MKT 448 Final Exam

What nation has the largest Muslim population in the world?

Indonesia

____ required the US, Canada and Mexico to remove all tariffs and trade barriers over 15 years, and beginning in 2008, all trade barriers were officially dropped a. Mercosur b. USMCA c. CARICOM d. NAFTA e. DR-CAFTA

NAFTA

Since 2007, FedEx has contributed millions to the PGA Tour, and as its most lucrative donor, an event is named after the company. This is an example of entrepreneurship. sustainability. governance. a bribe. a sponsorship

a sponsorship

How many people will live in Africa in 2100?

a third of the population

Which agency underwrites trade and investments for U.S. firms? a. Export-Import Bank b. the Federal Trade Commission c. the Agency for International Development d. Social Security Advisory Board e. the Overseas Private Investment Corporation f. The Global Chamber of Commerce

export-import bank

The responsibility of determining if a license is required rests with the exporter. Department of Commerce of the exporting nation. regulatory body of the industry. U.S. Customs department. importer.

exporter

When a government seizes an investment of a foreign investor but some reimbursement for the assets is made, the government follows a process called confiscation. expropriation. domestication. exchange controls. local-content laws.

expropriation

The finance minister of a developing country demands a heavy payment for the approval of a multimillion dollar contract with a foreign company. This demand for the lump sum payment is called extortion. subornation. lubrication. larceny. malfeasance.

extortion

In ________, a company has an ongoing relationship with a bank that routinely buys its short-term accounts receivable at a discount. forfaiting factoring a barter transaction a cash-in-advance transaction an open accounts transaction

factoring

Which step of the international communications process is important as a check on the effectiveness of the other steps? selecting a proper message encoding the message selecting an appropriate channel of communication decoding the message feedback

feedback

The channel process includes all activities, beginning with the manufacturer and ending with the wholesaler. agent middlemen. merchant middlemen. retailer. final consumer.

final customer

What trade policy tool makes it mandatory for its importers who want to buy a foreign good to apply for an exchange permit? a. tariff b. import quota c. blocked currency d. government approval e. export levy

government approval

If there is a dispute between ________, the World Court can adjudicate. a. all of the above b. trade associations of two countries c. two companies d. a company and a government e. a citizen and a government f. governments

governments

Which form of business decision making is predominant in most Asian countries? a. independent decision making b. contractual decision making c. authoritarian decision making d. group decision making e. dictatorial decision making

group decision making

What are the two dimensions that define the quality of a product or service? consumer choice quality and process quality market-perceived quality and performance quality product quality and market quality actual quality and assumed quality absolute quality and relative quality

market-perceived quality and performance quality

________ is traditionally defined as the systematic gathering, recording, and analyzing of data to provide information useful to marketing decision making. Marketing reach Market skimming Marketing research Marketing exposure Target marketing

marketing research

What is the first phase in the international planning process? adapting the marketing mix to target markets developing the marketing plan matching company and country needs implementation and control defining market segments

matching company and country needs

Which group takes title to manufacturers' goods and assumes the trading risks? merchant middlemen brokers buying offices export agent agent middlemen

merchant middlemen

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

minimum access volume

A ________ policy is used to stimulate market and sales growth by deliberately offering products at low prices. penetration pricing variable-cost pricing premium pricing price skimming full-cost pricing

penetration pricing

The only way to avoid linguistic problems in advertising communication is by creating an entirely new advertisement for the new market. using only English in all media promotions. developing a new version of the product for the new market. performing in-country testing with the target consumer group. using facial expressions and physical gestures in the advertisement.

performing in-country testing with the target consumer group.

Certain advertising media are forbidden by government edict to accept some advertising materials. Such restrictions are most prevalent in Internet forums. radio and television broadcasting. trade shows and exhibitions. direct selling and sales promotions.

radio and television broadcasting

The most basic economic integration and cooperation, in which governments agree to participate jointly to develop basic industries beneficial to each economy, is the a. political union b. common market c. regional cooperation for development (RCD) d. customs union e. free trade area (FTA)

regional cooperation for development (RCD)

Phineas is comparing the innovation characteristics of his company's water filters with those that are already being marketed in the local market. He believes there is lot of potential for his filters as they are functionally more advanced, have a longer life, and can also be marketed at a more competitive price than those of other sellers in the local market. The innovation characteristic of Phineas's product that will help in wide acceptance of his product in the local market is its compatibility. complexity. trialability. relative advantage. observability.

relative advantage

A major goal of the Export Trading Company (ETC) Act was to allow U.S. companies to bypass tax laws with respect to international trading. remove antitrust disincentives to export activities in the U.S.. bypass trade barriers in foreign countries. earn the highest possible profits in foreign countries.

remove antitrust disincentives to export activities in the U.S..

In the context of international advertising, companies are moving from the commission system to a ________ system. tactical standardized reward-by-results self-regulation

reward-by-results

What key provision of NAFTA restricts Japan from assembling autos in Mexico and avoiding US or Canadian tariffs and quotas, unless the auto had a specific percentage of Mexican (i.e. North American) content a. services b. standards c. rules of origin d. uniform customs procedures e. government procurement

rules of origin

In-store demonstrations, samples, coupons, contests, point-of-purchase displays, and sweepstakes are examples of ________ devices. personal selling sales promotions content marketing direct selling

sales promotions

One way to get around the difficulty of full-market coverage in a country is to seek significant penetration in major population areas. avoid countries with multiple languages. assess countries in terms of market segments, not geographic segments. keep marketing efforts to highly developed areas. focus on the use of one channel.

seek significant penetration in major population areas

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

set the right price for the goods or services.

A(n) ________ duty is a flat charge per physical unit imported. ad valorem compound prohibitive alternative specific

specific

What is the top political issue concerning foreign businesses? a. demographic profile of political leaders b. government policies on infrastructure c. economic awareness of political leaders d. stability of prevailing government policies e. membership of governments in trade treaties

stability of prevailing government policies

K. Prahalad and his associates introduced a new concept into the discussion of developing countries and markets—bottom-of-the-pyramid markets (BOPMs)—consisting of the 4 billion people across the globe with annual incomes of less than a. $400 b. $1200 c. $2500 d. $3700 e. $4200

$1200

Patent - gives an inventor exclusive right to make, use, or sell an invention for a specified period of time Trademark - gives company protection of distinctive symbol Copyright - establishes ownership

.

Identify (list) the five characteristics of an innovation that assist in determining the rate of acceptance or resistance of the market to a product.

1. Relative advantage 2. compatibility 3. Complexity

How many countries are in the Eurozone a. 28 b. 27 c. 19 d. 18 e. 6 f. 5

19

How many countries are in the EU? a. 28 b. 27 c. 19 d. 12 e. 6 f. 5

27

According to the US Department of Commerce, Latin American and other emerging markets will account for ____ of the world's total growth in the next two decades and beyond. a. 20% b. 30% c. 50% d. 75% e. 90%

75%

The EU is a(n) a. free trade area b. common market c. commonwealth d. political union e. customs union f. RCD g. WTO

?

When did/will Brexit take place? a. June 2016 b. 12/31/2016 c. 12/31/2019 d. 1/31/2020 e. 7/1/2020 f. 12/31/2020

??

What is true of nationalism? The more a country feels threatened by some outside force the less nationalistic the country becomes. A call to "buy our country's products only" is one form of manifestation of national feelings. Nationalist feelings lead to loss of control over foreign investment. The more a country's domestic economy declines, the less nationalistic it becomes. Nationalistic feelings are not prevalent in economically prosperous countries.

A call to "buy our country's products only" is one form of manifestation of national feelings

When developing a website, what is true about the use of language? English should be used, as it is the most universal language. It is not necessary to use multiple languages because the customer will bridge the language gap. Simple translation of web pages is sufficient to reach foreign markets. Language and culture do not impact a website's message in any significant way. A country-specific (and language-specific) website may make the difference between success and failure.

