international marketing

Which of the following statements is true with respect to the economic effects of controlling population growth?

A decline in fertility rate is a function of economic prosperity.

Which of the following organizations seems better equipped for internationalization?

A firm that has a production capacity that is much greater than home market demand

The part of the world with the largest portion of people over 65 years is also the part of the world with the fewest number of people under age 15 years. Which of the following is most likely to be a possible result of this disparity?

A heavy tax burden on future workers.

________ is a unique forum that has evolved into the primary regional vehicle for promoting trade liberalization and economic cooperation, and includes all the major economies around the Pacific Rim, from Russia to Chile to Australia, the most dynamic, fastest growing economies in the world.

APEC

The true consumer market in China is probably limited to no more than ________ percent of those who live in the more affluent cities.

25

________ is a nontariff barrier that was specifically designed to prevent foreign producers from using predatory pricing to take control of U.S. markets.

Anti dumping law

Ralph Richards has been attempting to solve a problem that his company has with a contract default by the Dutch government. He has tried conciliation but the two parties did not find any common ground on which they could begin a fruitful negotiation for settlement. Which of the following is likely to be the course of action that both the parties will try next?

Arbitration

Which of the following is true of P-time and M-time?

As global markets expand, more business people from P-time cultures are adapting to M-time.

The three members of the North American Free Trade Agreement (NAFTA) are:

Canada, Mexico, and the United States.

________ pertains to societies in which people from birth onward are integrated into strong, cohesive groups.

Collectivism

What is the most profound change for firms at the global marketing stage of internationalization?

Companies treat the world, along with home market, as one market.

M&G Inc., a company producing musical instruments, had dominated its home market for several years before venturing into international markets. The company was focusing more on international operations until Beige N, German company in the same business, entered its home market. Beige N started selling good quality products at prices much lower than M&G's and affected its sales adversely. Which of the following elements in the marketing environment has affected the business of M&G Inc. with the market entry of Beige N?

Competition in the domestic market

Which of the following was Japan's greatest hindrance to the development of software innovations appropriate for world markets?

Complex language

Jimmy's foods, a popular food company in the United States, is trying to resolve a dispute with a local company in New Zealand that has been operating under the same name in its country. All attempts made by the U.S. company to settle the issue in a friendly manner have failed. The directors want to retain their trade name in New Zealand and have decided to settle the dispute with the local company by appointing a mediator. They also want the sessions to be private because of the fear of creating a poor public image. Which of the following dispute resolution methods is best suited for this situation?

Conciliation

Which of the following may best explain why the Japanese have such strong loyalty toward their companies?

Confucian philosophy

C. K. Prahalad has cited two primary misconceptions behind the international marketers ignoring the bottom-of-the-pyramid markets. One of the reasons is that the products and services developed for more affluent consumers are not appropriate for these markets. Which of the following is the other misconception?

Consumers in the bottom-of-the-pyramid markets lack both money and technology.

In the context of cultural values, which of the following statements is true?

Countries that are high in individualism and low in uncertainty avoidance tend to be more innovative.

________ refers to a strategy that involves marketing products similar to ones already on the market thereby minimizing resistance.

Cultural congruence

________ are the business customs and expectations that must be met and conformed to or avoided if relationships are to be successful.

Cultural imperatives

_______ refers to being attuned to the nuances of culture so that a new culture can be viewed objectively, evaluated, and appreciated.

Cultural sensitivity

People from which of the following cultures are more likely to have a general distrust of others (not those in their groups) because power is seen to rest with individuals and is coercive rather than legitimate?

Cultures with a high Power Distance Index score

According to ancient Greeks, which of the following refers to a fundamental government form with the rule by many?

Democracy

The government in Chile recently informed Clint Travis' company that his retail grocery chain in Chile would have to be gradually turned over to the people of Chile by the year 2050 as it is a foreign company in Chile. Additionally, starting next year 50 percent of the board of directors of the Chilean operation of the company must be Chileans. Which of the following political risk actions is Mr. Travis' company facing in Chile?

Domestication

The adoption of the euro has facilitated which of the following?

Easily recognizable price differentials

________ refers to an increase in national production that is reflected by an increase in the average per capita gross domestic product (GDP) or gross national income (GNI).

