International Marketing Quiz 1 - Chp 04

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International companies may come under attack from home country pressure groups because of their _____.

1. For their choice of markets 2. For their methods of doing business

In the past, Iran and Venezuela have attempted to outlaw foreign brand names, requiring international marketers to establish names for their products in Persian and Spanish. These governments were interested in ___.

Cultural identity

To support the local apparel industry, the Bulgarian government pays each Bulgarian apparel company US $1 for each piece of clothing that they export. This is an example of a(n) ___.

Direct subsidy

Under socialist law

Economic power often centralized, market economies are unknown

Most U.S. companies do not do business in Cuba due to ___.

Embargoes

Common law is based on

English law in the UK. What is right and wrong in society

An American company sets up a sudsidiary in Thailand, including a production facility and marketing/sales office. In this example, the USA is a(n) ___ country.

Foreign

Coke decided to abandon its Indian operations in the late seventies because of ___.

Foreign Exchange Regulation Act of 1973

Friends of the Earth Indonesia and other non-governmental organizations complained that Mobil Oil was complicit in human rights abuses that had occurred during the construction of its pipeline in the Ache province of Indonesia. They tried to pursue the Indonesian government to end their join venture with Mobil Oil. These organizations are examples of ___ groups.

Home pressure

An American company sets up a sudsidiary in Thailand, including a production facility and marketing/sales office. In this example, Thailand is a(n) ___ country.

Host

Product Liability Laws

If a product is sold in a defective condition such that it becomes dangerous to use, then both the manufacturer and distributor are held accountable

Ecuador provides electricity to several large exporting companies in Quito, the capital city. This is an example of a(n) ___.

Indirect subsidy

In Germany, rules are strictly applied because:

Of its low HNO (human nature orientation) and power distance

In Vietnam, foreign electric component manufacturers are required by the Vietnamese government to prove that a minimum of 20 percent of components must be made with local input products. This is an example of ___.

Operating conditions

The Iraqi government limits foreign ownership of business in Iraq to 49 percent. This is an example of ___.

Ownership restriction

The Nigerian government decided to host the All-Africa Games in 2003, despite the fact that building costs for a new stadium exceeded $340 million, twice what the government planned to spend on health care for one year. This action was motivated by the Nigerian government's interest in ___.

Prestige

A major goal of the European Union government is to provide full employment and increasing standard of living for its citizens by encouraging foreign investment in the EU and promoting EU exports in foreign markets. These actions are motivated by the EU government's interest in ___.

Prosperity

Government subsidies are most likely to be given to firms that _____.

Represent free gifts that host governments dispense that the overall benefits to the economy will far exceed such grants

In Australia, foreign ownership of television stations is limited to no more than 20 percent. It is feared that if a country controlled the media, it could influence public opinion and national sovereignty. This regulation is motivated by the Australian government's interest in ___.

Self-preservation

Sovereignty is defined as _____.

Supremacy of authority or rule free from external control


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