International Marketing - MKT 4325 Baylor Tu

(Ch 3) ________ is the most universal means used by governments to control birthrates. Improved nutrition Family planning Universal access to health care High literacy levels Education for women

Family planning Family planning and all that it entails is by far the most universal means governments use to control birthrates, but some economists believe that a decline in the fertility rate is a function of economic prosperity and will come only with economic development.

A company focusing its efforts on making its new innovation more user-friendly than before is working on the________ of the product. observability discordancy trialability compatibility complexity

complexity A product's complexity relates to the degree of difficulty associated with product use.

According to Transparency International (TI), corruption is greater in which of the following? high power distance nations nations ruled by a monarchy nations with high individualism nations with a history of market economies high-income nations

high power distance nations

What are the three categories of business customs? imperatives, electives, and exclusives internals, externals, and consensual customs rigid, flexible, and negotiables unilateral, bilateral, and multilateral national, foreign, and international

imperatives, electives, and exclusives Business customs can be grouped into imperatives, customs that must be recognized and accommodated; electives, customs to which adaptation is helpful but not necessary; and exclusives, customs in which an outsider must not participate.

(Ch 1) Lixin's department is responsible for the business activities designed to plan, price, promote, and direct the flow of his company's clothing products to consumers in various nations around the world for a profit. What is his department in charge of? importing international marketing internal marketing performance appraisal domestic trade

international marketing

When compared to people operating on P-time, people operating on M-time are not bound by deadlines and time schedules. are more likely to blame external factors for their lateness. are more deeply involved with individuals. tend to concentrate on one thing at a time. follow looser time schedules.

tend to concentrate on one thing at a time. M-time, or monochronic time, typifies most North Americans, Swiss, Germans, and Scandinavians. These Western cultures tend to concentrate on one thing at a time.

(Ch 3 ) The Monroe Doctrine implied that Latin America was only for________, and________ countries should not attempt to control it. Latin Americans; no other Latin Americans; European Latin Americans; Asian the United States; Asian the United States; European

the United States; European One way to describe the Monroe Doctrine is "Europe keep your hands off—Latin America is only for the United States." The Monroe Doctrine proclaimed: no further European colonization in the New World, abstention of the United States from European political affairs, and nonintervention by European governments in the governments of the Western Hemisphere.

(Ch 3) The opium wars resulted in a loss of confidence in the Chinese government that led to the revolt known as the Taiping Rebellion. How many Chinese lives were lost in this rebellion? 2 million 2.4 million 40,000 400,000 20-40 million

20-40 million One consequence of the humiliation at the hands of foreigners during the two opium wars was a loss of confidence in the Chinese government. The resulting disorder came to a head in Guangxi, the southernmost province of the empire. This led to the Taiping Rebellion, the single most horrific civil war in the history of the world. Estimates of the death toll from the Taiping Rebellion stand between 20 and 40 million people.

(Ch 1 ) Camila's company treats the world, including the home market in Mexico, as one market. Market segmentation decisions no longer focus on national borders. Instead, market segments are defined by income levels, usage patterns, and other factors that span countries and regions. Camila's company is at which stage of international marketing involvement? A. Global Marketing B. Test Marketing C. No direct foreign marketing D. Internal Marketing E. Infrequent foreign marketing

A Camila's company is in the global marketing stage of international marketing involvement as it treats the world, including their home market, as one market. Market segmentation decisions are no longer focused on national borders.

(Ch 1) What factor is favorable when determining whether or not a company should consider internationalization efforts? A. A company has high-technology resources already in place. B. A company has home-country managers who have never worked outside of the home country. C. A company has minimal storage and transportation capabilities. D. A company wants to pair with an existing international company to access technology. E. A company currently has large home markets but smaller production capacities.

A Research has revealed a number of factors favoring faster internationalization: (1) companies with either high-technology and/or marketing-based resources appear to be better equipped to internationalize than more traditional manufacturing kinds of companies; (2) smaller home markets and larger production capacities appear to favor internationalization; and (3) firms with key managers well-networked internationally are able to accelerate the internationalization process.

