq. D) Bahrain. E) Oman.
b
81) A key word(s) in conducting business in the Middle East is: A) Arab Spring. B) connection. C) discrimination. D) male dominance. E) haggling.
c
82) In spite of having about 45% of the world's known oil reserves, Saudi Arabia and other Middle Eastern countries post current-account deficits, largely because: A) of poor accounting practices. B) of vast economic diversification. C) they must import most of the goods and services. D) most of the oil is exported. E) new businesses are being developed.
c
86) The Middle East and North Africa are sometimes viewed as a regional entity referred to as: A) GCC. B) AMU. C) MENA. D) ACC. E) ECOWAS.
d
87) The world's newest common market includes all of the following countries except: A) Kenya B) Tanzania C) Rwanda D) Nigeria E) Burundi
b
88) In order to form a free trade area, South Africa has signed a Trade, Development, and Cooperation Agreement (TDCA) with: A) Swaziland. B) EU. C) Namibia. D) Angola. E) Japan.
b
89) Which of the following statement is not true related to the African Growth and Opportunities Act (AGOA)? A) The theme of the AGOA is "Trade, not Aid." B) It is designed to help African nations that help neighboring countries in need. C) The law is designed to support African nations that make significant progress toward economic liberalization. D) African companies will find it easier to gain access to financing from the U.S. Export-Import Bank. E) AGOA represents a formal step toward a U.S.-Africa free trade area.
d
90) Other than tariffs, there are certain problems that restrict free trade between the European Union and the United States which includes all of the following except: A) use of genetically modified agricultural products. B) product labeling. C) Hollywood movie domination. D) Internet usage. E) cultural diversity.
European Commission
A proposed merger between two Swiss-based global pharmaceutical companies, Ciba-Geigy AG and Sandoz AG, would be subject to review by regulators from which of the following?
45) In West Africa, Burkina Faso, the Ivory Coast and Senegal are former French colonies, while Nigeria, Sierra Leone, and Ghana are former British colonies. Based on this information, which of the following would be correct? A) Burkina Faso, the Ivory Coast and Senegal are civil-code countries, while Nigeria, Sierra Leone, and Ghana are common-law countries. B) Burkina Faso, the Ivory Coast and Senegal are common-law countries, while Nigeria, Sierra Leone, and Ghana are civil-code countries. C) In West Africa, Ivory Coast and Senegal are the only common-law countries. D) All the West African nations mentioned above are likely to be civil-code countries. E) All the West African nations mentioned above are likely to be common-law countries.
A) Burkina Faso, the Ivory Coast and Senegal are civil-code countries, while Nigeria, Sierra Leone, and Ghana are common-law countries.
68) A proposed merger between two Swiss-based global pharmaceutical companies, Ciba-Geigy AG and Sandoz AG, would be subject to review by regulators from which of the following? A) European Commission B) UN Conference on International Trade Law C) International Chamber of Commerce D) International Court of Justice E) none of the above
A) European Commission
62) Which of the following statements is correct? A) The Paris Convention protects patents, the Berne Convention protects copyrights. B) The Paris Convention protects copyrights, the Berne Convention protects patents. C) The Berne Convention and Paris Convention are different names for the same thing. D) Neither the Berne Convention nor the Paris Convention is concerned with intellectual property. E) The International Union for the Protection of Literary and Artistic Property is different from the Berne Convention.
A) The Paris Convention protects patents, the Berne Convention protects copyrights.
80) Italy recently introduced the Reguzzoni-Versace Law which is intended to regulate trade in textiles, leather, and footwear. All of the following statements pertaining to the law are correct except: A) at least four stages of production should occur in Italy for the product to be labeled as "Made in Italy." B) the countries in which the remaining production stages took place must be identified. C) Brussels objected on grounds that the law conflicts with restrictions provided by the European Union. D) EU regulators view the law as "protectionist." E) the law is more stringent than the existing laws where only one production stage has to occur in the country of origin.
A) at least four stages of production should occur in Italy for the product to be labeled as "Made in Italy."
40) What type of international disputes would be taken before the International Court of Justice? A) disputes between two nations B) disputes between two companies C) disputes between a company and a nation D) disputes between a citizen of one country and a company from a different country E) disputes between profit and non-profit organizations
A) disputes between two nations
48) In a recent case, Revlon sued United Overseas Limited (UOL) in the U.S. District Court for the Southern District of New York for breach of contract. UOL countered by asking the court to dismiss the claim since they are not operating in that area. Revlon cited the presence of a UOL sign above the entrance to the offices of a New York company in which UOL had a 50-percent ownership. The court dismissed UOL's claim. This is an issue related with: A) jurisdiction. B) antitrust. C) dilution of equity. D) bribery and corruption. E) intellectual property.
A) jurisdiction.
50) Engineers at a company in a developing country study an American computer chip design, copy it, and produce identical chips that are then sold to local computer makers. What form of intellectual property has been wrongly appropriated? A) patent B) copyright C) trademark D) trade secrets E) technological
A) patent
49) A formal legal document that gives an inventor the exclusive right to make, use, and sell an invention for a specified period of time is known as: A) patent. B) copyright. C) trademark. D) trade secret. E) trade dress.
A) patent.
32) Any company doing business outside the home country should first carefully study the ________ in the target country. A) political culture B) nationalization C) political risk D) jurisdiction E) sovereignty
A) political culture
71) OPEC can be considered as a "cartel" which is a group of separate companies that collectively: A) sets prices, controls output, or takes other actions to maximize profits. B) dictates how other countries should use their products. C) produces more products in order to beat the competition. D) conducts activities that are considered illegal in the United States. E) works on forming a union against management of other companies.
A) sets prices, controls output, or takes other actions to maximize profits.
Which of the following is true about the innovation diffusion process in Asia?
All of the above are true
Uber is considered as an "information-society service" in 250 cities where it operates.
