International Marketing Chapter Quizzes 1-7
Which of the following countries is experiencing maximum losses due to software piracy? A) Russia B) India C) The United States D) Japan E) Vietnam
C) The United States
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 export expansion section C) The import relief section D) The foreign exchange regulation section E) The trade deficit section
C) The import relief section
As per the ancient Greeks, a form of government ruled by one is referred to as: A) oligarchy. B) monopoly. C) democracy. D) monarchy. E) aristocracy.
D) monarchy.
Axler Inc., an American firm had entered into a business agreement with M.K. Group of Manufacturers. Recently they had a major dispute over the terms of the agreement. Both firms decided informally to resolve the dispute by appealing to an independent tribunal to mediate their differences. Which of the following dispute resolution methods is being used by the companies in the above scenario? A) Conciliation B) Litigation C) Informal settlement D) Arbitration E) Coercion
A) Conciliation Conciliation is a nonbinding agreement between parties to resolve disputes by asking a third party to mediate differences. The function of the mediator is to carefully listen to each party and to explore, clarify, and discuss the various practical options and possibilities for a solution with the intent that the parties will agree on a solution.
Which of the following would be the balance-of-payments account that records all merchandise exports, imports, and services plus unilateral transfers of funds? A) Current account B) Capital account C) Credit account D) Receivables account E) Reserves account
A) Current account The current account is a record of all merchandise exports, imports, and services plus unilateral transfers of funds.
_____ decision making allows executives at different levels of management to exercise authority over their own functions. A) Decentralized B) Top-level management C) Committee D) Autocratic E) Politically backed
A) Decentralized
Which of the following holds true for the effect of governments on cultural values? A) Governments try to influence the thinking and behaviors of adult citizens for the citizens' "own good." B) Compared with the influence of family, governments have a major influence on people's behavior. C) The media are immune to a government's efforts to spread propaganda about itself. D) Iran prefers a strict separation of religion and governance. E) The Japanese government is proposing to make laws that discourage procreation.
A) Governments try to influence the thinking and behaviors of adult citizens for the citizens' "own good." Most often governments try to influence the thinking and behaviors of adult citizens for the citizens' "own good." For example, the French government has been urging citizens to procreate since the time of Napoleon.
Which of the following legal systems prohibits investment in businesses that deal with alcohol, gambling, and casinos? A) Islamic B) Common C) Civil D) Socialist E) Commercial
A) Islamic
_____ is an attempt to forecast political instability and help management identify and evaluate political events and their potential influence on current and future international business decisions. A) Political risk assessment B) Political securitization C) Democratization D) Risk conditioning E) Quantification of risk
A) Political risk assessment
Which of the following is applied during inflationary periods to control the cost of living? A) Price controls B) Exchange controls C) Tax controls D) Import restrictions E) Local-content laws
A) Price controls
Which aspect of Japanese culture, predicted by many to favor bribery, makes Japan's success in reducing corruption more remarkable? A) Relationship-orientation B) Multiple marriages C) The extended family D) Strong organizational hierarchy E) Increase in consumerism
A) Relationship-orientation
Which of the following is true regarding balance-of-payments records? A) The fact that assets and liabilities balance does not mean that a nation is in particularly good financial condition. B) The fact that assets and liabilities balance means a nation is in poor financial condition. C) A balance of payments is not a record of condition. D) A balance of payments is a determinant of condition. E) A balance of payments reflects all the financial transactions within the country.
A) The fact that assets and liabilities balance does not mean that a nation is in particularly good financial condition. The fact that assets and liabilities balance does not mean a nation is in particularly good or poor financial condition. A balance of payments is a record of condition, not a determinant of condition. Each of the nation's financial transactions with other countries is reflected in its balance of payments.
Which of the following increases the possibility of misinterpretation of others' motives in a negotiation scenario? A) Using one's self-reference criteria as the basis for assessment B) Insufficient probing about unclear and ambiguous areas C) Lack of documentation of the negotiation process D) Involvement of a neutral third-party mediator E) Lack of interest in the other's language
A) Using one's self-reference criteria as the basis for assessment
J.J. Servan-Schreiber's prediction about the U.S. economy did not come true for many reasons, but one of the more important was that American MNCs confronted: A) a resurgence of competition from all over the world. B) uneven distribution of economic power among its states. C) barriers to the restructuring of U.S. industries. D) the decadence of communism. E) the dissolution of colonial powers.
A) a resurgence of competition from all over the world.