A country-specific (and language-specific) website may make the difference between success and failure.

What is a severe limitation of using the Internet for primary research? The data on the Internet are usually outdated. The educational qualifications of the respondents of surveys on the Internet cannot be identified accurately. Secondary data cannot be accessed on the Internet for conducting research. A sample universe composed solely of Internet respondents represents a potential bias. Using the Internet for primary research is the most expensive way of conducting primary research.

A sample universe composed solely of Internet respondents represents a potential bias.

___ is a unique forum that has evolved into the primary regional vehicle for promoting trade liberalization and economic cooperation, and includes all the major economies around the Pacific Rim, from Russia to Chile to Australia. a. NAFTA b. ASEAN c. ASEAN+3 d. SADC e. APEC

APEC

The primary multinational trade group in Asia is a. MERCOSUR b. COMESA c. CEFTA d. SADC e. ASEAN

ASEAN

The two main (trading) groups of countries that resulted through the spinoff of countries that were previously part of the USSR are: a. Scandinavia b. Belarus c. Benelux d. Baltic States e. Eastern European Collective f. Collective of Socialist Nations (CSN) g. Commonwealth of Independent States

Baltic States, Commonwealth of Independent States

Which of the following are Benelux countries? a. Belarus b. Belgium c. Belize d. Brussels e. Denmark f. Finland g. Germany h. Greenland i. Iceland j. Lichtenstein k. Luxembourg l. Norway m. Strasbourg n. Sweden o. The Netherlands

Belgium, Luxembourg, The Netherlands

What company offers a manufacturer's retail store? Toys "R" Us Walmart Costco Benetton IKEA

Benetton

Which South American country is often considered--similar to Russia, India, China and South Africa--as a leading emerging economy? Argentina Bolivia Brazil Chile Colombia Ecuador French Guiana Guyana Paraguay Peru Suriname Uruguay Venezuela

Brazil

Haiti is a member of a. CARICOM b. NAFTA c. CFTA d. LAIA e. Mercosur

CARICOM

Which of the following countries is the world's top polluter, at present, in almost all respects? a. Brazil b. China c. Sudan d. Afghanistan e. Zimbabwe

China

_______ is now Japan's most important trading partner. a. Malaysia b. The United States c. Bangladesh d. Bahrain e. China f. North Korea g. South Korea h. Russia

China

What was the result of the First Opium War between the British and China? a. China ceded Hong Kong to Britain. b. Hong Kong was displaced to China at a cost of $10 million pounds. c. China blockaded all British ports. d. Opium was legalized to make trading easier for both countries. e. No taxes were allowed to be levied on opium imports or exports. f. Taiwan obtained its independence.

China ceded Hong Kong to Britain

Which of the following are Scandinavian countries? a. Belarus b. Belgium c. Belize d. Brussels e. Denmark f. Finland g. Germany h. Greenland i. Iceland j. Lichtenstein k. Luxembourg l. Norway m. Strasbourg n. Sweden o. The Netherlands

Denmark, Finland, Iceland, Norway, Sweden

In an international advertising campaign, what happens once the goals of the communication have been specified? Develop the most effective message(s) for the market segments selected. Compose and secure a budget. Select effective media. Execute the campaign. Evaluate the campaign relative to the goals specified.

Develop the most effective message(s) for the market segments selected.

Which country or group of countries has been at the forefront of the "green movement"? The United States Japan Europe OPEC countries NAFTA countries

Europe

T/F Centralization of the marketing research function in the parent country ensures that the field personnel and resident managers in the foreign country have more intimate knowledge of the subtleties of the market.

False

T/F Different cultures usually seek different values or benefits from the primary function of a product.

False

T/F Getting the chief executive on the road to meet customers and assess a market personally is a form of research called extra sensory perception.

False

T/F India, while slightly smaller than China in population, is considered a better market to enter because the growth rate of its economy is outperforming China's.

False

T/F The British Isles are composed of Great Britain and the Republic of Ireland

False

T/F The EU and USMCA are the two biggest political unions in the world today.

False

T/F The Hong Kong SAR government stresses the predominant role of public sector over the private sector.

False

T/F The International Monetary Fund has as its goal the reduction of poverty and the improvement of living standards by promoting sustainable growth and investment in people. It provides loans, technical assistance and policy guidance to developing country members to achieve its objectives.

False

T/F The PNTR status given to China contributed much toward increasing the import barriers on American products and services.

False

T/F The Uk consists of Great Britain and the Island of Ireland

False

T/F The term "The Greater China" refers to the information technology (IT) corridor in north China.

False

T/F To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that emphasizes the need for ethnocentrism.

False

T/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.

False

T/F A more developed economy tends to have fewer types of marketing functions that are needed

False

T/F The most often used form of qualitative questioning is the survey questionnaire that contains questions with a set of choices from which respondents select their responses.

False

The _________ of the United States makes it illegal for companies to pay bribes to foreign officials, candidates, or political parties. International Codes of Law Taft-Hartley Act Best Practices Act Informed Consumer Standard Foreign Corrupt Practices Act

Foreign Corrupt Practices Act

What country has the largest GDP in Europe? United Kingdom Russia Germany France Italy Spain Turkey

Germany

Which country has enacted the most stringent green marketing laws to regulate the management and recycling of packaging waste? United States India China South Korea Germany Paris

Germany

According to Manifest Destiny, who gave Americans the power to create a model society? a. Roosevelt b. the people c. God d. family e. big business f. the Whig Party

God

What is the term used to refer to the combination of the People's Republic of China (PRC), the Republic of China (ROC), Macau, and Hong Kong? a. Integrated China b. Yellow Route c. Neo China d. Mainland China e. Greater China f. The Four Dragons g. The Four Asian Tigers

Greater China

What country is the northernmost country in North America?

Greenland

What is the biggest island in North America?

Greenland

The "white paper" protests are in reaction to the national security law cramping down on freedom of speech within a. United States b. India c. China d. Hong Kong e. Taiwan f. Singapore

Hong Kong

What is the biggest city in Europe (in terms of population)? London Paris Moscow Istanbul Vatican City Monaco Berlin

Istanbul

Which statement is true regarding an export management company (EMC)? It acts as a middleman for firms with relatively large international sales volume. It operates under its own name while providing services to another firm. It does not have direct responsibility to the parent firm. It acts as a middleman for firms willing to involve their own personnel in international functions. It calls for smaller investment from the parent firm to get into international markets.

It calls for smaller investment from the parent firm to get into international markets.

Which statement accurately describe GATT? a. The United States, the United Kingdom, and Germany were the only signatories of the original GATT. b. The original agreement provided a process to increase the tariffs on trade goods. c. GATT member nations seek to resolve their trade disputes unilaterally. d. The GATT panels have enforcement powers apart from advisory powers. e. It created an agency to serve as watchdog over world trade.

It created an agency to serve as watchdog over world trade

Why might the process of planning be as important as the plan itself? It involves everyone in the organization. It forces decision makers to examine all factors that affect the success of a marketing program. It is necessary to share all plans with shareholders annually. The process of planning is a standard course in business schools. Decision makers face more challenges managing a domestic marketing program than a global one.

It forces decision makers to examine all factors that affect the success of a marketing program.

What impact has global competition had on business activities in the international marketplace? It has shifted the focus from a consumer's market to a seller's market. It has increased product life cycles. It has put more power in the hands of the customer. It has reduced the competitive spirit of most businesses in a marketplace. It has limited the choices of the consumers.

It has put more power in the hands of the customer.