Economic development

Which of the following aspects of communication is more important in a low-context culture?

Explicit communication

________ occurs when payments are extracted under duress by someone in authority from a person seeking only what he or she is lawfully entitled to.

Extortion

The most rapidly growing economies in the Asia Pacific region during the 1980s and 1990s, Hong Kong, South Korea, Singapore, and Taiwan are often referred to as the ________.

Four Dragons

Which of the following acronyms refers to the international forum that was created for member countries to engage in the negotiation of tariffs and other barriers to trade?

GATT

As George Platt examines markets that might match his company's investment requirements, he is particularly interested in the fact that the European Community has an extensive transportation network. This network seems to draw all the member nations closer together. Which of the following critical factors for ensuring an effective economic union is Mr. Platt most likely examining when reviewing transportation networks?

Geographic proximity

Robert Jonas is in charge of a new marketing effort directed toward Peru. In order for his company to effectively market and distribute to all of Peru's major cities, Jonas must devise a logistics plan for crossing the Andes Mountains on a daily basis. Which of the following foreign environment uncontrollable variables would be a chief concern as Jonas devises his firm's logistics plan?

Geography and infrastructure

Maria Peron's company treats the world, including the home market in Spain, 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. Which of the following stages best characterizes the stage of international marketing involvement for Ms. Peron's company?

Global marketing

In the context of culture's pervasive impact, which of the following is true about birth rates?

Government policies and birth control technologies may have caused a decline in birth rates.

Which of the following forms of business decision making is predominant in most Asian countries?

Group decision making

Which of the following is a requisite for the survival of any economic union?

Having agreements and mechanisms in place in order to settle economic disputes

Which of the following is true of the findings of Transparency International's Corruption Perception Index (CPI)?

Higher levels of bribery have been found in low-income nations.

Identify the two most important steps China has to take to ensure that the road to economic growth is smooth.

Improving human rights and reforming the legal system

A survey of U.S. manufacturers shows that 95 percent of respondents with Indian operations plan on expanding, and none say they are leaving. Which of the following is primarily behind this new trend?

India offers cheap qualified labor and a massive market.

In the context of cultural values, the ________ Index refers to the preference for behavior that promotes one's self-interest.

Individualism/Collectivism

James Bright's company seeks markets all over the world and attempts to sell products that are a result of planned production for markets in various countries. Which of the following stages best characterizes the stage of international marketing involvement for Mr. Bright's company?

International marketing

________ is the performance of business activities designed to plan, price, promote, and direct the flow of a company's goods and services to consumers or users in more than one nation for a profit.

International marketing

Which of the following is true of ethnocentrism?

It is a problem that arises when managers from affluent countries work with managers and markets in less affluent countries.

Which of the following best describes the U.S. government's policy toward multinational corporations that are confronted with situations where bribery is an issue?

It is illegal for a U.S. citizen to pay a bribe.

Which of the following is true of the industrialized world's population?

It is in decline and rapidly aging.

Which of the following is a characteristic feature of privatization of state-owned enterprises?

It often leads to modernization.

Which of the following is true of the APEC?

It promotes economic cooperation.

Which of the following is a defining characteristic of a balance-of-payments statement?

It records all financial transactions between the residents of a country and those of the rest of the world.

Which of the following is true of privatization of state-owned enterprises?

It was done in order to stop the drain on national budgets due to inefficient state-owned enterprises.

Which of the following is most likely to cause the biggest problems for television and radio advertisers in China?

Lack of common language

Which of the following is a strategy that multinational corporations use to minimize political vulnerability and risk?

Licensing

Which of the following is the final step in an international commercial dispute when all the other methods have failed?

Litigation

In Thailand, it is required that any milk product sold in the country by a foreign company must use the milk produced by Thai dairy farmers. Which of the following economic risks is faced by the international producers of milk products in this situation?

Local-content laws

________ 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.

Lubrication

The national language of China is standard ________, but more than 56 dialects and other languages are spoken across the country.

Mandarin

Which of the following time systems typify western cultures like most North Americans, Swiss, Germans, and Scandinavians and causes them to concentrate on one thing at a time?

