190 part 2

In the context of international business negotiations, disagreements among foreign team members, in the form of side conversations, are often followed by concessions to the other negotiating party

T

In the context of international business negotiations, in most places in the world, collectivistic, high-context cultures do not consider personalities and substance as separate issues.

T

In the context of international business negotiations, the variation across cultures is greater when comparing linguistic aspects of language than when the verbal content of negotiations is considered.

T

In the context of motivating sales personnel, differences in languages and culture can make mutual understanding between foreign managers and sales representatives difficult.

T

In the context of motivating sales personnel, expatriate managers fear that they will lose opportunities for promotion because they will be forgotten by the home office

T

In the context of retail patterns, direct marketing works well in affluent markets as well as in markets with underdeveloped distribution systems

T

In the traditional distribution structure, independent agencies that provide facilitating functions are nonexistent or underdeveloped.

T

Japan is an exceptional place because on almost every dimension of negotiation style considered the Japanese are on or near the end of the scale

T

Local salespeople are better able to lead a company through the maze of unfamiliar distribution systems and referral networks of a foreign land

T

One of the drawbacks of satellites is also their strength, that is, their ability to span a wide geographical region covering many different cultures.

T

Only a limited number of American high-caliber sales personnel are willing to live abroad for extended periods of time as expatriates.

T

Sales promotions are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation

T

Sales promotions are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation.

T

Sales promotions constitute the major portion of the promotional effort in rural and less accessible parts of a market

T

The British, German, and American business people are found to fall in the middle of most scales for dimensions of negotiating behaviors.

T

The Export Trading Company Act allows producers of similar products to form export trading companies.

T

The behavior of channel members in the distribution process is the result of the interactions between the cultural environment and the marketing process.

T

The behavior of the business people in Taiwan is quite different from that in China and Japan but similar to that in Korea

T

The inability of a manager's spouse to adjust to a different cultural environment adversely affects the expatriate's effectiveness in a foreign assignment

T

The international marketer must rely on experience and marketing research to ascertain middleman costs because no convenient source of data on middleman costs is available.

T

The role of public relations is to create good relationships with the popular press and other media to help companies communicate messages to their publics—customers, the general public, and governmental regulators

T

To remain price competitive when the U.S. dollar is strong, export-oriented companies must find ways to offset the higher price caused by currency values.

T

Traditional channels in developing countries evolved from economies with a strong dependence on imported manufactured goods.

T

While developing an international advertisement campaign, the last step of the process is evaluating the campaign relative to the goals specified.

T

Though maturity and emotional stability are essential, the transnational manager is rarely expected to have considerable breadth of knowledge of many subjects both on and off the job

F

Using foreign-country middlemen moves the manufacturer away from the market and the company becomes less involved with problems of language, physical distribution, communications, and financing

F

When a marketing executive advertises his product in a newspaper, the newspaper acts as a feedback channel

F

With some exceptions, usually a majority of the population of less developed countries can be reached readily through the traditional mass medium of advertising.

F

In the context of international business negotiations, age and experience are known to affect the negotiation behaviors of individuals

T

Uncontrollable and unpredictable influences such as competitive activities and confusion that detract from the process of communication are called feedback.

f

The distribution channel process includes all activities, beginning with the manufacturer and ending with the retailer

F

The possibility of a parallel market occurs whenever price differences are less than the cost of transportation between two markets

F

Which of the following is the main reason for the failure of individual incentives to motivate employees in Japan? A. An emphasis on paternalism B. High corruption levels C. Practice of cultural chauvinism D. A democratic form of government E. Encouragement of individualism

A. An emphasis on paternalism

Which of the following is one of the objectives of engaging in nontask sounding? A. Determining if a client's attention is focused on business B. Obtaining negative feedback on information supplied C. Draining information from one's negotiation counterparts D. Handling objections E. Preventing loss of face

A. Determining if a client's attention is focused on business

Janet works for a media agency based in Japan. Janet is helping the integrated marketing communications (IMC) manager of Siljure, a French cosmetics company, with the design and content to be used in an upcoming promotional campaign in Japan. The IMC manager knows what to convey but wants to advertise it in a culturally relevant manner. Which step of the international communications process is Janet helping Siljure with? A. Encoding of the message B. Choosing an appropriate channel for the message C. Decoding of the message D. Providing feedback from customers E. Reducing noise from competing ad campaigns

A. Encoding of the message

_____, a practice often used by companies to maintain high retail margins to encourage retailers to maintain the exclusive-quality image of a product, can create a favorable condition for parallel importing. A. Exclusive distribution B. Speculative distribution C. Intensive distribution D. Lateral distribution E. Dual distribution

