MGT468 EXAM 1

Which of the following is consistent with the American view of the independent enterprise? A) A corporation is an entity that has rules and continuity of existence. B) The largest proportion of a corporation's profits must go to the personal funds of the stakeholders. C) A corporation should fall under the control of the state government. D) A corporation's employees must be selected on the basis of seniority and not merit. E) Personal relationships are more important in daily life than work and the company

A) A corporation is an entity that has rules and continuity of existence.

Which of the following is a controllable element for an international marketer? A) Channels of distribution B) Level of technology C) Competitive forces D) Geography and infrastructure E) Cultural forces

A) Channels of distribution

Which of the following is considered to be the most important deterrent to population control? A) Cultural attitudes that favor large families B) Lack of awareness about population trends C) Financial benefits of having large families D) Government welfare schemes for orphans E) Poor enforcement mechanism

A) Cultural attitudes that favor large families

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? A) Cultures with a high Power Distance Index score B) Cultures with a low Individualism/Collective Index score C) Cultures with a high Individualism/Collective Index score D) Cultures with a low Power Distance Index score E) Cultures with a high Uncertainty Avoidance Index score

A) Cultures with a high Power Distance Index score

7) 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? A) Global marketing B) Infrequent foreign marketing C) No direct foreign marketing D) Test marketing E) Internal marketing

A) Global marketing

According to Edward Hall's comments on culture, which of the following could hurt companies and careers in foreign markets? A) Ignorance of cultural differences in the foreign market B) Adherence to the social norms of the foreign market C) Consideration of the economic system of the new market D) Being agents of change in the new market E) Strict following of the political rules of the foreign society

A) Ignorance of cultural differences in the foreign market

To overcome the problems of inadequate monetary reserves and unstable currencies that plagued international trading before World War II, the ________ was formed. A) International Monetary Fund B) United Nations Development Program C) European Union D) World Trade Organization E) Federation of International Trade Associations

A) International Monetary Fund

Which of the following is true of the industrialized world's population? A) It is in decline and rapidly aging. B) It is increasing at an unprecedented pace. C) It has remained constant for a long time. D) It mainly consists of young adults. E) It is similar to the population of developing countries.

A) It is in decline and rapidly aging.

Which of the following countries is considered to be the world's most efficient user of energy? A) Japan B) Canada C) India D) China E) Vietnam

A) Japan

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

A) Learning to appreciate the intricacies of cultures different from their own

________ involves a relatively small sum of cash, a gift, or a service that is intended to facilitateor expedite the normal, lawful performance of a duty by an official. A) Lubrication B) Extortion C) Exaction D) Shakedown E) Ransom

A) Lubrication

________ is an unconscious reference to one's own cultural values, experiences, and knowledge asa basis for decisions. A) Self-reference criterion B) Xenocentrism C) Orientalism D) Segregation E) Holism

A) Self-reference criterion

Which of the following falls on the minus side of the U.S. balance of payments? A) Spending by American tourists overseas B) Payments to the United States for insurance C) New foreign investments in the United States D) Return on capital invested abroad E) Payments of dividends and interest on investments abroad

A) Spending by American tourists overseas

Which of the following is the most dynamic trend that is affecting current global business strategies? A) The trend toward the acceptance of the free market system among developing countries B) The trend toward providing aid to developing and less developed nations C) The trend toward buying American cars in Europe D) The trend toward establishing a world currency E) The trend toward using English as the global language

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

An exchange permit can stipulate the: A) amount to be exchanged that must be deposited in a local bank for a set period. B) number of times one party can avail exchange permits. C) number of parties that can be involved in an exchange transaction. D) quantity of goods that can be exchanged for a particular sum of foreign currency. E) quality standards of the goods involved in an exchange

A) amount to be exchanged that must be deposited in a local bank for a set period.

Exporting countries primarily agree to voluntary export restraints (VERs) to: A) avoid stiffer quotas being set by the importing country. B) minimize exposure in the importing country. C) avoid criminal prosecution. D) reduce market competitiveness. E) take over local industries of the importing country

A) avoid stiffer quotas being set by the importing country.