International marketers are most likely to consider _____ to be "customs and administrative entry procedures." A) antidumping practices B) standards disparities C) voluntary export restraints D) embargoes E) orderly marketing agreements
A) antidumping practices
An understanding of the origins and differences of culture will help international marketers: A) foresee changes in current markets of operation. B) imitate their peers. C) gain political acceptance for their innovations. D) determine the literacy rate of the current market. E) gain control over the media.
A) foresee changes in current markets of operation.
Monarchy is a form of government ruled by _____. A) one B) none C) few D) many E) all
A) one
Confiscation, expropriation, and domestication are classified as: A) political risks. B) social risks. C) financial risks. D) environmental risks. E) legal risks.
A) political risks.
Brazilian timepieces are less reliable and public clocks less available than in the United States. This shows that notions of _____ are followed in Brazil. A) polychronic time B) bimodal time C) dual time D) monochronic time E) sequence time
A) polychronic time
In the context of communication styles, Edward T. Hall has described the symbolic meanings or _____ of time, space, things, friendships, and agreements and how they vary across cultures. A) silent languages B) significance C) emblematic import D) notions E) hieroglyphics
A) silent languages
In the context of the Opium Wars, _____ did not resolve the issue of foreign access to Chinese trade. A) the Treaty of Nanjing B) the Cantonese inventory destruction C) the Pearl River Tragedy D) Christian evangelism E) the Hong Kong Revolution
A) the Treaty of Nanjing Ultimately the Opium War became about foreign access to Chinese trade, and the treaty of Nanjing really didn't settle the issue.
Exchange controls are most likely imposed: A) when there is a substantial amount of capital leaving the country. B) when it is required that a portion of any product sold within the country contain locally made parts. C) when there are no adequately developed sources of supply within the country. D) on essential products that command considerable public interest. E) during inflationary period to control the cost of living.
A) when there is a substantial amount of capital leaving the country.
In the context of social responsibility and environmental management, a treaty among the members of the _____ agreed to a total ban on the export of hazardous wastes by developed nations. A) United Nations B) Basel Convention C) NAFTA D) European Union E) ASEAN
B) Basel Convention A treaty among members of the Basel Convention that required prior approval before dumping could occur was later revised to a total ban on the export of hazardous wastes by developed nations.
Randy, the marketing manager at Bryte Systems Inc., decides to sell to foreign markets as goods are available in surplus amounts. He has little or no intention of maintaining continuous market representation. Randy's firm is at which of the following stages of international marketing involvement? A) Aggressive foreign marketing B) Infrequent global marketing C) Global marketing D) Regular foreign marketing E) International marketing
B) Infrequent global marketing
Which of the following is true of nationalism? A) The more a country feels threatened by some outside force the less nationalistic the country becomes. B) It can be best described as an intense feeling of national of national pride and unity. C) Nationalist feelings lead to loss of control over foreign investment. D) The more a country's domestic economy declines, the less nationalistic it becomes. E) Nationalistic feelings are rarely prevalent in economically prosperous countries.
B) It can be best described as an intense feeling of national of national pride and unity.
Which of the following is true of the relationship between cultural values and consumer behavior? A) Japan scores the highest of all countries on the individualism scale. B) Japanese and French values favor group activities and face-to-face conversations. C) French investors are most willing to take the risks of stock markets and investments. D) According to Hofstede, the diffusion of innovations will be slower in the U.S. than in Japan. E) In Japan, the "virtually social" activity of sitting alone at one's computer is most acceptable.
B) Japanese and French values favor group activities and face-to-face conversations.
hich of the following methods is considered as the last step in resolving a dispute? A) Coercion B) Litigation C) Informal settlement D) Conciliation E) Arbitration
B) Litigation The first step in any dispute is to try to resolve the issue informally, but if that fails, the foreign marketer must resort to more resolute action. Such action can take the form of conciliation, arbitration, or, as a last resort, litigation. When all else fails, the final step to solve a dispute is litigation.
Which of the following is true of the influence of religion on global marketing? A) Most people have a good understanding of other religions. B) Marketers with little or no understanding of a religion may deeply offend customers. C) What is usually "known" about a religion is generally true. D) Consumer choices are untouched by the influence of religion. E) The first social institution that infants are exposed to outside the home takes the form of a supermarket.
B) Marketers with little or no understanding of a religion may deeply offend customers.