A. Exclusive distribution

Meta Garbon, a manufacturer of sports bicycles, in a bid to tap the enormous market for bicycles in China promote their cycles as premium sporting and leisure bicycles. They use various cycling legends and sports celebrities as brand ambassadors and use television, radio, and newspapers as media. Bicycles in China are used mainly by the working class for commutation, and the main users of bicycles did not relate to Meta Garbon's products, and the promotional campaign was a failure. During which of the following steps of the international communications process did Meta Garbon most likely go wrong? A. Information source selection B. Selection of message channel C. Encoding D. Decoding E. Noise cancellation

A. Information source selection

In the context of task-related exchange of information, _____ negotiators are reluctant to voice objections lest they damage the all-important personal relationships. A. Mexican B. American C. German D. British E. Israeli

A. Mexican

In the context of designing compensation systems, the program element most often determined at the global level is: A. Program Design Principles. B. Pay Mix. C. Job Grades. D. Formula Mechanics. E. Performance Measures.

A. Program Design Principles.

The Webb-Pomerene Act of 1918 made it possible for American business firms to join forces in export activities without being subject to the _____. A. Sherman Antitrust Act B. Federal Communications Act C. Trade Commission Act D. Food, Drug, and Cosmetics Act E. Robinson-Patman Act

A. Sherman Antitrust Act

Which of the following is most likely to be true of a company that views prices as an active instrument of accomplishing marketing objectives? A. The company sets prices to achieve specific objectives. B. The company follows market prices to achieve specific objectives. C. The company exports only excess inventory. D. The company views its export sales as an insignificant source of revenue. E. The company places a low priority on foreign business.

A. The company sets prices to achieve specific objectives.

Which of the following is the reason why global retailers like IKEA, Costco, Sears Roebuck, and Walmart are becoming major domestic middlemen for international markets? A. They maintain their core marketing approaches while localizing the array of products, promotions, and other peripheral aspects of their operations. B. They work under the names of the manufacturers and function as low-cost, independent marketing departments with direct responsibility to the parent firms. C. They have minimum investment costs as they do not commit to investing in company personnel. D. They serve as the producer's export department but have a short-term relationship, cover only one or two markets, and operate on a straight commission basis. E. They offer reduction of export costs, demand expansion through promotion, trade barrier reduction, and improvement of trade terms through bilateral bargaining.

A. They maintain their core marketing approaches while localizing the array of products, promotions, and other peripheral aspects of their operations.

Due to differences in culture in different markets, standardized products that are marketed globally will most likely require: A. a different advertising appeal. B. a different primary function. C. consistent promotional messages. D. a standardized marketing strategy. E. standardized secondary attributes.

A. a different advertising appeal.

Great Britain has epitomized distribution through specialty-type middlemen, distributors, wholesalers, and retailers. In recent years, however, there has been a trend toward broader lines, conglomerate merchandising, and mass marketing. This suggests that a firm that neglects the growth of self-service, scrambled merchandising, or discounting may find that it has lost large segments of its market only because its channels no longer reflect the _____ of the market. A. character B. continuity C. control D. cost E. capital requirement

A. character

In the context of the types of domestic middlemen, the WTO in 2003 ruled _____ to be in violation of international trade rules, thus starting a major trade dispute with the European Union. A. foreign sales corporations B. direct marketing partnerships C. trading companies D. export promotion companies E. Webb-Pomerene export associations

A. foreign sales corporations

Companies following the _____ philosophy insist that no unit of a similar product is different from any other unit in terms of cost and that each unit must bear its full share of the total fixed and variable cost. A. full-cost pricing B. fixed-cost pricing C. variable-cost pricing D. demand-based pricing E. premium pricing

A. full-cost pricing

Companies that rely on television infomercials and television shopping are restricted by the limitations placed on the _____ of television commercials permitted when their programs are classified as advertisements. A. length and number B. religious content C. subliminal messaging D. superlative description E. ethnic derision

A. length and number

In the context of international business negotiations, Americans are near the bottom of the languages skills list.

T

Which of the following factors significantly differentiates companies with the least amount of returnee attrition from those with the highest attrition? A. Specialized expatriate department B. Personal career planning for expatriates C. Continued cultural training D. Protection from work councils E. Family migration planning

B. Personal career planning for expatriates

Most middlemen have little loyalty to their vendors. They handle brands in good times when the line is making money but quickly reject such products within a season or a year if they fail to produce during that period. This is an example of problems associated with which of the following six Cs of distribution channel strategy? A. Character B. Continuity C. Control D. Cost E. Capital requirement

B. Continuity

A disadvantage of hiring local nationals is the tendency of headquarters personnel to ignore their advice. Which of the following is most likely to be the reason for this tendency? A. Foreign nationals are not keen on keeping relationships at the home office cordial. B. Foreign nationals lack the understanding of how home-office politics work. C. Foreign nationals have a good grasp of the local culture and prevalent practices. D. Foreign nationals cannot build close contact with subordinates and customers. E. Foreign nationals have superior technical expertise, which makes people at the headquarters insecure.