All of the following statements are true regarding services provided by Uber except:
Which of the following is true about "coffee culture" in England?
American entrepreneurs found success in England with the Seattle Coffee Company which Starbucks later acquired
As cultural differences become less relevant and disposable incomes become high, a trend towards greater consumption of the following type of foods is predicted.
American fast foods
60) Only Sony can use the "Walkman" name on its line of personal stereos. This is because: A) Sony has a patent on the Walkman. B) "Walkman" is a registered Sony trademark. C) Sony has copyrighted the Walkman name. D) Sony's trade secrets are protected by international law. E) Sony has an international business license.
B) "Walkman" is a registered Sony trademark.
56) The company receiving the most U.S. patents in 2009 was: A) Samsung Electronics. B) IBM. C) Microsoft. D) Canon. E) Panasonic.
B) IBM.
36) What do value added taxes (VAT) encourage in countries such as China? A) They make trademarks and copyrights more valuable. B) They result in cross-border shopping and smuggling. C) They make it harder to bribe officials. D) They protect companies from antitrust scrutiny. E) Global companies refrain from offering bribes.
B) They result in cross-border shopping and smuggling.
66) As part of their alliance relationship, Northwest Airlines and KLM Royal Dutch set air fare prices jointly and coordinate flight schedules. Normally, such behavior would be considered harmful to competition, but the U.S. government has granted the two airlines special exemptions from laws concerning: A) intellectual property. B) antitrust. C) jurisdiction. D) licensing. E) arbitration.
B) antitrust.
37) After Fidel Castro took power in Cuba in 1959, his government seized control of American property without paying compensation. Coca-Cola, DuPont, Texaco, and dozens of other American companies have filed claims against Cuba seeking financial settlements. Which of the following terms most specifically describes the action Castro took against these companies? A) nationalization B) confiscation C) expropriation D) internationalization E) deportation
B) confiscation
53) In many parts of the world, sales of unauthorized videos of Hollywood movies cost the movie studios billions of dollars. When illegal copies of movies are made, what form of intellectual property has been wrongly appropriated? A) patent B) copyright C) trademark D) trade secrets E) down loading
B) copyright
57) Research in Motion (RIM), a Canadian company which markets BlackBerry Messenger, is very popular with politicians and business people because it offers advance encryption that provides data security. This can be a disadvantage for some countries because: A) it is too complex to understand. B) governments use strict control for security reasons. C) the software can be easily downloaded. D) the accessibility is very poor. E) there is competition from local manufacturers.
B) governments use strict control for security reasons.
33) Categories of political risk listed by EIU (Economist Intelligence Unit) include all of the following except: A) war. B) political turmoil. C) bureaucracy. D) corruption. E) crime.
B) political turmoil.
77) The United States has more lawyers than any other country in the world and is arguably the most litigious nation on earth. This is a reflection of: A) the lack of class action lawsuits. B) the low-context nature of the American culture. C) the lack of spirit of confrontational competitiveness. D) the fact that lawyers cannot undertake cases on contingency fee basis. E) the fact that conflicts arise more in the United States.
B) the low-context nature of the American culture.
59) Harley-Davidson has applied for federal protection of an unusual form of intellectual property; the "soul-pleasing rumble" produced by its motorcycles. What type of protection is Harley-Davidson seeking? A) copyright B) trademark C) license D) patent E) trade dress
B) trademark
The use of the color ________ dates back millennia as seen by artisans in ancient Egypt, China, and Mayan civilizations and is now associated with royalty and divinity.
Blue
55) In accordance with GATT, new U.S. patents are granted for a period of ________ years from the filing date. A) 10 B) 17 C) 20 D) 27 E) 30
C) 20
34) Bureaucracy is listed as a political risk category by: A) BERI (Business Environment Risk Intelligence). B) PRS Group. C) EIU (Economist Intelligence Unit). D) WTO (World Trade Organization). E) OPIC (Overseas Private Investment Corporation).
C) EIU (Economist Intelligence Unit).
64) The company receiving the most U.S. patents for the year 2009 is: A) Microsoft. B) Panasonic. C) IBM. D) Toshiba. E) Intel.
C) IBM.
47) Any Western country doing business in Malaysia or the Middle East should have an understanding of: A) the French Civil Code. B) Anglo-Saxon common law. C) Islamic law. D) the Uniform Commercial Code. E) Roman law and the Napoleonic Code.
C) Islamic law.
72) Which of the following best describes the legal basis for protection of trade secrets, patents, and copyrights in the United States? A) Trade secrets, patents, and copyrights are protected by federal statutes. B) Trade secrets, patents, and copyrights are protected by state law. C) Trade secrets are protected by state law, while patents and copyrights are protected by federal statutes. D) Trade secrets are protected by federal statutes, while patents and copyrights are protected by state law. E) Trade secrets, patents, and copyrights are not protected by any laws.
C) Trade secrets are protected by state law, while patents and copyrights are protected by federal statutes.
39) Located in The Hague, the International Court of Justice (ICJ) is the judicial arm of the: A) United States. B) European Union. C) United Nations. D) Netherlands. E) United Kingdom.
C) United Nations.
61) In order to fight piracy in China, Budweiser Beer's approach includes: A) printing labels in Chinese. B) changing color of beer cans. C) beer cans in China have fluted edges. D) printing labels both in Chinese and English. E) making beer very cheap in price in China.
C) beer cans in China have fluted edges.
38) The governmental action to dispossess a foreign company or investor is known as: A) compensation. B) confiscation. C) expropriation. D) internationalization. E) nationalization.
C) expropriation.
75) The following criminal penalties may be imposed for violations of the FCPA'S (Foreign Corrupt Practices Act) antibribery provisions except: A) corporations are subject to a fine of up to $2,000,000. B) officers, directors, stockholders, employees, and agents are subject to a fine of up to $100,000. C) fines imposed on individuals can be paid by their employer or principal. D) the fines may be much higher, up to twice the benefit sought by the defendant. E) in addition to fines, there may be imprisonment for up to five years.