For an international marketer, the ________ can be altered in the long run and, usually, in the short run to adjust to changing market conditions, consumer tastes, or corporate objectives. A) controllable elements B) structure of distribution C) economic climate D) environmental factors E) competitive structure

A) controllable elements

In the context of stages of international marketing involvement, a company's products reaches a foreign market without any conscious effort on the part of a marketer during the ________. A) no direct foreign marketing stage B) global marketing stage C) infrequent foreign marketing stage D) international marketing stage E) regular foreign marketing stage

A) no direct foreign marketing stage

The strategy of ________ deliberately sets out to alter those aspects of the culture offering resistance to predetermined marketing goals. A) planned change B) cultural congruence C) guerilla marketing D) differentiated marketing E) top-down change

A) planned change

A culture that is high context, has collectivism, has a high power distance, and uses polychronictime is ________. A) relationship-oriented B) power-oriented C) information-oriented D) kinship-oriented E) self-oriented

A) relationship-oriented

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: A) socialization. B) emancipation. C) classification. D) acculturation. E) naturalization

A) socialization

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

A) uncontrollable elements.

Which of the following trading partners of the United States became its number one "tradeproblem" at the beginning of the 21st century? A) Canada B) China C) United Kingdom D) Germany E) Japan

B) China

In 1066, William the Conqueror defeated Harold II in the Battle of Hastings, establishing Normanrule in ________. A) France B) England C) Japan D) Brazil E) China

B) England

Which of the following is closely related to the self-reference criterion? A) Pluralism B) Ethnocentrism C) Multiculturalism D) Differentiation E) Marketing myopia

B) Ethnocentrism

In some parts of the world, language is itself thought of as a social institution, often with political importance. Which of the following countries best exemplifies the above statement? A) Mexico B) France C) United States D) Australia E) Switzerland

B) France

Which of the following sources of energy provides the preponderance of energy in much of the underdeveloped world? A) Wind energy B) Human labor C) Geothermal power D) Nuclear power E) Fossil fuel

B) Human labor

In the context of cultural values, the ________ Index refers to the preference for behavior that promotes one's self-interest. A) Power Distance B) Individualism/Collectivism C) Uncertainty Avoidance D) Linguistic E) Masculinity/Femininity

B) Individualism/Collectivism

Countries like ________ and the U.S. epitomize the problems caused by an increasing percentage of elderly people who must be supported by a declining number of skilled workers. A) Egypt B) Japan C) China D) Brazil E) Chile

B) Japan

Rick, a customer relations manager with a leading multinational firm, manages various operations and deals with numerous domestic and international clients every day. Despite his hectic schedule,Rick never cuts a meeting short with anyone and frequently postpones subsequent meetings in order to devote ample time to each of his clients. Which of the following countries is Rick most likely to be from?A) The United States B) Japan C) France D) Switzerland E) Germany

B) Japan

Which of the following is true of the business community's view about payoffs? A) Payoffs are not acceptable means even if it is for business profitability and necessity. B) Many global competitors perceive payoffs as a necessary means to accomplish business goals. C) The decision to pay a bribe indicated that the business house had large monetary resources at its disposal. D) Payoffs are restricted to the multinational companies headquartered in the United States. E) During the 1970s, the United States had strict laws against paying bribes in foreign countries

B) Many global competitors perceive payoffs as a necessary means to accomplish business goals.

Which of the following is an area that is considered critical in improving U.S. trade in the context of the Omnibus Trade and Competitiveness Act? A) Sustainability in trade B) Market access C) Quality standards D) Exchange stability E) Trade volume

B) Market access

After World War II, the United States set out to infuse the ideal of capitalism throughout as much of the world as possible. The ________, aimed at assisting in rebuilding Europe, is the plan most closely associated with this endeavor. A) Eisenhower Plan B) Marshall Plan C) Kennedy Plan D) Roosevelt Plan E) Bradley Plan

B) Marshall Plan

Abstention of the United States from European political affairs was one of the three basic dicta of the ________. A) Roosevelt Corollary B) Monroe Doctrine C) Grant Mandate D) North American Security Treaty E) Hays Corollary

B) Monroe Doctrine

17) Fredrick Keeble, an American manager, took his Swiss client out for a traditional American dinner.The client did not seem to eat much. 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? A) Yes, unfortunately I was not very hungry. B) No, I did not like the food. C) Yes, it was lovely, thanks. D) No, dinner was good but I have an upset tummy. E) Yes, but it was a little too oily

B) No, I did not like the food.