(Ch 1 ) Which is the most effective way to control the influence of ethnocentrism and the self-reference criterion? A. Recognize their effects on our behavior. B. Establish beneficial relations with the host country's government. C. Learn at least two foreign languages to understand the cultural differences. D. Reduce interaction with a culturally diverse audience. E. Design products and services in a traditional manner.

A The most effective way to control the influence of ethnocentrism and the self-reference criterion is to recognize their effects on our behavior. An awareness of the need to be sensitive to differences and to ask questions when doing business in another culture can help you avoid many of the mistakes possible in international marketing.

What impact has global competition had on business activities in the international marketplace? A. It has put more power in the hands of the customer. B. It has reduced the competitive spirit of most businesses in a marketplace. C. It has increased product life cycles. D. It has shifted the focus from a consumer's market to a seller's market. E. It has limited the choices of the consumers.

A The power in the marketplace is shifting from a sellers' to a customers' market, and the latter have more choices because more companies are competing for their attention. More competition and more choices put more power in the hands of the customer, and that of course drives the need for quality.

(Ch 1 ) What factor is favorable when determining whether or not a company should consider internationalization efforts? A company has high-technology resources already in place. A company has home-country managers who have never worked outside of the home country. A company has minimal storage and transportation capabilities. A company wants to pair with an existing international company to access technology. A company currently has large home markets but smaller production capacities.

A company has high-technology resources already in place.

(Ch 3) Which of the following statements is true with respect to the economic effects of controlling population growth? Developing nations tend to have lower fertility compared to developed nations. A decline in fertility rate is a function of economic prosperity. Lower male-female ratios favor higher fertility rates. Higher population growth rates have resulted in increased global trade. Fertility rates increase proportionately to the rate of economic growth.

A decline in fertility rate is a function of economic prosperity. Family planning and all that it entails is by far the most universal means governments use to control birthrates, but some economists believe that a decline in the fertility rate is a function of economic prosperity and will come only with economic development.

Olivia's company is planning to enter a new international market. However, she is concerned with the potential risk for political harassment. To reduce this risk, she would most likely consider using which of the following to enter the market? A. a joint venture B. the threat of sanctions C. a smaller investment base D. externally produced products E. foreign technology

A. a joint venture Typically less susceptible to political harassment, joint ventures can be with locals or other third-country multinational companies; in both cases, a company's financial exposure is limited. So, Olivia is most likely to use joint ventures to enter the market to minimize political harassment.

Oligarchy, like________, is a form of government ruled by the few. A. aristocracy B. monopoly C. democracy D. monarchy E. dictatorship

A. aristocracy Circa 500 bce, the ancient Greeks conceived of and criticized three fundamental forms of government: rule by one, rule by few, and rule by many. The common terms for these forms in use today are monarchy (or dictatorship), aristocracy (or oligarchy), and democracy.

Because of foreign ownership, a large amount of capital was leaving a country. As a result, the country put into effect controls over all movements of capital to conserve the supply of foreign exchange. This example demonstrates the use of________ controls. A. exchange B. tax C. labor D. import E. local-content

A. exchange Exchange controls stem from shortages of foreign exchange held by a country. When a nation faces shortages of foreign exchange and/or a substantial amount of capital is leaving the country, controls may be levied over all movements of capital or selectively against the most politically vulnerable companies to conserve the supply of foreign exchange for the most essential uses.

(Ch 1) ________ is a conscious effort to anticipate the influences of both the foreign and domestic uncontrollable factors on a marketing mix and then to adjust the marketing mix to minimize the effects. A. Adaptation B. Compromise C. Self-reference criterion D. Ethnocentrism E. Negotiation

Adaptation

(Ch 1) For a company at the________ stage of internationalization, market segments are defined by income levels, usage patterns, or other factors that frequently span countries and regions. A. no direct foreign marketing B. global marketing C. internal marketing D. domestic market extension E. infrequent foreign marketing

B At the global marketing stage of internationalization, market segmentation decisions are no longer focused on national borders. Instead, market segments are defined by income levels, usage patterns, or other factors that frequently span countries and regions.