C) fines imposed on individuals can be paid by their employer or principal.
69) Which of the following actions were approved both by the Antitrust Review in the EU as well as in the United States? A) acquisition of Honeywell (U.S.) by GE (U.S.) B) joint venture between music businesses of EMI group (Great Britain) and Time Warner (U.S.) C) merger of Sony Music (Japan) and BMG (Germany) D) merger of WorldCom (U.S.) and MCI (U.S.) E) British Airways (U.K.) and American Airlines (U.S.)
C) merger of Sony Music (Japan) and BMG (Germany)
58) In 2005, representatives from several wine regions in the United States and the EU signed a Joint Declaration to Protect Wine Place & Origin. In addition, a Wine Accord signed by the United States and EU bans the: A) use of alcohol in public places. B) purchase of wine from country of origin. C) misuse of place names by marketers of wine products that do not originate in those places. D) misuse of labels which does not include the origin of ingredients. E) use of word "champagne" on wine made in the United States.
C) misuse of place names by marketers of wine products that do not originate in those places.
79) A company stands a better chance of having an international arbitration award upheld if its home-country government has signed: A) the Paris Convention. B) the Prague Convention. C) the New York Convention. D) the Vienna Convention. E) the Geneva Convention.
C) the New York Convention.
51) Counterfeiting is: A) the use of a formal legal document for illegal purposes. B) the ownership of a written, recorded, performed or filmed creative work. C) the unauthorized copying or production of a product. D) the use of a product name that has different meaning than the original brand. E) the use of a distinctive mark of a brand that is no longer producing the original brand.
C) the unauthorized copying or production of a product.
54) Which of the following would constitute a copyright violation? A) manufacturing and selling illegal videocassette copies of "Spiderman 2" B) manufacturing and selling illegal copies of Levi "501" jeans C) printing and selling illegal copies of Harry Potter books D) A, B, and C are copyright violations. E) A and B are copyright violations.
D) A, B, and C are copyright violations.
63) Which of the following is true about protection of computer software? A) Copyright laws protect both the actual code and the idea embodied in the code. B) Patent laws protect both the actual code and the idea embodied in the code. C) Patent laws protect the actual code, while copyright laws protect the idea. D) Copyright laws protect the actual code, while patent laws protect the idea. E) License protects both the actual code and the idea embodied in the code.
D) Copyright laws protect the actual code, while patent laws protect the idea.
43) Which of the following is not a common-law country? A) India B) Pakistan C) Malaysia D) Korea E) Singapore
D) Korea
42) The Uniform Commercial Code (UCC) is fully adopted by all U.S. states except: A) Virginia. B) North Dakota. C) Wisconsin. D) Louisiana. E) Montana.
D) Louisiana.
65) Which of the following is true about revised U.S. patent laws? A) Patents are valid for 17 years after the patent is granted. B) Patents are valid for 17 years after the patent is filed. C) Patents are valid for 20 years after the patent is granted. D) Patents are valid for 20 years after the filing date of the application. E) Patents are valid as long as the product is manufactured.
D) Patents are valid for 20 years after the filing date of the application.
44) The German civil-law tradition prevails in all of the following countries except: A) Poland. B) Hungary. C) Czech Republic. D) Scandinavia. E) Germany.
D) Scandinavia.
46) Islamic law is a comprehensive code based in part on: A) Anglo-Saxon common law. B) Roman law and the Napoleonic Code. C) the Uniform Commercial Code. D) the Koran. E) the French Civil Code.
D) the Koran.
73) The U.S. Justice Department objected to a recent patent license agreement between S.C. Johnson & Sons and Bayer AG. The antitrust unit at the Justice department objected to: A) the duration of the license. B) the amount of royalties Johnson agreed to pay. C) Bayer's attempts to circumvent FDA policies. D) the exclusive nature of the license agreement. E) the hostile arrangement between Bayer and Johnson.
D) the exclusive nature of the license agreement.
76) When companies operate abroad in the absence of home-country legal constraints, the best choice for ethical conduct would be: A) to ignore bribery and act as if it does not exist. B) to maintain home-country ethics worldwide with no adaptations. C) to abandon any attempt to maintain company ethics. D) to have a product that is clearly superior to that of the competition. E) to adapt in varying degrees to local customs and practices.
D) to have a product that is clearly superior to that of the competition.
In China, Dell had to find a meaningful interpretation of "direct sales." A literal translation results in zhi xiao which is the Chinese term for "illegal pyramid marketing schemes." To counteract the negative connotation, Dell's sales representatives began using the phrase zhi xiao ding gou, which translates as:
Direct orders
The Walt Disney Company's decision to build a theme park in France provides an excellent vehicle to understanding SRC (Self-Reference Criterion). All of the statements listed below portray this meaning except:
Disney executives were blinded by their prior success and ethnocentrism
35) Various types of political risk insurance to U.S. companies is provided by: A) BERI (Business Environment Risk Intelligence). B) PRS Group. C) EIU (Economist Intelligence Unit). D) WTO (World Trade Organization). E) OPIC (Overseas Private Investment Corporation).
E) OPIC (Overseas Private Investment Corporation)
74) According to the Transparency International's Corruption Perceptions Index scores for 2010, the country which was listed as most corrupt was: A) Iraq. B) Uzbekistan. C) Chad. D) Afghanistan. E) Somalia.
E) Somalia.
70) Consten, a French company, had exclusive rights to import and distribute German Grundig's electronic products into France. One of the competitors started bringing "parallel imports" into France illegally, importing Grundig product bought from a foreign supplier. Which of the following does not represent an action taken by different legal bodies? A) Consten's complaint was upheld by two French courts. B) The Paris Court of Appeals suspended the judgment of the French courts. C) The Paris Court of Appeal's judgment was based on pending a ruling by the European Commission. D) The European Commission ruled against Consten on the grounds that territorial protection proved to be damaging to the Common Market. E) The European Commission ruled that German Grundig was in violation of the laws of the Common Market.
