MKT EXAM 2 CH 5-8
The _____ stage of economic development is characterized by a thriving consumer and industrial economy with a substantial services sector.
mass consumption
A(n) _____ is an internal force that orients a person's activities toward satisfying a need or achieving a goal.
motive
When a country evolves beyond dependence on agriculture and begins to engage in simple manufacturing of value-added goods, it is said to be in the _____ stage of economic development.
transitional
Economic sanctions that are imposed unilaterally by one country tend to be more effective than those imposed multilaterally by countries.
False
Emerging markets are developed economies such as the United States and United Kingdom.
False
Expropriation is a term used to describe the U.S. government's investment in foreign technology with the intent to spur development of trade partners.
False
Firms appear to be less open about their international marketing activities than about their domestic ones.
False
Focus groups can be most useful when specific answers are sought to very narrow questions.
False
Global account management (GAM) ensures that customers gain economies of scale by implementing product differentiation for each of its worldwide operations.
False
Globalization is the same as standardization except in the case of the technology used to produce the product.
False
Globalization requires transfer of information typically between headquarters and country organizations, not the country organizations themselves.
False
If the anticipated cost is below a minimum threshold amount, the government is typically required to open the contract to a public bidding process.
False
In business-to-business markets, global customers seek to decentralize and vary the methods of purchasing of raw materials, components, and finished goods.
False
In making decisions about a firm's international marketing activities, managers will need to concentrate on the legal circumstances of the host country but not the home country.
False
In pursuing cost leadership, the global marketer offers an identical or better product at a higher cost than the competition.
False
Industrial buyers in countries with high uncertainty avoidance cultures are more willing to try new offerings from new market entrants.
False
It is not necessary to consider the compatibility and comparability of the data while using secondary data.
False
Jake, a U.S. citizen, displays consumer ethnocentrism if he purchases electronic gadgets that are manufactured in Japan.
False
Mini-nationals are consortiums of companies that act as a lobbying force for global issues.
False
Most emerging market countries have attained the mass consumption stage of economic development.
False
Norms remain the same across all countries.
False
People all over the world consistently follow Maslow's hierarchy of needs.
False
Permitting a foreign national from a controlled country to have access to a highly sensitive computer program in the United States is not considered as an export.
False
Segmentation considers the political boundaries that define markets.
False
Standardized research techniques are more useful in the collection of subjective data than of objective data.
False
The less the corporation's research needs overlap with an agency's past research accomplishment, the more likely it is that the research task will be carried out satisfactorily.
False
The new-generation global players solve customers' problems by pushing standardized solutions on them.
False
The quest for cost savings has allowed some marketers to have customer service activities present in all country markets.
False
The research done for international marketing activities is most often more rigorous, formal, and quantitative than for domestic marketing activities.
False
The single most important cause for failure in the international marketplace is the inability to communicate in the host country language.
False
The term "embargo" refers to products that are packaged in one country in a particular way, and then altered to fit the international marketplace in another country.
False
The two major approaches to international research organization are the top-down approach and the bottom-up approach.
False
The ultimate goal of CRM is profit maximization for the firm.
False
Today's export controls use a "strategic balance" approach affecting specific hotspots rather than the "tactical balance" approach.
False
When qualitative data are desired, surveys are appropriate research instruments.
False
Total quality management measures are allowing marketers to customize an increasing amount of their production while saving on costs.
True
Trade sanctions and embargoes can be used interchangeably.
True
Unstructured questions increase the potential for interviewer bias.
True
Voluntary restraint agreements are self-imposed restrictions aimed at avoiding punitive trade actions from the host.
True
When importing, firms shift their major focus from supplying to sourcing.
True
When the cost of market share points in any one market becomes too high, marketers tend to begin looking for diversification opportunities.
True
Which of the following is NOT a method of controlling imports? a. Confiscation b. Quota systems c. Voluntary restraint agreements d. Tariffs
a. Confiscation
Which of the following approaches uses an intermediary such as an outside research agency to bring headquarters and country operations together? a. Coordinated research approach b. Top-down approach c. Decentralized approach d. Centralized approach
a. Coordinated research approach
Which of the following is NOT considered a political risk? a. Deflation b. Tariffs c. Expropriation of assets d. Restriction in repatriation of profits
a. Deflation
_____ can be helpful in providing information about perceptions, emotions, and other nonovert factors. a. Focus groups b. Scanner data c. Structured questionnaires d. Surveys
a. Focus groups
_____ refers to balancing global, regional, and local interests. a. Global leverage b. Global account management c. Concentration d. Cross-subsidization
a. Global leverage
Which of the following is true of a focus strategy? a. It is oriented toward either low cost or differentiation. b. It is either industry-wide or focused on a single segment. c. It offers an identical product at a lower cost than the competition. d. It has a broad target scope.
a. It is oriented toward either low cost or differentiation.
