MKT 435 Exam 3 Quizzes
"Every negotiator has two kinds of interests: in the substance and in the relationship." In which country is this statement good advice within the context of business negotiations? A) Germany B) The Philippines C) China D) Spain E) Mexico
A
EastSide Tractors is an American firm that manufactures construction and farming machinery. A construction company in Germany has placed a large order for machinery, but has requested that EastSide Tractors modify the design and add a special feature. Which form of payment is EastSide Tractors most likely to request in order to minimize its risk? A) Cash in advance B) Letters of credit C) Forfaiting D) Bills of exchange E) Open accounts
A
Giselle, the executive of an American transportation firm, is negotiating a deal with a Japanese corporation. During the meeting, Giselle notices that her negotiation partners frequently break into side conversations using their native language. What is the most likely reason for these side conversations? A) to straighten out confusion caused by language differences B) to evade key issues regarding the business deal C) to formulate a cunning negotiation strategy D) to buy time in order to come to a decision E) to tell half-truths about the American firm
A
In U.S. domestic trade, the typical payment procedure for established customers is A) An open account B) A letter of credit C) A bill of exchange D) Cash in advance E) Forfeiting
A
In import-oriented systems, distributions systems are ________ in scope. A) Local B) National C) Global D) Independent E) Geographic
A
In which situation are parallel imports most lucrative? A) if the same product is priced very differently in different countries B) when restrictions like import quotas and tariffs are eliminated C) when price differences are lesser than the cost of transportation between two markets D) when two companies sell a product that is similar in quality E) if the same good is priced equally in different markets
A
Lately, more and more multinational companies are favoring ________ of advertising themes in different countries. A) Customization B) Standardization C) Uniformity D) Regularization E) Normalization
A
Surge International prefers to set its prices and not follow the prices prevailing in the market to achieve specific goals. This implies that Surge International views pricing as a(n) A) Active instrument B) Fixed activity C) Constant element D) Static element E) Passive instrument
A
What behavior do American negotiators tend to exhibit during the persuasion stage? A) quickly handling any objections that the foreign client may have B) asking innumerable questions in order to delay the proceedings C) hardly expressing any emotions during negotiations D) withholding information from the foreign client E) refraining from using threats or warnings
A
What is a chief disadvantage of hiring an expatriate salesperson? A) lack of people willing to live abroad B) adverse effect on the prestige of the product C) lack of technological expertise D) inadequate knowledge of the company E) deterioration of product quality
A
What is a part of the relationship-oriented business philosophy that characterizes Japanese distribution channels? A) Loyalty B) Direct sale C) Variety D) Fast delivery E) Price war
A
What is part of a physical distribution system? A) transportation mode B) human accounting C) advertising and promotion of goods D) grievance handling E) after-sales services
A
What problem caused by cultural differences in international business negotiations is considered to be the most serious? A) thinking and decision-making processes B) values C) access to technology D) language E) nonverbal behaviors
A
When is it recommended to use open accounts? A) when the customer is long standing with excellent credit B) when shipping is hazardous C) when political unrest in the importing country requires additional caution D) when the country of the importer imposes exchange restrictions E) when the exporting company has great international experience
A
When would it be most beneficial to use the skimming approach to pricing? A) The product is new to the market or innovative. B) The importer has a high production capacity. C) Wealth is distributed equally across the target population. D) The product being sold is similar to others in the market. E) The market is inundated with competitors in the same industry.
A
Why might an international sales force in Germany make greater use of expatriates? A) It is an information-oriented culture B) It is a developing country C) The language is easy to master D) The standard of living is low E) It is a relationship-oriented society
A
Cho is a marketing manager from China who is currently living and working in South Korea. As such, Cho is A) a local national. B) an expatriate. C) a native manager. D) an outsourcer. E) a foreign manager.