E) The European Commission ruled that German Grundig was in violation of the laws of the Common Market.
41) What happens if a nation has allowed a case against it to be brought before the ICJ (International Court of Justice) and then refuses to accept a judgment against it? A) American Arbitration Association can be sought for justice. B) UN Conference on International Trade Law can be approached. C) International Chamber of Commerce will be another source for seeking justice. D) European Court of Justice can be approached if the country is in the European Union. E) The plaintiff nation can seek recourse through the UN Security Council.
E) The plaintiff nation can seek recourse through the UN Security Council.
78) Which of the following is true of the arbitration framework created by the New York Convention? A) Signatory countries can require parties to an arbitration agreement to actually use arbitration. B) Signatory countries recognize and can enforce arbitration judgments. C) There are limited grounds for appealing arbitration decisions. D) The grounds that are recognized are different than the typical appeals that are permitted in a court of law. E) all of the above
E) all of the above
67) The European Commission has jurisdiction over European-based companies as well as non-European ones that generate significant revenues in Europe. If Microsoft applies in Europe, the Commission has a right to all of the following except: A) it can block a proposed merger. B) it can block a proposed joint venture. C) it can approve with minor modifications. D) it can demand substantial concessions before granting approval. E) it can refer serious matters to the UN Security Council.
E) it can refer serious matters to the UN Security Council.
52) The unauthorized publication or reproduction of copyrighted work is referred to as: A) associative counterfeit. B) imitation. C) mistake. D) trade secrets. E) piracy.
E) piracy.
When John Brooks, a defender on the U.S. men's national soccer team, scored the winning goal against Ghana late in a first-round game of the Fédération Internationale de Football Association (FIFA) 2014 World Cup at Arena Amazonia, nearly 16 million American TV viewers were tuned in. Considering this statement, which of the following statements is incorrect?
FIFA has chosen Total Apparel Group (TAG) to boost soccer's visibility and popularity among Americans
Relative advantage refers to how a new product compares with existing products or methods in the eyes of the competitors.
False
high excise and VAT taxes.
In Great Britain, the Wine and Spirit Association estimates that, on average, cars returning from France are loaded with 80 bottles of wine. This is most likely due to
Cultural influences are also quite apparent in food preparation and consumption patterns and habits. Domino's Pizza, the world's largest pizza-delivery company, pulled out of Italy because: A) its tomato sauce was too bold and competed with Italian products.
Italians perceived its products to be "too American."
There is nothing inherently "good" or "bad" about any color of the spectrum and all associations and perceptions regarding color arise from culture. Which of the following statements is not true?
Red color is highly preferred in some African countries
Which of the following best sums up the experience of Walt Disney Company executives when creating Disney's theme park in Paris?
They fell victim to the self-reference criterion
According to Roger's diffusion theory, most customers will not purchase expensive products without the "hands-on" experience marketers call "trial."
True
Danes generally are not afraid of taking chances; they are comfortable doing things that are not carefully thought out or planned. Denmark's "flexicurity" policy combines free labor markets with adjustable welfare benefits. This is an example of the application of Hofstede's typology under the values which highlight:
Uncertainty Avoidance
European consumers have faced a number of food-related issues, including an outbreak of hoof-and-mouth disease and continuing concerns over mad cow disease. As a result, many are skeptical about GMOs (genetically-modified organisms) and the benefits of eating food products that incorporate genetically-engineered ingredients. As one French citizen noted recently, "We have a very risk-averse society that has been completely traumatized by food scares." Thinking about this situation in terms of Hofstede's cultural values framework, one might reasonably interpret this remark to indicate that France ranks relatively high in:
Uncertainty Avoidance
Two countries that score low in uncertainty avoidance are:
United States and Switzerland
Considering Hofstede's notion of culture as "the collective programming of the mind," then attitudes can be defined as:
a learned tendency to respond in a consistent way to a given object or entity
Coca-Cola billboards were recently put up near the Piazza San Marco in Venice, which has numerous historical landmarks. The major reason for allowing the billboards at a prominent historical site is:
a severe lack of funds for historic renovation
Together, innovators and early adopters make up about ______ percent of the potential market for a new product. a. 15 b. 25 c. 35 d. 45 e. 13.5
a. 15
To speed adoption of a new product, the marketing team should: a. ensure that features and benefits can be communicated or demonstrated b. design the maximum amount of complexity into the product c. discourage limited use on a "trial" basis d. attempt to make a clean break with existing customer values e. rely heavily on word-of-mouth marketing
a. ensure that features and benefits can be communicated or demonstrated
Which of the following is arranged starting with the highest level of environmental sensitivity and ending with the lowest level? a. food>computers>integrated circuits b. integrated circuits>food>computers> c. integrated circuits>computers>food> d. computers>food>integrated circuits> e. none of the above
a. food>computers>integrated circuits
The _________ the level of environmental sensitivity for a given product, the _________ the need for managers to address country-specific economic, regulatory, technological, social and cultural environmental conditions. a. greater; greater b. lower; greater c. greater; lower d. lower; lower e. stronger; greater
a. greater; greater
The lesson that SRC (Self-Reference Criterion) teaches can be summarized as:
an unbiased perception is a vital and critical skill in global marketing
One of the basic elements of sociologist Everett Roger's Diffusion theory is the concept of an "adoption process." The first step in this adoption process is:
awareness
Which of the following shows the correct order of the product adoption process?
awareness→interest→evaluation→trial→adoption
Which of the following is true about "coffee culture" in England? a. Starbucks has been unsuccessful in its attempt to change the Brits' preference for tea. b. American entrepreneurs found success in England with the Seattle Coffee Company which Starbucks later acquired. c. Starbucks succeeded in England only after changing the company's name to Seattle Coffee Company. d. Starbucks-style coffee shops have been a flop because tea culture is too deeply engrained. e. Starbucks has been successful in England since it started selling beer.
b. American entrepreneurs found success in England with the Seattle Coffee Company which Starbucks later acquired.