What is a tariff? a. It is a tax levied by a government on goods being exported out of the country. b. It is a tax paid by individual states to the federal government for goods transferred across state lines. c. It is a tax imposed by a government on goods that are imported into the country. d. It is a limit on the amount of goods that can be imported into the country. e. It is a limit on the amount of goods that can be exported out of the country.

It is a tax imposed by a government on goods that are imported into the country

Why are foreign laws and regulations friendly toward franchising? It is an important form of horizontal market integration. It gives the franchiser little control on marketing of the products at the point of final sale. It tends to foster local ownership, operations, and employment. It provides an effective blending of skill decentralization and operational centralization. It provides to the franchiser market knowledge, capital, and personal involvement in management.

It tends to foster local ownership, operations, and employment.

Which statement best defines the concept of public relations? It is the practice of using the public to promote a company's products through vehicles like blogs. It is the direct sale of goods at discount rates to the public at trade fairs. It the creation of relationships with the media to help communicate messages to their customers, the general public, and governmental regulators. It is the distribution of samples and coupons directly to the public. It is the use of various forms of promotions to improve relationships with customers.

It the creation of relationships with the media to help communicate messages to their customers, the general public, and governmental regulators.

Countries like ________ and the U.S. epitomize the problems caused by an increasing percentage of elderly people who must be supported by a declining number of skilled workers. a. Brazil b. China c. Egypt d. Chile e. Japan

Japan

Next to the United States, which country has the best quantity and quality of marketing-related data available? Brazil Australia China Japan Germany United Kingdom

Japan

Which Asian country was the first to move from a status of developing country to a newly industrialized country? a. Japan b. Hong Kong c. South Korea d. Singapore e. Taiwan f. India g. China

Japan

The national language of China is standard ____, but more than 56 dialects and other languages are spoken across the country. a. Wu b. Min c. Cantonese d. Xiang e. Mandarin f. Han g. Chinese

Mandarin

What body of water is considered by many to be the natural border between Africa and Asia?

Mediterranean Sea

What is the second-largest trade agreement in the Americas? a. CFTA b. TPP c. Mercosur d. DR-CAFTA e. SAFTA

Mercosur

Which country announced that it would seek free trade with the US shortly after the ratification of the United States-Canada Free Trade Area (CFTA) a. Germany b. Australia c. Mexico d. The UK e. China

Mexico

The ________, a cornerstone of early U.S. foreign policy, dictated that no further European colonization in the New World would be accepted. a. Madison Corollary b. Monroe Doctrine c. Roosevelt Corollary d. Wilson Policy Position e. Manifest Destiny

Monroe Doctrine

What countries are on the island of Ireland? a. Northern Ireland b. Southern Ireland c. Republic of Ireland

Northern Ireland and Republic of Ireland

Which statement is true about the reliability of secondary data while conducting market research? The data in less developed countries are particularly prone to being less positive in nature when reported by these countries. Reliability of data remains unaffected by the prevailing tax structures in countries. Official statistics are sometimes too optimistic, reflecting national pride rather than practical reality. Economic data about less developed countries are more reliable when reported by these countries. Willful errors in the reporting of marketing data are predominantly absent in most industrialized countries.

Official statistics are sometimes too optimistic, reflecting national pride rather than practical reality.

Aside from the United States, ________ is the most important single national market. a. UAE b. People's Republic of China c. Saudi Arabia d. India e. Japan f. Germany g. Republic of China

People's Republic of China

What is true of price quotations for international sale? Price quotations can be made only if it is shown that prices are lower in the importing country than in the exporting country. Price quotations must specify the currency to be used, credit terms of the transaction, and documents required. The price quotation and contract should define only the quantity of goods and not necessarily the quality. Price quotations must be quoted only in terms of electronic trade dollars. Price quotations need to specify the transportation charges but need not necessarily state what type of documentation needs to be used.

Price quotations must specify the currency to be used, credit terms of the transaction, and documents required.

Because of political changes in the late twentieth century, which country has had to build from scratch an entire commercial legal system? Taiwan France Russia Germany Saudi Arabia

Russia

Fifteen countries earned their "freedom" through the dissolution of the the USSR? Which is the largest country of that group?

Russia

What country recently allowed women the right to vote for the first time? a. Croatia b. Iran c. Bolivia d. Saudi Arabia e. Venezuela

Saudi Arabia

What countries are in Great Britain? a. Scotland, England and Wales b. Scotland, England, Wales and Northern Ireland c. Scotland, England, Wales, Northern Ireland and Southern Ireland d. Scotland, England, Wales, Northern Ireland and Republic of Ireland e. Scotland, England, Wales, Northern Ireland, Republic of Ireland and Great Britain

Scotland, England and Wales

What countries are in the British Isles? a. Scotland, England and Wales b. Scotland, England, Wales and Northern Ireland c. Scotland, England, Wales, Northern Ireland and Southern Ireland d. Scotland, England, Wales, Northern Ireland and Republic of Ireland e. Scotland, England, Wales, Northern Ireland, Republic of Ireland and Great Britain

Scotland, England, Wales, Northern Ireland and Republic of Ireland

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

Sherman Antitrust Act.

ASEAN+3 is a forum for ASEAN ministers plus ministers from China, Japan, and a. Singapore b. South Korea c. Russia d. Australia e. Taiwan

South Korea

Which nation is one of the Four Asian Tigers? a. India b. Thailand c. South Korea d. Malaysia e. Vietnam

South Korea

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

The company sets prices to achieve specific objectives.

What is true of franchising? It provides an effective blending of skill decentralization and operational centralization. The franchisee provides market knowledge, capital, and personal involvement in management. Foreign laws and regulations are usually hostile toward franchising. It is an important form of horizontal market integration. The franchiser has little control on marketing of the products at the point of final sale.

The franchisee provides market knowledge, capital, and personal involvement in management.

How are global retailers like IKEA, Costco, and Walmart becoming major domestic middlemen for international markets? They maintain their core marketing approaches while localizing the array of products, promotions, and other peripheral aspects of their operations. They work under the names of the manufacturers and function as low-cost, independent marketing departments with direct responsibility to the parent firms. They have minimum investment costs as they do not commit to investing in company personnel. 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. They offer reduction of export costs, demand expansion through promotion, trade barrier reduction, and improvement of trade terms through bilateral bargaining.

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

What is common among the Four Asian Tigers? a. They were among the first countries in Asia to move from a status of developing countries to newly industrialized countries. b. They have a middle class numbering some 250 million, about the population of the United States. c. The exports in these countries are growing at a rate of 50 percent annually. d. They have faced a serious disadvantage in the information age due to their complex languages. e. They all have the custom of "baksheesh," a deeply ingrained system of bribery. f. Chinese is the common language spoken among them.

They were among the first countries in Asia to move from a status of developing countries to newly industrialized countries.

T/F According to the UN classification, industrially developing countries just entering world trade with relatively low per capita incomes are referred to as less-developed countries

True

T/F China's "one country, two systems" agreement with Hong Kong was meant to guarantee the latter a high degree fo autonomy.

True

T/F Completion rates on questionnaires can be hampered by a culture that places a higher value on privacy.

True

T/F Cultural barriers play a bigger role in services than in merchandise trade.

True

T/F Economic development translates to rapid economic growth and increases in consumer demand.

True

T/F Free trade areas that are tariff-free among members but have a common tariff for nonmembers create an opportunity that can be capitalized on by direct investment.

True

T/F Government, the media, and corporations are all considered social institutions.

True

T/F In terms of alliances with China versus Taiwan, US policy has been described as one of "strategic ambiguity", seeking to balance China's emergence as a regional power with US admiration for Taiwan's economic success and democratization.

True

T/F Language is an example of a cultural symbol

True

T/F People from cultures with high Power Distance Index scores are more likely to have a general distrust of others.

True

T/F Spreading the portfolio of markets served stabilizes revenues and operations for many global companies.

