International Business MKTG 317 Quizzes

..... occurs when two parties agree to exchange currency and execute the deal at some specific date in the future.

A forward exchange

Which scenario best represents a mores violation?

Bribing a government official in a country where bribery is illegal

A country that has lax intellectual property laws will find that ....

Firms will be reluctant to enter into such a country

Quiz 2 Which of these is not used to determine culture?

Geography

A country that has _____ lowers the risk of doing business in that country

The presence of a strong legal system

* The spreed of democracy among countries is most likely to lead to ....

The promotion of greater competition

What is an accurate description of how the political economy of many of the worlds's nation-states has changed radically since the late 1980s?

There had been a move away from centrally planned and mixed economies and toward a more free market economic model

Which situation would require a business to allow for customization in its product because of an infrastructure difference in a foreign nation?

difference in consumer electrical systems across continents

MaryAnn is always late to meetings and she knows she needs to be better about being on time because it is expected by almost everyone living in the United States. This attitude toward time is an example of a ....

folkway Folkways are the routine conventions of everyday life. Generally, folkways are actions of little moral significance. Rather, they are social conventions concerning things such as the appropriate dress code in a particular situation, good social manners, eating with the correct utensils, neighborly behavior, and the like. Although folkways define the way people are expected to behave, violation of them is not normally a serious matter

Ch 4 According to Michael Porter, differentiation strategy leads a company to focus on.........

increasing the attractiveness of a product.

The reductions in unit cost achieved by producing a large volume of a product are called......

economies of scale

Which of the following Best increases a country's competitive advantage and its attractiveness as a location for international business?

education system that is well developed

The _____ refers to systematic reductions in production costs that have been observed to occur over the life of a product.

experience curve

Assume that the exchange rate between the U.S. dollar and the Japanese yen is $1 = Y150. A book that retails for $10 in New York should sell for Y1,500 in Tokyo, if there are no trade barriers and transportation costs, according to the .....

law of one price

When Geoff first started his job, it took him an entire week to produce the materials. Now that he has been doing the task for six months, he has found more efficient ways to create the materials and can get this task done in just one day. This is an example of........

learning effects

Garrett's Tea Corp. plans to increase profits by providing custom tea blends to the various countries it sells to. The company wants to match the tastes and preferences of the consumer in each of these markets. What type of strategy is Garrett's Tea Corp. using?

localization

The social rules and guidelines that prescribe appropriate behavior in particular situations are called

norms

TimeForce, a U.S. based company is planning to expand operations to a foreign country. Considering the factors that make a country attractive as a place in which to do business, which country should TimeForce consider entry?

Country D, which has Democratic institutions and a market-based economic system

The government of country of Bolovia mandates companies selling their products in the country to print a maximum selling price on the packaging. This is an example of which of the following reasons that impact product strategies

Culture Legal requirements reflects cultural patterns

James is the warehouse supply manager for a major tool corporation. It is his job to take inventory of the tools the company has available and send orders to make more tools when supplies run low. The supply and demand form of production is and example of a ____ economy.

Market

The marketing team at Kaiser Electronics decided to use Facebook to reach its millennial buyers and traditional newspaper advertising to reach baby boomers. The company would use _____ to identify these two distinct buying groups.

Market segmentation

Quiz 5 _____ refers to the choices about product attributes, distribution strategy, communication strategy, and pricing strategy that a firm offers its targeted markets.

Marketing mix

Which of the following statements is true with regard to Geert Hofstede's cultural dimensions?

Members of high uncertainty avoidance cultures have a strong need for rules and regulations

What barrier to international communication refers to the number of other messages competing for a potential consumer's attention?

Noise

Geronimo Organics has had the luxury of charging high prices in the United States because there weren't any competitors for its products. Now it plans to enter the foreign market and can use profits from U.S. sales to subsidize an aggressive lower pricing policy in Europe. What type of pricing is Geronimo Organics using?

Predatory pricing

Julie asked her assistant to determine the gross national income of three different countries by evaluating the GNI against the cost of living in the United States. What Measure is Julie asking her assistant to use?

Purchasing power parity

Channel _____ refers to the expertise, competencies, and skills of established retailers in a nation and their ability to sell and support the products of international businesses.

Quality

Silk 'n Satin Corporation is seeking to lower the costs of value creation and achieve a low-cost position. As a result, it plans to move its manufacturing plant from the United States to Thailand, which is the optimal location for production. This strategic move will most likely allow the company to realize.........

location economies.

The extent to which a firm;s future international earning power is affected by changes in exchange rates is know as ...

Economic exposure

A push strategy will be used by a company that wants to....

Emphasize personal selling A push strategy emphasizes personal selling rather than mass media advertising in the promotional mix like pull strategies do.

If the same basket of goods cost $100 in the United States and E120 in Europe, what would be the purchasing power parity (PPP) theory's prediction of the future dollar/euro exchange rate be?