B. Foreign nationals lack the understanding of how home-office politics work.

In studies conducted at Ford Motor Company and AT&T, some traits were found to be important predictors of negotiator success with international clients and partners. Which of the following was one of these traits? A. Ability to function without team assistance B. Influence at headquarters C. Appreciation of external factors in negotiations D. Ability to command attention from an audience E. Willingness to take copious notes during negotiations

B. Influence at headquarters

When hiring new personnel for international marketing, which of the following is considered to be the best way to assess the traits necessary for success? A. Paper-and-pencil ability tests B. Interviews and role-playing exercises C. Biographical information D. Reference checks E. Calligraphy analysis

B. Interviews and role-playing exercises

Apex Corp. is a wholesaler for Global Electronics in the French market. Global Electronics discovered that Apex Corp. was diverting some of its goods to the English market. Apex Corp. could get a greater profit in the English market because the goods were bought by the firm at a cheaper price in France. In the context of the above scenario, which of the following forms of business is Apex engaged in? A. Black marketing B. Parallel importing C. Backwashing D. Industrial piracy E. Smuggling

B. Parallel importing

Which of the following factors significantly differentiates companies with the least amount of returnee attrition from those with the highest attrition? A. Specialized expatriate department B. Personal career planning for expatriates C. Continued cultural training D. Protection from work councils E. Family migration planning

B. Personal career planning for expatriates

Which of the following actions must be taken by a negotiator before international negotiations begin? A. Asking questions on specific areas of the deal B. Planning concession strategies C. Making concessions before reaching an agreement D. Rushing the foreign negotiator to come to a decision E. Relying only on information obtained from external sources

B. Planning concession strategies

Which of the following agencies or bodies is actively involved in setting rules about compensation companywide in Europe? A. Pension committees B. Work councils C. The World Health Organization D. The European Union E. The World Trade Organization

B. Work councils

The training of foreign employees is likely to be most effective when: A. it is handled by trainers who communicate in languages alien to the employees. B. it is tailored to the employees' ways of learning. C. national differences are ignored during motivational sessions. D. the superiority of their culture is emphasized over others. E. it is different from the familiar ways of nonverbal communication.

B. it is tailored to the employees' ways of learning.

An American buyer is negotiating with a British supplier for the purchase of raw materials for production of heavy machinery in the United States. Before exchanging any information pertaining to the business of the meeting, he spends a few minutes talking to the British negotiator on topics such as World Cup soccer, the recently concluded general elections, and the English weather. The American buyer is engaging in the first stage of a business negotiation known as: A. persuasion. B. nontask sounding. C. setting an agenda. D. assessment of business terms. E. appraisal of current affairs.

B. nontask sounding

Assuming that an international marketer has produced the right product, used the proper channel of distribution, and promoted the goods correctly, the effort is most likely to fail if the international marketer fails to: A. inform the host government about all its marketing objectives. B. set the right price for the goods or services. C. set the import tariff for the goods or services. D. form a joint venture in order to sell the product. E. work on a franchise basis in the country.

B. set the right price for the goods or services.

For companies seeking entrance into the complicated Japanese distribution system, _____ offer one of the easiest routes to success because they virtually control distribution through all levels of channels in Japan. A. trade representatives B. trading companies C. brokers D. export management companies E. complementary marketers

B. trading companies

The traits that make for successful sales representatives in the United States are important in other countries as well.

F

In the context of the different kinds of middlemen, the WTO in 2003 ruled export management companies to be in violation of international trade rules

F

Which of the following statements reflects the decision-making style of the Americans in business negotiations? A. A business negotiation is an opportunity to develop a business relationship with the goal of long-term mutual benefit. B. The economic issues are the context, not the content, of the business negotiation talks. C. A business negotiation is a problem-solving activity, the best deal for both parties being the solution. D. Business issues are discussed at once, in no apparent order, and concessions are made on all issues at the end of the discussion. E. Interpersonal and interorganizational bonds take precedence over the bottom line in business negotiations.