B
Firms that follow variable-cost pricing A) ensure that no unit of a similar product is different from any other unit in terms of cost. B) sell their products at lower net prices abroad than in the domestic market. C) tend to have high variable costs relative to fixed costs. D) often do so to maximize revenue by matching demand with a limited supply. E) ensure that each unit bears its full share of the total fixed and variable cost.
B
In the context of how differences in values affect international negotiations, Guanxi, the Chinese word for ________, is key for negotiators working in China. A) Pushiness B) Personal connections C) Aggression D) Doublespeak E) Nonverbal behavior
B
Jet Coffee Inc. is a successful company that exports coffee beans to countries around the world. In Japan, imports from Jet Coffee Inc. are levied as a compound duty, meaning that A) each unit imported is charged a flat fee. B) they are charged with a flat fee per unit and a percentage of the total value. C) the rate of taxation increases with each new import of coffee beans. D) they are taxed a percentage of the total value of all the units in the shipment. E) each import is taxed proportionately to the weight of the shipment.
B
Le Chocolat du Monde, a French firm, was given permission to sell its products in Spain only if it agreed to purchase Spanish tomatoes in return. Which term does this best exemplify? A) Bartering B) Countertrade C) Buy-back D) Bribery E) Countervailing trade
B
NextStep Global is a consultation firm that specializes in preparing businesses for international negotiations. What action is NextStep Global most likely to recommend to a negotiator who wants to ensure influence at headquarters? A) Bring as many team members as possible. B) Bring along a senior executive to the business negotiations. C) Engage in frequent facial gazing. D) Interrupt the client as often as possible. E) Assign the task of note-taking to a team member.
B
Online B2B enables companies to enhance their performance by A) lengthening order cycle time. B) reducing procurement costs. C) making supply-chain management unnecessary. D) making looser inventory control possible. E) reducing the need for rapid inventory adjustments.
B
What is a characteristic of an inventive negotiation progress? A) It involves a high level of competition among participants. B) A key component is collaboration among participants. C) The key goal is to complete the task efficiently. D) It always results in a highly creative solution. E) The brainstorming process is skipped to create more concrete solutions.
B
What is an essential element of a price quotation? A) It should define only the quality and not the quantity of the product. B) It must state who pays transportation charges and from what point. C) It should define only the quantity and not the quality of the product. D) It should be made only in terms of electronic trade dollars. E) It must avoid revealing the credit terms involved.
B
What is the overall goal of administered pricing? A) to increase the number of firms in a market B) to establish prices for an entire market C) to increase competition in a market D) to ensure all companies use an ethical pricing model E) to gain control over a market share
B
Which statement about the system of equipment leasing by industrial exporters is true? A) Maintenance and service is worse on leased equipment. B) Leasing incurs greater risk than does outright sale of the equipment. C) Leased revenue tends to be less stable over a period of time than direct sales would be. D) The terms of the leases usually run twenty to thirty years. E) Leasing is most attractive in countries where spiraling inflation is not a current problem.
B
Why do individual incentives typically fail to motivate employees in Japan? A) practice of cultural chauvinism B) emphasis on collectivism C) emphasis on capitalism D) democratic form of government E) high corruption levels
B
A U.S. manufacturer is willing to assume the trading risk in a foreign country but maintains the right to establish policy guidelines and prices and to require its agents to provide sales records and customer information. What type of middleman should the company choose? A) merchant middlemen B) home-country middlemen C) agent middlemen D) trading companies E) domestic middlemen
C
A company that considers pricing to be a static element in a business decision A) serves a very small proportion of the domestic market. B) sets prices to achieve a specific objective such as targeted market share. C) places a low priority on foreign business. D) views its export sales as a significant source of revenue. E) does not export any excess inventory.
C
Consumer concern with the standards and believability of advertising may have spread around the world more swiftly than have many marketing techniques due to A) cultural diffusion. B) legal restrictions on advertising. C) false advertising. D) the prevalence of ethnocentrism. E) an increase in libel lawsuits.