True

T/F The European Union limits product placement in foreign programming but not EU-produced material.

True

T/F The Power Distance Index measures the tolerance for social inequality among members of a culture.

True

T/F The amount of equity required by a company to use different modes of entry in a new market affects the risk, return, and control that it will have in each mode.

True

T/F The decisions taken by the World Trade Organization in solving trade disputes among members are binding.

True

T/F When discussing the elements of culture, funerals are good examples of rituals.

True

T/F When the U.S. dollar strengthens, U.S. exports will decrease.

True

T/F: Incorrect decisions taken in Phase 2 of the international planning process lead to products inappropriate for the intended market or costly mistakes in pricing, advertising, and promotion.

True

What is the largest trade agreement in the Americas? a. CFTA b. NAFTA c. Mercosur d. DR-CAFTA e. USMCA

USMCA

Of the following countries, which requires the least number of school days in a year for elementary age students? a. China b. India c. United States d. Japan

United States

The main international body for meditating global trade disputes is a. the World Economic Forum b. GATT c. WTO d. WTF e. NATO f. International Monetary Fund g. Organization for Economic Co-operation and Development h. CET i. United Nations j. CFTA

WTO

The marketing manager for Glorious Products wants to export the company's line of fashion boots to an EU country. However, she discovers that there is a complete restriction on the import of any form of leather into that country. This is an example of a. an orderly market agreement b. a quota c. a monetary barrier d. a voluntary export restraint e. a boycott

a boycott

What is a partnership called in which several companies have joined forces to create a separate legal entity to facilitate doing business in a country where none of the participants is currently active? a consortium a franchise pact a license arrangement indirect exporting direct foreign investment greenfield investment

a consortium

In the context of monetary barriers, blockage is ideally accomplished when a. a country refuses to allow an importer to exchange its national currency for the country's currency. b. two countries enter into a voluntary agreement to determine the value of their currencies. c. a country applies a specific unit or dollar limit to a particular type of good. d. money dealers limit the rate at which foreign currencies are exchanged. e. the government of a country imposes a mandatory tax on goods entering at its borders.

a country refuses to allow an importer to exchange its national currency for the country's currency

What factor is mainly responsible for a perceptual bias when interpreting the characteristics of a product? too much product information a shorter distribution channel a market analyst's self-reference criterion a low number of product competitors authoritative product information of the market analyst

a market analyst's self-reference criterion

According to the text, today the real power of the Internet for international marketing research is the reduction in the time required for completing primary research. reduction in the cost of conducting primary research. increase in the reliability of the surveys conducted using the Internet. ability to overcome legal barriers to conducting primary research. ability to easily access volumes of secondary data.

ability to easily access volumes of secondary data.

Lisette is excited about her new home in Rome. She has been given the opportunity to learn about a new culture, form new friendships, and capitalize on opportunities that were not available in her previous workplace based in Atlanta. In this scenario, Lisette is going through ________ as she adjusts to living in Rome. a. naturalization b. classification c. acculturation d. emancipation e. standardization f. diffusion g. immunization f. transference

acculturation

The process of adjusting to a new culture is known as a. diffusion. b. culture transfer. c. acculturation. d. assimilation. e. transference.

acculturation

The tariff on certain goods is based on the percentage of the determined value of the item being imported. What type of tariff is this? a. compound duty b. quota duty c. specific duty d. reciprocal duty e. ad valorem duty

ad valorem duty

Two major events that occurred in 2000 had a profound effect on China's economy. One of these is the United States granting normal trade relations (NTR) to China on a permanent basis (PNTR). What is the other one? a. inclusion of state owned companies in NASDAQ b. admission to the WTO c. signing of the new ASEAN pact d. the handover of Hong Kong by the British to China e. inclusion of Hong Kong as a special administrative region (SAR) of China

admission to the WTO

Of all the elements of the marketing mix, decisions involving ________ are those most often affected by cultural differences among country markets. direct selling public relations trade shows advertising sales promotion

advertising

The use of countertrade in international trade allows trade with countries short of hard currency. reduces a firm's competitive advantage. increases the tax liabilities of trading firms. leads to a loss of revenue. is considered unethical

allows trade with countries short of hard currency.

The Uncertainty Avoidance Index measures the tolerance of uncertainty and ________ among members of a society. a. inequality b. subjugation c. ambiguity d. oppression e. hierarchy

ambiguity

________ occurs when host countries gradually cause the transfer of foreign investment to national control and ownership through a series of government decrees. Confiscation Expropriation Domestication Democratization Socialization

domestication

What is an example of comparative advertising? an ad using a scantily clad model to promote a soft drink an ad showing a celebrity smoking his preferred brand of cigarettes an ad showing a dog choosing one brand of dog food over another brand an ad showing the superiority of synthetic materials used in its products as compared to cotton an ad using shocking or taboo material to promote a product

an ad showing a dog choosing one brand of dog food over another brand

Code law is based upon a. the interpretation through the past decisions of higher courts. b. the codes of English law that apply in all countries under English influence. c. the established and customary principles of law and their legal precedence. d. an all-inclusive system of written rules of law. e. the interpretation of the Koran.

an all-inclusive system of written rules of law

A marketing manager of a firm with small international sales volume 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. What type of middleman would be the best choice for this marketing manager if he wants to meet his objectives? a manufacturer's export agent an export merchant a trade representative an export management company a complementary marketer

an export management company

From a sociological viewpoint, any idea perceived as new by a group of people is considered as a creation an adaptation a declension a tradition an innovation

an innovation

A toy manufacturer has excellent sales figures for its toys in country A, but inadequate figures in the neighboring country B. In country A, per capita consumption is known to increase at a predictable ratio as per capita gross domestic product (GDP) increases. If per capita GDP is known for country B, per capita demand for the toys can be estimated using the relationships established in country A. Which of the following methods of forecasting does this example illustrate? probabilistic forecasting reference class forecasting expert opinion analogy linear regression scenario building morphing

analogy

________ is/are a nontariff barrier that was specifically designed to prevent foreign producers from using predatory pricing to take dominance or control of U.S. markets. a. quotas b. embargoes c. blocked currency d. antidumping laws e. exchange permits

antidumping laws

In a typical ________ procedure, parties select a disinterested and informed party or parties to serve as a referee to determine the merits of the case and make a judgment that both parties agree to honor under the law. informal settlement arbitration conciliation coercion litigatio

arbitration

Dumping has been defined as the situation in which a product is sold in the international market at a price below the cost of production. only to the premium, price insensitive segment of the market. where the demand for the product is lower than in the domestic market. at a higher price than in the domestic market. at the same price as in the domestic market.

at a price below the cost of production.

Exporting countries primarily agree to voluntary export restraints (VERs) to a. minimize exposure in the importing country b. reduce market competitiveness c. avoid stiffer quotas being set by the importing country d. take over local industries of the importing country e. avoid criminal prosecution

avoid stiffer quotas being set by the importing country

Developing countries with markets that are geographically large, have strong growth rates, are regional economic drivers, and represent sizable markets for a wide range of products have been identified by the US Department of Commerce as ____ markets. a. frontier b. big emerging c. two-sided d. niche e. grey

big emerging

With ________, the seller assumes all risk until the actual dollars are received. open accounts irrevocable letters of credit bills of exchange factoring agreements forfaiting contracts

bills of exchange

In international marketing, a. self-reference criterion should be embraced; and ethnocentrism should be avoided. b. self-reference criterion should be avoided; and ethnocentrism should be embraced. c. both self-reference criterion and ethnocentrism should be embraced. d. both self-reference criterion and ethnocentrism should be avoided.

both self-reference criterion and ethnocentrism should be avoided

Marcus is the director of a small company in Boston. He is trying to obtain parts from a manufacturer in Taiwan but that company is unwilling to send them because of government regulations limiting exports on small orders. Marcus calls the head of the manufacturing company and says he will pay him an extra $5,000 if he ships them anyway. What practice is Marcus using to obtain the parts? extortion slander barter libel bribery

bribery

A ________ exists when various companies producing similar products or services work together to control markets for the types of goods and services they produce. cabal monopoly cartel producers' association competitive market

cartel

________ is a controllable element for an international marketer. a. level of technology b. geography and infrastructure c. channels-of-distribution d. cultural forces e. competitive forces

channels-of-distribution

The emergence of pan-European communications media will most likely cause companies to opt for localized promotional campaigns. opt for greater customization of promotional efforts. promote their products only in English. use only the Internet as their message channel. choose more standardized promotional efforts.

choose more standardized promotional efforts.

