INTERNATIONAL MARKETING MIDTERM MK416

With respect to the environment in which a business operates, factors such as competition, political and legal forces, economic climate, would all be classified as: demographic elements. controllable elements. cultural elements. predictable elements. uncontrollable elements.

uncontrollable elements.

Which philosophy of U.S. management recognizes that people influence the future to a large extent and that they control their own fates? Competition produces efficiency. Never-ending quest for improvement. Independent enterprise as the instrument of social action. "Master of destiny" viewpoint. Wide sharing in decision making.

"Master of destiny" viewpoint

The most useful information on how cultural values influence various types of business and market behavior comes from work done by: Geert Hofstede. Milton Friedman. Ayn Rand. George Gallup. Sigmund Freud.

Geert Hofstede.

In _____ decision making, participation by middle management tends to be deemphasized. decentralized non-hierarchical democratic decentralized committee top-level management

top-level management

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, Mr. 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 Mr. Jonas devises his plan? Cultural forces Political/legal forces Economic forces Competitive forces Geography and infrastructure

Geography and infrastructure

With respect to political risk that can be faced by a company seeking to invest abroad, which of the following is most severe? Exchange controls Confiscation Expropriation Domestication Local-content laws

Confiscation

Which of the following countries is more likely to exhibit higher levels of bribery? Individualistic cultures. Nations with a communist past. Countries with low-power distance. High-income nations. Countries with a strong dependence on international trade.

Nations with a communist past.

Which of the following aspects of communication is more important in a low-context culture? Face-to-face communication Nonverbal communication Contextual communication Explicit communication Implicit communication

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 Larceny Lubrication Bribery Subornation

Extortion

Which of the following is true regarding the stages of international marketing involvement? A firm begins its international involvement at the second stage. The international marketing stage represents the highest level of international involvement. A firm may be in more than one stage simultaneously. The final stage of the process is involves no direct foreign marketing. A firm essentially progresses through the stages in a linear order.

A firm may be in more than one stage simultaneously.

_____ is the conscious effort on the part of the international marketer to anticipate the influences of both the foreign and domestic uncontrollable factors on a marketing mix and then to adjust the marketing mix to minimize the effects. Segmentation Projection Adaptation Standardization Segregation

Adaptation

Which of the following is the most popular way to circumvent WTO guidelines and impose new duties? Boycotts Embargoes Antidumping duties Voluntary export restraints Orderly market agreements

Antidumping duties

_____ is a new nontariff barrier that was designed to prevent foreign producers from using predatory pricing. Embargo Antidumping law Import license License Quota

Antidumping law

Which of the following is the most critical difference between domestic marketing and international marketing? A. The basic processes used to market products and services. B. The environment in which marketing plans must be implemented. C. The change in marketing goals. D. The difference in marketing principles being followed. E. The different concepts of marketing.

B. The environment in which marketing plans must be implemented.

In the late 1990s, most of the countries of the world saw a slow down in the unprecedented and precipitous growth of their economies. However, _____ remained unaffected by this trend. the United States Germany France Japan China

China

Which is the comprehensive free trade agreement among Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States that includes a wide array of tariff reductions aimed at increasing trade and employment? DR-CAFTA CFTA Jamaica NAFTA Mercosur

DR-CAFTA

Which of the following is a dynamic trend that is affecting the current global business strategies? A. The trend toward using English as the global language. B. The trend toward establishing a world currency. C. The trend toward buying American cars in Europe. D. The trend toward worldwide instant communication. E. The trend toward the acceptance of the free market system among developing countries.

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

Which of the following strategies to minimize political vulnerability and risk has the advantage of engaging the power of several investors and banks in the host country whenever any kind of government takeover or harassment is threatened? Sole-proprietorship Licensing Political bargaining Joint ventures Expanding the investment base

Expanding the investment base

Which of the following countries is a part of the free trade area known as CFTA? France Brazil Uruguay Argentina The United States

The United States

Which of the following is true with respect to Professor Jared Diamond's ideas regarding the influence of geography on history and cultural values? Civilizations near major rivers are more developed than those settled near major oceans. Historically, innovations spread faster east to west than north to south. Historically, invasions from warrior tribes have always happened from the west to the east. People in the plains are more likely to invade than those settled in higher altitudes. Historically, societies in the north are more developed than those in the south

Historically, innovations spread faster east to west than north to south.