Which of the following events caused the Chinese to cede Hong Kong to the British? A) The Satsuma Rebellion B) The First Opium War C) The Tianjing Rebellion D) The Taiping War E) The Hong Kong Revolution

B) The First Opium War

Which of the following policies was used in the formation of a provisional government in Cuba in1906? A) The Hay Manifesto B) The Roosevelt Corollary C) The Gadsden Policy Position D) The Wilson Mandate E) The Manifest Destiny

B) The Roosevelt Corollary

________ in India is a social institution that influences the roles and status positions found withinIndian society. A) The Taj Mahal B) The caste system C) The Ku Klux Klan D) A single-person household E) A country club

B) The caste system

Which of the following is true with respect to the dynamics of global population trends? A) The global financial crisis has caused migration from rural to urban areas within countries. B) The existence of sheer numbers of people is significant in appraising potential consumermarkets. C) The demand for goods worldwide may have no effect on migration patterns. D) Changes in the distribution of population among the world's countries may fail to influencedemand. E) Economic growth forecasts and assumptions about fertility rates are independent of eachother.

B) The existence of sheer numbers of people is significant in appraising potential consumermarkets.

Which of the following is the major reason behind the failure of American MNCs to completely dominate the European markets as predicted by Servan-Schreiber? A) The elimination of import taxes in the European countries B) The resurgence of competition for U.S. businesses from all over the world C) The dissolution of colonial powers D) The decadence of communism E) The restructuring of U.S industries

B) The resurgence of competition for U.S. businesses from all over the world

11) The Uncertainty Avoidance Index measures the tolerance of uncertainty and ________ among members of a society. A) inequality B) ambiguity C) subjugation D) oppression E) hierarchy2

B) ambiguity

The first step in bringing about planned change in a society is to: A) create a resistance to the cultural factor hindering acceptance. B) determine which cultural factors conflict with an innovation. C) wait for eventual cultural changes that prove the value of the innovation to the culture. D) market products similar to ones already on the market. E) Introduce a product or service and simply hope for the best

B) determine which cultural factors conflict with an innovation.

In the infrequent foreign marketing stage of international marketing involvement, firms: A) have more than half their sales revenues coming from international markets. B) have no intention of maintaining continuous market representation in foreign markets. C) have a global perspective and view the entire world as one market. D) no longer make market segmentation decisions on the basis of national borders. E) sell products that are a result of planned production in markets in various countries

B) have no intention of maintaining continuous market representation in foreign markets.

The United States and other countries require some products (automobiles in particular) to contain a percentage of "local content" to gain admission to their markets. This is an example of the stringent usage of ________ to restrict trade. A) blocked currencies B) standards C) antidumping penalties D) exchange permits E) embargoes

B) standards

One of the basic elements of the General Agreement on Tariffs and Trade (GATT) is that: A) all tariffs shall be abolished among member nations at the time of membership. B) trade shall be conducted on a nondiscriminatory basis. C) member nations are exempt from import tariffs to other member nations. D) the World Court shall review all trade disputes and make final judgments. E) trade in services and investments will be excluded from the purview of the GATT.

B) trade shall be conducted on a nondiscriminatory basis.

According to Dutch management professor Geert Hofstede, culture can be referred to as the: A) "defining factor of life." B) "tool of the elite." C) "software of the mind." D) "art's triumph over banality." 'E) "conflict of civilization versus the masses."

C) "software of the mind."