In deference to local cultural traditions, when GM executives gave gifts from Tiffany's to Chinese officials, the gifts were packaged in: a. blue boxes with white ribbons b. blue boxes with red ribbons c. white boxes with blue ribbons d. white boxes with red ribbons e. red boxes with white and blue ribbons
b. blue boxes with red ribbons
Comparing and contrasting the diffusion of innovations in Western countries and in Asia, one can say that: a. the process occurs in an identical manner in both regions b. in Asia, the adoption process begins more slowly but ramps up more rapidly than it does in Western countries c. in Western countries, the adoption process begins more slowly but ramps up more rapidly than it does in Asia d. the diffusion of innovation framework is applicable in the West but not in Asia e. the diffusion of innovation framework is applicable in Asia but not in the West
b. in Asia, the adoption process begins more slowly but ramps up more rapidly than it does in Western countries
In high-context cultures, time is: a. monochronic b. polychronic c. linear d. short e. common
b. polychronic
The fair-trade certification label on a bag or can of coffee indicates: a. high quality beans were used in processing of coffee b. the coffee beans were harvested in Vietnam c. growers were paid a fair price for their crops d. coffee was stored in warehouses that were certified e. package has instant coffee
b. the coffee beans were harvested in Vietnam
When Walt Disney Company's executives were planning to build a theme park in France, they firmly believed that the success of McDonald's and Coke as well as their own success in Tokyo ensured the runaway success of their plans. Disney policies prohibit sale or consumption of alcohol inside their theme parks which they also implemented in France. This proved to be a failure since consuming wine with the midday meal is a long-established custom in France. This is most likely a classical example of:
being victim to the self-reference criterion
Two countries that outrank the others in uncertainty avoidance are: a. Austria and Belgium b. Japan and Hong Kong c. Greece and Portugal d. Denmark and Finland e. Ireland and Italy
c. Greece and Portugal
Indications that food tastes are changing -- a sign of cultural shifts that are taking place in many countries -- does not include: a. Europeans are developing a taste for salty snacks b. many Europeans are eating bigger breakfasts since lunch breaks have been shortened. c. Japanese preference for okayu (rice porridge) d. Doritos increased sales in U.K., France, and Spain e. American versions of cheddar cheese being exported to England
c. Japanese preference for okayu (rice porridge)
Which of the following can negatively influence the rate of diffusion of an innovation? a. substantial relative advantage b. high compatibility c. high complexity d. divisibility e. high level of communicability
c. high complexity
While some food preferences remain deeply embedded in culture, there is plenty of evidence that global dietary preferences are converging. Examples of such a change can be predicted from: a. the popularity of Domino's Pizza in Italy b. the preference for local hamburgers from a local chain, Jollibee's, in Philippines c. the growing number of McDonald's restaurants globally d. the increased sales of soups and noodles in Thailand e. popularity of Chinese foods in Taiwan
c. the growing number of McDonald's restaurants globally
The rate of adoption of the new Apple watch is slow, particularly in developing country markets with low rates of literacy. This can generally be attributed to which characteristics of innovation?
complexity
A vice-president of an American software company introduced himself to a group of Korean partners and added "you may just call me John." Although this verbal cue shows the underlying reality that Americans have a high value on informality and equality, it needs adaptation due to the reason that:
customs, hierarchies, and class structure of Korean culture have to be respected
European consumers have faced a number of food-related issues in recent years, including an outbreak of hoof-and-mouth disease and continuing concerns over mad cow disease. As a result, many are skeptical about GMOs (genetically-modified organisms) and the benefits of eating food products that incorporate genetically-engineered ingredients. As one French citizen noted recently, "We have a very risk-averse society that has been completely traumatized by food scares." Thinking about this situation in terms of Hofstede's cultural values framework, one might reasonably interpret this remark to indicate that France ranks relatively high in: a. power distance b. short-term orientation c. masculinity d. uncertainty avoidance e. individualism
d. uncertainty avoidance
Barbie doll is one of the most popular dolls worldwide. However, it has faced stiff and unusual competition in different parts of the world. Problems faced by its manufacturer, Mattel did not include: a. Japanese complex distribution system b. dolls have a strong tradition in Japanese culture and has a ceremonial importance c. Barbie's legs were too long and did not relate to Japanese physical attributes d. Barbie's eyes were blue in color e. None of the above
e. None of the above
Which of the following is true about the innovation diffusion process in Asia? a. Japan has a high-context culture with a relatively homogeneous population b. Because risk avoidance is a cultural value, there are fewer innovators in Asia than in the United States c. Once innovators in Asia have tried a product, early adopters and the early majority quickly follow suit d. After a new product has achieved success in one Asian market, it is likely to be adopted in other Asian markets at an even faster rate e. all of the above are true
e. all of the above are true
One of the basic elements of sociologist Everett Roger's Diffusion theory is the concept of an "adoption process." The first step in this adoption process is: a. interest b. evaluation c. trial d. adoption e. awareness
e. awareness
Which is not considered as a Long-term value? a. persistence b. sense of shame c. thrift d. ordering relationships e. search for truth
e. search for truth
To speed adoption of a new product, a marketing team should:
ensure that features and benefits can be communicated or demonstrated
Which of the following is arranged starting with the highest level of environmental sensitivity and ending with the lowest level?
food→computers→integrated circuits
The ________ the level of environmental sensitivity for a given product, the ________ the need for managers to address country-specific economic, regulatory, technological, social, and cultural environmental conditions.