Citizens of the U.S. see the _____ as protection for Latin America from European colonization. A) Unifying Manifesto B) Monroe Doctrine C) Hays Corollary D) Grant Mandate E) North American Security Treaty
B) Monroe Doctrine
In the context of Hofstede's four dimensions, the _____ Index measures the tolerance of social inequality within a social system. A) Individualism/Collectivism B) Power Distance C) Uncertainty Avoidance D) Cultural Value E) Consumer Behavior
B) Power Distance
In a high-context culture, "who says it," "how it is said," and "when it is said" is very important. Which of the following countries is found to be a high-context culture with respect to communication practices? A) Switzerland B) Saudi Arabia C) France D) The United States E) Germany
B) Saudi Arabia
One of Phillipe Ortiz's difficulties in marketing his line of Philippine cabinetry in Los Angeles is that he is still tied culturally to the business models that work in the Philippines. These models do not work well in the United States. Which of the following best explains the difficulty Philippe is experiencing? A) Xenophobia B) Self-reference criterion C) Globalism D) Racism E) Intellectual challenges
B) Self-reference criterion
Which of the following is an international convention designed for mutual recognition and protection of intellectual property rights in Europe and includes 26 European nations? A) The Paris Convention for the Protection of Industrial Property B) The Bureau for International Registration of Trademarks C) The Inter-American convention D) The Patent Law Treaty E) The International Chamber of Commerce
B) The Bureau for International Registration of Trademarks
Which of the following may explain the difference in interpretation of historical events, especially if the historians are from different cultures? A) The level of funding received B) The historian's self-reference criteria C) The technical tools to examine history D) The extent of government support E) The amount of time spent on observation and analysis
B) The historian's self-reference criteria
According to the Corruption Perception Index (CPI) formulated by Transparency International, Japan's CPI score rose from 5.8 in 1998 to 8.0 in 2011. Which of the following factors is most likely to explain such a major change? A) Japan is a relationship-oriented culture. B) There was a marked increase in outside influence in Japan since 1999. C) Japan had a communist past that frowned upon corruption. D) Japan is a high-power distance country. E) The collectivist culture is predominant in Japan.
B) There was a marked increase in outside influence in Japan since 1999.
Which of the following is true of world trade routes? A) The fastest growing trade routes are the traditional ones. B) Trade routes represent the attempts of countries to overcome economic imbalances created by the influence of geography. C) Trade routes among Europe, Asia, and the Americas that were well established by the 1500s have fallen into disuse today. D) Trade among developing nations is extremely limited. E) The earliest trade routes were the sea routes.
B) Trade routes represent the attempts of countries to overcome economic imbalances created by the influence of geography. Trade routes represent the attempts of countries to overcome economic and social imbalances created in part by the influence of geography. The majority of world trade is among the most industrialized and industrializing countries of Europe, North America, and Asia.
In 1479, under the _____, Venice agreed to pay tribute to the Ottoman Empire in exchange for trading rights in the Black Sea. A) Treaty of Andelot B) Treaty of Constantinople C) Treaty of Dardanos D) Treaty of Bakt E) Treaty of Nanjing
B) Treaty of Constantinople
Ch 7 The legal system in non-Islamic and non-Marxist countries is centered on _____ law, which is derived from Roman law. A) common B) civil C) commercial D) Koran E) English
B) civil
The adoption of yoga as a means of physical fitness in the U.S. demonstrates: A) culture sharing. B) cultural borrowing. C) culture bridging. D) cultural congruence. E) cultural tolerance.
B) cultural borrowing.
The Canadian courts use "the credulous person standard" to determine whether a representation is false or misleading. This means that the court will consider a representation to be misleading: A) if it mimics the representation of a competitor. B) if any reasonable person could possibly misunderstand the representation. C) if it is devoid of puffery. D) if it is specifically targeted at a particular market segment rather than the wide audience. E) if it claims to be superior over other competitors' products with evidence.
B) if any reasonable person could possibly misunderstand the representation.
In the context of social institutions, the _____ of a country is a potent force in economic development. A) male-female ratio B) literacy rate C) currency exchange rate D) infrastructure E) birth rate
B) literacy rate
Of all the energy sources, _____ and gas contribute over 60 percent of world energy consumption. A) coal B) oil C) wind energy D) solar energy E) wood
B) oil
In the context of the Treaty of Nanjing, the circular windows of the Jardine-Matheson Trading House in Hong Kong are reminiscent of the portholes of its clipper-ship beginnings in the _____ trade. A) tea B) opium C) silk D) bamboo E) mother-of-pearl
B) opium
International marketing can be defined as: A) the creation of domestic processes that aim to enhance indigenous production and minimize the need for imports. B) the performance of business activities to sell a company's goods and services for a profit in more than one nation. C) the implementation of marketing strategies to deal with the domestic economic climate to improve the investments in home markets. D) the exchange of goods and services between companies within the boundaries of a country. E) designing of activities to plan, price, promote, and direct the flow of a company's goods and services to consumers or users in a single market.