The basis for ________ law is tradition, past practices, and legal precedents set by the courts through interpretations of statutes, legal legislation, and past rulings. commercial common civil criminal code

common

A ____ agreement eliminates all tariffs and other restrictions on internal trade, adopts a set of common external tariffs and removes all restrictions on the free flow of capital ad labor among member nations. a. preferential trade agreement b. common market c. regional cooperation for development d. customs union e. free trade area

common market

Britain and countries that were formerly part of the British Empire are an examples of a ___ of nations. a. autarchy b. monocracy c. commonwealth d. proprietary colony e. trade association

commonwealth

Karyn, who is interested in marketing her company's diet products in Asia, studies the acceptable behavior, norms, and values in Asian markets as they relate to her product. In other words, Karyn is studying her product's ________ in the Asian markets. observability compatibility dissidence trialability complexity

compatibility

Adam Smith in his The Wealth of Nations stated, "By pursuing his own interest he frequently promotes that of the society more effectually than when he really intended to promote it." What behavior does this notion attempt to justify? collectivism loyalty welfare mentality competitiveness cooperation

competitiveness

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 skimming. backhauling. complementary marketing. export marketing. demand shifting.

complementary marketing

A company focusing its efforts on making its new innovation more user-friendly than before is working on the _______ of the product. compatibility trialability complexity discordancy observability

complexity

In general, the rate of acceptance or resistance of the market to a product is negatively related to relative advantage. compatibility. trialability. complexity. observability.

complexity

Mariette's U.S.-based company is having a dispute with a Chinese partner. What method would be especially effective in resolving this dispute? litigation conciliation coercion arbitration a criminal suit

conciliation

________ is a nonbinding agreement between parties to resolve disputes by asking a third party to mediate differences. Conciliation Arbitration Litigation Coercion Prosecution

conciliation

With respect to the political risk that can be faced by a company seeking to invest abroad, which action is most severe? confiscation expropriation domestication exchange controls local-content laws

confiscation

An insurance firm based in California had difficulty expanding its operations to Asian markets as most of the target countries had strict regulations on sharing details about their customers with the home office. The company had to obtain approval from its customers before sharing their personal information with its U.S. office. Which barrier is most likely to have affected the services of the insurance firm? protectionism control on transborder data flows protection of intellectual property cultural requirements for adaptation language translation barriers

control on transborder data flows

In the context of cultural values, which statement is true? a. Countries that are high in individualism and low in uncertainty avoidance tend to be more innovative. b. Diffusion of innovations will be fast in countries that are low on individualism and high on uncertainty avoidance. c. Based on the experiments done with American and Chinese students, individualistic cultures tend to respond more favorably to self-focused appeals. d. Based on the experiments done with American and Chinese students, emotional appeals tend to attract people from collectivistic cultures. e. Based on the experiments done with American and Chinese students, individuals dislike the novelty in relation to their own cultures.

countries that are high in individualism and low in uncertainty avoidance tend to be more innovative

A shoe manufacturer in the Philippines shipped its entire production to San Francisco and then brought it back to the Philippines to market it as "Made in the U.S." The manufacturer believed that people would prefer buying products made in the U.S. rather than those domestically produced. The factor that is influencing the perception of the customers in the given scenario is called the ________ effect. doppler comparative advantage country-of-origin mass placebo

country-of-origin

The ________ effect refers to the possibility that the place of manufacture may affect product or brand image. doppler polar transfer misinformation country-of-origin

country-of-origin

Reggie owns a small stationery company in Tennessee and plans to enter the French market to sell his line of fine linen papers. He realizes that there are many business customs he will need to understand and conform to in order to succeed in France. What type of business custom is Reggie concerned with? cultural exclusives business truism global protocols business axioms cultural imperatives

cultural imperatives

Blue Lobster considered opening restaurants in China. However, the restaurant's labor union felt that since accepting tips by wait staff is considered in bad taste in China, they would face considerable income loss. Therefore, they demanded to know how employees would be compensated for this since a great portion of a typical wait staff person's compensation comes in the form of tips. Which barrier does a consumer services marketer face in this illustration? protectionism controls on transborder data flows protection of intellectual property cultural requirements for adaptation language translation barriers

cultural requirements for adaptation

A ____ has reduced or eliminated internal tariffs and adds a common external tariff on products imported from countries outside the group a. preferential trade area b. currency union c. regional cooperation for development d. customs union e. free trade area

customs union

A ____ is an intermediate step in the transition from a free trade area to a common market. a. political union b. currency union c. regional cooperation for development (RCD) d. customs union e. preferential trade area

customs union

________ buy and register descriptive nouns, geographic names, names of ethnic groups and pharmaceutical substances, and other similar descriptors and hold them until they can be sold at an inflated price. Domain name registries Cybersquatters Universal resource locators Patent trolls Server farms

cybersquatters

_______ is defined as the interpretation by the receiver of the symbolism transmitted from an information source. Encoding Message selection Decoding Message channel selection Feedback evaluation

decoding

What is the first step of the marketing research process? determining the sources of information to fulfill the research objectives analyzing, interpreting, and summarizing the results defining the research problem and establishing research objectives considering the costs and benefits of the research effort gathering the relevant data from secondary or primary sources, or both

defining the research problem and establishing research objectives

Due to differences in culture in different markets, standardized products that are marketed globally will most likely require different advertising appeals. different primary functions. consistent promotional messages. standardized marketing strategies. standardized secondary attributes.

different advertising appeals

Mirros, a U.S. kitchenware distributor, takes a selection of its inventory twice a year to Vietnam and sells it to a Vietnam-based kitchen retailer. The Vietnam company, in turn, sells those products through its retail stores in Vietnam and Thailand. In which of the alternative market-entry strategies is Mirros engaged? franchising licensing direct exporting a joint venture direct foreign investment

direct exporting

Which mode of foreign market entry offers the most control and the highest potential return for a company? exporting joint venture contractual agreement strategic alliance direct foreign investment

direct foreign investment

Which mode of foreign market entry requires the most amount of equity and therefore creates the greatest risk? exporting joint venture contractual agreement strategic alliance direct foreign investment

direct foreign investment

What is often the approach of choice in markets with insufficient or underdeveloped distribution systems? direct marketing a big wholesale store Internet selling a discount house television advertising

direct marketing

Which mode of distribution affords the most control over the distribution channels but often at a cost that is not practical? complementary marketers direct sales force export associations trading companies export management companies

direct sales force

Which mode of distribution in the foreign market will require a company to make the maximum financial investment? export management companies trading companies export associations direct sales force complementary marketers

direct sales force

What has proven to be an important way to break the trade barrier imposed by the Japanese distribution system? direct sales through catalogs large wholesale stores street corner kiosks Internet shopping television advertising

direct sales through catalogs

Integrated marketing communications include marketing management. research and development. human resources. logistics. direct selling.

direct selling

The measure of the differences between language is known as linguistic a. multiplicty b. complicity c. origin d. distance e. recency f. lining g. rule

distance

The ________ process includes the physical handling and distribution of goods, the passage of ownership (title), and the buying and selling negotiations between producers and middlemen and between middlemen and customers. logistics marketing channel distribution control

distribution

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

duties are typically assessed at lower rates for unassembled goods.