_____ occurs when a government demands partial transfer of ownership and management responsibility and imposes regulations to ensure that a large share of the product is locally produced and a larger share of the profit is retained in the country. a. Injunction b. Defalcation c. Domestication d. Structuring
c. Domestication
_____ calls for the centralization of decision-making authority far beyond that of the multidomestic approach. a. Cross-subsidization b. The NIH syndrome c. Globalization d. Localization
c. Globalization
Which of the following is true about the relevance of Maslow's hierarchy of needs to international marketing? a. Need levels remain the same worldwide with regard to economic status, technology level, and other factors. b. People all over the world consistently follow Maslow's hierarchy of needs. c. In developing economies, people may forgo meeting some physiological needs or safety needs in order to purchase higher-level products such as cell phones and automobiles. d. In countries that are characterized by substantial poverty, the focus is on satisfying self-actualization needs.
c. In developing economies, people may forgo meeting some physiological needs or safety needs in order to purchase higher-level products such as cell phones and automobiles.
Which of the following strongly influences a consumer's ability to purchase goods and services? a. Legal factors b. Political environment c. Income level d. Sociocultural factors
c. Income level
_____ requires categories used in questionnaires to be comparatively structured. a. Translation-retranslation approach b. Social desirability c. Data equivalence d. Content analysis
c. Data equivalence
Which of the following refers to a legal entitlement of exclusive rights to use an idea, piece of knowledge, or invention? a. Domestication b. Embargoes c. Intellectual property d. Functional lubrication
c. Intellectual property
Demographic factors have no influence on the tendency of consumers to discriminate against foreign products.
False
Who proposed the hierarchy of needs theory?
Abraham Maslow
Which of the following is an example of a developing market?
Angola
Which of the following is true about the factors that influence buyer reactions to country of origin (COO)?
As the capacity of countries to perform well in specific industries improves, the COO phenomenon varies over time.
Which of the following strategies is employed by firms to overcome consumer ethnocentrism and the COO phenomenon?
Charging lower prices
_____ is the tendency to view domestically produced goods as superior to those produced in other countries.
Consumer ethnocentrism
Which of the following refers to the expected functioning of a product relative to the cost to buy and use it?
Cost-performance
_____ refers to collecting, storing, and analyzing customer data to develop and maintain two-way relations between the firm and key customers.
Customer relationship management
_____ refers to demand for raw materials, parts, and other inputs that depends on demand for some other good.
Derived demand
Clustering countries into similar groups for screening and evaluation is the first step of foreign-market opportunity analysis.
False
Code law is based on tradition and depends less on written statutes than on precedent and custom.
False
Countries with the common law system have much more rigid laws than those with the code law system.
False
Delphi studies are one means of obtaining factual data through quantitative methods.
False
A dodger upgrades capabilities to match globals in niches.
False
A global strategy implies that a company should serve the entire globe.
False
A marketing plan is usually developed prior to doing any international research.
False
A single-country approach is large enough for the local business to achieve all possible economies of scale.
False
Boycotts place a tax on imports and raise prices.
False
Bribing foreign officials in order to gain contracts is considered permissible in the United States.
False
Centralizing all research activities with one service provider is more efficient than having experts working on a problem.
False
Which of the following is true about developing markets?
Firms tend to devise novel business strategies to market in these countries.
_____ are individuals or organizational buyers that exhibit similar needs and tastes worldwide.
Global consumers
Which of the following refers to a strategy in which the offering is placed similarly in the minds of buyers across an entire region or worldwide?
Global positioning strategy
Which of the following is true about the relevance of Maslow's hierarchy of needs to international marketing?
In developing economies, people may forgo meeting some physiological needs or safety needs in order to purchase higher-level products such as cell phones and automobiles.
Which of the following is true about the effects of culture on the global industrial buyer?
In organizations with flat structures, the purchasing managers employ systematic approaches, with substantial consistency and transparency.
Which of the following strongly influences a consumer's ability to purchase goods and services?
Income level
Which of the following is true about global account management (GAM)?
It ensures the supplier speaks to the customer in one voice, reducing the possibility for miscommunication.
Which of the following is true about globalization?
It implies that many nations are losing some autonomy.
Which of the following best describes conservatism?
It is the tendency to prefer traditions and choices that have stood the test of time.
Which of the following best describes public tendering?
It refers to the purchasing of products and services on behalf of a government agency or other public entity.
Which of the following characterizes the existence of a consumer culture?
Level and quality of consumption as an important criterion for judging other countries
Karen loves to shop. She keeps herself updated about all the latest products introduced in the market. She loves to spend on things as she believes possessing such goods enhances her self-image. She is always envious about others' possessions and never shares her possessions with others. Which of the following cultural norms can be associated with Karen?
Materialism
Which of the following characteristics about the government buyer is true?
Most governments have a system for opening government purchases that exceed a certain dollar value to international bids.
_____ are accepted behaviors within a society or group.
Norms
According to Maslow's hierarchy of needs, which needs have to be fulfilled before a consumer can attempt to fulfill his safety needs?
Physiological needs
Which of the following is a feature of the take-off stage of economic development?
Producers specialize and begin to mass produce goods that can be exchanged with trading partners worldwide.
Which stage of economic development is associated with subsistence farming and the practice of consumption of outputs by producers rather than trading them?