In the context cultural values, the _____ Index refers to the preference for behavior that promotes one's self-interest. Power Distance Masculinity/Femininity Individualism/Collectivism Uncertainty Avoidance Linguistic

Individualism/Collectivism

Which of the following is true of ethnocentrism? Self-reference criterion is universally considered the technique to reduce or eliminate ethnocentrism. It is the cultural binding force among a diverse employee population in an organization. American managers have generally been uninfluenced by it, especially in the beginning of the 21st century. It is a problem that arises when managers from affluent countries work with managers and markets in less affluent countries. It is the cornerstone of effective adaptation in the field of international marketing.

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

Which of the following actions is important for foreign marketers in order to be effective in a foreign market? Creating product differentiation by being indifferent to the culture of the foreign market. Ensuring that the promotions for the product are indifferent to social beliefs. Adhering to the prominent prejudices in the foreign society. Making the product relate to the most prominent religion in the foreign culture. Learning to appreciate the intricacies of cultures different from their own.

Learning to appreciate the intricacies of cultures different from their own.

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. taken measures to protect their cultures and traditions. reduced population pressures through labor outsourcing. overcome environmental damages caused by lack of development. obtained significant amount of loans from World Bank.

Look this one up

_____ is a free trade group formed by Argentina, Brazil, Paraguay, and Uruguay. DR-CAFTA Caricom Mercosur SACU NAFTA

Mercosur

Which of the following countries is considered as a BEM (big emerging market)? Egypt Mexico Australia Venezuela Germany

Mexico

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

No, I did not like the food.

Which of the following statements is true of political sanctions? The United Nations encourages boycotts as a means of settling disputes. Political sanctions are least effective against consumer goods. Political sanctions are generally not very successful. Political sanctions normally control and rectify situations within a nation. Political sanctions are illegal.

Political sanctions are generally not very successful.

Which of the following elements in the marketing environment poses a challenge to both domestic and international marketers due to its uncontrollable nature? Channels of distribution Research activities Promotion Price Political/legal forces

Political/legal forces

Randall Smithe-Jones believes that protectionism is the only way to save the United Kingdom from outside competitors. He has seen small businesses go bankrupt because cheaper foreign goods have been more popular. The cell-phone manufacturing industry has just started in U.K and Smithe-Jones' company is one of the first to try its hand at cell-phone manufacturing. Which of the following would probably be the argument that Smithe-Jones would use to persuade his government representatives that protectionism is still needed in the U.K.? National defense. The need to keep money at home. Conservation of natural resources. Maintenance of standard of living. Protection of an infant industry.

Protection of an infant industry.

Which of the following is an instance of how nationalism can be manifested? Focus on global security. Call to buy a global counterpart's products. Membership in bilateral trade treaties. Removal of tariffs and quotas. Restrictions on imports.

Restrictions on imports.

Which key provision 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? Services Rules of origin Intellectual property Standards Government procurement

Rules of origin

Tall Pine Plywood Company has just received a notice that a shipment of plywood (2 metric tons) has been rejected by Japanese customs because the knotholes commonly found on a plywood sheet are too large. Which of the following categories of nontariff barriers primarily checks such quality issues? Standards Licenses Boycotts Quotas Embargoes

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. Lubrication Extortion Subornation Agent charges Ransom

Subornation

A manager hires an agent to obtain a license to build a warehouse in an industrial district. The agent was 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 not liable if the agent can prove that extortion, rather than bribery, took place. The manager is liable if he was aware of the fact that part of the agent's fee would be used as a bribe. The manager is liable only if the act of building the warehouse at the given location is illegal. The manager is not liable since the use of an agent absolves him of any responsibility. The manager is liable since the agent used part of his fees for bribery, although the manager was unaware of the agent's intentions.

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

In terms of political risk, which of the following poses the greatest threat to international marketers? Exchange rate fluctuations affecting margins. The possibility of the government actually failing. Newer environmental regulations approved by global trade bodies. Change of economic policies. Membership or withdrawal of membership of the government in trade blocs.

The possibility of the government actually failing.

Which of the following is a political cause of instability in international markets? Activism Differences in economic philosophies Varied taxing conventions Trade disputes Global focus

Trade disputes

Which organization conducts an international survey of businesspeople, political analysts, and the general public on corruption and compiles the Corruption Perception Index (CPI)? Organization of American States (OAS). United Nations Convention against Corruption (UNCAC). World Trade Organization (WTO). Transparency International (TI). Organization for Economic Cooperation and Development (OECD).

Transparency International (TI).