greater; greater
While some food preferences remain deeply embedded in culture, there is plenty of evidence that global dietary preferences are converging. Examples of such a change can be predicted from the:
growing number of McDonald's restaurants globally
Anheuser-Busch and Miller Brewing both experienced market failures in the United Kingdom when they used the phrase "light beer" which was misinterpreted as:
having reduced alcohol levels
Which of the following can negatively influence the rate of diffusion of an innovation?
high complexity
Comparing and contrasting the diffusion of innovations in Western countries and in Asia, one can say that:
in Asia, the adoption process begins more slowly but ramps up more rapidly than it does in Western countries
According to Geert Hofstede, which of the following is a key cultural dimension that helps account for rapid economic growth in Asia?
long-term orientation
Insisting on competitive bidding can cause complications in:
low-context cultures
Lawyers are more important in:
low-context cultures
The power distance dimension reflects the degree of trust among members of society. Thus, the higher the power distance (PDI) the:
lower is the level of trust
Linguists have divided the study of languages into four main areas. The system of word formation is referred to as:
morphology
If a marketing manager plans to enter newly industrializing-countries (NICs) or other Asia markets with a product that has proved to be successful in the home market, the product's diffusion processes are likely to be:
much faster than in the home market.
According to Hofstede, a cultural dimension which describes a society in which the social roles of men and women overlap, with neither gender exhibiting overly ambitious or competitive behavior is known as:
nurturing
While marketers should be secure in their own convictions and traditions, ________ are required to appreciate the integrity and value of other ways of life and points of view.
open mind and absence of prejudice
Giving business cards with the left hand in Malaysia, showing soles of shoes to a host in Saudi Arabia, and winking one eye in India are all considered impolite interpersonal communication due to the fact that:
people pick up nonverbal cues and understand intuitively without being told
When the Coca-Cola Company was developing its new Dasani bottled water brand, linguists helped guide the naming process. For example, the recurring "a" was chosen because it has a soothing sound. In linguistics, issues pertaining to letters and sounds are a matter of:
phonology
Colgate discovered that in Spanish colgate is a verb form that means "go hang yourself." Whirlpool found that consumers in Italy, France, and Germany had trouble pronouncing the name. These are examples which show the importance of ________ in global marketing.
phonology and morphology
In high-context cultures, time is:
polychronic
A massive effort dubbed as "Mose Project" is underway in Venice in order to:
prevent flooding
Which is not considered as a long-term value?
search for truth
Procter & Gamble's introduction of All-Temperature Cheer laundry detergent in Japan was a flop at first. The problem was that Japanese women wash clothes in cold water-either tap water or leftover bath water-so they don't care about all-temperature washing (which is a big selling point in the United States). Also, Cheer was first introduced in Japan at a time when the market for fabric softeners in Japan was rapidly expanding. However, when Japanese housewives added lots of fabric softener to the water, Cheer didn't produce many suds (Americans don't use as much fabric softener). P&G reformulated the product so it wouldn't be affected by fabric softeners, and ads for Cheer in Japan pledged superior cleaning in cold water, not all temperatures. Which of the following might have helped P&G avoid the initial problems with Cheer?
self-reference criterion
An intern from the United Kingdom was working in an American software company during summers. One day her boss gave her a memo asking her to post it, with the intention of having it put on the bulletin board. To her boss's surprise the letter was mailed by the intern since the word "post" means "mail" in British English. In communication terms this error can be attributed due to:
semantics
A characteristic of a low-context culture which is prevalent in the United States, Switzerland, and Germany is that:
the messages are explicit and specific
a
14) A Canadian-built Caterpillar grader tractor imported into Chile would not be subject to duty because: A) Chile and Canada established an FTA. B) tractors made in Canada are more durable. C) tractors made in Canada do not require certification. D) locally made tractors are more expensive in Chile.
Together, innovators and early adopters make up about ________ of the potential market for a new product.
16%
c
25) The form of economic cooperation that calls for countries to eliminate all internal barriers to trade among themselves even while maintaining independent trade policies vis-à-vis third countries is known as a(n): A) Economic union. B) Customs union. C) Free trade area. D) Common market. E) None of the above
b
26) Blackberry (formerly known as Research in Motion), the smartphone marketer, is based in: A) Mexico. B) Canada. C) Brazil. D) Argentina. E) The Netherlands.
b
27) NAFTA creates a free trade area, as opposed to a customs union or a common market, due to the fact that: A) the agreement does not leave the door open for discretionary protectionism. B) the governments of all three nations decided to eliminate tariffs. C) the issue of illegal immigration from Mexico to the United States is resolved. D) restrictions are imposed on the use of goods, services, and investments. E) restrictions are imposed on labor movements among members.
d. Economic union
3) Which form of regional cooperation agreement, when fully implemented, entails creation of a unified central bank, the use of a single currency, and common policies on agriculture, social services, and welfare? D) Economic union
b
30) The allure of the Latin American market has been its: A) lack of inflation. B) considerable size. C) rapid economic growth. D) low foreign debt. E) protectionism.
e
31) There are several preferred trading arrangements in Latin America which include all of the following except: A) SICA. B) the Andean Community. C) CARICOM. D) Mercosur. E) BRIC.
e
32) The five original members of the Central American Integration System did not include: A) El Salvador. B) Honduras. C) Guatemala. D) Nicaragua. E) Venezuela.
c
33) Which member of the Central American Integration System has both the largest economy and the largest population? A) El Salvador B) Honduras C) Guatemala D) Nicaragua E) Costa Rica
a
36) One of the most exciting projects in the Central American region in 2014 was: A) the enlargement of the Panama Canal. B) Central America's effort to revive its common market. C) the five original members' decision to reestablish the CACM. D) the establishment of Guatemala as region's headquarter. E) the Free Trade Agreement with the United States.