B) the performance of business activities to sell a company's goods and services for a profit in more than one nation.
In which of the following countries can you vote at 18 if you are married and at 21 if single? A) Croatia B) Iran C) Bolivia D) Saudi Arabia E) Peru
C) Bolivia
Which of the following would be considered an uncontrollable element in the foreign environment? A) Channels of distribution B) Research C) Cultural forces D) Promotion E) Domestic economic climate
C) Cultural forces
Ch 4 Which of the following is true with respect to the importance of culture to an international marketer? A) When a promotional message is written, similar symbols must be used, irrespective of culture. B) Using attractive colors for the packaging of a product is more important than ensuring cultural acceptability. C) Culture is pervasive in all marketing activities and the marketer's efforts are a part of the fabric of culture. D) Pricing and promotion of a product are free of the influence of culture. E) The successful marketer should avoid cultural influences in his marketing campaign.
C) Culture is pervasive in all marketing activities and the marketer's efforts are a part of the fabric of culture.
Which of the following is a domestic environment uncontrollable that can have a direct effect on the success of a foreign venture? A) Level of technology B) Structure of distribution C) Economic climate D) Cultural forces E)
C) Economic climate
Ch 6 Which of the following is true of a sovereign state? A) It is obligated to be a member of the World Trade Organization. B) Its political and economic systems are dependent on other nations. C) It governs its own territory. D) It has the power to enter into agreements only with nations in its trade bloc. E) It is bounded by external control.
C) It governs its own territory.
Which of the following best explains why group decision making predominates in Asian cultures? A) Most Asian cultures lay an emphasis on rank and hierarchy. B) Asian cultures in general are non-aggressive and peaceful. C) Most Asian cultures emphasize harmony and collectivism. D) Most Asian countries lack expert professionals capable of bold decision making. E) Most Asian cultures are feudal and paternalistic.
C) Most Asian cultures emphasize harmony and collectivism.
Which of the following holds true for the effect of media on culture? A) The influence of family on American culture has increased due to more homemakers. B) American women are leaving the workforce in growing numbers due to the Internet revolution. C) TV has replaced family time to the detriment of American culture. D) The American online educational system produces the largest percentage of college graduates. E) American officials are recognizing that too much Internet leads to the development of narrow minds
C) TV has replaced family time to the detriment of American culture.
Which of the following is true of cultural electives? A) They are behaviors and customs accepted internationally as signs of friendship. B) They are business customs that must be followed if relationships are to be successful. C) They are business customs that one may opt to conform to. D) They are customs or behavior patterns reserved exclusively for the locals. E) They are behaviors that must be avoided if relationships are to be successful.
C) They are business customs that one may opt to conform to.
Mark, an American manager, visited Saudi Arabia for a business meeting. Despite being a Christian, he attempted to act like a Muslim in a misguided attempt to please his host. Mark has violated a cultural _____. A) imperative B) elective C) exclusive D) landmark E) standard
C) exclusive Cultural exclusives are those customs or behavior patterns reserved exclusively for the locals and from which the foreigner is barred. For example, a Christian attempting to act like a Muslim would be repugnant to a follower of Mohammed.
The _____ license in the United States permits exportation of products that are not subjected to EAR control with a declaration of the product type, its value and destination. A) specific B) declaration C) general D) export E) validated
C) general
In the context of social responsibility and environmental management, by 2020, China's _____ will be more than double the closest rival, the United States. A) acid rain levels B) sharp waste volume C) greenhouse-gas emissions D) noise pollution levels E) traffic density
C) greenhouse-gas emissions
Domestic marketing differs from international marketing as domestic marketing: A) involves performance of business activities across national borders. B) fails to consider the political, legal or economic issues of the marketing environment. C) involves business activities like pricing, production and distribution, aimed toward a single market. D) involves the task of adapting and adjusting to the uncontrollable geographic forces of the marketing environment. E) involves development of strategies to adjust to the cultural differences that exist in the new market.
C) involves business activities like pricing, production and distribution, aimed toward a single market.