(Ch 1) What characteristic would impede the ability of a person to assess a foreign market in its true light? A. polycentrism B. ethnocentrism C. pluralism D. relativism E. multiculturalism

B Ethnocentrism is the notion that people in one's own company, culture, or country know best how to do things. Ethnocentrism is generally a problem when managers from affluent countries work with managers and markets in less affluent countries. It impedes the ability to assess a foreign market in its true light.

(Ch 1) A firm that is involved with the international marketing stage of marketing involvement will: A. reduce foreign sales activity. B. consider profit expectations from foreign markets as a bonus in addition to regular domestic profits. C. plan both marketing and production of goods outside the home market. D. consider international marketing only when there is a surplus of goods. E. have its primary focus of operations and production on servicing domestic market needs.

C Companies in the international marketing stage are fully committed to and involved in international marketing activities. Such companies seek markets all over the world and sell products that are a result of planned production for markets in various countries. This planning generally entails not only the marketing but also the production of goods outside the home market.

A sovereign state is one that A. is obligated to be a member of the World Trade Organization. B. has its political and economic systems determined by the United Nations Development Program. C. enjoys full legal equality with other states. D. has its territory governed by the United Nations. E. is bounded by external control.

C. enjoys full legal equality with other states. In the context of international law, a sovereign state is independent and free from all external control; enjoys full legal equality with other states; governs its own territory; selects its own political, economic, and social systems; and has the power to enter into agreements with other nations.

________ is a controllable element for an international marketer. Level of technology Geography and infrastructure Cultural forces Competitive forces Channels-of-distribution

Channels-of-distribution

__________ law is derived from English law and is practiced in the United States. Code Common Religious Civil Universal

Common

Appliances-a-Rama, an Indian company that manufactures kitchen appliances, alters the design of its ranges to suit the needs of its Japanese consumers. The Japanese prefer compact and efficient appliances to fit their small kitchens. According to the Product Component Model, which product component is being addressed? A. support services B. core C. ancillary D. invisible E. packaging

Core Appliances-a-Rama's products have undergone a change in their core components—design and function. The core component consists of the physical product—the platform that contains the essential technology—and all its design and functional features. It is on the product platform that product variations can be added or deleted to satisfy local differences.

(Ch 1) Jamal works for a construction equipment manufacturer in Philadelphia and is responsible for shipping products across the United States. An uncontrollable factor for Jamal would be which of the following? A. price of the product B. promotional measures C. channels-of-distribution D. competitive structure E. firm characteristics

D Competitive forces, including competitive structure, are domestic uncontrollable elements in marketing. Price, promotion, firm characteristics, and channels-of-distribution are all controllable elements for international marketers.

(Ch 1 ) When considering the stages of international marketing involvement, it is important to remember which of the following? A. A firm essentially progresses through the stages in a linear order. B. The international marketing stage is a direct result of temporary surpluses caused by variations in production levels or demand. C. At the global marketing level, a firm focuses on market segmentation based on geographical borders. D. A larger home market with a smaller production base favors internationalization. D, A firm may be in more than one stage simultaneously.

D Though presented in a linear fashion, it cannot be inferred that a firm progresses from one stage to another; quite to the contrary, a firm may begin its international involvement at any one stage or be in more than one stage simultaneously.

(ch 3) What is the top political issue concerning foreign businesses? A. membership of governments in trade treaties B. economic awareness of political leaders C. demographic profile of political leaders D. stability of prevailing government policies E. government policies on infrastructure

D. stability of prevailing government policies At the top of the list of political issues concerning foreign businesses is the stability or instability of prevailing government policies. Governments might change or new political parties might be elected, but the concern of the multinational corporation is the continuity of the set of rules or codes of behavior and the continuation of the rule of law—regardless of which government is in power.

Adherence to the WTO inevitably means A. a definite increase in import tariffs worldwide. B. reduction in world trade of at least 70 percent. C. the loss of national security to a large extent. D. the loss of some degree of national sovereignty. E. complete stoppage of foreign direct investments.