Traditional society
Which of the following represents the highest level in Maslow's hierarchy of needs?
Self-actualization needs
Which of the following countries is in the drive to maturity stage of economic development?
South Korea
The pressure to be global and local at the same time has to be addressed through developing talent.
True
The researcher should use creative inferences to arrive at knowledge useful to the firm.
True
The value of the international marketing decision with the benefit of research should be greater than the value of the decision without research.
True
Which of the following is a situational factor influencing the global consumer?
The geographical location and climate of a place
A focus strategy is defined by its emphasis on several industrial segments.
True
As firms become increasingly multinational, governments respond by increasing global cooperation to achieve the same principles of taxation and corporate ethics laws across nations.
True
Avoiding cost inefficiencies is a powerful globalization driver.
True
Corporate governance frameworks ensure the board of directors' accountability to the company and its shareholders.
True
Cosmopolitans are especially attractive targets for MNEs launching new products.
True
Cross-subsidization is the use of resources accumulated in one part of the world to fight a competitive battle in another.
True
Executing global account management programs allows for the development of internal systems and interaction.
True
Global marketing can be seen as a culmination of a process of international market entry and expansion.
True
Globalization implies that many nations are losing some autonomy as larger countries and corporations extend their political power around the world.
True
Globalization reflects the spread of free-market capitalism.
True
Globalization strives to reduce costs by exploiting factor costs or capabilities within a system.
True
If supply chains are complex and multinational, the effects of terrorism can potentially spread across the globe from an initially local focus.
True
In nations with weak institutional guidelines, corruption is often a factor that affects the purchase behavior of organizational buyers.
True
In practice, strategic business units represent groupings organized around market similarities based on the product or service used to meet the needs of specific customers.
True
Industrial buyers are strongly influenced by globalization.
True
Inflation complicates the international buying process by distorting exchange rates and the cost of capital.
True
Lobbyists are well-connected individuals and firms that can provide access to policymakers and legislators.
True
Multinational firms can overcome a negative COO by having its product distributed through a well-respected intermediary in the target market.
True
Nuclear nonproliferation is a determinant for export control.
True
One key concern with trade sanctions is the fact that governments often consider them as being free of cost.
True
Political and legal factors often play critical roles in international marketing activities.
True
Political risk can be the result of government action, but it can also be outside the control of government.
True
Scenario analysis is used to look at different configurations of key variables in the international market.
True
The American Marketing Association (AMA) defines marketing research as the function that links the consumer, customer, and public to the marketer through information.
True
The EU law permits companies to collect personal data only if the individuals consent to the collection, know how the data will be used, and have access to databases to correct or erase their information.
True
The GPA's main goal is to open government procurement to international competition.
True
The aim of competitive bidding is to avoid corruption that may accompany choosing suppliers based on personal relationships.
True
Which of the following indicates consumer ethnocentrism?
William buys only products that have the label "Made in U.S.A.," as he considers it unpatriotic to buy foreign goods.
_____ refers to a consumer's interest in, and openness to, acquiring goods from other countries.
World mindedness
Who proposed the hierarchy of needs theory? a. Abraham Maslow b. Douglas McGregor c. Frederick Herzberg d. David McClelland
a. Abraham Maslow
_____ refers to a marketer's decision to focus its resources on a smaller number of markets as opposed to a broad number of markets. a. Concentration b. Differentiation c. Diversification d. Cross-subsidization
a. Concentration
Which of the following is true about import controls? a. Nontariff barriers like voluntary restraint agreements are self-imposed restrictions and cutbacks aimed at avoiding punitive trade actions from the host. b. Import controls generally exact a small price from domestic consumers. c. The social cost of import controls benefits the economy in all situations. d. Import controls improve the productivity of an industry, provide it with a level of safety and a cushion of increased income, and lead the drive for technological advancement.
a. Nontariff barriers like voluntary restraint agreements are self-imposed restrictions and cutbacks aimed at avoiding punitive trade actions from the host.
_____ are accepted behaviors within a society or group. a. Norms b. Virtues c. Anomies d. Motives
a. Norms
Which of the following is NOT one of the three choices of competitive strategies that the marketing manager has at his/her disposal? a. Target positioning b. Cost leadership c. Differentiation d. Focus
a. Target positioning
The charter of the United Nations allows for sanctions as an enforcement action by regional agencies. Which of the following is NOT an example of a regional agency? a. The Organization of American Unity b. The Organization of African Unity c. The Organization of American States d. The Arab League
a. The Organization of American Unity
Which of the following statements about the emergence of organizational structures to support globalization effort is true? a. The matrix organization structure of global companies is focused on customers. b. Global product managers develop short-term strategies for product categories. c. Due to the intricate nature of global marketing, all marketers use the country-by-country approach. d. Global product managers develop strategies for product categories using the country-by-country approach.
a. The matrix organization structure of global companies is focused on customers.