The International Trade Administration: A) provides aid to underdeveloped countries and has limited protection in support of "essential" projects in approved countries and for approved products. B) provides credit insurance that minimizes nonpayment risk caused by financial, economic, or political uncertainties. C) is dedicated to helping U.S. business compete in the global marketplace. D) underwrites trade and investments for U.S. firms. E) provides risk insurance for companies investing in less-developed countries.
C) is dedicated to helping U.S. business compete in the global marketplace.
Common law differs from civil law in that common law: A) is considered complete because of the catchall provisions found in most law systems. B) does not enforce agreements unless properly notarized or registered. C) is recognized as not being all-inclusive. D) establishes ownership by registration rather than prior use. E) excuses compliance on unforeseeable human acts such as labor strikes and riots.
C) is recognized as not being all-inclusive.
Often an expropriated investment becomes _____ (i.e., it becomes a government-run entity). A) democratized B) domesticated C) nationalized D) prioritized E) socialized
C) nationalized
A company whose products reach foreign markets even though the company is not actively involved in cultivating customers outside the national boundaries is at the _____ stage of international marketing. A) active foreign marketing B) infrequent foreign marketing C) no direct foreign marketing D) regular foreign marketing E) global marketing
C) no direct foreign marketing
Exporting countries agree to voluntary export restraints (VERs) generally as an alternative to the threat of: A) expulsion. B) disorderly marketing agreements. C) stiffer quotas and tariffs. D) export subsidies. E) standardization disparities.
C) stiffer quotas and tariffs. Similar to quotas are the voluntary export restraints (VERs) or orderly market agreements (OMAs). A VER is called voluntary because the exporting country sets the limits; however, it is generally imposed under the threat of stiffer quotas and tariffs being set by the importing country if a VER is not established.
A(n) _____ is a tax imposed by a government on goods entering at its borders. A) predatory price B) standard C) tariff D) boycott E) embargo
C) tariff
Which of the following disputes can be adjudicated by the World Court? A) A dispute between a company from England doing business with a company in China. B) A dispute between two technological companies based in the United States. C) A personal dispute between the citizens of two countries. D) A dispute between the government of Canada and the government of Iraq. E) A commercial dispute between a citizen of America and a company in Russia.
D) A dispute between the government of Canada and the government of Iraq.
_____ refers to the system of accounts that records a nation's international financial transactions. A) Trade balance B) National accounts system C) EX-IM (exports-imports) account D) Balance of payments E) Exchange rate
D) Balance of payments
Which of the following is true of Professor Jared Diamond's views regarding the influence of geography on history and cultural values? A) The Sahara was a busy trade route before transoceanic shipping began. B) African cultures dominated over the Euro-Asian cultures due to their superior technology. C) Ambient temperature should be used as a market segmentation variable. D) Before the advent of transoceanic shipping, ideas flowed over the Silk Road. E) There are strong correlations between the latitude (climate) and the per capita GDP of countries.
D) Before the advent of transoceanic shipping, ideas flowed over the Silk Road.
Which of the following is a characteristic of a relationship-oriented culture? A) Monochronic time B) Linguistic directness C) Low power distance D) Collectivism E) Low level of bribery
D) Collectivism Japanese culture is high context, collectivistic, high power distance, far from English, polychronic (in part), linguistically indirect, and background focused, and it achieves efficiency through reduction of transaction costs; therefore, it is properly categorized as a relationship-oriented culture.
Which of the following legal systems seeks interpretation through the past decisions of higher courts which interpret the same statutes or apply established and customary principles of law to a similar set of facts? A) Islamic law B) Civil law C) Commercial law D) Common law E) Roman law
D) Common law The basis for common law is tradition, past practices, and legal precedents set by the courts through interpretations of statutes, legal legislation, and past rulings. Common law seeks "interpretation through the past decisions of higher courts which interpret the same statutes or apply established and customary principles of law to a similar set of facts.
Ch 2 Which of the following was the main objective behind the United States' efforts to improve world trade by fostering economic growth in Europe and the underdeveloped world just after World War II? A) Halting the growth of Nazi Germany B) Dissolving the colonial powers C) Gaining access to the European market D) Dampening the spread of communism E) Creating a trade bloc to counter the OPEC countries' clout
D) Dampening the spread of communism
Which of the following uncontrollable elements is likely to have an adverse effect on a company's competitive position in foreign markets due to its influence on the company's investment capabilities? A) Availability of skilled workforce B) Cultural forces favoring economic growth C) High level of technological expertise D) Disturbed domestic economy E) Provision of advanced infrastructure in foreign market
D) Disturbed domestic economy
____ is generally a problem when managers from affluent countries work with managers and markets in less-affluent countries. A) Xenocentrism B) Nativism C) Multiculturalism D) Ethnocentrism E) Global redlining
D) Ethnocentrism
Which of the following barriers require the importers who want to buy a foreign good to apply for an exchange permit? A) Special supplementary duties B) Import quota C) Blocked currency D) Government approval E) Prior import deposit requirements
D) Government approval Government approval requires that importers who want to buy a foreign good must apply for an exchange permit, that is, permission to exchange an amount of local currency for foreign currency.