C
Cora is a British national working for a Spanish company. She has been sent to China to manage the sales department of the company. Cora is a(n) A) native salesperson. B) local national. C) third-country national. D) long-term virtual expatriate. E) short-term virtual expatriate.
C
Frank, the CEO of an American production company, negotiated an opportunity with a television provider in India. After the negotiation, Frank prepared a contract for both parties to sign in order to bind the deal. Knowing that Frank is from the United States, how would the contract most likely be described? A) primarily composed of comments about the business relationship B) informal with vague language used C) carefully worded with details about every aspect of the agreement D) short and loosely written E) flexible and written in a way that can easily be changed
C
Identify an accurate statement about merchant middlemen. A) They represent the best interests of a manufacturer. B) They are more controllable by manufacturers than agent middlemen. C) They take title to manufacturers' goods. D) They do not assume the risks of trading. E) They work on commission and arrange for sales in the foreign country.
C
Identify the true statement about sales promotions. A) They primarily involve activities that encourage the press to cover positive stories about the company. B) They are least effective when the product concept is new. C) They are short-term efforts directed to the consumer or retailer to achieve such specific objectives as consumer product trials. D) They are extremely reliable as research shows that responses to promotions remain the same across all promotional types and cultures. E) They are ineffective in markets where consumers are difficult to reach due to media limitations.
C
Irene is a senior manager at a food company in the U.S. She regularly conducts press conferences and engages with various outlets of the media to build positive image about the brand. She is also assigned with the task of dealing with all the controversies that surround the firms' products. Irene is most likely to be engaged in A) Direct selling B) Trade shows C) Public relations D) Personal selling E) Sales promotions
C
One feature of people with cultural skills is A) recognizing one's own culture as superior. B) judging people based on one's own value standards. C) having a good sense of humor. D) an intolerance of ambiguity. E) encouraging people to see things from one's own point of view.
C
Product tie-ins, contests, and sweepstakes are ________ devices. A) public relations B) peddling C) sales promotion D) content marketing E) direct selling
C
Some companies are proposing newer ________ market segments defined by "consumer cultures" related to shared sets of consumption-related symbols—for example, convenience, youth, America, internationalism, cosmopolitan orientation, and humanitarianism. A) Local B) Regional C) Global D) Linguistic E) Domestic
C
The emergence of pan-European communications media makes it possible for companies to A) use different advertising appeals for different regions in Europe. B) advertise local products locally. C) adopt promotional activities that are standardized. D) limit sales and promotions to English-speaking regions. E) brand the same products differently in different countries.
C
What is considered to be the most powerful persuasive tactic in international negotiation? A) nontask sounding B) "strong-arming" C) asking questions D) task-related information exchange E) bribery
C
What is the best approach to take when exporting to a deflationary market? A) Relate selling price to cost of goods sold and cost of replacing the items. B) Use promotions to offset the effects of ever-rising prices. C) Keep prices low and raise brand value. D) Raise prices to dominate the market. E) Do not place emphasis on controlling price escalation.
C
What would be considered by American negotiators as a signal of progress when conducting business negotiations with foreigners? A) decreased talk among foreigners in their own language at the negotiation table B) absence of higher-level foreigners in the discussions C) inclusion of questions on specific areas of the deal D) a hardening of attitudes and positions on some of the issues E) decreased bargaining and use of the higher-level and formal channels of communication
C
With the Internet, an argument can be made that the ________ is in control of marketing and distribution globally. A) IT manager B) Channel manager C) Consumer D) Global web E) Manufacturing firm
C
________ is one of the means of motivation and control of sales representatives in relationship-oriented cultures like Japan. A) An individual incentive plan B) An individual commission system C) A group bonus system D) An individual financial reward E) Attraction of a foreign assignment
C
An expatriate sales force is most likely to have an advantage over a local sales force when selling A) a product that requires the most complete local knowledge. B) in relationship-oriented countries. C) consulting services. D) a product that requires an extensive background of information. E) a low-technology product.