Why are marketers extending national account management programs across countries typically for the most important customers? a. To deal with the globalization of customers b. To maintain a product portfolio that includes only local/regional brands c. To serve and give importance to customers of a particular region than to the others d. To allow local managers control over their marketing budgets so that they can respond exclusively to local customer needs
a. To deal with the globalization of customers
Which of the following is the aim of foreign-market opportunity analysis? a. To utilize a broad-brush approach which is accomplished quickly at low cost b. To conduct a detailed analysis of the world on a market-by-market basis c. To obtain consistency in the firm's marketing efforts d. To evaluate the natural resources present in the different markets
a. To utilize a broad-brush approach which is accomplished quickly at low cost
Which of the following is true about trade associations? a. Trade associations provide valuable information about local markets. b. The information provided by trade associations is often quite specific in nature. c. Trade associations do not maintain files on international trade issues and trends affecting international marketers. d. Trade associations provide general background information such as the name of the chief executive officer, the address and telephone number, and some information about a firm's products.
a. Trade associations provide valuable information about local markets.
One of the benefits for international marketers that have been able to globalize is that, customer service is _____. a. concentrated and not dispersed in all country markets b. not required because customers do not need service c. standardized by the government under customer service requirements d. subsidized by customer service activities in the U.S.
a. concentrated and not dispersed in all country markets
Events caused by factors outside the control of government include all of the following EXCEPT: a. confiscation. b. strikes. c. extortion. d. revolution.
a. confiscation.
In a developed country, a white-collar worker may be part of the middle class, whereas in a less-developed country, the same person would be part of the upper class. This example underscores the importance of _____ while deciding on survey question formats. a. data equivalence b. social desirability c. question validity d. overt questioning
a. data equivalence
A local company that has assets that give it a competitive advantage only in its home market is known as a(n) _____. a. defender b. dodger c. contender d. extender
a. defender
The phenomenon when buyers become uncertain about the state of their nation's economy, leading to a sharp reduction in demand for both consumer and industrial goods is known as _____. a. the chill effect b. functional lubrication c. domestication d. expropriation
a. the chill effect
Surveys are usually conducted _____. a. via questionnaires b. through observations c. via experiments d. through focus groups
a. via questionnaires
____ results in a transfer of ownership from the foreign firm to the host country without providing compensation for the firm. a. Defalcation b. Injunction c. Confiscation d. Structuring
c. Confiscation
Which of the following is a characteristic of a market-based corporate governance regime? a. Combined management and ownership b. Dispersed ownership c. State ownership of enterprise d. Family control
b. Dispersed ownership
Nature-Care Inc., a Canadian-based cosmetics company, was under fierce competition from other cosmetics companies in Canada. The company came up with several strategies to increase profits, but they were still under severe losses. Finally, the company was sold to Trendy-Beauty Inc., a leading cosmetics company with branches all over the world. Which of the following competitive strategies did Nature-Care adopt? a. Contender b. Dodger c. Extender d. Defender
b. Dodger
_____ are designed to deny or at least delay the acquisition of strategically important goods by adversaries. a. Antidumping laws b. Export control systems c. Voluntary restraint agreements d. Domestication activities
b. Export control systems
____ are able to exploit their success at home as a platform for expansion elsewhere. a. Dodgers b. Extenders c. Defenders d. Contenders
b. Extenders
Which of the following entities has the greatest variety of secondary data? a. International organizations b. Governments c. Trade associations d. Service organizations
b. Governments
Which of the following is the first step in foreign-market opportunity analysis? a. Identifying the potential demand for a specific product b. Indexing and ranking countries by their market appeal c. Clustering countries into similar groups for screening and evaluation d. Developing and planning of strategies of the country chosen
b. Indexing and ranking countries by their market appeal
Which of the following best describes conservatism? a. It is the tendency to spend excessively on purchasing goods to enhance consumers' social image. b. It is the tendency to prefer traditions and choices that have stood the test of time. c. It refers to a strong openness to acquiring goods from other countries. d. It is the tendency to view domestically produced goods as superior to those made in other countries.
b. It is the tendency to prefer traditions and choices that have stood the test of time.
Which of the following is true about domestication? a. It imposes regulations to ensure that no profits are retained by the host country. b. It results in inefficiencies due to lack of market discipline, and thus affects the international competitiveness of operations abroad. c. It results in total ownership and total management responsibility being conferred on the host country. d. It imposes regulations to ensure that all high-end products are locally produced while all low-end products are produced by the host country.
b. It results in inefficiencies due to lack of market discipline, and thus affects the international competitiveness of operations abroad.
Which of the following is true of a dodger? a. It upgrades capabilities to match globals in niches. b. It sells out to a global player or becomes part of an alliance. c. It expands into markets similar to home base. d. It leverages local assets in segments where globals are weak.
b. It sells out to a global player or becomes part of an alliance.
Which of the following is an example of a dual-use item? a. Handbags b. Life jackets c. Compact cars d. Artillery
b. Life jackets
_____ information includes population trends, general trade flows between countries, and world agricultural production. a. Behavioral b. Macro c. Systemic d. Structural
b. Macro
Which of the following statements about legal differences and restraints is true? a. All countries conform to the same laws, and they are implemented similarly as well. b. Many common law countries have adopted commercial codes to govern the conduct of business. c. Countries with the common law system have much more rigid laws than those with the code law system. d. The enforcement of laws have the same effect on national and on foreign marketers.
b. Many common law countries have adopted commercial codes to govern the conduct of business.