Which of the following technological innovations has had a great impact on the gender-based determination of responsibilities and roles? A) Aircrafts B) Computers C) Birth control techniques D) Mobile phones E) Optogenetics

C) Birth control techniques

Which of the following ensures that balance-of-payments records are always in balance? A) Archival records system B) Bank reconciliation system C) Double-entry bookkeeping system D) Sum of squares recording system E) Multifactor recording system5

C) Double-entry bookkeeping system

________ occurs when payments are extracted under duress by someone in authority from a person seeking only what he or she is lawfully entitled to. A) Perjury B) Bribery C) Extortion D) Lubrication E) Subornation

C) Extortion

In the context of culture's pervasive impact, which of the following is true about birth rates? A) Countries that move from agricultural economies to service economies experience increased birth rates. B) A service economy usually has a higher birth rate than an industrial economy. C) Government policies and birth control technologies may have caused a decline in birth rates. D) Agricultural economies support higher birth rates than industrial economies. E) The economic status of a country has minimal impact on the birth rates in that country

C) 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? A) Contractual decision making B) Authoritarian decision making C) Group decision making D) Dictatorial decision making E) Independent decision making

C) Group decision making

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? A) Polychronic time B) Dual time C) Monochronic time D) Bimodal time E) Monotheistic time

C) Monochronic time

Ajax Corporation decides to enter the international marketing arena by marketing its products toChina, Japan, and South Korea, with separate marketing strategies for each country. Which of the following approaches is most likely used by Ajax Corporation to formulate its international policies and strategies? A) Domestic market extension B) Standardized marketing C) Multidomestic market D) Regional marketing E) Mass marketing

C) Multidomestic market

Which of the following is true regarding the impact of globalization on domestic markets in theUnited States? A) The domestic companies have reduced their manufacturing employment more than U.S.multinationals. B) Only multinational companies with large production facilities have outperformed their strictly domestic U.S. counterparts. C) Multinational manufacturing companies in all industries and sizes have outperformed their domestic counterparts. D) Multinational companies are making more profits from their domestic operations compared to their earnings from the foreign markets. E) Companies with only domestic markets have been able to sustain their customary rates of growth

C) Multinational manufacturing companies in all industries and sizes have outperformed their domestic counterparts

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 knotholescommonly found on a plywood sheet are too large. Which of the following categories of nontariffbarriers primarily uses such quality issues as a trade barrier? A) Quotas B) Licenses C) Standards D) Embargoes E) Boycotts

C) Standards

________ and the World Bank Group are two global institutions created primarily to assist nations in becoming and remaining economically viable. A) The International Red Cross B) Amnesty International C) The International Monetary Fund D) The International Federation of Blue Cross E) The World Court

C) The International Monetary Fund

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? A) The pricing policies in the domestic market B) The product distribution channels adopted by his company C) The level of technology in the targeted market D) The research methodologies used by his company E) The promotional activities required to market the product

C) The level of technology in the targeted market

Which of the following ethical principles tries to optimize the "common good" or benefits of all constituencies? A) Justice or fairness B) Secularism and philanthropy C) Utilitarian ethics D) Self-reference frame E) Rights of the parties

C) Utilitarian ethics

Which of the following institutions emerged as a successor to the GATT following the UruguayRound of GATT negotiations? A) International Monetary Fund B) Association of Southeast Asian Nations C) World Trade Organization D) European Services Forum E) World Bank

C) World Trade Organization

As businesses grow and professional management develops, there is a shift toward: A) authoritarian decision making. B) hit-or-miss decision making. C) decentralized management decision making. D) experimental decision making. E) tentative decision making.

C) decentralized management decision making.

One of the advantages of the emergence of gender equality is the ________ gap between the sexesbeing narrowed in many places around the world. A) language B) emotional C) education D) identity E) biological

C) education

The Foreign Corrupt Practices Act (FCPA) was specifically addressed in the ________ section of the Omnibus Trade and Competitiveness act. A) foreign exchange regulation B) trade deficit C) export expansion D) market access E) import relief

C) export expansion

A characteristic of committee decision making is that: A) the committees always operate on a decentralized basis. B) it is only found in small businesses. C) it is by group or consensus. D) it is rarely employed in Asian countries. E) it is based on rank and hierarchy

C) it is by group or consensus.