While bowing to another person is a ritual among the Japanese, it is not expected for a Westerner to bow or to understand this ritual. In other words, bowing would be considered a cultural a. elective. b. stereotype. c. imperative. d. offense. e. exclusive.

elective

One country refuses to sell goods to its neighboring country based on the belief that the neighboring country harbors radicals and terrorists. In this case, the refusal is referred to as a(n) a. antidumping penalty b. embargo c. monetary barrier d. orderly market agreement e. voluntary export restraint

embargo

A country's investment in information technology is a key to economic growth. Specifically, the internet a. further increases the advantage of rich economies over the poor ones b. increases market transaction costs c. allows for innovative services but at a relatively higher cost d. enables smaller firms in emerging economies to sell into a global market e. decreases the economies of scale from vertical integration

enables smaller firms in emerging economies to sell into a global market

A multinational pharmaceutical company used a saffron trident in a promotional campaign for one of its drugs in India. The saffron trident, a religious symbol in India, was meant to indicate the three levels of efficacy of the drug but mistakenly conveyed a religious message to Indians. This miscommunication indicates a problem associated with which step of the international communications process? encoding noise cancellation media channel selection message transmission information source selection

encoding

Parul believes that her culture and country know how to do things best and she looks down on the cultural habits of other countries. What is Parul exhibiting? a. differentiation b. marketing myopia c. ethnocentrism d. multiculturalism e. pluralism

ethnocentrism

Marziland found that a large amount of capital was leaving the country due to foreign corporate ownership, so it instituted controls over all movements of capital to conserve the supply of foreign exchange. These are called ________ controls. quota local-content price tax production exchange tariff

exchange

Nina McRidder became an embarrassment to her company when she joked about the ruling monarchy in England in front of a group of visiting English businesspeople. She should have known that political ridicule by a foreigner is rarely accepted. Ms. McRidder has violated what is known as a cultural a. imperative. b. elective. c. exclusive. d. intelligence. e. standard.

exclusive

G&P's marketing research department needed to get figures on market size and growth rates in a company they were targeting for growth. They opted to use government officials and outside consultants for the information. This is a method known as probabilistic forecasting. expert opinion. simulation. extrapolation. scenario building.

expert opinion

The revised set of export regulations published by the Department of Commerce to speed up the process of granting export licenses is the a. International Trade Regulations. b. Export Charter. c. Export-Import Manual. d. Agreement on International Trade and Negotiations. e. Export Administration Regulations.

export administration regulations

A major disadvantage of ________ is that they can seldom afford to make the kind of market investment needed to establish deep distribution for products. export management companies trading companies import associations global retailers complementary marketers

export management companies

A(n) ________ is a middleman in a foreign country or U.S. possession that can obtain a corporate tax exemption on a portion of the earnings generated by the sale or lease of export property. Webb-Pomerene export association manufacturer's export agent export management company complementary marketer foreign sales corporation

foreign sales corporation

In a(n) ________ transaction, the seller makes a one-time arrangement with a bank or other financial institution to take over responsibility for collecting the account receivable forfaiting factoring barter cash-in-advance payment open account

forfaiting

A ____ is an agreement between two or more countries to reduce or eliminate customs, duties, and non tariff trade barriers among partner countries while members maintain individual tariff schedules for external countries a. restricted trade area b. noncooperation agreement c. regional cooperation for development d. tariff pact e. free trade area

free trade area

Companies that use ________ pricing 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. full-cost fixed-cost variable-cost demand-based premium

full cost

A manufacturer of toiletries and cleaning products uses the name Home Helper, for most products in their international markets. The name has created a universal appeal for its products as customers identify their products with the name; hence, Home Helper can be regarded as a ________ brand. retailer's shelf store global dual

global

A name, term, sign, symbol, design, or combination used worldwide to identify goods or services of one seller and to differentiate them from those of competitors is called a copyright. product mark. global brand. brand's equity position. trademark.

global brand

Marta's company treats the world, including the home market in Spain, as one market. Market segmentation decisions no longer focus on national borders. Instead, market segments are defined by income levels, usage patterns, and other factors that span countries and regions. Which of the following stages best characterizes the stage of international marketing involvement for Marta's company? a. infrequent foreign marketing b. test marketing c. no direct foreign marketing d. internal marketing e. global marketing

global marketing

Newly industrialized countries (NICs) differ from less-developed countries in that NICs a. include Canada, the US, and Germany b. attract insignificant or no foreign investment c. have per capita incomes that are lower than other developing countries d. have moved away from restrictive trade practices and instituted significant free market reforms e. have shown slow industrialization and expansion of targeted industries

have moved away from restrictive trade practices and instituted significant free market reforms

Mae-Jun works at an overseas branch of her organization. She needs clarification about a project and approaches a senior manager hoping to get a good explanation. However, she is told that only the team leads are allowed to approach the senior managers and sent away. In this scenario, the organization is most likely to have a ________ score. a. high Individualism/Collective Index b. high Power Distance Index c. low Individualism/Collective Index d. low Power Distance Index

high power distance index

What were the two main issues that prompted Brexit? a. taxes b. immigration c. sovereignty d. currency

immigration and sovereignty

One eminently solvable challenge that could provide a jolt to the economies of Africa over the next decade is the eurobond debt concern. the high mortality rate. implementation of AfCFTA. the population explosion. climate change.

implementation of AfCFTA

What market barriers led to the creation of the International Monetary Fund? a. trade embargoes b. inflation and recession in Europe c. new taxing bodies governing trade d. inadequate monetary reserves and unstable currencies e. export quotas and higher tariffs

inadequate monetary reserves and unstable currencies

Mirros, a U.S. kitchenware distributor, sells its inventory twice a year to All Cooks, a kitchenware retailer in the United States. All Cooks, in turn, sells those products through its retail stores in Vietnam and Thailand. In which of the following entry modes is Mirros most likely engaged? franchising indirect exporting a consortium direct foreign investment a joint venture

indirect exporting

An international marketing executive with a product message to communicate specifically acts as a(n) decoder. information source. receiver. encoder. corporate sponsor.

information source

Paved roads, railroads, seaports, communication networks and financial networks are examples of a. environmental resources b. inventory c. infrastructure d. factors of production e. freight claims

infrastructure

While Heidi's company does not typically sell internationally, they have a temporary surplus in the small appliances they manufacture and decide to promote them in other countries. Which stage of international marketing involvement does this represent? a. infrequent foreign marketing stage b. international marketing stage c. global marketing stage d. regular foreign marketing stage e. no direct foreign marketing stage

infrequent foreign marketing stage

Laws governing ________ offer the most striking differences between common-law and code-law systems. social welfare domestic industry international trade intellectual property homicide

intellectual property

The Islamic law prohibits the payment of equity. taxes. interest. profits. leases.

interest

What is especially vulnerable as EU member states decide which area of regulation should apply to these services? newspaper advertising radio advertising outdoor services personal selling Internet services

internet services

According to Everett Rogers, the goals of the diffusion researcher and the marketer are to shorten the time lag between the dispatch of the product from the company and the time it takes to reach the customer. the time that a budget is determined and the time needed for the funds to reach the communication channels. initial investment and the profits obtained from those investments. introduction of an idea or product and its widespread adoption. introduction of an idea or product and when revisions can be made.

introduction of an idea or product and its widespread adoption.

In terms of innovation characteristics, a product is said to be compatible if it provides greater value to the manufacturers than to the consumers. the degree of social repercussions associated with it is high. its benefits can be communicated easily. it has a higher degree of complexity compared with its counterparts. it complies with the accepted behavior, values, and norms of the local market.

it complies with the accepted behavior, values, and norms of the local market.