Monochronic time

With which of the following would the phrase "Buy American" be most closely associated?

Nationalism

________ is an intense feeling of state pride and unity, an awakening of a country's people to pride in their country.

Nationalism

Which of the following statements is true of education and the literacy rate of a country?

Numerous studies indicate a direct link between the literacy rate of a country and its capability for rapid economic growth.

Which of the following is a common term for a form of government in use today?

Oligarchy

When does an expropriated investment become a government-run entity?

On nationalization

Which of the following political actions is most likely to favor international marketing?

Paraguay imposing low tariffs and tax rates on manufacturing industries

People in Brazil describe themselves as late arrivers, allow greater flexibility in defining early and late, are less concerned about being late, and are more likely to blame external factors for their delay. Which system of time do the Brazilian people most likely operate on?

Polychronic

________ is more dominant in high-context cultures, where the completion of a human transaction is emphasized more than holding to schedules.

Polychronic time

________ is the practice whereby a foreign producer intentionally sells its products in the United States for less than the cost of production to undermine the competition and take control of the market.

Predatory pricing

Randall, a protectionist, has seen several small businesses go bankrupt because they were unable to compete with the cheaper prices of goods provided by foreign companies. The cell-phone manufacturing industry has just started in the United Kingdom, and Randall's company is one of the first to try its hand at cell-phone manufacturing. Which of the following arguments is most likely to be used by Randall to persuade his government to restrict the import of foreign cell phones from foreign companies?

Protection of an infant industry

Which of the following instances is most likely a manifestation of nationalism?

Restrictions on imports

Which of the following key provisions of NAFTA restricts Japan from assembling autos in Mexico and avoiding U.S. or Canadian tariffs and quotas, unless the auto had a specific percentage of Mexican (i.e., North American) content?

Rules of origin

Islamic law is also known as the ________.

Shari'ah

Which of the following is a way individuals learn culture from social institutions?

Socialization

________ has the potential to become the newest big emerging market (BEM), but its development will depend on government action and external investment by other governments and multinational firms.

South Africa

Which of the following is one of the nations referred to as the Four Asian Tigers?

South Korea

Which of the following falls on the minus side of the U.S. balance of payments?

Spending by American tourists overseas

Which of the following is the top political issue concerning foreign businesses?

Stability of prevailing government policies

Tall Pine Plywood Company has just received a notice that a shipment of plywood (2 metric tons) has been rejected by the customs administration of the recipient country because the knotholes commonly found on a plywood sheet are too large. Which of the following categories of nontariff barriers primarily uses such quality issues as a trade barrier?

Standards

________ generally involves giving large sums of money-frequently not properly accounted for-designed to entice an official to commit an illegal act on behalf of the one offering the bribe.

Subornation

Which of the following statements is true about the Internet?

The Internet enables smaller firms in emerging economies to sell into a global market.

________ in India is a social institution that influences the roles and status positions found within Indian society.

The caste system

Which of the following is the primary reason behind the inaccessibility of most of the 1.3 billion potential consumers in China?

The distribution network is poor or absent.

Which of the following is a defining characteristic of a voluntary export restraint (VER)?

The exporting country sets the limits on the quantity it will export.

Which of the following statements is true of the balance-of-payments records?

The fact that assets and liabilities balanced in a balance-of-payments statement does not mean that a nation is in a particularly good financial condition.

Ralph Waite, a marketing manager at a video game console manufacturing firm, is asked to review the marketing opportunities of his company in a foreign market. He is aware that he can modify certain elements of the marketing environment to suit the foreign market needs. He focuses his attention on the uncontrollable factors that might affect their business prospects. Which of the following uncontrollable elements is most likely to affect the company's business prospects in the foreign market?

The level of technology in the targeted market

A manager hires an agent to obtain a license to build a warehouse in an industrial district. The agent gets caught offering a bribe to a government official for issue of the license. Which of the following describes the manager's liabilities?

The manager is liable if he was aware of the fact that part of the agent's fee will be used as a bribe.

Which of the following is the most dynamic trend that is affecting current global business strategies?

The trend toward the acceptance of the free market system among developing countries

Which of the following is true of the marketing opportunities in Greater China?