Family, religion, school, the media, government, and corporations are all examples of: A) demographic variables. B) aesthetics. C) social institutions. D) internal variables .E) external variables

C) social institutions.

New cola alternatives (Mecca Cola, Muslim Up, Arab Cola, and Cola Turka) sprang up after themilitary conflicts in the Middle East in 2003. This is an example that shows how: A) technology influences marketing practices. B) businesses exploit cheap human labor during war times. C) specific events in history can influence consumer behavior. D) Coca-Cola played an important role in easing the cultural divide among the warring nations. E) Coca-Cola catered to new markets through standardization

C) specific events in history can influence consumer behavior

The aesthetics of a culture must be taken into account by marketers when: A) trying to quantify the influence the media has on the culture. B) assessing if the culture is individualistic. C) styling their product and its packaging. D) assessing if the culture is collectivistic. E) determining the linguistic distance of the culture

C) styling their product and its packaging.

Cultures which are low in Uncertainty Avoidance Index are more likely to: A) accord a high level of importance to rules as a means of avoiding risk. B) seek absolute truth. C) take a more empirical approach to understanding and knowledge. D) dogmatically stick to historically tested patterns of behavior. E) be distrustful of new ideas or behaviors

C) take a more empirical approach to understanding and knowledge.

In 1561, ________ came to Europe from the Near East, via the Dutch traders, for the first time. A) roses B) carnations C) tulips D) chrysanthemums E) sunflowers

C) tulips

In the context of the Mexican-American War, the president of Mexico, the cabinet, and the diplomatic corps assemble at the Mexico City fortress every September 13 to recall the defeat that led to the ________. A) "los niños sin hogar" B) "destrucción de la propiedad" C) "soldados mutilados" D) "despojo territorial" E) "la pérdida de comercio"

D) "despojo territorial"

Which of the following would most likely be characterized as being an imperative business customin many cultures? A) Knowing to speak and write the native language B) Adhering to local food habits C) Having knowledge of the local sport D) Establishing friendships E) Conforming to the native religions

D) Establishing friendships

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? A) Infrequent foreign marketing B) Internal marketing C) No direct foreign marketing D) International marketing E) Domestic marketing

D) International marketing

Which of the following is true of culture? A) It is a set of texts considered to be sacred. B) It is the philosophical study of being and knowing. C) It is a set of written rules governing socially acceptable behavior. D) It is a society's accepted basis for responding to external and internal events. E) It is a branch of philosophy dealing with beauty and taste

D) It is a society's accepted basis for responding to external and internal events.

Which of the following will best aid a manager in understanding the way people of different countries think and act? A) Better political connections B) A sound financial background C) An understanding of foreign investment opportunities D) Knowledge of the foreign country's history E) An understanding of macroeconomics

D) Knowledge of the foreign country's history

In 1464, the French royal mail service was established by ________. A) Clovis I B) Napoleon III C) Childebert I D) Louis XI E) Childeric I

D) Louis XI

In the context of U.S. foreign policy in the 19th and the 20th centuries, ________, in its broadestinterpretation, meant that Americans were a chosen people ordained by God to create a model society. A) Roosevelt Corollary B) Grant Mandate C) Monroe Doctrine D) Manifest Destiny E) Hays Corollary

D) Manifest Destiny

Which of the following statements is true of education and the literacy rate of a country? A) Communicating in a literate market is much more difficult than communicating with one in which a marketer must depend on pictures and symbols. B) According to the World Bank, even countries with less than 50 percent literacy have been economically successful. C) Compared to governments, education has relatively little influence on culture. D) Numerous studies indicate a direct link between the literacy rate of a country and its capability for rapid economic growth. E) Increasingly, schools are seen as leading to negative cultural changes.3