C. A business negotiation is a problem-solving activity, the best deal for both parties being the solution.

Which of the following aspects of international business negotiations is considered to be the most difficult? A. Agreeing on the number of participants in the negotiation B. Finding the best alternative to a negotiated agreement C. Actual conduct of the face-to-face meeting D. Deciding on the location and physical arrangements E. Selection of the appropriate negotiation team

C. Actual conduct of the face-to-face meeting

International business negotiations are conducted keeping national stereotypes in mind

F

_____ in advertising is a thorny issue, because most member countries of the European Commission have different interpretations of what constitutes a misleading advertisement. A. Discrimination B. Endorsement C. Deception D. Plagiarism E. Fear mongering

C. Deception

General Motors, _____, and DaimlerChrysler have created a single online site called Covisint for purchasing automotive parts from suppliers. A. Toyota Motor Corporation B. Honda Motor Company C. Ford Motor Company D. Nissan Motor Company E. Tata Motors

C. Ford Motor Company

Which of the following is true of the full-cost pricing approach? A. In this approach, firms regard foreign sales as bonus sales and assume that there will be no return over their variable costs. B. In this approach, firms are concerned only with the marginal or incremental cost of producing goods to be sold in overseas markets. C. In this approach, prices are often set on a cost-plus basis, that is, total costs plus a profit margin. D. This approach is a practical approach to pricing when a company has high fixed costs and unused production capacity. E. This approach insists that each unit of a similar product is treated differently in terms of cost.

C. In this approach, prices are often set on a cost-plus basis, that is, total costs plus a profit margin.

Which of the following would be considered an advantage of leasing equipment rather than owning it? A. Lease revenue tends to fluctuate greatly. B. Leased equipment rarely breaks down. C. Leasing helps guarantee better maintenance on overseas equipment. D. Leasing keeps companies from using experimental equipment. E. Leasing is less risky than outright sale of equipment.

C. Leasing helps guarantee better maintenance on overseas equipment.

_____ is a practical approach to pricing when a company has high fixed costs and unused production capacity. A. Full-cost pricing B. Cost-plus pricing C. Marginal-cost pricing D. Demand-based pricing E. Premium pricing

C. Marginal-cost pricing

Which of the following countries has the most egregious control over advertising, where each medium has its own censorship board that passes judgment on any advertising even before it is submitted for approval by the Ministry of Information. A. Germany B. France C. Myanmar D. Australia E. Argentina

C. Myanmar

Which of the following statements on the roles of men and women in international business negotiations is true? A. In general, women are more comfortable speaking up in a meeting than men to maintain intimacy with their foreign counterparts. B. Men are more comfortable talking one-on-one than women, owing to the social stigma associated with such practices. C. The negotiation style of American women is a lot closer to that of the Japanese than that of American men. D. In countries where women do not participate in management, American female negotiators are first considered incompetent. E. It is not particularly important for female executives to establish personal rapport at restaurants and other informal settings

C. The negotiation style of American women is a lot closer to that of the Japanese than that of American men.

In the context of recruiting marketing and sales personnel, which of the following is true of local nationals? A. They are not keen on maintaining a cordial relationship at the home office. B. They lack the knowledge of local culture and prevalent practices. C. They are better able to lead a company through the maze of unfamiliar referral networks. D. They do not communicate with subordinates and customers directly. E. They normally work for a foreign company in a third country.

C. They are better able to lead a company through the maze of unfamiliar referral networks.

Companies with marketing facilities or contacts in different countries with excess distribution capacity or a desire for a broader product line sometimes take on additional lines for international distribution. The formal name for such activities is _____. A. skimming B. backhauling C. complementary marketing D. export marketing E. demand shifting

C. complementary marketing

For _____ to be levied on a product, it must be shown that prices are lower in the importing country than in the exporting country and that producers in the importing country are being directly harmed by the dumping of the product. A. countertrade duties B. domestic protection duties C. countervailing duties D. foreign practice duties E. import restriction duties

C. countervailing duties

In the context of the communication process in advertising, using the Internet as a medium when only a small percentage of an intended market has access to it is an example of an error related to: A. feedback. B. decoding. C. message channel selection. D. encoding. E. message selection.

C. message channel selection.

A _____, which restricts the amount a country will import, may be imposed on foreign goods benefiting from subsidies, whether in production, export, or transportation. A. trigger volume B. trigger price C. minimum access volume D. market access opportunity E. substantial cause

C. minimum access volume

Certain advertising media are forbidden by government edict to accept some advertising materials. Such restrictions are most prevalent in: A. the Internet forums. B. personal selling initiatives. C. radio and television broadcasting. D. trade shows and exhibitions. E. direct selling and sales promotions

C. radio and television broadcasting.

In the context of international advertising, companies are moving from the commission system to a _____ system. A. tactical B. standardized C. reward-by-results D. self-regulation E. business-to-business

C. reward-by-results

Firms that are unfamiliar with overseas marketing and firms that produce industrial goods orient their pricing solely on the basis of: A. cultural differences in perceptions of pricing. B. market segmentation from market to market. C. the costs of production of the goods. D. market segmentation from country to country. E. competitive pricing in the market.