Which of the following is true of marketing research? a. Marketing research can take place in a void. b. Marketing research is the link between marketer and market without which marketing cannot function. c. Marketing research highlights the roles of bias, emotions, and subjective judgment. d. Marketing research can take place even without a business purpose.
b. Marketing research is the link between marketer and market without which marketing cannot function.
According to Maslow's hierarchy of needs, which needs have to be fulfilled before a consumer can attempt to fulfill his safety needs? a. Love and belonging needs b. Physiological needs c. Esteem needs d. Self-actualization needs
b. Physiological needs
Which of the following is true about technology and international marketing? a. Newly emerging markets cannot leverage advanced communications as they are unable to leapfrog stages of economic development. b. Technological evolution is contributing on a rapid scale to the changes taking place in international marketing. c. E-business has not taken hold in international marketing. d. Global companies prefer conducting business the traditional way, without the use of teleconferencing or videoconferencing.
b. Technological evolution is contributing on a rapid scale to the changes taking place in international marketing.
What is the first step in the formulation of a global strategy? a. The location and extent of value-adding activities b. The choice of competitive strategy to be employed c. The resource allocation strategy to be adopted for various markets d. The choice of country markets to be entered
b. The choice of competitive strategy to be employed
Which of the following is a drawback associated with electronic information services? a. The information provided is not cost-effective. b. They are heavily biased toward the English language. c. They do not provide information on technical standards and trade regulations on specific products. d. The information provided is often quite general in nature.
b. They are heavily biased toward the English language.
Delphi studies: a. seek to obtain the responses of many people with only specific and limited knowledge. b. aim at qualitative rather than quantitative measures by aggregating the information of a group of experts. c. encourage interaction among the participants. d. require only two steps for completion and hence information is obtained very quickly.
b. aim at qualitative rather than quantitative measures by aggregating the information of a group of experts.
When the United Nations (UN) votes on economic sanctions for a country: a. it will apply only to nations who are members of the UN. b. any permanent member of the Security Council can veto the sanctions. c. the government must consider them as being free of cost. d. a new set of rules must be written for the specific infractions.
b. any permanent member of the Security Council can veto the sanctions.
Many adverse governmental actions are a result of a host country's opposition to _____. a. domestication b. colonial remnants c. independence d. nationalism
b. colonial remnants
The relationships among stakeholders that determine and control the strategic direction and performance of an organization are called _____. a. investor relations b. corporate governance c. ownership risk d. functional lubrication
b. corporate governance
In the _____ approach, the headquarters establishes the broad thrust of research activities and delegates further design and implementation to the specific countries. The research is then carried out locally, and only a final report is provided to headquarters. a. top-down b. decentralized c. coordinated d. centralized
b. decentralized
The WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS): a. includes maximum standards for copyrights, appellations of geographic origin, industrial designs, trademarks, and trade secrets. b. gives developing countries more time to implement changes related to intellectual property. c. requirements apply equally to all WTO member states except emerging countries. d. gives individuals and companies the right to own and sell property as they see fit.
b. gives developing countries more time to implement changes related to intellectual property.
A major reason that firms are reluctant to engage in international marketing activities is the: a. lack of investors in international markets. b. lack of sensitivity to differences in consumer tastes and preferences. c. absence of profitable opportunities. d. lack of distributors in international markets.
b. lack of sensitivity to differences in consumer tastes and preferences.
The level of computerization of a society can estimate the future need for software. In this statement, the level of computerization of a society is a: a. random variable. b. proxy variable. c. constant. d. qualitative variable.
b. proxy variable.
Firms are increasingly recognizing that ____ variables, such as lifestyles, attitudes, or personality, can play a major role in identifying similar consumer groups in different countries. a. discrete b. segmentation c. purchase-related d. economic
b. segmentation
In some cultures, certain questions are asked directly to respondents while in others, the same questions are thought to be rude and insulting. This is because of: a. data equivalence. b. social desirability. c. interviewer bias. d. sampling error.
b. social desirability.
Macro level secondary data usually involves: a. data on local laws and regulations. b. tariff and nontariff information. c. information about individual companies. d. data on local distribution systems and competitive activities.
b. tariff and nontariff information.
In the _____, a researcher formulates the questions, has them translated into the language of the country under investigation, and subsequently has a second translator return the foreign text to the researcher's native language. a. transliteration methodology b. translation-retranslation approach c. multilingual evaluation d. reverse translation methodology
b. translation-retranslation approach
The value of research in making a particular decision can be determined by applying the following equation: V(dr) - V(d) > C(r). In this equation, V(dr) represents the: a. cost of research. b. value of the decision with the benefit of research. c. value of the decision without the benefit of research. d. difference between the cost of research and the benefit of research.
b. value of the decision with the benefit of research.