D
Brianna's new marketing campaign in Niger hit a snag when many of her prospective customers were unable to read her ad in the local paper. A high rate of illiteracy caused this problem in the communications process at the ________ step. A) noise B) interpretation C) feedback D) encoding E) message selection
D
Companies not wanting to become immediately involved with the complexities of international marketing will most likely use the services of ________ middlemen. A) Credited B) Agent C) Merchant D) Domestic E) Broker
D
Differences between countries' dialects, accents, and linguistic nuance reflect how _________ one of the major barriers to effective communication through advertising. A) advertising budgets are B) legal challenges are C) the Internet is D) language is E) location is
D
IKEA, Costco, and Walmart are examples of A) export management companies. B) complementary marketers. C) export associations. D) global retailers. E) trading companies.
D
In Japan, the distribution system is dominated by A) channels controlled by retailers. B) laws that protect the manufacturers over the retailers. C) large, diverse department stores that control the flow of products. D) small middlemen dealing with many small retailers. E) manufacturer direct to retailer with no middlemen.
D
In Japan, wholesalers typically act as ________ and extend the manufacturer's control through the channel to the retail level. A) sales representatives B) merchant middlemen C) export management companies D) agent middlemen E) global retailers
D
In an international communication process carried out by a company, the sales force of the company that conveys the encoded message to the intended receiver acts as a(n) A) translator B) information source C) decoder D) message channel E) interpreter
D
In the context of the four stages of business negotiations, what stage describes the preliminary talk that helps a negotiator determine if a client's attention is focused on business or distracted by other matters, personal or professional? A) Negotiation setting B) Persuasion C) Concession D) Nontask sounding E) Task-related exchange of information
D
In the television program Mad Men, many characters smoked Lucky Strike cigarettes, boosting its sales. But cigarette smoking in movies and TV has been criticized in the U.S. This practice of using a brand name product in a TV program is called A) on-air promotion. B) marketing exposure. C) entertainment advertising. D) product placement. E) free promotion.
D
Relationship marketing in an international arena is built on effective ________ between the seller and the buyer. A) marketing tools B) cultural similarities C) social media connections D) communications E) product knowledge
D
Robert wants to export goods manufactured by his company to a new foreign market. He needs to select a middleman. He discusses the matter with some experienced exporters. Which way of selecting a middleman are they most likely to suggest? A) Consult trade organizations and select the distributor recommended by them. B) Issue a request-for-proposal to all distributors in the target market and evaluate their responses. C) Conduct a background check on all the distributors available in the target market. D) Speak to the consumers of the product personally to find whom they consider to be the best distributors. E) Consult other manufacturers of similar products and select the distributor recommended by them.
D
The activities in a distribution channel process begin with the A) Wholesaler B) Agent C) Consumer D) Manufacturer E) Retailer
D
What is decoding? A) the activities carried out by marketing executives that analyze and interpret the message before final transmission B) the selection of advertising media that convey the message in different languages C) the evaluation of the information by the information source upon feedback D)the interpretation by the receiver of the symbolism transmitted from the source of information E) the conversion of the message from the source into effective symbolism for the speaker
D
What is most likely a reason for the reduced influence with the home office of foreign nationals in a sales force? A) Foreign nationals lack the knowledge of local culture and prevalent practices. B) Foreign nationals are not keen on keeping relationships at home office warm. C) Foreign nationals are corrupt and often leak company secrets. D) Foreign nationals have limited English communication skills. E) Foreign nationals cannot build a close relationship with subordinates and customers.
D
What is the single most important activity in negotiation? A) Skepticism B) Speaking C) Persuading D) Listening E) Critiquing
D
What is true of the distribution process? A) It excludes the physical handling of goods. B) The ownership title remains with the distributor even on completion of the transaction. C) It includes activities related to the promotion of goods and services. D) It includes buying and selling negotiations between middlemen and customers. E) Middlemen do not play a role in the distribution process.