C. the costs of production of the goods

David is a Canadian national who has been working for a U.S. company in Japan for twenty years. David may be considered to be a _____. A. virtual expatriate B. native salesperson C. third-country national D. professional expatriate E. local national

C. third-country national

In the context of media planning and analysis, billboards are especially useful in countries: A. with high income levels. B. where the laws governing the Internet are very complicated. C. with high illiteracy rates. D. where sales promotions are ineffective. E. where people prefer buying in small quantities.

C. with high illiteracy rates.

Which of the following statements regarding the physical arrangements of an international negotiation setting is true? A. Russians prefer to talk to everyone separately, and once everyone agrees, to schedule inclusive meetings. B. Japanese tend toward a cumulative approach, meeting with one party and reaching an agreement, then both parties calling on a third party. C. In high-context cultures, the physical arrangements of rooms are taken casually. D. Americans tend to want to get everyone together to "hammer out an agreement" even if opinions and positions are divergent. E. Japanese tend to shun the practice of higher-level executives being included in negotiation to indicate interest in a deal.

D. Americans tend to want to get everyone together to "hammer out an agreement" even if opinions and positions are divergent.

James Barker is the marketing manager of a firm with small international sales volume. He is looking for a middleman who can take responsibility for promotion of the company's products, credit arrangements, physical handling, and market research. Also, the middleman must be able to provide information on financial, patent, and licensing matters. In addition, the middleman should agree to work under the name of the firm. Which of the following types of middlemen would be the best choice for Mr. Barker if he wants to meet his objectives? A. A manufacturer's export agent B. An export merchant C. A trade representative D. An export management company E. A complementary marketer

D. An export management company

An international business negotiator's primary job is collecting information with the goal of enhancing creativity. Which of the following steps may be taken during a meeting to ensure that the negotiator is able to do his job well? A. Appointing different members of the team to provide self-disclosures and appropriate replies to queries B. Bringing along junior executives for the purpose of training through observation and participation C. Providing additional information to the other party when all the members fall silent during the meeting D. Assigning one team member the sole responsibility of taking careful notes and not worrying about speaking E. Including higher-rank executives and using informal channels of communication

D. Assigning one team member the sole responsibility of taking careful notes and not worrying about speaking

Which of the following is one of the highest costs of doing business in China? A. Money required for the transportation of goods B. Money required for obtaining appropriate permits C. Cost of local advertising D. Capital required to maintain effective distribution E. Cost of customizing products for the Chinese market

D. Capital required to maintain effective distribution

In the context of global compensation, which of the following strategies should be practiced? A. A similar framework should be created for jobs with different responsibilities. B. The support of senior sales executives should not be sought before taking action. C. Local managers should not decide the mix between base and incentive pay. D. Consistent communication and training themes should be used worldwide. E. The incentive plan should be designed centrally and dictated to local offices.

D. Consistent communication and training themes should be used worldwide.

In the context of task-related exchange of information, _____ negotiators are more likely to provide brutally frank negative feedback to foreign presenters. A. American B. Japanese C. Chinese D. German E. Mexican

D. German

In the context of inventive international negotiations, which of the following is an obstacle to invention for Japanese society? A. Individualism B. Civility C. Frankness D. Hierarchy E. Relative integration

D. Hierarchy

Which of the following is considered to be the most common job in the United States despite being viewed negatively? A. Government service B. Truck driving C. Office management D. Personal selling E. Teaching

D. Personal selling

_____ is a subject area that should be on the checklist of criteria for evaluating middlemen servicing a market. A. Flexibility B. Hypersensitivity C. Cultural empathy D. Productivity E. Breadth of knowledge

D. Productivity

In the context of rewards from work, Japanese and American salespersons are similar barring one aspect which the Japanese rate as more important than their American counterparts. Identify this aspect. A. Job security B. Promotion C. Job satisfaction D. Social recognition E. Personal growth and development

D. Social recognition

Which of the following is a trait of a person with good cultural skills? A. They have a clear set of principles and do not tolerate ambiguity. B. They take pride in their culture and practice cultural chauvinism. C. They monitor the behavior of their employees and judge them accordingly. D. They convey a sincere interest in people and their culture. E. They try to propagate their culture and make others follow them.