D. the loss of some degree of national sovereignty. Adherence to the WTO inevitably means the loss of some degree of national sovereignty, because the member nations have pledged to abide by international covenants and arbitration procedures that can override national laws and have far-reaching ramifications for citizens.

Relations between governments and MNCs are generally positive if the investment A. increases the volume of imports. B. brings in a higher number of foreign nationals. C. uses globally produced resources. D. transfers capital, technology, and skills. E. decreases the volume of exports.

D. transfers capital, technology, and skills. Relations between governments and MNCs are generally positive if the investment (1) improves the balance of payments by increasing exports or reducing imports through import substitution; (2) uses locally produced resources; (3) transfers capital, technology, and/or skills; (4) creates jobs; and/or (5) makes tax contributions.

_______ decision making is often found in highly developed management systems, such as those found in the United States. Decentralized Dictatorial Integrated Top-level management Committee

Decentralized Decentralized decision making allows executives at different levels of management to exercise authority over their own functions. This approach is typical of large-scale businesses with highly developed management systems, such as those found in the United States.

(Ch 1) Which political action is most likely to favor international marketing? A. the U.S. government coupling human rights issues with foreign trade policy B. the U.S. government placing a trade ban on Libya owing to rampant terrorism C. tariff hike for imports established by China D. placing trade embargoes on Cuba owing to widespread political instability in the country E. South Africa abolishing apartheid and the United States lifting the embargo

E A political decision involving foreign policy can have a direct effect on a firm's international marketing success. Conversely, positive effects occur when changes in foreign policy offer countries favored treatment. The abolishment of apartheid in South Africa lifted an embargo that benefited that benefited international marketing.

What is true of political sanctions? A. The United Nations encourages boycotts as a means of settling political disputes. B. Political sanctions normally control and rectify situations within a nation. C. Political sanctions are illegal. D. The use of political sanctions is the most effective way to increase world trade. E. Political sanctions are generally unsuccessful.

E. Political sanctions are generally unsuccessful. History indicates that sanctions are almost always unsuccessful in reaching desired goals, particularly when other major nations' traders ignore them.

A country struggles to export crops because it has thick jungles that make it difficult to build and maintain roads and railroads. Based on this example, this country is being affected by cartography. geography. sociology. geomatics. demographics.

Geography Geography is much more than memorizing countries, capitals, and rivers. It also includes an understanding of how a society's culture and economy are affected as a nation struggles to supply its people's needs within the limits imposed by its physical makeup.

(Ch 3) ________ is the study of the Earth's surface, climate, continents, countries, peoples, industries, and resources. Cartography Geography Geophysics Demography Sociology

Geography Geography, the study of Earth's surface, climate, continents, countries, peoples, industries, and resources, is an element of the uncontrollable environment that confronts every marketer but that receives scant attention.

Which country has enacted the most stringent green marketing laws to regulate the management and recycling of packaging waste? South Korea China Germany the United States India

Germany Germany has passed the most stringent green marketing laws that regulate the management and recycling of packaging waste.

Because a service is individually produced and is virtually unique, the service is said to have A. heterogeneity. B. coherence. C. inseparability. D. liquidity. E. tangibility.

Heterogeneity Services are distinguished by four unique characteristics—intangibility, inseparability, heterogeneity, and perishability—and thus require special consideration. A service is heterogeneous in that it is individually produced and is thus unique.

(Ch 3) ________ and the________ were accepted as the basis for U.S. foreign policy during much of the 19th and 20th centuries. Roosevelt Corollary; Grant Mandate North American Security Treaty Manifest Destiny; Roosevelt Corollary Hays Corollary; Grant Mandate Manifest Destiny; Monroe Doctrine

Manifest Destiny; Monroe Doctrine Manifest Destiny and the Monroe Doctrine were accepted as the basis for U.S. foreign policy during much of the 19th and 20th centuries. Manifest Destiny, in its broadest interpretation, meant that Americans were a chosen people ordained by God to create a model society. The Monroe Doctrine proclaimed: no further European colonization in the New World, abstention of the United States from European political affairs, and nonintervention by European governments in the governments of the Western Hemisphere.

