International Marketing Exam 1 (Chapters 1-4)

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

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."

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.

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.

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

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

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 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.

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

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 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

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

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

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.

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.

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

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) Geography and Infrastructure

C) Economic climate

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 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

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.

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.

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

____ 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 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' clou

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

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

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.

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.

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

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.

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

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.

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.

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