D. They convey a sincere interest in people and their culture.

By shipping unassembled goods to a free trade zone (FTZ) in an importing country, a marketer can typically lower costs because: A. labor costs are higher in the importing country. B. the final prices of the goods are adjusted for inflation. C. use of unassembled goods gives the marketer immunity from dumping penalties. D. duties are assessed at lower rates for unassembled goods. E. local content used in production is low.

D. duties are assessed at lower rates for unassembled goods.

Even though American sellers make lower profits than the Japanese, many American managers apparently prefer lower profits if those profits are yielded from a more equal split of the joint profits. This demonstrates that Americans and Japanese have different views about _____. A. favoritism B. collectivism C. individualism D. fairness E. nepotism

D. fairness

In a deflationary market, in order to win the trust of consumers, it is essential for a company to: A. engage in forfaiting agreements with consumers. B. spend more on advertising and stall the production of products. C. allow prices to escalate and target the price insensitive segment of the market. D. keep prices low and raise brand value. E. form a cartel to control the dynamics of the market.

D. keep prices low and raise brand value

In the context of international business negotiations, even small companies can possess great power in negotiations if they have: A. no influence at headquarters. B. a larger negotiating team. C. more to lose and less to gain from a deal. D. many good alternatives and their large-company counterparts do not. E. the advantage of negotiating in a foreign land.

D. many good alternatives and their large-company counterparts do not

A company uses _____ when the objective is to reach a segment of the market that is relatively price insensitive and thus willing to pay a premium price for the value received. A. penetration pricing B. everyday low pricing C. predatory pricing D. price skimming E. psychological pricing

D. price skimming

Lush Cosmetics Corp., a U.S.-based firm, has recently started exporting cosmetics to India. Lush has introduced a new range of mineral-based makeup products for the first time in the Indian market. As Lush has no competitors in this segment of the Indian cosmetics market, it has set a very high price for its products in order to reach the premium, price insensitive segment of the market. This is an example of _____. A. penetration pricing policy B. psychological pricing policy C. bundling D. price skimming E. cost-based pricing policy

D. price skimming

Longer channels of distribution are more appropriate for keeping prices under control than shorter channels of distribution.

F

Merchant middlemen tend to be more controllable than agent middlemen because they take title to manufacturers' goods

F

Most companies today limit their search for senior-level executive talent to their home countries.

F

Since expatriates are not locals, they often have a negative effect on the prestige of the company and its product line in the eyes of foreign customers.

F

Phil, a purchasing manager at a departmental store in the United States, is engaged in negotiations with a Brazilian supplier. Which of the following signals would indicate that Phil has been making progress in the negotiations with the Brazilians? A. Lowered bargaining by the Brazilians B. Involving Brazilian executives of lower ranks to continue the discussions C. A noticeable decrease in instances of private conversations among the Brazilians D. Questions by Brazilians that focus primarily on the more general areas of the deal E. A softening of attitudes and positions of the Brazilians on some of the issues

E. A softening of attitudes and positions of the Brazilians on some of the issues

Which of the following is a critical element associated with using a particular type of middleman? A. Knowledge of the culture of the target market B. Number of employees C. Mode of transportation for moving goods D. Influence over the target market E. Cash-flow patterns

E. Cash-flow patterns

Which of the following practices, with respect to motivating sales personnel, is most common in relationship-oriented countries like Japan? A. Companies lay greater emphasis on incentives that are based on individual performance. B. Companies do not allow local managers to decide the mix between base and incentive pay. C. Commissions are measured by sales revenues generated by each employee. D. Companies are not very tolerant of poor performers and fire them immediately. E. Companies motivate sales representatives through frequent interaction with supervisors.

E. Companies motivate sales representatives through frequent interaction with supervisors.

Which of the following steps of the international communications process is important as a check on the effectiveness of the other steps? A. Selecting a proper message B. Encoding the message C. Selecting an appropriate channel of communication D. Decoding the message E. Feedback

E. Feedback

Americans often make the mistake of going it alone against a greater number of foreigners in business negotiations. Which of the following factors can be attributed to this behavior of the Americans? A. Collectivism B. Chivalry C. Information-orientation D. Pragmatism E. Independence

E. Independence

Which of the following is especially vulnerable as EU member states decide which area of regulation should apply to these services? A. Newspaper advertising B. Radio advertising C. Outdoor services D. Personal selling E. Internet services

E. Internet services

In the context of international business negotiations, generalizations about the negotiation style of a region such as Asia are very often correct.