(Ch 1) Understanding one's own culture requires additional study for which of the following reasons? Understanding the cultural traits of another country would be impossible without this added study. An average manager must have extensive cultural knowledge of all countries in the world. The cultural influence on one's own market behavior is generally minimal. The cultural traits in one's own country have little effect on market behavior. Much of the cultural influence on market behavior is at the subconscious level.

Much of the cultural influence on market behavior is at the subconscious level.

Fredrick Keeble, an American manager, took his German client out for a traditional American dinner. The client did not seem to eat much. After dinner, he asked his client if they had enjoyed the dinner. Which of the following responses would indicate that the client comes from a low-context culture? Yes, it was lovely, thanks. Yes, unfortunately I was not very hungry. No, I did not like the food. No, dinner was good but I have an upset tummy. Yes, but it was a little too oily.

No, I did not like the food. By replying "No, I did not like the food," the client exhibits their low-context culture of being linguistically direct. People from low-context cultures deliver their opinion without much social padding.

To clearly and easily communicate the benefits of its cleaning products, Sparkle, Inc. develops promotional materials and product demonstrations. By doing this, Sparkle is attempting to enhance the________ of its products. A. observability B. compatibility C. trialability D. consistency E. intricacy

Observability By trying to communicate the benefits of its cleaning products clearly and easily, Sparkle tries to enhance the observability of its products in the markets.

A Brazilian food company had to change the labeling on its products to meet the specifications regarding vegetarian and nonvegetarian foods set by the government in the Taiwan market. It also had to mention the ingredients in Taiwanese to provide clarity to local customers. The component of the product that is affected is the________ component. functional packaging design support services core

Packaging By mentioning the product ingredients in Taiwanese and changing its labeling to meet specifications set by the Taiwan government, the Brazilian company has focused on the packaging component of its product. The packaging component includes style features, packaging, labeling, trademarks, brand name, quality, price, and all other aspects of a product's package. Labeling laws vary from country to country and do not seem to follow any predictable pattern.

(Ch 1) Which is the most effective way to control the influence of ethnocentrism and the self-reference criterion? Recognize their effects on our behavior. Learn at least two foreign languages to understand the cultural differences. Reduce interaction with a culturally diverse audience. Establish beneficial relations with the host country's government. Design products and services in a traditional manner.

Recognize their effects on our behavior

(Ch 3) How did the British respond in 1839 after the Emperor of China ordered the destruction of opium inventories in Canton? The British sunk ships in the Pearl River. The British joined forces with China and also destroyed its inventories. The British made an agreement with America for opium supplies. The British taxed China for existing inventories. The British opened all Chinese ports.

The British sunk ships in the Pearl River. The Emperor ordered the destruction of the inventories in Canton (now known as Guangzhou). By 1839 the trade was dead. The British responded by sinking junks in the Pearl River and blockading all Chinese ports.

A culture that is high context, has collectivism, has a high power distance, and uses polychronic time is relationship-oriented. information-oriented. self-oriented. kinship-oriented. power-oriented.

Relationship-oriented Japanese culture is high context, collectivistic, high power distance, far from English, polychronic (in part), linguistically indirect, and background focused, and it achieves efficiency through reduction of transaction costs; therefore, it is properly categorized as a relationship-oriented culture.

Because of political changes in the late twentieth century, which country has had to build from scratch an entire commercial legal system? France Germany Taiwan Russia Saudi Arabia

Russia Russia and most of the republics of the former Soviet Union and China have had to build from scratch an entire commercial legal system. Under the premise that law, according to Marxist-socialist tenets, is strictly subordinate to prevailing economic conditions, such fundamental propositions as private ownership, contracts, due process, and other legal mechanisms have had to be developed.