What is the U.S. government's policy toward multinational corporations that are confronted with situations where bribery is an issue? A bribe may be paid as long as it is not a domestic situation. Bribery is justified if it is a documented traditional practice in a country. A bribe can be paid in a foreign country if it is tied to national security. It is illegal for a U.S. citizen to pay a bribe. The issue revolves around the customs of the country and each issue is decided separately.

it is illegal for a US citizen to pay a bribe

What refers to two companies joining forces to create a separate legal entity to facilitate doing business in the international arena? indirect exporting franchise license arrangement joint venture direct investment agreement merger

joint venture

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

keep prices low and raise brand value.

In the international arena, the greatest problem in sampling stems from the lack of adequate demographic data from which meaningful samples can be drawn. lack of expertise in designing sampling layouts for a nondomestic market. higher probability of foreign government intervention in the sampling process. inability of international market researchers to speak foreign languages. difficulty in determining sample size suitable for the relevant foreign market.

lack of adequate demographic data from which meaningful samples can be drawn

The most universal survey research problem in foreign countries is the ________ barrier. technological legal cultural language economic

language

What is most likely to cause the biggest problems for television and radio advertisers in China? a. low levels of television and radio penetration b. the rigid theocratic rule c. language barriers d. the rigid adherence to traditional values e. lack of investment

language barriers

An important selling technique to alleviate high prices and capital shortages for capital equipment is the ________ system. leasing antidumping direct buy-back consignment

leasing

A country that is industrially underdeveloped, agrarian, has a subsistence society with rural populations, and has extremely low per capita income levels falls under the category of a. first world countries b. least-developed countries c. less-developed countries d. newly industrialized countries e. frontier markets

least-developed countries

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. length and number religious content subliminal messaging cost ethnic focus

length and number

A ________, which shifts the buyer's credit risk to the bank, is not a guarantee of payment to the seller. Rather, payment is tendered only if the seller complies exactly with its terms. open account letter of credit bill of lading bill of regression

letter of credit

What is an uncontrollable element for an international marketer? a. firm characteristics b. channels-of-distribution c. price d. research e. level of technology

level of technology

The advantages of ________ are most apparent when capital is scarce, import restrictions forbid other means of entry, a country is sensitive to foreign ownership, or patents and trademarks must be protected against cancellation for nonuse. consortia exporting arrangements strategic alliances licensing joint ventures

licensing

Which form of business relationship lets a company grant patent rights, trademark rights, and the rights to use technological processes to another company in a foreign country? licensing exporting arrangements joint ventures consortia strategic alliances

licensing

When all the other methods have failed, what is the final step in an international commercial dispute? encouraging one's government to force the other party to comply restarting the arbitration process litigation conciliation coercion

litigation

Maya was happy that she did not have to read the instruction manual to determine how to turn on her new camera, snap a digital picture, and export the picture to her computer. The signs (symbols) on the camera body made it very clear what she was to do to achieve digital photography success. What characteristic of Maya's "new product" makes it easy for her to begin her digital experience? high partibility low susceptibility low complexity high trialability low compatibility

low complexity

Which feature characterizes the business philosophy of Japanese distribution channels? loyalty direct sales fast delivery variety price competition

loyalty

________ involves a relatively small sum of cash, a gift, or a service that is intended to facilitate or expedite the normal, lawful performance of a duty by an official. Extortion Ransom Lubrication Shakedown Exaction

lubrication

A ________ provides a selling service for a manufacturer, has a short-term relationship with the manufacturer, and operates on a straight commission basis. manufacturers' retail store trading company global retailer manufacturer's export agent complementary marketer

manufacturer's export agent

According to the UN stages of economic development for classifying countries based on levels of industrialization, Canada falls under the category of ___ countries. a. third world b. least-developed c. more-developed d. less-developed e. emerging

more-developed

U.S. firms, their foreign subsidiaries, or foreign firms that are licensees of U.S. technology cannot sell a product to a country in which the sale is considered by the U.S. government to affect the competitive balance of free competition inside the U.S. national security of the United States. overall balance of payments of the United States. competitive balance of world trade. relationship of the U.S. with the world community.

national security of the United States

________ is an intense feeling of state pride and unity, an awakening of a country's people to pride in their country. Nepotism Absolutism Fascism Nationalism Polarism Democracy Communism Abstractionism Ismism

nationalism

Systematic monitoring of chat rooms, blogs, and personal websites to assess consumers' opinions about products and services is known as tomography. serigraphy. vitreography. netnography. lithography.

netnography

Watson's, a firm that specializes in dog food and grooming products, has a very well-established domestic market. The company does not actively sell its products outside national borders but provides goods to customers who contact them directly or place orders with them through the Internet. Watson's is currently in the ________ stage of international marketing involvement. a. frequent foreign marketing b. active foreign marketing c. global marketing d. regular foreign marketing e. no direct foreign marketing

no direct foreign marketing

Which element of the international communications process comprises external influences such as competitive advertising, other sales personnel, and confusion at the receiving end that can detract from the ultimate effectiveness of the communication? selecting a message source encoding selecting a message channel noise

noise

A product's ________ refers to the ease with which its benefits can be communicated to the customers. relative advantage compatibility complexity trialability observability

observability

________ leave sellers in a position where most of the problems of international commercial finance work to their disadvantage. Letters of credit Dollar drafts Forfaiting contracts Cash in advance agreements Open accounts

open accounts

What commodity did the English East India Company turn to in order to help Britain erase the tea-caused trade deficit with China during the 1800s? a. watches b. betel nuts c. diamonds d. textiles e. opium f. beer g. pounds sterling h. silver

opium

A firm that is involved with the international marketing stage of marketing involvement will a. have its primary focus of operations and production on servicing domestic market needs. b. reduce foreign sales activity. c. consider profit expectations from foreign markets as a bonus in addition to regular domestic profits. d. plan for both marketing and production of goods outside the home market. e. consider international marketing only when there is a surplus of goods.

plan for both marketing and production of goods outside the home market

A ___ involves complete political and economic integration, either voluntary or enforced a. political union b. common market c. regional cooperation for development d. customs union e. free trade area

political union

The most fully integrated form of regional cooperation is a a. political union b. common market c. regional cooperation for development d. customs union e. free trade area

political union

A crucial problem confronting a seller in a countertrade negotiation is determining the ________ for the goods offered as payment. delivery method warranties insurance premiums potential demand the cost

potential demand

What results from the added costs incurred as a result of exporting products from one country to another? price deflation penetration pricing price escalation price gouging predatory pricing

price escalation

If the supply of a product in a market is limited, a company may follow a ________ approach to maximize revenue and to match demand to supply penetration psychological pricing variable-cost pricing predatory pricing price skimming

price skimming

________ data refers to the data that are collected specifically for the particular research project at hand when research questions are still unanswered after seeking all reasonable secondary data sources. Derived Primary Referential Syndicated Cohort

primary

Kroger grocery stores stock many food items that are sold under the brand name Simple Truth®, which is sold exclusively in Kroger stores. This is an example of a ________ brand. global private specialty market retail

private

An especially effective promotional tool when a product concept is new or has a very small market share is sponsorship. sweepstakes. product sampling. contests. product tie-ins.