Which of the following is an instance of how nationalism can be manifested? A) Membership in bilateral trade treaties B) Call to buy eco-friendly products C) Restrictions on exports D) Imposition of tariffs E) Focus on global security
D) Imposition of tariffs
A prominent monument at the entrance of Chapultepec Park recognizes Los Niños Heroes (the boy heroes), who chose death over surrender during the _____. A) Battle of San Jacinto B) Monroe doctrine of 1813 C) Roosevelt corollary of 1890 D) Mexican War of 1847 E) Gadsden Purchase of 1853
D) Mexican War of 1847
The World Bank estimates that five countries whose share of world trade is barely one-third that of the European Union will, by 2020, have a 50 percent higher share than that of the European Union. Which of the following is one of the countries included in this list? A) Canada B) Nigeria C) Netherlands D) Russia E) Rhodesia
D) Russia The World Bank estimates that five countries— Brazil, China, India, Indonesia, and Russia—whose share of world trade is barely one-third that of the European Union will, by 2020, have a 50 percent higher share than that of the European Union.
In which of the following rounds of intergovernmental tariff negotiations was the World Trade Organization created? A) Geneva Round (1947) B) Tokyo Round (1974) C) Kennedy Round (1964) D) Uruguay Round (1994) E) Doha Round (2001)
D) Uruguay Round (1994)
Michele Phillips has just begun to understand French culture, even though she has lived in France for two years. She is nearly fluent in French. However, learning to live in France will take some time. The process of how a person learns and adjusts to a new culture is called: A) socialization. B) democratization. C) sensitivity. D) acculturation. E) embodiment.
D) acculturation.
Ch 5 An awareness of one's own culture and the recognition that differences in others can cause anxiety, frustration, and misunderstanding of the host's intentions is essential to effective _____. A) evolution B) integration C) standardization D) adaptation E) competition
D) adaptation
In the context of business ethics, during the 1997-1998 financial crisis, many government leaders in Southeast Asia decried _____ as the worst kind of corruption. A) individualism B) consumerism C) American movies D) currency speculation E) intellectual property
D) currency speculation
Elements such as structure of distribution and cultural forces are regarded as _____. A) home country variables B) foreign environment controllables C) domestic environment uncontrollables D) foreign environment uncontrollables E) domestic environment controllables
D) foreign environment uncontrollables
When Rita Thomas' clothing company began to market its line of inexpensive cotton shirts in Africa, it assumed that it would be able to use its television and print advertising measures that had worked very well in the United States and other countries. However, the company soon learned that literacy rates and ability to access television in other areas of the world were not comparable to the level prevalent in the home country. This pushed the company to think of other promotional measures that were not heavily dependent on literacy and technology. The factors that created difficulties for Rita's company in this scenario can be regarded as: A) internal marketing controllables. B) domestic environment controllables. C) local environment uncontrollables. D) foreign environment uncontrollables. E) foreign environment controllables.
D) foreign environment uncontrollables.
Despite the emphasis on rank and hierarchy in Japanese social structure, business emphasizes _____ decision making—but at the top management level. A) committee B) decentralized C) centralized D) group E) autocratic
D) group Despite the emphasis on rank and hierarchy in Japanese social structure, business emphasizes group participation, group harmony, and group decision making—but at the top management level.
Ch 3 In the context of the Opium Wars, during the early 1800s, the British fondness for _____ was creating a huge trade deficit with China. A) bamboo B) mother-of-pearl C) silk D) tea E) porcelain
D) tea
The Export-Import Bank: A) provides aid to underdeveloped countries and has limited protection in support of "essential" projects in approved countries and for approved products. B) provides credit insurance that minimizes nonpayment risk caused by financial, economic, or political uncertainties. C) is dedicated to helping U.S. business compete in the global marketplace. D) underwrites trade and investments for U.S. firms. E) provides risk insurance for companies investing in less-developed countries.
D) underwrites trade and investments for U.S. firms.