b
38) Argentina was allowed to break from the CET and raise duties on consumer goods. This crisis had a silver lining, which is evident from all of the following points except: A) Argentina's wine exports to the United States were worth four times more when dollar revenues were converted into pesos. B) Argentina became known for the world's most expensive wines. C) the currency devaluation made Argentine vineyard property cheaper for foreign buyers. D) low prices for land, inexpensive labor, and ideal growing conditions for the Malbec grape have combined to make Argentina's wine industry a major player in world markets. E) Argentina can make better wine locally for less money than anywhere in the world.
b
40) Argentina provides a good example of how a country can emerge from an economic crisis as a stronger global competitor as per the following statement: A) Argentina reduced the duties on consumer goods. B) Argentina devalued its currency for exports and capital transactions. C) Argentina added tariffs on imported wines. D) Argentina adopted the U.S. dollar as official currency. E) Argentina added tariffs on wine produced within the country.
c
41) The English-speaking CARICOM members in the eastern Caribbean are concerned with defending their privileged trading position with: A) Russia. B) China. C) the United States. D) the United Kingdom. E) Australia.
c
53) There are barriers in Japan for global marketers in terms of attitudes as well as laws. Barriers include all of the following except: A) any organization wishing to compete in Japan must be committed to providing top-quality products and services. B) repeat visits and extended socialization with distributors. C) goods marketed should have a semblance of western products and services. D) marketers must master the keiretsu system of tightly knit corporate alliances. E) trust has to be built before conducting successful business.
c
55) Which of the following ASEAN countries alone accounts for more than one-third of 2014 two-way trade exports with the United States? A) Brunei B) Malaysia C) Singapore D) Thailand E) Vietnam
c
56) Bhutan has relied on a measure besides economic growth, namely, gross national happiness (GNH). The GNH Index includes all of the following indicators except: A) psychological well-being. B) community vitality. C) economic vitality. D) environmental diversity. E) living standards.
b
65) The Maastricht Treaty called for: A) the creation of an Asia Free Trade Area (AFTA). B) the creation of an economic and monetary union in Europe. C) Chile's acceptance into Mercosur. D) the purchase of CDs and tapes from distributors in Europe. E) the creation of the seven-nation European Free Trade Association (EFTA).
Adopter categories are classifications of individuals within a market on the basis of their innovativeness. When Apple introduced the Apple watch people waited in long lines before the doors opened. According to experts, those people can be categorized as:
innovators
Researcher Martin Ross found strong evidence that sensory brand images would perform well in countries where: a. high individualism is a dominant cultural pattern b. low individualism is a dominant cultural pattern c. word-of-mouth is strong among teen age groups d. print advertising is very popular e. functionality of the products is important
a. high individualism is a dominant cultural pattern
According to Hofstede's typology, the degree to which societal institutions encourage individuals to integrate into groups within organizations and society is referred to as: a. gender differentiation b. individualism versus collectivism c. uncertainty avoidance d. power balance e. future orientation
b. individualism versus collectivism
Adopter categories are classifications of individuals within a market on the basis of their innovativeness. Recently Apple introduced the iPhone for which people waited in long lines before the doors opened. According to experts these 2.5 percent of people who bought the iPhone are categorized as: a. early adopters b. innovators c. early majority d. late majority e. laggards
b. innovators
When the Coca-Cola Company was developing its new Dasani bottled water brand, linguists helped guide the naming process. For example, the recurring "a" was chosen because it has a soothing sound. In linguistics, issues pertaining to letters and sounds are matter of: a. syntax b. semantics c. phonology d. semiotics e. semantics
c. phonology
Suppose you have a friend from India who is a lifelong vegetarian and who does not like McDonald's because the company sells hamburgers in many countries (although not in India). Which of the following describes your friend? a. "vegetarianism" represents a value, "dislike McDonald's" represents an attitude b. "vegetarianism" represents an attitude, "dislike McDonald's" represents a value c. "vegetarianism" and "dislike McDonald's" both represent an attitude d. "vegetarianism" represents a value, "dislike McDonald's" represents a belief e. "vegetarianism" and "dislike McDonald's" both represent values
a. "vegetarianism" represents a value, "dislike McDonald's" represents an attitude
A few years ago, Philips Electronics developed a new consumer electronics product called the Digital Compact Cassette player. DCC did more than allow users to record and playback in a new digital format; DCC was also designed to play the older, analog cassette tapes that many people own. However, die-hard audio buffs were the only ones to buy DCC and Philips ultimately discontinued the product. Which of the following statements based on adopter categories describes this? a. early adopters bought, but innovators didn't b. innovators bought, but early adopters didn't c. innovators bought, and everyone else was a laggard d. early majority bought, but late majority didn't e. DCC was a laggard
b. innovators bought, but early adopters didn't
The power distance dimension reflects the degree of trust among members of society. Thus, the higher the power distance (PDI) the: a. greater is uncertainty avoidance b. lower is the level of trust c. higher is tolerance for ambiguity d. greater is male dominance e. lower is the harmony
b. lower is the level of trust
That floppy disks are being dumped in favor of USB mass storage device can be attributed to which characteristics of innovation: a. compatibility b. relative advantage c. divisibility d. communicability e. complexity
b. relative advantage
American Nancy McKinstry recently became the new CEO at Dutch publisher Wolters Kluwer. As Ms. McKinstry noted, she had to drop the word "aggressive" in describing her strategic plan to company managers. She said, "I learned that the word has a negative connotation to a lot of Europeans. I was coming across too hard, too much of a results- driven American to the people. I needed to get on board so I started describing our strategy as 'decisive' and that made all the difference." Which of the following grammar topics is the critical element in this passage? a. syntax b. semantics c. morphology d. phonology e. semiotics
b. semantics
Which of the following best sums up the experience of Walt Disney Company executives when creating Disney's theme park in Paris? a. they were guided by the "Think global, act local" principle b. they fell victim to the self-reference criterion c. they exhibited a geocentric management orientation d. they miscalculated the rate of diffusion of innovations in Europe e. they had an unbiased perception of existing culture in Europe