F

Which of the following is true of a physical distribution system? A. It involves only the physical movement of goods. B. It is a total systems approach to the management of the distribution process. C. It includes decisions involving an activity that has no impact on the cost and efficiency of one or all others. D. It excludes the interdependence of the costs of each activity. E. It includes transportation mode, inventory quantities, and packing.

E. It includes transportation mode, inventory quantities, and packing.

Floral Group Inc., an importing organization in New York, buys perfumes from GS Inc. in France for $13 a unit. Unknown to GS, Floral Group sells this product in the United States for $15 a unit. This leads to a loss of revenue for GS Inc. as it also sells its perfume in the United States but for a higher price of $18. Which of the following best describes the above scenario? A. Black-listed importing B. Direct importing C. Circular importing D. Co-mingled importing E. Parallel importing

E. Parallel importing

Which of the following, according to experienced exporters, is the only way to select a middleman? A. Conduct a background check on all the distributors available in the target market B. Issue a request-for-proposal to all distributors in the target market and evaluate their responses C. Consult other manufacturers of similar products and select the distributor recommended by them D. Consult trade organizations and select the distributor recommended by them E. Talk personally to ultimate consumers to find whom they consider to be the best distributors

E. Talk personally to ultimate consumers to find whom they consider to be the best distributors

In the context of international business negotiations, individual personalities and backgrounds have no bearing at the negotiation table.

F

In the context of selecting sales and marketing personnel, which of the following is the most important quality that a recruiter should consider while hiring marketing personnel? A. They should have little cultural empathy as this might distract them from their main purpose. B. When working in a foreign country, they must be capable of taking decisions that are not influenced by the habits of the market. C. They should be able to represent a culturally superior image of their country and its products. D. They should be hypersensitive to the behavioral variations in different countries. E. They should possess a considerable breadth of knowledge of many subjects both on and off the job.

E. They should possess a considerable breadth of knowledge of many subjects both on and off the job.

Which of the following methods can be used to minimize the inevitable errors that crop up while exchanging information across language barriers? A. Using silent periods more frequently B. Prolonging the duration of nontask sounding C. Using more promises and recommendations instead of threats and warnings D. Agreeing to use English as the common language for communication E. Using multiple communication channels during presentations

E. Using multiple communication channels during presentations

In the context of international business negotiations, the style of Israeli negotiators is the most aggressive of all cultures.

F

The _____ step in the international communications process refers to the information about the effectiveness of the message that flows from the receiver (the intended target) back to the information source for evaluation of the effectiveness of the process. A. message channel selection B. interpretation C. encoding D. decoding E. feedback

E. feedback

In the context of the four stages of business negotiations, _____ includes all those activities that might be described as establishing rapport, but it does not include information related to the "business" of a meeting. A. persuasion B. concessions and agreement C. negotiation setting D. task-related exchange of information E. nontask sounding

E. nontask sounding

Drew's company imports materials and parts into a free trade zone (FTZ) within the United States and then has the finished products imported into the United States. Her company will most likely: A. incur higher labor costs than other domestic companies. B. not be able to store finished goods in the FTZ. C. have to pay tariffs based on the value of both the parts and the materials. D. have to pay tariffs based on the value of the raw materials when they leave the country. E. not have to pay tariffs on the products while they are in the FTZ.

E. not have to pay tariffs on the products while they are in the FTZ.

When the Indian rupee depreciated against the U.S. dollar, PC manufacturers who were dependent on imported components had to either absorb the increased cost or _____. A. raise the quantity of inputs they used in production B. give discounts to their customers C. increase the wages that they paid to labor D. increase the production of PCs E. raise the price of PCs

E. raise the price of PCs

In relationship-oriented cultures, _____ speaks quite loudly in both persuasion and the demonstration of interest in a business relationship. A. the bottom line B. profit C. team strength D. secrecy E. rank

E. rank

Qualified and ambitious sales personnel refuse to take up foreign assignments for fear of hampering their career development. This "out of sight, out of mind" fear is most closely linked to the problems of: A. conflict of interests. B. acculturation. C. skill redundancy. D. naturalization. E. repatriation.

E. repatriation.

Overseas premiums that are paid to the family of expatriates during short-term assignments if they do not relocate to the foreign country are called: A. fringe benefits. B. pension plans. C. displacement reserves. D. special assessments. E. separation allowances.

E. separation allowances.

When a company exports a product from the United States to another country, the company is most likely to be unable to determine the ultimate price of a product if: A. the channels of distribution are short. B. the number of middlemen in its distribution channels is low. C. large orders are placed by retailers. D. marketing and distribution channel infrastructures are well developed. E. the middleman markups are not standardized.