(Ch 1 ) ________ is an unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions. Self-reference criterion Xenocentrism Segregation Holism Orientalism

Self-reference criterion

Which organization conducts an international survey of businesspeople, political analysts, and the general public on corruption and compiles the Corruption Perception Index (CPI)? Oxfam International CARE International Transparency International (TI) Amnesty International Organization of American States (OAS)

Transparency International (TI)

An American company wants to launch a new product in Madrid. Freda asks her product manager to distribute some samples to potential customers there so that she can gauge the consumer preferences there before introducing the product. Freda is attempting to reduce the degree of economic and/or social risk, also known as________, associated with product use. trialability complexity observability relative advantage compatibility

Trialability

(Ch 3 ) What happened during the "despojo territorial"? U.S. border officials allowed the peaceful crossing of Mexican citizens into the United States. Trade barriers were lifted between Mexico and the U.S. U.S. troops claimed 890,000 square miles of land that became Arizona, California, New Mexico, and Texas. Mexico joined forces with Europe to defeat the U.S. attempt to purchase Louisiana. U.S. and Mexican soldiers defeated the Chinese attempt to take over this land.

U.S. troops claimed 890,000 square miles of land that became Arizona, California, New Mexico, and Texas.

(Ch 1 ) Which firm has a better chance of accelerating the internationalization process? Animal Awareness and Action refrains from using the Internet as its major communication platform. WrapUp Inc. has key managers who are well-networked internationally. Geneva Games has larger home markets and smaller production capacities. KeyMusic primarily focuses all its operations and production capacities to meet the domestic market needs. Steelgrid International uses more traditional manufacturing practices.

WrapUp Inc. has key managers who are well-networked internationally.

According to Lester Thurow, in the British-American "individualistic" kind of capitalism, relationships among government, management, and labor in business systems are adversarial. socialistic. conciliatory. synergistic. cooperative.

adversarial Thurow distinguished between the British-American "individualistic" kind of capitalism and the "communitarian" form of capitalism in Japan and Germany. The business systems in the latter two countries are typified by cooperation among government, management, and labor, particularly in Japan. Contrarily, adversarial relationships among labor, management, and government are more the norm in the United Kingdom, and particularly in the United States.

From a sociological viewpoint, any idea perceived as new by a group of people is considered as a creation. an adaptation. a declension. a tradition. an innovation.

an innovation From a sociological viewpoint, an idea perceived as new by a group of people is an innovation. When applied to a product, an innovation may be something completely new or something that is perceived as new in a given country or culture.

In his study on the personal lives of professionals, David McClelland found that in ancient Greece work was considered equal to and just as important as having a fulfilling personal life. an undesirable factor that got in the way of a good personal life. a necessary component to having a happy personal life. the ultimate reward. more important than family and home.

an undesirable factor that got in the way of a good personal life In his seminal worldwide study of individual aspirations, David McClelland discovered that the culture of some countries stressed the virtue of a good personal life as far more important than profit or achievement. The hedonistic outlook of ancient Greece explicitly included work as an undesirable factor that got in the way of the search for pleasure or a good personal life.

A consumer products manufacturing company is trying to solve a dispute with one of its raw material suppliers over a breach of contract. After the failure of the initial attempts to solve the dispute in a friendly informal manner, the companies have approached an international commission to appoint an informed party to act as a referee and make a judgment that both parties will honor. What dispute resolution method is being used by these companies? litigation arbitration mediation coercion judicial intervention

arbitration The usual arbitration procedure is for the parties involved to select a disinterested and informed party or parties as referees to determine the merits of the case and make a judgment that both parties agree to honor. Although informal arbitration is workable, most arbitration is conducted under the auspices of one of the more formal domestic and international arbitration groups organized specifically to facilitate the resolution of commercial disputes.

________ is considered complete as a result of catchall provisions found in most of this type of law systems. Common law Code law Islamic law Marxist-socialist tenets The English legal tradition

code law Code law is considered complete as a result of catchall provisions found in most code-law systems, whereas common law is recognized as not being all-inclusive.