Which of the following is an example of a developing market? a. Canada b. Germany c. Angola d. The United States of America
c. Angola
Which of the following is true about expropriation? a. Its use as a policy tool has increased significantly over time. b. It does not provide compensation to the former owners. c. It immediately transfers a certain amount of wealth and resources from foreign companies to the host country. d. It provides satisfactory settlements and thus encourages foreign firms to invest in the country.
c. It immediately transfers a certain amount of wealth and resources from foreign companies to the host country.
Which of the following is true about primary research? a. It is always conducted by the firm with a specific need. b. It is very limited in scope as it typically does not go beyond the activities of secondary data collection. c. It is conducted to fill specific information needs. d. It is easier to conduct internationally.
c. It is conducted to fill specific information needs.
Which of the following is a pitfall that handicaps global marketing programs and contributes to their suboptimal performance? a. Excessive cross-subsidization b. Vertical integration c. Overstandardization d. Adaptation
c. Overstandardization
What are the two basic forms of research gathering methods? a. Generic and specific b. Presentation and demonstration c. Primary and secondary d. Limited and scope-oriented
c. Primary and secondary
Which of the following represents the highest level in Maslow's hierarchy of needs? a. Esteem needs b. Physiological needs c. Self-actualization needs d. Safety needs
c. Self-actualization needs
____ refers to the capability of attracting and influencing all stakeholders, whether through energetic brands, heroic missions, distinctive talent development, or an inspirational corporate culture. a. Cross-subsidization b. Brand awareness c. Soft power d. Segmentation
c. Soft power
Which act passed in 1977 made it a crime for U.S. firms to bribe foreign officials for business purposes? a. The Organized Crime Control Act b. The Racketeer Influenced and Corrupt Organizations Act c. The Foreign Corrupt Practices Act d. The Foreign Intelligence Surveillance Act
c. The Foreign Corrupt Practices Act
Which of the following is true about export controls? a. The legal basis for export controls is similar across nations. b. All export control systems make controls the rule rather than exception. c. The U.S. export control system is based on the Export Administration Act. d. Services and ideas are not covered under export controls.
c. The U.S. export control system is based on the Export Administration Act.
_____ refer to governmental actions that distort the free flow of trade in goods, services, or ideas for decidedly adversarial and political, rather than strictly economic, purposes. a. Gray market activities b. Tariffs and barriers c. Trade sanctions and embargoes d. Expropriation and confiscation
c. Trade sanctions and embargoes
Which of the following is true about unstructured questions? a. Unstructured questions typically allow the respondents only limited choice options. b. Unstructured questions decrease the potential for interviewer bias. c. Unstructured questions permit the capture of in-depth information. d. Unstructured questions prevent the respondents from setting their own frame of reference.
c. Unstructured questions permit the capture of in-depth information.
In the United States, the _____ excludes from antitrust prosecution those firms that are cooperating to develop foreign markets. a. Gramm-Leach-Bliley Act b. Sarbanes-Oxley Act c. Webb-Pomerene Act d. Celler-Kefauver Act
c. Webb-Pomerene Act
Which of the following questions will require the use of primary research? a. What are the latest accords and negotiations in the WTO? b. What is the ratio of Columbia's debt to gross domestic product? c. What is the market potential for furniture in Indonesia? d. What percentage of global steel production is accounted by the Chinese steel industry?
c. What is the market potential for furniture in Indonesia?
Laws that prohibit below-cost sales of products are known as _____ laws. a. antidiscrimination b. antikickback c. antidumping d. antideficiency
c. antidumping
When firms refuse to do business with someone, often for political reasons, this is known as _____. a. image tarnishing b. expropriation c. boycotting d. confiscation
c. boycotting
Confiscation differs from domestication in that confiscation: a. does not involve transfer of ownership from the foreign firm to the host country. b. offers compensation in the form of local, nontransferable currency. c. does not provide compensation to the foreign firm. d. provides compensation on the book value of the firm.
c. does not provide compensation to the foreign firm.
The seizure of foreign assets by a government with payment of compensation to owners is known as _____. a. asset forfeiture b. misappropriation c. expropriation d. dissolution
c. expropriation
The _____ approach seeks uniformity, especially in elements that are strategic in nature, and also takes care to localize necessary tactical elements. a. globalization b. segmentation c. glocalization d. positioning
c. glocalization
During the _____ analysis stage of strategic planning, the company takes a look at its own organizational resources to determine if it can establish and sustain competitive advantage within global markets. a. competitive b. market c. internal d. external
c. internal
Markets in the _____ position will require continued commitment by management in research and development, investment in facilities, and the training of personnel at the country level. a. harvest/divest b. divest/reject c. invest/grow d. dominate/divest
c. invest/grow
Code law differs from common law in that code law: a. is based solely on tradition. b. originated in England. c. is based on a comprehensive set of written statements. d. depends on precedent and custom.
c. is based on a comprehensive set of written statements.