product sampling

Sarah asks the respondents in a research study a series of open-ended questions about the respondents' feelings and thoughts on the subject of child labor. Sarah is conducting ________ research. statistical qualitative tertiary quantitative numerical

qualitative

In ________, usually a large number of respondents are asked to reply, either verbally or in writing, to structured questions using a specific response format or to select a response from a set of choices. quantitative research a focus group interview descriptive research an in-depth interview explanatory research qualitative research

quantitative research

A specific unit limit applied to a particular type of imported good is called a(n) a. trade license b. quota c. ad valorem duty d. predatory price e. specific duty

quota

Active Bicycle Company has just received notice that a shipment of 300 bicycles has been rejected by the customs administration of the recipient country because the bikes did not include a metal plate surrounding the chain. What category of nontariff barriers primarily uses such quality issues as a trade barrier? a. quotas b. licenses c. embargoes d. boycotts e. standards

standards

What type of planning is conducted at the highest levels of management and deals with products, capital, research, and the long- and short-term goals of a company? market tactical single-use strategic personnel

strategic

In the context of foreign market entry, a ________ is a business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective without forming a separate legal entity. direct sales group consortium arrangement franchising arrangement strategic international alliance joint venture

strategic International alliance

________ generally involves giving large sums of money—frequently not properly accounted for—designed to entice an official to commit an illegal act on behalf of the one offering the bribe. Agent charges Lubrication Extortion Subornation Ransom

subornation

What primary discriminatory tax must be taken into account in foreign competition? transfer taxes tariffs tolls excise taxes inflation taxes

tariffs

Advertising ________ in some countries can distort media choice by changing the cost ratios of various media. taxation language demographics cultural focus channels

taxation

Manifest Destiny specifically referred to the a. political clout of the United States over European countries. b. territorial expansion of the United States from the Atlantic to the Pacific. c. focus on investment and infrastructure development in Asia-Pacific. d. network of intelligence operations across the world, especially the Communist world. e. "white man's burden" to develop the underdeveloped parts of the world.

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

The aesthetics of a culture are found in a. the arts, music, dance, and dress. b. the acceptance of power by certain individuals. c. the level of education in a country. d. the agreement between those in power and those who serve. e. the language specific to that culture.

the arts, music, dance, and dress

What poses a major challenge to international marketers while dealing with counterfeiting? a. the widespread availability of duplication software b. the collusion between contract manufacturers and illegitimate sellers c. the theft of products by pirates during shipping d. government regulations legitimizing counterfeiting e. the ease with which consumers can tell the difference between real and counterfeit products

the collusion between contract manufacturers and illegitimate sellers

What is an indicator of a country's economic development? a. population expansion b. expanding state ownership c. the country's infrastructure d. social reformation e. cultural diversity

the country's infrastructure

In an import-oriented distribution structure, the importer-wholesaler traditionally performs most of the marketing functions. the relationship between the importer and any middleman is similar to that found in a mass-marketing system. several independent agencies provide functions such as advertising, marketing research, and financing. the idea of a channel as a chain of intermediaries performing specific activities is common. the distribution system is national in scope.

the importer-wholesaler traditionally performs most of the marketing functions.

Which medium suffer(s) from issues such as difficulty in assessing taxes, unfair competition, import duties, and privacy? radio direct mail magazines newspapers the Internet

the internet

Adherence to the WTO inevitably means a. a definite increase in import tariffs worldwide. b. the loss of national security to a large extent. c. reduction in world trade of at least 70 percent. d. the loss of some degree of national sovereignty. e. complete stoppage of foreign direct investments.

the loss of some degree of national sovereignty

Kim is the director of operations at her company and hires an agent to obtain a license to build a warehouse in an industrial district. The agent gets caught offering a bribe to a government official for issue of the license. Which of the following describes Kim's liabilities? a. The manager is not liable since the use of an agent absolves her of any responsibility. b. The manager is liable since the agent used part of her fees for bribery, although the manager was unaware of the agent's intentions. c. The manager is not liable if the agent can prove that extortion, rather than bribery, took place. d. The manager is liable if she was aware of the fact that part of the agent's fee will be used as a bribe. e. The manager is liable only if the act of building the warehouse at the given location is illegal.

the manager is liable if she was aware of the fact that part of the agent's fee will be used as a bribe

The first-time foreign marketer must decide what products to develop, in which markets, and the resources needed. the method of distribution. relevant foreign currency issues. the level of staffing needed. the method of entry.

the resources needed

Which statement is true about MDCs (more-developed countries)? a. these countries are just entering world trade b. the majority of their populations stay in rural areas c. these countries have high per capita incomes d. these countries have little world trade involvement e. these countries have mainly agrarian economies

these countries have high per capita incomes

What is true of code-law systems? They originate from tradition, past practices, and legal precedents set by the courts through interpretations of statutes, legal legislation, and past rulings. They represent a legal system that is not all-inclusive. They fail to consider unforeseeable human acts such as riots as acts of nature. They sometimes fail to consider agreements to be enforceable unless properly notarized or registered. They establish ownership of intellectual property by prior use rather than registration.

they sometimes fail to consider agreements to be enforceable unless properly notarized or registered

What was the response of Latin America to policies found in the Monroe Doctrine and the Roosevelt Corollary? a. They were welcomed because they created a stronger economy for all Latin American countries. b. They were used as role models for Latin American legislation. c. They were only considered important for some of the countries in Latin America. d. They were seen as a sign of hope. e. They were considered an unwelcome intrusion in Latin American affairs.

they were considered an unwelcome intrusion in Latin American affairs

What is the most probable reason a manufacturer would choose to conduct its manufacturing operations in a third country? to standardize middlemen margins to reduce the credit risk of the seller to increase the capital-labor ratio to avoid antidumping duties to reduce manufacturing costs

to reduce manufacturing costs

What is one of the main political causes of instability in international markets? varied taxing conventions differences in economic philosophies global focus environmental awareness trade disputes

trade disputes

Which barrier faced by consumer service marketers is in force when a foreign market applies a tariff on the service that is operating there? trade protectionism lack of transborder data flows restrictions protection of intellectual property religious requirements for adaptation language translation barriers

trade protectionism

In a ________ distribution structure, an importer controls a fixed supply of goods and the marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers. domestic traditional manufacturer-oriented service customer-oriented

traditional

An American company wants to launch a new product in Madrid. Freda asks her product manager to distribute some samples to potential customers there so that she can gauge the consumer preferences there before introducing the product. Freda is attempting to reduce the degree of economic and/or social risk, also known as ________, associated with product use compatibility relative advantage complexity trial-ability observability

trial-ability

The key in using expert opinion to help forecast demand is ________; that is, comparing estimates produced by different sources indemnification simulation morphing modeling triangulation

triangulation

T/F Agent middlemen work on commission and do not take title to the merchandise.

true

France is higher on Hofstede's Power Distance Index (PDI) than the United States and formality is evident in French businesses. Which of the following American business practices would be most unacceptable to the French? a. slipping in colloquial French words during business meetings b. trying to emulate the French way of business thinking c. showing enthusiasm at business negotiations d. using first names in business encounters e. exhibiting stubbornness while negotiating

using first names in business encounters

What are the five elements of culture? a. systems, history, government, religion, awareness b. values, rituals, symbols, beliefs, thought processes c. institutions, associations, entities, groups, teams d. facts, opinions, beliefs, values, norms e. corporations, individuals, government, processes, outcomes

values, rituals, symbols, beliefs, thought processes

In ________ pricing, a firm is concerned only with the marginal or incremental cost of producing goods to be sold in overseas markets. full-cost fixed-cost variable-cost demand-based premium

variable-cost

The Roosevelt Corollary implies that a. Latin America can control its own economy. b. whatever is good for the United States is justifiable. c. European intervention in Latin America is valid. d. the United States and Europe should work together in Latin America. e. no president should interfere in the affairs of another country.

whatever is good for the United States is justifiable

What question should a marketing researcher ask when trying to establish the reliability of secondary data sources in the international arena? How much do the data cost? What language is used in the parent country? How long did it take to complete the survey in question? Who collected the data? What type of survey was used during the data collection process?

who collected the data?