There are extreme differences in economic well-being, cultures, and political structures.

Which of the following statements is true about MDCs (more-developed countries)?

These countries have high per capita incomes.

Why do terrorism experts predict multinational businesses will be targeted by terrorists more frequently?

They are less well defended than government targets.

Which of the following is a characteristic of cultures with high Uncertainty Avoidance Index (UAI)?

They seek absolute truth.

Cultures with high ________ scores tend to have a high level of anxiety and stress and a concern with security and rule following.

Uncertainty Avoidance Index

France is higher on Hofstede's Power Distance Index (PDI) than the United States and formality still reigns in France. Which of the following American business practices would be most unacceptable to the French?

Using first names in business encounters

In the context of monetary barriers, blockage is ideally accomplished when:

a country refuses to allow an importer to exchange its national currency for the country's currency.

Similarity of cultures can make or break an economic union. Although there is great cultural diversity in the European Union, key members share ________ and are commonly aware of being European.

a long-established Christian heritage

One of the first factors that gave the European Union an edge over others in the process of becoming a common market was:

a well-developed transportation network.

China's astonishing growth rate has begun to slow recently; however, most analysts see fast growth continuing for China. All of this growth is primarily dependent on China's:

ability to deregulate industry.

Mervin is excited about his new home in the Philippines. Though a native of Los Angeles, he has been given the opportunity to learn about a new culture, form new friendships, and capitalize on opportunities that were not available in his previous home or workplace. In this scenario, he is most likely to go through what is known as ________ as he adjusts to living in the Philippines.

acculturation

The process of adjusting to a new culture is known as:

acculturation

The Uncertainty Avoidance Index measures the tolerance of uncertainty and ________ among members of a society.

ambiguity

Code law is based upon ________.

an all-inclusive system of written rules of law

The Commonwealth of Independent States is:

an economic and political alliance with open borders and no central government.

The first objective of ________ is to protect American consumers by ensuring that they benefit from products and ideas produced by foreign competitors as well as by domestic competitors.

antitrust laws

Most newly industrialized countries (NICs) have moved away from restrictive trade practices and instituted significant free market reforms. As a result, these countries have:

attracted both trade and foreign direct investment.

On the basis of Hofstede's four dimensions, cultures with high Power Distance Index (PDI) scores tend to:

be hierarchical.

Markets that are geographically large, have strong growth rates, are regional economic drivers, and represent sizable markets for a wide range of products are known as ________.

big emerging markets

The marketing manager for Grand Products wants to export the company's range of beer products to a Gulf country. However, he discovers that there is a complete restriction on the import of any form of liquor into that country. This is an accurate example of a(n) ________.

boycott

Stopping or refusing to trade with another nation for political reasons is called:

boycotting

Academic studies of the causes and consequences of bribery, conducted by Transparency International (TI), indicate corruption is greater in:

collectivistic nations.

The basis for ________ is tradition, past practices, and legal precedents set by the courts through interpretations of statutes, legal legislation, and past rulings.

common law

A ________ agreement eliminates all tariffs and other restrictions on internal trade, adopts a set of common external tariffs, and removes all restrictions on the free flow of capital and labor among member nations.

common market

A ________ has reduced or eliminated internal tariffs and adds a common external tariff on products imported from countries outside the group.

customs union

Monarchy, like ________, is a form of government ruled by one.

dictatorship

The level of market development roughly parallels the stages of ________.

economic development

One country refuses to sell goods to its neighboring country based on the belief that the neighboring country harbors radicals and terrorists. In this case, the refusal is most accurately referred to as a(n):

embargo

Nations with complementary economic bases are least likely to:

encounter frictions in the development and operation of a common market unit.

Betty Roberts became an embarrassment to her company when she joked about the ruling monarchy in England in front of a group of visiting English businesspeople. She should have known that political ridicule by a foreigner is rarely accepted. Ms. Roberts has violated what is known as a cultural ________.

exclusive

Business customs in which an outsider must not participate are called ________.

exclusives

When a government seizes an investment of a foreign investor but some reimbursement for the assets is made, the government follows a process called:

expropriation

The finance minister of a developing country demands a heavy payment for the approval of a multi-million dollar contract with a foreign company. This demand for the lump sum payment is called ________.

extortion

More household money goes for ________ in emerging markets than in developed markets.

food

A ________ is an agreement between two or more countries to reduce or eliminate customs duties and nontariff trade barriers among partner countries while members maintain individual tariff schedules for external countries.

free trade area

Newly industrialized countries (NICs) differ from less-developed countries in that NICs:

have moved away from restrictive trade practices and instituted significant free market reforms.