$1 = E1.20 100/120 = 1/1.20 = $1 = E1.20

Quiz 3 Assume that the exchange rate between the euro and the dollar is E1.00 = $1.50. An American tourist in Germany is buying a product whose price is E80. How much in U.S. dollars would the tourist have to pay to buy the product?

$120 Explanation E80 x $1.50

Steven converted $1,000 to Yen 105,000 for a trip to Japan. However, he spent only Yen 50,000. The current exchange rate between dollar and Yen is $1 = Yen 100. At this rate how many dollars did Steven spend on the trip?

$450 He converted $1,000 into 105,000 Y the exchange rate started at 1 dollar = 105 Y and changed to 1 dollar = 100 Y he spent 50,000 Y on his trip 105,000-50,000 = 55,000 Y left over 55,000/100 = $550 is what he gets when he returns to the U.S. He started out with $1,000 and he came back with $550 1,000-550 = 450 He spent $450 dollars on his trip.

One argument against standardized advertising is.....

Advertising regulations may block implementation of standardized advertising There are two main arguments against globally standardized advertising. First, cultural differences among nations are such that a message that works in one nation can fail miserably in another. Cultural diversity makes it extremely difficult to develop a single advertising theme that is effective worldwide. Second, advertising regulations may block implementation of standardized advertising

Corinne has analysed the overall attractiveness of doing business with three possible countries and has determined that country A is the best choice based on the potential for huge economic growth that should occur there because of recent advances in technology. which factor of overall attractiveness is Corinne basing her decision on?

Benefits

As a judge in France, Maurice is not allowed to interpret the law but relies on a strict set of codes to determine the outcome of a case, Which type of law is in place in France?

Civil Law System

Quiz 1 A _______economy follows the principles of collectivism as resources are allocated based on "the common good"

Command

Intelligent Tool Corp. is planning to set up a production plant abroad. It has selected potential countries based on their population size, stage of economic development, labor costs, and access to world markets. Consider the connection between culture and competitive advantage, which of the following countries would be the best investment site for Intellectual Toll Corp. ?

Country B - where education is well-developed and social stratification is lacking

Japan, with a high population density and a large number of urban centers that grew up before the automobile, has a retail system with many small stores serving local neighborhoods and to which people frequently walk. However, none of these stores has a major share of the market. According to this information, which kind of a system does Japan have?

Fragmented retail system

Jacob is the chief financial officer for RinseAll Detergent products. His company is interested in investing in a facility in Indonesia, but he is worried about unpredictable fluctuations in future exchange rates, which could cost his company millions of dollars. One way to ensure against this exchange risk is for Jacob to use .....

Hedging

Within the context of the individual as the basic unit of a social organization, what is an implication of the emphasis on individualism in many Western societies?

High degree of managerial mobility between companies

In the Republic of Nabu, natives are resistant to change and do not like to take risks. They value job security and retirement benefits. In addition, they have a strong need for rules and regulations. Based on this information, the Republic of Nabu demonstrates which cultural dimension by Hofstede?

High uncertainty avoidance

According to the ...., for any two countries, the spot exchange rate should change in an equal amount but in the opposite direction to the difference in nominal interest rates between the two countries.

International Fisher effect

_____ is a support activity of the value chain.

Logistics

In terms of the communication strategy of a company, which factor favors a pull strategy?

Long distribution Channels Pull strategies tend to be emphasized: - For consumer goods. - When distribution channels are long. - When sufficient print and electronic media are available to carry the marketing message

An American company sold heavy building materials to the government of Taiwan. Instead of receiving U.S. dollars, the company agreed to take payment in the form of Taiwanese goods. This is an example of ....

countertrade

In the semiconductor industry, there are strong pressures for cost reductions, while demands for local responsiveness are minimal. As a result, Intel Corporation, which operates in this industry, focuses on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, learning effects, and location economies. According to this information, which strategy is Intel pursuing?

global standardization Firms that pursue a global standardization strategy focus on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, learning effects, and location economies. This strategy makes most sense when there are strong pressures for cost reductions and demands for local responsiveness are minimal.

Jason runs a manufacturing company. He hires five people based on their physical abilities because they are to lift heavy boxes in the stockroom and 2 people based who are able to strategically plan the company's next steps. Jason realizes that people are not equal in physical and intellectual capabilities, an aspect of which cultural dimension identified by Hofstede?

power distance

The rate at which a foreign exchange dealer converts one currency into another currency on a particular day is the ...

spot exchange rate

Which strategy should firms pursue when they are trying to simultaneously achieve low costs through location economies, economies of scale, and learning effects; differentiate their product offering across geographic markets to account for local differences; and foster a multidirectional flow of skills between different subsidiaries in the firm's global network of operations?

transnational