E. the middleman markups are not standardized.

In the context of international business negotiations, verbal tactics used during negotiations differ vastly across diverse cultures

F

In the context of international marketing, training for expatriates focuses on the company, its products, technical information, and selling methods, while that for local personnel focuses on foreign sale

F

In the context of preparation for international negotiations, a thorough preliminary research eliminates the need for negotiators to make a list of key facts to reconfirm at the negotiation table.

F

A distinguishing characteristic of the Japanese distribution channel system is that it is controlled by a few small retailers found in the country.

F

An e-vendor in a foreign market can generally ignore culture as an important variable because the commerce is being done via the Internet, which is culturally insensitive.

F

An expatriate with excellent cultural skills does not tolerate ambiguity and upholds the superiority of his or her culture.

F

An expatriate with excellent management and technical skills is sure to excel in any environment, even if he or she lacks an understanding of cultural differences

F

As the price of a particular product remains the same in different markets, the product sold in one country may be exported to another and undercut the prices charged in that country.

F

Barter houses help countries negotiate prices for imports and exports and also provide facilities for cash payments and receipts.

F

Companies that use pricing to achieve marketing objectives use pricing as a static element.

F

Compensation packages in eastern European countries typically involve a substantially greater emphasis on performance-based incentives than in the United States

F

Contests, sweepstakes, and sponsorship of special events such as concerts are techniques used for maintaining and improving public relations

F

Counter trading does not benefit countries that face a shortage of hard currencies with which to trade

F

Deflation causes consumer prices to escalate, and consumers face ever-rising prices that eventually exclude many of them from the market.

F

Due to the great differences in the roles played by women across cultures, gender should be used as a selection criterion for international negotiation teams

F

Feedback channels must be carefully selected if an encoded message is to reach the consumer

F

For a company, the chief advantage of an expatriate sales force is the low cost involved in the process.

F

For most companies, trade shows and direct selling are the major components in the marketing communications mix

F

For selling in relationship-oriented countries, a sales force consisting of American expatriates proves to be most efficient

F

French business negotiators use the lowest percentage of self-disclosure, yet they also use, by far, the highest percentages of promises and recommendations

F

In countries where large shares of the population are moving into middle-income classes, penetration pricing becomes irrelevant as a tool to stimulate market growth

F

In the United States, if a middleman is terminated, the company is required to pay 1 percent of the middleman's average annual compensation multiplied by the number of years the middleman served as a final settlement.

F

In the context of American sales representatives' performance, poor performers typically stay with the company and are seldom fired

F

In the context of distribution structures, one of Walmart's strengths is its ability to influence foreign governments.

F

In the context of international advertising, an advertiser should ideally exclude availability, cost, and coverage of media.

F

When a message from a source is converted into effective symbolism for transmission to a receiver, the message is said to have been decoded

FF

In a free trade zone, payment of import duties is postponed until the product leaves the free trade zone and enters the country.

T

In high-context cultures, where personal relationships are crucial, high-level business executives must stay in touch with their foreign counterparts.

T

In relationship-oriented cultures, sales representatives tend to be on the bottom rung of the social ladder.

T

In the context of advertising, a marketer's self-reference criterion (SRC) affects the ultimate success of the communication.

T

In the context of international advertising, search engines have now become crucial directors of Internet users' attention.

T

A cartel exists when various companies producing similar products or services work together to control markets for the types of goods and services they produce

T

A reason for the failure of marketing communications is that the message received by the intended audience is not understood because of different cultural interpretations.

T

An export management company functions as a low-cost, independent marketing department with direct responsibility to the parent firm.

T

An international salesperson must have a high level of flexibility when working in a foreign country or in the home country.

T

An irrevocable, confirmed letter of credit means that a U.S. bank accepts responsibility to pay the seller regardless of the financial situation of the buyer or foreign bank

T

Companies that are serious about restricting the gray market must establish and monitor controls that effectively police distribution channels.

T

Cultural differences cause four kinds of problems in international business negotiations, and these problems occur at the levels of language, nonverbal behaviors, values, and thinking and decision-making processes.

T

Cultural differences in nonverbal behaviors are almost always hidden below our awareness

T

Deflation results in ever-decreasing prices, creating a positive result for consumers, but both put pressure to lower costs on everyone in the supply chain.

T

Domestic middlemen are most likely to be used when the marketer desires to minimize financial and management investment

T

Eliminating costly functional features or lowering overall product quality can minimize price escalation

T

Eliminating costly functional features or lowering overall product quality can minimize price escalation.

T

Errors at the receiver end of the international communications process can be avoided if the message is encoded properly

T