(Ch 1) What is an essential requirement for experienced, as well as new, firms to succeed in international markets? adhering strictly to their traditional methods of production and operations having beneficial relations with lobbyists of foreign markets venturing into multiple markets by investing in all of them at once committing themselves completely to foreign markets focusing primarily on their production to exclusively meet domestic demand

committing themselves completely to foreign markets

Adam Smith in his The Wealth of Nations stated, "By pursuing his own interest he frequently promotes that of the society more effectually than when he really intended to promote it." What behavior does this notion attempt to justify? competitiveness welfare mentality cooperation loyalty collectivism

competitiveness Adam Smith in his The Wealth of Nations wrote one of the most important sentences in the English language: "By pursuing his own interests he frequently promotes that of the society more effectually than when he really intended to promote it." This "invisible hand" notion justifies competitive behavior because it improves society and its organizations.

(Ch 1 ) To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that isolates the self-reference criterion (SRC) influences. What is the first step in this analysis? isolating the SRC influence in the problem examining the isolated SRC influence to see how it complicates the problem redefining the problem without the SRC influence solving the problem for the optimum business goal situation defining the business problem or goal in home-country cultural traits, habits, or norms

defining the business problem or goal in home-country cultural traits, habits, or norms

According to ancient Greeks, what fundamental government form represents rule by many? monarchy aristocracy democracy dictatorship monopoly

democracy Circa 500 bce, the ancient Greeks conceived of and criticized three fundamental forms of government: rule by one, rule by few, and rule by many. The common terms for these forms in use today are monarchy (or dictatorship), aristocracy (or oligarchy), and democracy.

What key tool is necessary for anyone participating in commerce in order to know where goods and services exist and also know where they are needed? effective communications expropriation sustainable development immigration political stability

effective communications An underpinning of all commerce is effective communications—knowledge of where goods and services exist and where they are needed and the ability to communicate instantaneously across vast distances.

Jenna does not drink alcohol and when she meets clients for dinner she knows that while the client might enjoy a glass of wine with the meal, she is not required to. What type of business custom does this illustrate? imperatives standardized axioms electives individualistic axioms exclusives

electives Business customs can be grouped into imperatives, customs that must be recognized and accommodated; electives, customs to which adaptation is helpful but not necessary; and exclusives, customs in which an outsider must not participate.

In Russia, products are divided into two categories—"ours" and "imported." This is an example of feudalism. an autarky. theocentrism. a closed economy. ethnocentrism.

ethnocentrism Ethnocentrism can have country-of-origin effects; feelings of national pride—the "buy local" effect, for example—can influence attitudes toward foreign products. In Russia, the world is divided into two kinds of products: "ours" and "imported."

Apart from intellectual property laws, an illustration of how fundamental differences in the common and code systems can cause difficulty is in conducting civil trials. determining laws governing export and import. deciding heredity laws. determining criminal laws. evaluating the performance of a contract.

evaluating the performance of a contract. Apart from intellectual property laws, an illustration of how fundamental differences in the common and code systems can cause difficulty is in the performance of a contract. Under common law in the United States, the impossibility of performance does not necessarily excuse compliance with the provisions of a contract unless compliance is impossible because of an act of God.

Companies in the more hierarchical countries of France and Italy tend to have strong paternalistic orientations, which means that decisions are made from the top-down. they are more heavily influenced by the government. they are monopolies without any competition. all employees are family members or close family friends. it is assumed a person will work for one company during their lifetime.

it is assumed a person will work for one company during their lifetime. European companies, particularly in the more hierarchical (Power Distance Index) countries, such as France and Italy, have a strong paternalistic orientation, and it is assumed that individuals will work for one company for the majority of their lives.

A characteristic of committee decision making is that it is by group or consensus. it is based on rank and hierarchy. it is rarely employed in Asian countries. it is only found in small businesses. the committees always operate on a decentralized basis.

it is by group or consensus. Committee decision making is by group or consensus. Committees may operate on a centralized or decentralized basis, but the concept of committee management implies something quite different from the individualized functioning of the top management and decentralized decision-making arrangements.