Wayne works at an overseas branch of his organization. He needs some clarification about a project. He approaches a senior manager hoping to get a good explanation. However, he is instructed to follow protocol and sent away. He is also informed that only the team leaders are allowed to approach the senior managers. In this scenario, the organization is most likely to have a ________ score.

high Power Distance Index

Simon Peters, a senior manager at Celise Export Logistics, goes to France to negotiate a deal with the company's French partners. He dresses casually in a t-shirt and jeans. His French counterparts call off the meeting and accuse him of taking a casual attitude toward negotiations. In this scenario, dressing formally during business meetings is probably a cultural ________ for the French.

imperative

Business customs can be grouped into:

imperatives, electives, and exclusives.

The Islamic law prohibits the payment of ________.

interest

Juliet is concerned with the potential for political harassment when her company enters a new international market. To reduce the risk of political harassment, she is most likely to consider using ________ to enter the market.

joint ventures

According to the United Nations' stages of economic development for classifying countries with respect to levels of industrialization, a country that is industrially underdeveloped, agrarian, has subsistence society with rural populations, and has extremely low per capital income levels falls under the category of ________.

least-developed countries

In general, tariffs restrict:

manufacturers' supply sources.

Chile, Brazil, Mexico, South Korea, Singapore, and Taiwan are examples of ________ countries.

newly industrialized

Jefferson's, a firm that specializes in dog food and grooming products, has a very well-established domestic market. The company does not actively sell its products outside national borders but provides goods to customers who contact them directly or place orders with them through the Internet. Jefferson's is currently in the ________ stage of international marketing involvement.

no direct foreign marketing

The most effective long-range solution to a situation where a foreign government is demanding local participation in a multinational corporation's business activities in the host country is:

planned domestication.

Taxes must be classified as a(n) ________ risk when used as a means of controlling foreign investments.

political

Brian is attempting to forecast political instability and help his company's management identify and evaluate political events and their potential influence on current and future international business decisions. Brian is engaged in:

political risk assessment.

In North Korea, foreign investors or producers are required to sell products at prices stated by the North Korean government rather than letting market value and demand determine the prices. This implies that there is severe application of ________.

price controls

Amy Sims has been assigned the task of preparing a marketing plan for her company for the upcoming year's business activities. She knows that she should begin her plan by examining the variables that she has some control over. These controllable variables would include price, product, channels-of-distribution, and ________.

promotion

A specific unit or dollar limit applied to a particular type of good is called a(n):

quota

The most basic economic integration and cooperation is the:

regional cooperation for development (RCD).

In code-law countries, the ownership of intellectual property is determined by ________.

registration

A culture that is high context, has collectivism, has a high power distance, and uses polychronic time is ________.

relationship-oriented

In most cultures, the first social institution infants are exposed to outside the home is in the form of a:

religious institution.

When confronted with a set of facts, one reacts spontaneously on the basis of knowledge assimilated over a lifetime-knowledge that is a product of the history of one's culture. One seldom stops to think about a reaction; one simply reacts. Thus, when faced with a problem in another culture, one's tendency is to react instinctively and refer to one's ________ for a solution.

self-reference criterion

Family, religion, school, the media, government, and corporations are all examples of:

social institutions.

Mike grew up learning a great deal about his culture from his school, the church, the media, and his family. This kind of learning of culture is called:

socialization.

The marketing tasks of an international marketer differs from that of a domestic marketer as the:

structure of distribution is an uncontrollable element for the international marketer.

A tax imposed by a government on goods entering at its borders is most accurately termed as a(n) ________.

tariff

When compared to people operating on P-time, people operating on M-time:

tend to concentrate on one thing at a time.

Under common law, the ownership of intellectual property is established by ________.

use