Which of the following is a political cause for instability in international markets? A) Varied taxing conventions B) Differences in philosophical ideologies C) Global focus D) Activism E) Animosity toward specific countries
E) Animosity toward specific countries
Which of the following is true of the effect of technology on culture? A) The U.S. delivers the best healthcare system in the world due to its superior technology. B) In 1968, the Roman Catholic Church actively recommended the use of birth control pills. C) Women have become tied to distinct gender roles after the advent of birth control technologies. D) Technology offers a solution for all cultural problems. E) Birth control pills have forced schools to address the issue of abstinence.
E) Birth control pills have forced schools to address the issue of abstinence.
Which of the following approaches will help traditional American companies operating in countries like China to protect intellectual property rights? A) Using IP without registering it with the appropriate agencies in United States B) Not engaging local representation C) Avoiding negotiation and alternative dispute resolution D) Expecting the home country to actively police their intellectual property E) Complaining to the U.S. government and World Trade Organization
E) Complaining to the U.S. government and World Trade Organization
Sean Jay's, a successful retail chain from Spain, failed to establish their market in Germany. The main reasons for their failure were designing their retail outlets in the same way as in Spain and selling their products at low prices. The people in Spain like to purchase products at prices they feel as bargain price, whereas people in Germany often associate low prices with a poor quality product. This shows that Sean Jay's failed to adapt to which of the following uncontrollable factors? A) Political forces B) Foreign policies C) Technological forces D) Economic forces E) Cultural influences
E) Cultural influences
Which of the following is true of communication infrastructures as a part of international commerce? A) The television was the first medium of communication to be invented. B) Businesses that retain their old practices in the face of new technology tend to flourish. C) The Internet and the mobile phone have not had as great an effect on commerce as the telegraph. D) Improvements in communication have been slow to influence the expansion of trade. E) Each new communications technology has spawned new business models.
E) Each new communications technology has spawned new business models.
Which of the following is true of family in the context of global marketing? A) Nepotism is seen as an organizing principle in American organizations. B) The ratio of male to female children is independent of culture. C) The education gap between men and women is increasing around the world. D) Favoritism for boys is deep-seated in American culture. E) Family forms and functions vary substantially around the world.
E) Family forms and functions vary substantially around the world.
Which of the following is true of global awareness in the context of international marketing? A) Global awareness in the context of international marketing strictly limits itself to the knowledge of the economic aspects of the country. B) Global awareness cannot be built into the organization as it represents an individual's tendency to be aware and knowledgeable about the world. C) Global awareness in America has primarily been obtained by creating culturally diverse senior executive staff and top management members. D) Global awareness can hardly be obtained through personal relationships and social ties with people in other countries. E) Global awareness can be generated by selecting individual managers specifically for their demonstrated levels of global awareness.
E) Global awareness can be generated by selecting individual managers specifically for their demonstrated levels of global awareness.
Latin Americans tend to see the _____ as an offensive expression of U.S. influence in Latin America. A) Roosevelt Corollary B) Manifest Destiny C) Hays Corollary D) Grant Mandate E) Monroe Doctrine
E) Monroe Doctrine
Which of the following is most likely to be recorded on the minus side of the U.S. balance of payments? A) Merchandise export sales B) Transportation C) Return on capital invested abroad D) Money spent by foreign tourists E) New overseas investments
E) New overseas investments On the minus side of the U.S. balance of payments are the costs of goods imported, spending by American tourists overseas, new overseas investments, and the cost of foreign military and economic aid.
Allen's is a cosmetics company in the UK. When Allen's ventured into the Chinese market by setting up a manufacturing plant in China, the activists in China rallied against the company claiming that they are exploiting the cheap labor available there. They demanded that the manufacturing plant be closed down. Which of the following foreign environment uncontrollables is posing a challenge to Allen's in the above scenario? A) Sales measures B) Competitive forces C) Marketing concepts D) Level of technology E) Political/legal forces
E) Political/legal forces
_____ is the practice whereby a foreign producer intentionally sells its products in a market for less than the cost of production to undermine the competition and take control of the market. A) Basing point pricing B) Offensive pricing C) Defensive pricing D) Counterpoint pricing E) Predatory pricing
E) Predatory pricing
Which of the following is true of the strategy of planned and unplanned change in global marketing? A) Cultural congruence involves deliberately changing certain aspects of culture to meet marketing goals. B) All marketing efforts require planned or unplanned change in order to be accepted. C) Planned change involves marketing products similar to the ones already on the market. D) The first step in bringing about planned change in a society is to remove obstacles for acceptance of a product. E) Protein-rich diets were marketed using the strategy of planned change.