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

Which of the following sources of energy has a greater emphasis in North America? A) Wood B) Animal wastes C) Natural gas D) Oil E) Coal

D) Oil

Based on Hofstede's four dimensions, in which of the following cultures is the "virtually social"activity of online chatting most likely to be acceptable? A) One in which people from birth onward are integrated into strong, cohesive groups B) One that generally subjugates the individual to the group C) One in which collectivism is adopted D) One in which individualism reigns supreme E) One that reflects a "we" mentality

D) One in which individualism reigns supreme

________ is the practice whereby a foreign producer intentionally sells its products in the UnitedStates for less than the cost of production to undermine the competition and take control of the market. A) Defensive pricing B) Basing point pricing C) Counterpoint pricing D) Predatory pricing E) Spot pricing

D) Predatory pricing

Which of the following statements is true about the status of protests against global financial institutions?A) The sole focus of the anticapitalist protestors has been the environmental impact of globalization and the need for stability. B) The entire gamut of anticapitalist protests have been weak and ineffectual in the face of the tremendous power of global financial institutions. C) Organized protests against global financial institutions have been catching the attention of the world since the establishment of the IMF in 1945. D) The "antisweatshop" campaigns by students in America have translated into changes in policy. E) The protests against global financial institutions have been organized yet nonviolent as a rule

D) The "antisweatshop" campaigns by students in America have translated into changes in policy.

Which of the following is the most important factor in determining what kind and how much of aninnovation will be accepted by a culture? A) The power or authority of the change agent B) The number of people that could be benefited C) The financial impact, immediate and long-term, of accepting the change D) The degree of interest in the particular subject E) The time required for the change to occur

D) The degree of interest in the particular subject

In the context of social responsibility and environmental management, which of the following is aby-product of pollution controls? A) Reduced availability of petroleum products B) The emission of greenhouse gases C) Higher tariffs against developing countries D) The disposal of hazardous waste E) Corporate environmental responsibility

D) The disposal of hazardous waste

Which section of the Omnibus Trade and Competitiveness Act recognizes that foreign penetration of U.S. markets can cause serious competitive pressure, loss of market share, and, occasionally, severe financial harm? A) The market access section B) The foreign exchange regulation section C) The trade deficit section D) The import relief section E) The export expansion section

D) The import relief section

Which of the following characterizes a globally aware manager? A) Accepting the cultural ways of another individual as his or her own B) Using one's home culture's values alone to market one's products in foreign countries C) Discarding one's home culture's standards to adopt the global cultural standards D) Tolerating cultural differences and allowing others to be different and equal E) Controlling any influences that the global cultural standards may have on the marketing process

D) Tolerating cultural differences and allowing others to be different and equal

Most traditional definitions of ________ center around the notion that it is the sum of the values, rituals, symbols, beliefs, and thought processes that are learned, shared by a group of people, and transmitted from generation to generation. A) demography B) population C) economy D) culture E) sensitivity

D) culture

An underpinning of all commerce is ________—knowledge of where goods and services exist and where they are needed. A) immigration B) political stability C) expropriation D) effective communications E) sustainable development

D) effective communications

Business customs can be grouped into: A) rigid, flexible, and negotiables. B) unilateral, bilateral, and multilateral. C) internals, externals, and consensual customs. D) imperatives, electives, and exclusives. E) national, foreign, and international.

D) imperatives, electives, and exclusives.

The fundamental difference between quotas and import licenses as a means of controlling imports is that: A) for quotas, the exporting country sets the limits, but licenses are issued by the importing country. B) quotas are imposed on export goods, and import licenses are imposed on import goods. C) unlike licenses, quotas limit quantities on a case-by-case basis. D) import licenses have greater flexibility over quotas. E) quotas impose specific limitations on trade, and import licenses take care of standards.4

D) import licenses have greater flexibility over quotas.

A culture that is low context, individualistic, has a low power distance, and uses monochronic time is ________. A) relationship-oriented B) a dictatorial culture C) hierarchy-oriented D) information-oriented E) an authoritarian culture

D) information-oriented

The special drawing rights (SDRs) developed by the IMF are in effect: A) floating currencies. B) virtual dollars. C) black gold. D) paper gold. E) exchange permits.