Cultures with high _____ scores tend to have a high level of anxiety and stress and a concern with security and rule following. Power Distance Index Uncertainty Avoidance Index Distance from English Index Masculinity/Femininity Index Individualism/Collectivism Index

Uncertainty Avoidance Index

Which of the following is true of adaptation in international marketing? Adaptation requires business executives to forsake their ways and change to local customs. Mere tolerance of alien cultures is sufficient in international marketing. Empathy for foreign cultures may lead to cultural discord. Willingness to adapt is a crucial attitude in international marketing. Open tolerance is considered to be an unnecessary concession to foreign cultures.

Willingness to adapt is a crucial attitude in international marketing.

The ideal political climate for a multinational firm is: a government where absolute power is a reality. an authoritarian government that can be dealt with through non-legal channels. a country where international laws do not apply. a country where favors can be purchased cheaply. a country with a stable and friendly government.

a country with a stable and friendly government.

The process of adjusting to a new culture is known as: culture transfer. acculturation. transference. diffusion. assimilation.

acculturation.

Feng shui is a Chinese ____, considered to be the process that links humans and the universe to ch'i, the energy that sustains life and flows through our bodies and surroundings, in and around our homes and workplaces. belief myth ritual illusion symbol

belief

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 _____. captive markets niche markets two-sided markets contestable markets big emerging markets

big emerging markets

Stopping or refusing to trade with another nation for political reasons is called: expropriation. monopolizing. democratization. boycotting. confiscation.

boycotting

The _____ of the balance-of-payments statement is most likely to record all merchandise exports, imports, and services plus unilateral transfers of funds. reserves account current account receivables account capital account credit account

current account

The level of market development roughly parallels the stages of _____. economic equilibrium economic development economic repression economic duress economic sustainability

economic development

When the United States refuses to sell goods to Iran because of the perception that the country harbors radicals and terrorists, the refusal is most accurately referred to as a(n): embargo. antidumping penalty. voluntary export restraint. tariff. orderly market agreement.

embargo.

Dynamic economies differ from static economies in that dynamic economies: have rapidly changing consumption patterns. do not require the marketer to be prepared for economic shifts and emerging markets. have rigid consumption patterns. need not match marketing efforts with the market needs and wants. define marketing as typically nothing more than a supply effort.

have rapidly changing consumption patterns.

On the basis of Hofstede's four dimensions, cultures with high Power Distance Index (PDI) scores tend to be: Mexico hierarchical. flat in organization. fragmented. secular.

hierarchical

Wayne is working at the overseas branch of his organization. He needs some clarification about a project. He approaches a senior manager thinking he would get a good explanation. However, he is instructed to follow protocol and sent away. Also, he is informed that only team leads are allowed to approach senior managers. This implies that the organization has a ______ score. high Power Distance Index high Uncertainty Avoidance Index high Individualism/Collective Index low Power Distance Index low Individualism/Collective Index

high Power Distance Index

The fundamental difference between quotas and import licenses is that: for quotas the exporting country sets the limits but licenses are issued by the importing country. unlike licenses, quotas limit quantities on a case-by-case basis. import licenses have greater flexibility than quotas. quotas impose specific limitations on trade and import licenses take care of standards. quotas are imposed on export goods and import licenses are imposed on import goods.

import licenses have greater flexibility than quotas.

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 will consider using _____ to enter the market. foreign technology joint ventures sole-proprietorships a smaller investment base externally produced products

joint ventures

Adherence to the WTO means: more avenues for outsourcing. loss of national security to a large extent. procurement of economies of scale. limited scope for foreign direct investments. loss of some degree of national sovereignty.

loss of some degree of national sovereignty.

A specific unit or dollar limit applied to a particular type of good is called a(n): predatory price. trade license. exchange rate. asterisk bill. quota.

quota.

All of the following are traits of big emerging markets (BEMs) EXCEPT: they have significant populations. they are all physically large. they are of major political importance within their regions. they are regional economic drivers. they import less than smaller markets.

they import less than smaller markets.

In the United States, unrelated individuals keep a certain physical distance between themselves and others when talking or in groups. Americans do not consciously think about that distance; they just know what feels right without thinking. Someone from another culture would not necessarily understand this and would apply their rules for contact when speaking. The preceding is an illustration of what is called applying a _____ when reviewing the mentioned social custom of contact. self-space principle integration criterion segregation principle space command criterion self-reference criterion

self-reference criterion

The primary obstacles to success in international marketing are a person's _____ and an associated ethnocentrism. effort at adaptation effort at integration regionalism holism self-reference criterion

self-reference criterion

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

socialization.

A tax imposed by a government on goods entering at its borders is most accurately termed as a(n) _____. boycott writ asterisk bill tariff quota

tariff