E) Protein-rich diets were marketed using the strategy of planned change. The first step in bringing about planned change in a society is to determine which cultural factors conflict with an innovation, thus creating resistance to its acceptance. The next step is an effort to change those factors from obstacles to acceptance into stimulants for change. The same deliberate approaches used by the social planner to gain acceptance for hybrid grains, better sanitation methods, improved farming techniques, or protein-rich diets among the peoples of underdeveloped societies can be adopted by marketers to achieve marketing goals.
Which of the following electronic services gives exporters authority to ship their goods for those licenses approved without conditions? A) Export License Application and Information Network (ELAIN) B) Defense Priorities and Allocation System (DPAS) C) Simplified Network Application Process (SNAP) D) Electronic Request for Item Classification (ERIC) E) System for Tracking Export License Applications (STELA)
E) System for Tracking Export License Applications (STELA)
Which of the following is true regarding the contractual validity of electronic contracts? A) E-mail is not considered as a valid form of communication in most developed countries, including India. B) Electronic contracts are not enforceable by law. C) India recently passed a law that states that digital signatures are not legally binding. D) The EU Commission has adopted an e-commerce directive that will forbid online retailers from trading by the rules of their home country. E) The United Kingdom recognizes digital signatures used in creation of online contracts as legally binding as any paper-based original document.
E) The United Kingdom recognizes digital signatures used in creation of online contracts as legally binding as any paper-based original document.
Based on the growing popularity of smaller families worldwide, what do experts predict for the future? A) As countries move toward service economies, larger families will be more favored in future. B) Countries with larger families will outdo developed countries owing to their larger talent pool. C) As smaller families increase, the multiplier effect could increase world population beyond control by the year 2040. D) Countries facing labor shortages will encourage and popularize larger families. E) The planet's population will actually begin to decline after 2040 unless major breakthroughs in longevity intervene.
E) The planet's population will actually begin to decline after 2040 unless major breakthroughs in longevity intervene.
The fourth type of capitalism common in Chinese culture that was omitted by Lester Thurow is characterized by: A) a focus on community building. B) the formation of trade unions. C) state capitalism. D) a feudal-capitalist nexus. E) an emphasis on one's network of personal connections.
E) an emphasis on one's network of personal connections. Thurow omitted a fourth kind of capitalism—that is common in Chinese cultures. Its distinguishing characteristics are a more entrepreneurial approach and an emphasis on guanxi (one's network of personal connections) as the coordinating principle among firms.
A Canadian company had placed an order with a Korean company for electronic equipments. The Korean company was unable to deliver the goods on time due to a technical failure and the Canadian company incurred losses. Initial attempts to informally settle the dispute failed. Hence each party chose a person to defend their case and a lawyer was appointed by an international committee to settle the dispute. The decision of the lawyer was binding for both parties. The method of dispute resolution being used in the above scenario is _____. A) conciliation B) litigation C) informal settlement D) coercion E) arbitration
E) arbitration In the process of arbitration, the plaintiff and the defendant select one person each from among acceptable arbitrators to defend their case and the ICC court of arbitration appoints a third member, generally chosen from a list of distinguished lawyers, jurists, and professors.
In general, tariffs restrict: A) inflationary pressures. B) special interests' privileges. C) government control in economic matters. D) quotas. E) manufacturers' supply sources.
E) manufacturers' supply sources.
In the context of the Treaty of Nanjing, the East India Company discovered that _____ was a good product to trade with the Chinese because it was easy to ship and was addicting to customers. A) pepper B) betel nut C) fish D) tea E) opium
E) opium
An increasing reliance on _____ supplies from areas of political instability, creates a global interdependence of energy resources. A) solar energy B) wood C) coal D) hydrothermal energy E) petroleum
E) petroleum
At the _____ stage of international marketing involvement, a firm has permanent productive capacity devoted to the production of goods and services to be marketed in foreign markets. In addition to this, the primary focus of operations and production is to service domestic market needs. A) internal marketing B) global marketing C) domestic marketing D) no direct foreign marketing E) regular foreign marketing
E) regular foreign marketing
At the top of the list of political issues concerning foreign businesses is: A) the existence of local-content laws. B) the government support to labor unions. C) the feeling of nationalism in the opposing political party. D) cyberterrorism and cybercrime. E) the stability of prevailing government policies.
E) the stability of prevailing government policies.