D) paper gold.

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 ________. A) competition B) level of technology C) political forces D) promotion E) economic climate

D) promotion

The Manifest Destiny specifically referred to the: A) political clout of the United States over European countries. B) network of intelligence operations across the world, especially the Communist world. C) focus on investment and infrastructure development in Asia-Pacific. D) territorial expansion of the United States from the Atlantic to the Pacific. E) "white man's burden" to develop the underdeveloped parts of the world

D) territorial expansion of the United States from the Atlantic to the Pacific

Which of the following best illustrates the political and legal issues faced by companies because of their "alien status" when they attempt to do business in foreign countries? A) A company doing moderate business in international markets because of violent history of its home country B) A company not succeeding in a foreign market because its product pricing is above the purchasing power of the local customers C) A product not being widely accepted in the foreign market because of its irrelevance to the customers D) A company utilizing an identical promotional campaign it used in the domestic country E) A company being forced by the local government to share its core competencies in order to continue doing business

E) A company being forced by the local government to share its core competencies in order to continue doing business

Which of the following is an essential requirement for already experienced as well as new firms to succeed in international markets? A) Adhering strictly to their traditional methods of production and operations B) Focusing primarily on their production to exclusively meet domestic demand C) Having beneficial relations with lobbyists of foreign markets D) Venturing into multiple markets by investing in all of them at once E) Committing themselves completely to foreign markets

E) Committing themselves completely to foreign markets

Japan was an isolated country before the arrival of ________ in 1853. A) Marco Polo B) Admiral Halsey C) Admiral Pennington D) The East India Company E) Commodore Perry

E) Commodore Perry

Which of the following is an example of a nontariff trade barrier? A) Revenue tariffs B) Compound duties C) Specific duties D) Taxes imposed by governments on goods entering at its borders E) Fees for administrative and custom entry procedures

E) Fees for administrative and custom entry procedures

In order to effectively secure foreign exchange, which of the following is most likely to be used by countries experiencing severe shortages of foreign exchange?A) Voluntary export restriction B) Monopoly C) Privatization D) Spot pricing E) Government approval

E) Government approval

Which of the following is the best and most feasible means of solving the problem of language on the Internet? A) Training employees to virally communicate in all languages used by foreign customers B) Using minimal to no language on websites instead of using graphics and diagrams to convey messages C) Using foreign language blocking software to screen international communications D) Using language translation software to translate communication in all languages E) Having country-specific websites so that everyone can communicate in their own language

E) Having country-specific websites so that everyone can communicate in their own language

Which of the following views is consistent with normative U.S. cultural concepts? A) Rewards must be based on recommendations and personal ties. B) Decision making should always be on an experimental basis. C) Strength and power of those in command takes precedence over improvement. D) Competition leads to reduction in business efficiency. E) Independent enterprise is an instrument for social action

E) Independent enterprise is an instrument for social action

Which of the following arguments regarding the need for protectionism is recognized by economists as valid? A) Encouragement of capital accumulation B) Maintenance of employment and reduction of unemployment C) Need to keep money at home D) Conservation of natural resources E) Industrialization of underdeveloped countries

E) Industrialization of underdeveloped countries

Which of the following is an uncontrollable element for an international marketer? A) Channels of distribution B) Price C) Research D) Firm characteristics E) Level of technology

E) Level of technology

Which of the following commodities helped Britain erase the tea-caused trade deficit with China during the 1800s? A) Textiles B) Betel nuts C) Diamonds D) Watches E) Opium

E) Opium

Which of the following events is one of the pivotal factors behind the wariness of the Chinese leadership toward foreign influences in general, and religious movements in particular, even today? A) The Boxer Revolution B) The Satsuma Rebellion C) The Hong Kong Revolution D) The Nanjing Rebellion E) The Taiping Rebellion