Which strategy is most effective in minimizing political risks for a multinational corporation in situations in which the technology is unique and the risk is high? planned confiscation expanding the investment base expropriation licensing trade embargo

licensing A strategy that some firms find eliminates almost all risks is to license technology for a fee. Licensing can be effective in situations in which the technology is unique and the risk is high. Of course, there is some risk assumed, because the licensee can refuse to pay the required fees while continuing to use the technology.

________ involves a relatively small sum of cash, a gift, or a service that is intended to facilitate or expedite the normal, lawful performance of a duty by an official. Ransom Shakedown Exaction Lubrication Extortion

lubrication Lubrication involves a relatively small sum of cash, a gift, or a service given to a low-ranking official in a country where such offerings are not prohibited by law. The purpose of such a gift is to facilitate or expedite the normal, lawful performance of a duty by that official.

What are the two dimensions that define the quality of a product or service? actual quality and assumed quality market-perceived quality and performance quality product quality and market quality absolute quality and relative quality consumer choice quality and process quality

market-perceived quality and performance quality Quality can be defined on two dimensions: market-perceived quality and performance quality. Consumer perception of a product's quality often has more to do with market-perceived quality than performance quality.

In many companies in the United States, people feel that individuals control their own destinies and because of this companies should select and reward employees based on family background. efficiency. nepotism. merit. payment.

merit

(Ch 3) It has been noted that China is inefficient in oil usage. What seems to be the main reason for this inefficient use of energy? outdated technology consumer consumption lack of alternatives government regulations preponderance of need

outdated technology As countries industrialize, energy sources are not always efficiently utilized. China, for example, spends three times the world average on energy (all sources) to produce one dollar of gross national product (GNP). In comparison with Japan, possibly the world's most efficient user of energy, where less than five ounces of oil is needed to generate $1 in GNP, in China, approximately 80 ounces of oil is needed. The reasons for China's inefficient oil use are numerous, but the worst culprit is outdated technology.

(Ch 1 ) The uncontrollable issue of________ faced by a company abroad is often amplified by the "alien status" of the company, which increases the difficulty of properly assessing and forecasting the dynamic international business climate. research product promotion product specification politics channel of distribution

politics

(Ch 3) Citizens of the United States felt that the Monroe Doctrine provided higher priced goods in the United States. protection for Latin America from European colonization. excessive tariffs on imported goods. an opportunity for Latin America to become a superpower among nations. a message to Latin America that Russia was in control.

protection for Latin America from European colonization.

What is the most attractive target for pirates because of high development cost and low reproducibility costs? apparel software auto parts books agricultural produce

software Software, music, and movies are especially attractive targets for pirates because they are costly to develop but cheap to reproduce and distribute over the Internet.

The Export License Application and Information Network (ELAIN) is an electronic service that enables exporters to ship their goods to clients whose licenses are approved without conditions. check the status of their license and classification applications. submit commodity classification requests via the Internet. submit license applications via the Internet. submit the export and reexport applications and high-performance computer notices via the Internet.

submit license applications via the Internet. ELAIN (Export License Application and Information Network) enables exporters that have authorization to submit license applications via the Internet for all commodities except supercomputers to all free-world destinations. When approved, licensing decisions are conveyed back to the exporters via the Internet.

Arbitration clauses require agreement wherein the concerned parties agree on who is right and who is wrong. on the validity of the litigation issues. to abide by the awards resulting from the arbitration. to not hire a legal counsel to represent them. to not name the arbitrators.

to abide by the awards resulting from the arbitration. Arbitration clauses require agreement on two counts: (1) The parties agree to arbitrate in the case of a dispute according to the rules and procedures of some arbitration tribunal and (2) they agree to abide by the awards resulting from the arbitration.

France is higher on Hofstede's Power Distance Index (PDI) than the United States and formality is evident in French businesses. Which of the following American business practices would be most unacceptable to the French? using first names in business encounters showing enthusiasm at business negotiations slipping in colloquial French words during business meetings exhibiting stubbornness while negotiating

using first names in business encounters While using first names in business encounters is regarded as an American vice in many countries, nowhere is it found more offensive than in France. France is higher on Hofstede's Power Distance Index (PDI) than the United States, and such differences can lead to cultural misunderstandings.