b. they fell victim to the self-reference criterion
In the 1990's Tamagotchi was designed as a virtual pet and test marketed in Tokyo. The word-of-mouth publicity was so strong that toymaker Bandai was hard-pressed to keep up with demand. By the time Tamagotchis reached New York toy retailer FAO Schwartz, the initial shipment was sold out. This shows that: a. virtual pets do not need special marketing efforts b. word-of-mouth marketing is highly effective in collectivist cultures c. demand for virtual pets is more in technologically advanced countries d. print marketing is not as effective as word-of-mouth publicity e. demand for innovative products is proportional to publicity
b. word-of-mouth marketing is highly effective in collectivist cultures
Relative advantage, communicability, and divisibility are all aspects of: a. Hofstede's social values framework b. Lee's SRC framework c. Ritzer's McDonaldization thesis d. Roger's diffusion theory e. Hall's low- and high- context culture framework
c. Ritzer's McDonaldization thesis
The cultural environment of a country is best defined by which characteristics: a. standard of living and stage of economic development b. production process and standards of measurement c. attitudes, beliefs, and values d. degree of nationalism and economic community membership e. fast food culture and slow food culture
c. attitudes, beliefs, and values
In the 1990s, Philips Electronics developed a new consumer electronics product called the Digital Compact Cassette player. DCC allowed users to record and playback in a new digital format; DCC was also designed to play the older, analog cassette tapes that many people own. This latter feature reflects which of the following characteristics of innovations: a. relative advantage b. communicability c. compatibility d. complexity e. divisibility
c. compatibility
A vice-president of an American software company introduced himself to a group of Korean partners and added "you may just call me John." Although this verbal cue shows underlying reality that Americans have a high value on informality and equality, it needs adaptation due to the reason that: a. John is not a very popular name in Korea b. it is difficult to translate John in Korean language c. customs, hierarchies, and class structure of Korean culture has to be respected d. Korean culture requires that first and last name be used in addressing guests e. it is not appropriate to disclose nicknames in business meetings
c. customs, hierarchies, and class structure of Korean culture has to be respected
A characteristic of a low-context culture which is prevalent in United States, Switzerland, and Germany is: a. less information is contained in verbal communication b. major emphasis on a person's values and position in society c. messages are explicit and specific d. a person's word is his or her bond e. negotiations are long and protracted
c. messages are explicit and specific
Giving business cards with the left hand in Malaysia; showing soles of shoes to a host in Saudi Arabia, and winking one eye in India are all considered impolite interpersonal communication due to the fact that: a. in Middle Eastern countries it is customary to take off shoes at the door b. it is difficult to notice when one winks eyes since there are many people in India c. people pick up nonverbal cues and understand intuitively without being told d. these actions distract people from hearing at meetings people are not aware of Western ways of doing business
c. people pick up nonverbal cues and understand intuitively without being told
The lesson that SRC (Self-Reference Criterion) teaches can be summarized as: a. a person's perception of market needs is framed by others cultural experience b. perceptual blockage and distortion about cultures are hard to reduce c. unbiased perception is a vital and critical skill in global marketing d. unconscious reference to one's cultural values is critical in global marketing e. prior success and ethnocentrism can override the SRC
c. unbiased perception is a vital and critical skill in global marketing
The sales of the Apple watch increased when customers were informed about various functions of the watch. This change in sales reflects which of the following characteristics of innovation?
communicability
In the 1990s, Philips Electronics developed a new consumer electronics product called the Digital Compact Cassette (DCC) player. DCC allowed users to record and playback in a new digital format; DCC was also designed to play the older, analog cassette tapes that many people own. This latter feature reflects which of the following characteristics of innovations?
compatibility
Which of the following shows the correct order of the product adoption process? a. evaluation->trial->awareness->interest->adoption b. trial->interest->evaluation->awareness->adoption c. interest->awareness->adoption->trial->evaluation d. awareness->interest->evaluation->trial->adoption e. adoption->evaluation->trial->interest->awareness
d. awareness->interest->evaluation->trial->adoption
Procter & Gamble's introduction of All-Temperature Cheer laundry detergent in Japan was a flop at first. The problem was that Japanese women wash clothes in cold water— either tap water or leftover bath water—so they don't care about all-temperature washing (which is a big selling point in the U.S.). Also, Cheer was first introduced in Japan at a time when the market for fabric softeners in Japan was rapidly expanding. However, when Japanese housewives added lots of fabric softener to the water, Cheer didn't produce many suds (Americans don't use as much fabric softener). P&G reformulated the product so it wouldn't be affected by fabric softeners, and ads for Cheer in Japan pledged superior cleaning in cold water, not all temperatures. Which of the following might have helped P&G avoid the initial problems with Cheer? a. Maslow's hierarchy b. high vs. low context culture c. diffusion of innovation d. self-reference criterion e. polycentric orientation
d. self-reference criterion
An intern from United Kingdom was working in an American software company during summers. One day her boss gave her a memo asking her to post it, with the intention of having it put on the bulletin board. To her boss's surprise the letter was mailed by the intern since the word 'post' means 'mail' in British English. In communication terms this error can be attributed due to: a. syntax b. phonology c. morphology d. semantics e. semiotics
d. semantics
According to Geert Hofstede, which of the following is a key cultural dimension that helps account for rapid economic growth in Asia? a. power distance b. individualist/collectivist c. feminine/masculine d. uncertainty avoidance e. long-term orientation
e. long-term orientation
A few years ago, Philips Electronics developed a new consumer electronics product called the Digital Compact Cassette player. DCC did more than allow users to record and playback in a new digital format; DCC was also designed to play the older, analog cassette tapes that many people own. However, die-hard audio buffs were the only ones to buy DCC and Philips ultimately discontinued the product. Which of the following statements based on adopter categories describes this?
innovators bought, but early adopters didn't