A(n) _____ is an internal force that orients a person's activities toward satisfying a need or achieving a goal. a. norm b. virtue c. motive d. intuition
c. motive
A(n) _____ is a group of customers who share common characteristics across numerous national markets.
global market segment
The NIH syndrome refers to _____. a. leveraging of local assets in segments where globals are weak b. the upgradation of local branches to match globals in niches c. resistance by local branches if adoption of the planning process is forced on them by headquarters d. the sale of the local branch to a global player or forming an alliance
c. resistance by local branches if adoption of the planning process is forced on them by headquarters
When quantitative data are desired, _____ are appropriate research instruments. a. interviews b. focus groups c. surveys d. observations
c. surveys
A(n) _____ is someone who maintains a network of links and personal contacts with those outside the immediate community and is willing to venture into other cultures.
cosmopolitan
Which of the following is true about the legal procedures preferred by businesses? a. Businesses who opt for conciliation fear discrimination in foreign countries and therefore avoid it. b. Arbitration often involves extensive delays and is very costly, and hence is not preferred by businesses. c. Litigation results in much quicker decisions than arbitration, and hence is preferred by businesses. d. Arbitration results in much quicker decisions, and hence is more preferred by businesses.
d. Arbitration results in much quicker decisions, and hence is more preferred by businesses.
Which of the following are two of the most powerful globalization drivers? a. Concentrating investments in national markets and focusing on economies of scale b. Restricting entry to geographically close markets and pushing standardized solutions on customers c. Centralizing all operations of R&D and providing additional funds for research d. Avoiding cost inefficiencies and duplication of effort
d. Avoiding cost inefficiencies and duplication of effort
Which of the following is true about government barriers to international marketing? a. Global companies support governmental decisions to implement barriers on domestic marketing. b. Government barriers have been implemented to discourage international marketing and concentrate only on domestic marketing. c. Physical, fiscal, and technical barriers are the same globally and apply to all companies. d. Barriers have fallen dramatically in the last years to further facilitate the globalization of markets.
d. Barriers have fallen dramatically in the last years to further facilitate the globalization of markets.
Why is information provided by trade associations often quite general in nature? a. Because the frequency of updates is very low b. Because the basic intent of such information is to serve as an "appetizer" c. Because summary information is what most international organizations look out for d. Because of the wide variety of clients served
d. Because of the wide variety of clients served
When Terminal Inc., a global heavy-duty vehicle manufacturer, could not cope up with the increasing demand, Next-Engines Inc. seized the opportunity and supplied their heavy-duty vehicles at prices lower than Terminal's. Next-Engines' lower labor costs and extensive R&D facilities allow it to keep its prices lower than Terminal's. Which of the following competitive strategies did Next-Engines adopt? a. Dodger b. Extender c. Defender d. Contender
d. Contender
_____ refers to a company's use of resources accumulated in one part of the world to fight a competitive battle in another. a. Hard power b. Diversification c. Soft power d. Cross-subsidization
d. Cross-subsidization
To enrich information obtained from factual data, corporations resort to the use of creative and highly qualitative data-gathering methods. Which of the following methods would allow this? a. Surveys b. Questionnaires c. Scanner data d. Delphi studies
d. Delphi studies
_____ takes advantage of the marketer's real or perceived uniqueness in elements such as design or after-sales services. a. Standardization b. Cross-subsidization c. Diversification d. Differentiation
d. Differentiation
_____ refers to a company's decision to expand its portfolio by developing a strategy characterized by growth in a relatively large number of markets. a. Concentration b. Differentiation c. Cross-subsidization d. Diversification
d. Diversification
Which of the following is an approach that can be used against the emergence of the NIH syndrome? a. Maintaining a product portfolio that exclusively supports specific local brands b. Allowing global managers control over local marketing budgets c. Ensuring that global managers participate in the development of marketing strategies and programs for local brands d. Encouraging local managers to generate ideas for possible regional or global use
d. Encouraging local managers to generate ideas for possible regional or global use
Yummy Snacks Inc., a leading snack manufacturer in Mexico, has all its snacks catering to local taste buds. It has recently expanded their presence in the U.S. and other countries, especially at places with sizable Mexican communities. What is the competitive strategy adopted by Yummy Snacks? a. Contenders b. Defenders c. Dodgers d. Extenders
d. Extenders
Which of the following is true about developing markets? a. They comprise only high-income consumers. b. They represent the smallest market for an international marketer for the sale of goods and services. c. Infrastructure is typically very good in these markets. d. Firms tend to devise novel business strategies to market in these countries.
d. Firms tend to devise novel business strategies to market in these countries.
Which of the following statements is true about the choice of competitive strategy? a. In pursuing cost leadership, the global marketer offers an identical or better product at a higher cost than the competition. b. Most global marketers combine high differentiation with high costs to expand their market shares. c. Marketers who opt for high differentiation can ignore the monitoring of costs. d. Global activities will in themselves permit the exploitation of scale economies not only in production but also in marketing activities.
d. Global activities will in themselves permit the exploitation of scale economies not only in production but also in marketing activities.