D
Which step of international advertising always represents the most difficult task for international marketing managers? A) evaluating the campaign relative to the goals specified B) composing and securing a budget based on what is required to meet goals C) performing marketing research D) developing the most effective message for the market segments selected E) specifying the goals of the communication
D
________ is one of the six Cs of distribution channel strategy. A) Commission B) Capacity C) Contribution D) Continuity E) Communication
D
According to the communication process, the use of Internet to communicate a marketing message when majority of the consumers do not have access to the Internet exemplifies A) incorrect symbolism. B) insufficient decoding. C) incomplete translation. D) parallel interpretation. E) poor media channel selection.
E
Marcey is attempting to interpret the marketing message of a new product launched by a telecommunications company. In which step of the international communications process is Marcey? A) feedback B) selecting a message C) selecting a message channel D) encoding E) decoding
E
What is a quality of international sales and marketing personnel? A) They should avoid displaying cultural empathy as this might distract them from their main purpose. B) They should be hypersensitive to the behavioral variations in different countries. C) They should consider their culture to be superior so that they can represent a positive image of their country's products. D) When working in a foreign country, they must be capable of making decisions that are not influenced by the habits of the market. E) They require emotional stability and flexibility.
E
What is an advantage of teams managed by virtual expatriates? A) Managers possess complete local knowledge. B) Managers can have close contact with their subordinates. C) Managers have closer contact with their customers. D) Problems related to cross-cultural communications can be avoided. E) Companies benefit from diversity-driven creativity.
E
What is an advantage that a sales force consisting of local nationals has over a sales force of expatriates? A) They are less likely to accept any form of bribe. B) They are more knowledgeable about the company and its product line. C) They are more efficient in influencing the personnel at the home office. D) They are likely to have superior technical expertise. E) They will be better able to lead a company through referral networks.
E
What is one of the advantages that an expatriate salesperson has over a native sales person? A) fewer legal barriers B) better understanding of distribution channels C) narrowing of the cultural gap D) elimination of the risk of employee-poaching E) proven dependability
E
What is the recommended approach to international negotiations in terms of using national stereotypes? A) Utilize cultural stereotyping in order to gain the upper hand in negotiation. B) National stereotyping is not useful; gender plays a greater role in negotiation behavior. C) Abandon the use of national stereotypes, as they are always inaccurate. D) A person's negotiation style can be accurately predicted by their culture. E) Consider the culture of your negotiation partners but treat them as individuals.
E
What is true of third-country nationals? A) They are expatriates who work from their home country. B) They are virtual expatriates who work from home. C) They are paid better than their U.S. counterparts. D) U.S. firms have to pay double tax when hiring third-country nationals. E) They are expatriates from their own countries working for a foreign company in a third country.
E
When using a free trade zone (FTZ) or free port for exporting, A) tariffs are usually higher for raw materials than for finished goods. B) goods can only be stored but not processed. C) price escalation cannot be controlled easily. D) duties on labor and overhead costs are higher than in the rest of the country. E) payment of import duties is postponed.
E
Which medium of persuasion during negotiation is considered to be indispensable in relationship-oriented countries? A) Warnings B) Rewards C) Recommendations D) Threats E) Third parties
E
Which statement is true regarding the physical arrangements of an international negotiation setting? A) In high-context cultures, the physical arrangements of rooms are taken casually. B) Japanese tend to shun the practice of higher-level executives being included in a negotiation to indicate interest in a deal. C) Americans dislike the idea of "hammering out an arrangement" even when the opinions and positions are divergent. D) Americans tend toward a cumulative approach, meeting with one party and reaching an agreement, then both parties calling on a third party. E) Japanese prefer to talk to everyone separately, then, once everyone agrees, to schedule inclusive meetings.
E