E) The Taiping Rebellion

21) Which of the following is an adverse consequence of globalization? A) Reduced variety and quality of goods and services B) Lower and more competitive oil prices C) Provision of loans from the World Bank D) Nationalization of private sector holdings E) Worker exploitation and domestic job losses

E) Worker exploitation and domestic job losses

When marketers first introduced the personal digital assistant (PDA) to the American consumers, they most likely performed the role of ________ because the cultural impact of the product became widespread. A) gatekeepers B) arbitrators C) conciliators D) agents of socialization E) agents of change

E) agents of change

In general, tariffs weaken: A) special interests' privileges. B) inflationary pressures. C) government control in economic matters. D) the number of reciprocal tariffs by other countries. E) balance-of-payments positions

E) balance-of-payments positions

According to Lester Thurow, a(n) ________ form of capitalism is practiced in Japan and Germany typified by cooperation among government, management, and labor. A) independent B) atypical C) adversarial D) individualistic E) communitarian

E) communitarian

20) The notion that ________ is crucial for efficiency, improvement, and regeneration is fundamental to Western management practices. A) procrastination B) complacency C) insolvency D) liquidation E) competition

E) competition

Linguistic distance is an important factor that helps in determining differences in values acrosscountries and the amount of trade between countries because: A) major languages have syntactical superiority over minor languages that help in brandpositioning. B) a neutral language is required to address the differences arising out of linguistic distances. C) the closer the languages the tougher the interactions. D) the more distant a language from the other, the more valuable the brand becomes in the newterritory. E) crossing wider language differences increases transaction costs

E) crossing wider language differences increases transaction costs

According to Max Weber, at least part of the standard of living in the United States today can beattributed to the: A) American black population. B) artificially low price of gasoline. C) slave-labor that formed the basis for early industry. D) Pearl harbor incident. E) hard-working Protestant ethic.

E) hard-working Protestant ethic.

With regard to resistance to change, observations indicate that those innovations most readily accepted are those that: A) propagate faith in a set of beliefs different from the existing beliefs. B) are apathetic to the existing cultural beliefs. C) offer some insight into the aesthetics of the existing culture. D) cater to the values of the predominant religion of the society. E) hold the greatest interest within the society and those that are least disruptive

E) hold the greatest interest within the society and those that are least disruptive

Companies in the regular foreign marketing stage: A) market their products in international markets only when there is an extensive demand. B) lack permanent productive capacity that is devoted for production of goods and services to be marketed in international markets. C) fail to actively seek customers in international markets. D) do not, under any circumstance, adapt their products to meet the needs of individual foreign markets. E) primarily focus their operations and production to service domestic market needs.

E) primarily focus their operations and production to service domestic market needs.

Adaptation requires business executives to forsake their ways and change to local customs.

FALSE

In the context of social responsibility and environmental management, the United States continues to be the world's top pollution-causing nation.

FALSE

Sam just ate cookies and, therefore, feels justified in refusing food offered by his Middle Eastern host. In this instance, Sam's self-reference criterion has just saved him from making a cultural blunder

FALSE

Subornation payments accompany requests for a person to do a job more rapidly or more efficiently.

FALSE

The global marketing concept views the marketplace as consisting of one primary domestic market that is complimented by several smaller regional markets

FALSE

The treatment local women receive in their own cultures is a clear indicator of how a foreign business woman will be treated

FALSE

Understanding one's own culture normally requires no additional study.

FALSE

John refuses to buy Japanese products because he sees this as a way of selling out to a nation known for its aggressive behavior. John uses a self-reference criterion to make his decision

TRUE

The availability of minerals and the ability to generate energy are the foundations of modern technology

TRUE

The notion that competition is crucial for efficiency, improvement, and regeneration is fundamental to Western management practices

TRUE

The self-reference criterion is closely related to ethnocentrism

TRUE

To understand a country's attitudes, prejudices, and fears, it is necessary to look beyond the surfaceof current events to the inner subtleties of the country's entire past for clues.

TRUE

Utilitarian ethics is the ethical principle that focuses on the optimization of the "common good."

TRUE