_____ are individuals or organizational buyers that exhibit similar needs and tastes worldwide. a. Change agents b. Social entrepreneurs c. Ethnocentric consumers d. Global consumers
d. Global consumers
Which of the following research instruments is used for gathering qualitative data in marketing research? a. Data mining b. Survey c. Scanner data d. Interviews
d. Interviews
Which of the following best describes "ehrbarer Kaufmann"? a. It refers to a legal entitlement of exclusive rights to use an idea, piece of knowledge, or invention. b. It refers to governmental actions that distort the free flow of trade in goods, services, or ideas for decidedly adversarial and political, rather than strictly economic, purposes. c. It is a key legal perspective that has faith and belief as its key focus and is also a mix of societal, legal, and spiritual guidelines. d. It focuses on maintaining long-term successful international trade efforts with distant and often unfamiliar people.
d. It focuses on maintaining long-term successful international trade efforts with distant and often unfamiliar people.
Which of the following is true about globalization? a. It leads to the formation of heterogeneous, individual cultures. b. It leads to increasing trade barriers between nations. c. It restricts the spread of free-market capitalism. d. It implies that many nations are losing some autonomy.
d. It implies that many nations are losing some autonomy.
Which of the following is true about common law? a. It depends primarily on written statutes and codes. b. It is based on Roman law and is found in the majority of the nations of the world. c. Countries with the common law system have much more rigid laws than those with the code law system. d. It is based on tradition and depends on precedent and custom.
d. It is based on tradition and depends on precedent and custom.
Which of the following characterizes the existence of a consumer culture? a. A large proportion of the population living under the poverty level b. Emphasis on autarky-based economies c. A perception of consumption as an undesirable activity that causes a drain on the economy d. Level and quality of consumption as an important criterion for judging other countries
d. Level and quality of consumption as an important criterion for judging other countries
Which of the following research techniques is most valuable for the researcher who is totally unfamiliar with a market or market situation, and can be quickly achieved through participation in a trade mission? a. Surveys b. Interviews c. Focus groups d. Observation
d. Observation
Which of the following is true about structured questions? a. Structured questions increase the potential for interviewer bias. b. Structured questions typically permit the capture of more in-depth information than unstructured questions. c. Structured questions are quite useful in cross-cultural surveys because they make allowance for the frame of reference of the respondents. d. Structured questions typically allow the respondents only limited choice options.
d. Structured questions typically allow the respondents only limited choice options.
Which 2002 law protects investors by improving the accuracy and reliability of corporate disclosures, and also covers issues like corporate responsibility, financial transparency, and accounting oversight? a. The Glass-Steagall Act b. The Aldrich-Vreeland Act c. The Gramm-Leach-Bliley Act d. The Sarbanes-Oxley Act
d. The Sarbanes-Oxley Act
Which of the following is true about "born globals"? a. They build their presence in every country. b. They discourage customer involvement in solving customer problems. c. They solve customers' problems by pushing standardized solutions on them. d. They take ideas from wherever they can be found and solutions to wherever they are needed.
d. They take ideas from wherever they can be found and solutions to wherever they are needed.
Collecting secondary data at the micro level involves gathering: a. tariff and nontariff information. b. government trade policy information. c. information obtained from the WTO. d. data on local laws, regulations, standards, and specifications.
d. data on local laws, regulations, standards, and specifications.
As required by government mandate, anyone wishing to export a product from the United States needs a(n) _____. a. extended collective license b. quasi-contract c. voluntary export restraint agreement d. export license
d. export license
Executing _____ programs not only builds relationships with important customers but also allows for the development of internal systems and interaction. a. cross-subsidization b. locally centralized marketing c. NIH d. global account management
d. global account management
State ownership of enterprise, lack of transparency, and no minority influence are characteristics of a _____ corporate governance regime. a. market-based b. bank-based c. family-based d. government affiliated
d. government affiliated
When products and goods enter a market in ways not desired by their manufacturers, this is known as _____ market activities. a. black b. white c. green d. gray
d. gray
The use of scale, financial might, or the use of a low-cost position to win market access and share refers to _____. a. cross-subsidization b. cost inefficiencies c. standardization d. hard power
d. hard power
The intent of gathering qualitative data is to: a. amass data. b. search for statistical significance. c. generalize. d. obtain a better understanding of given situations and behavioral patterns.
d. obtain a better understanding of given situations and behavioral patterns.
Giving midlevel managers more experience in working with others of different nationalities to expose them to other markets and surroundings is known as _____. a. repatriation b. existential migration c. immigration d. personnel interchange
d. personnel interchange
One of the goals of globalization is to reduce costs by _____. a. charging a lot more for product sold b. using price skimming techniques of increasing prices for brand name merchandise c. dumping surplus in receptive markets d. pooling production or exploiting factor costs or capabilities within a system
d. pooling production or exploiting factor costs or capabilities within a system
The recognition that groups within markets differ sufficiently enough to warrant individual marketing mixes is known as _____. a. targeting b. positioning c. diversification d. segmentation
d. segmentation
Translation-retranslation approach is _____. a. designed to reduce interviewer bias. b. employed to ensure that categories used in questionnaires are comparatively structured. c. necessary to ensure the capture of more in-depth information. d. used to reduce problems in question wording.
d. used to reduce problems in question wording.
Outside research is appropriate: a. for small-scale international marketing research. b. for small-scale domestic marketing research. c. when generalized research skills are required. d. when specialized research skills are required.
d. when specialized research skills are required.
