MRKT 453 (International Marketing) Exam #1

Suppose you have a friend from India who is a lifelong vegetarian and who does not like McDonald's because the company sells hamburgers in many countries. Which of the following describes your friend?: A) "vegetarianism" represents a value, "dislike McDonald's" represents an attitude B) "vegetarianism" represents an attitude, "dislike McDonald's" represents a value C) "vegetarianism" and "dislike McDonald's" both represent an attitude D) "vegetarianism" represents a value, "dislike McDonald's" represents a belief E) "vegetarianism" and "dislike McDonald's" represent values

A) "vegetarianism" represents a value, "dislike McDonald's" represents an attitude

To the extent that a country sells more goods and services aboard than it buys, there will be: A) a greater demand for its currency B) a surplus production of goods and services C) a scarcity of goods and services within the country D) a need for revaluation of its currency E) time for fluctuating its currency

A) a greater demand for its currency

As cultural differences become less relevant and disposable incomes become high, a trend towards greater consumption of the following type of foods is predicted: A) French artistic foods B) American fast foods C) Chinese retail foods D) Indian spicy foods E) Mexican spicy foods

B) American fast foods

The company receiving the most U.S. patents in 2013 was: A) Samsung Electronics B) IBM C) Microsoft D) Canon E) Panasonic

B) IBM

A vice-president of an American software company introduced himself to a group of Korean partners and added "you may just call me John." Although this verbal cue shows the underlying reality that Americans have a high value on informality and equality, it needs adaption due to the reason that: A) John is not a very popular name in Korea B) it is difficult to translate John in Korean language C) customs, hierarchies, and class structure of Korean culture have to be respected D) Korean culture requires that first and last name be used in addressing guests E) it is not appropriate to disclose nicknames in business meetings

C) customs, hierarchies, and class structure of Korean culture have to be respected

The governmental action to dispossess a foreign company or investor is known as: A) compensation B) confiscation C) expropriation D) internationalization E) nationalization

C) expropriation

The majority of the world's population is included in the following economic category: A) high-income countries B) upper-middle-income countries C) lower-middle-income countries D) low-income countries E) lower-upper-income countries

C) lower-middle-income countries

With a 2013 GNI per capital of $1,570, India has transitioned out from the former category and now is classified as a(n): A) low-income country B) upper-middle-income country C) lower-middle-income country D) upper-income country E) lower-upper-income country

C) lower-middle-income country

Linguists have divided the study of languages into four main areas. The system of word formation is referred to as: A) syntax B) phonology C) morphology D) semantics E) semiotics

C) morphology

When the Coca-Cola Company was developing its new Dasani bottled water brand, linguists helped guide the naming process. For example, the recurring "a" was chosen because it has a soothing sound. In linguistics, issues pertaining to letters and sounds are a matter of: A) syntax B) synonym C) phonology D) semiotics E) semantics

C) phonology

A characteristic of a low-context culture which is prevalent in the United States, Switzerland, and Germany is that: A) less information is contained in verbal communication B) major emphasis is on a person's values and position in society C) the messages are explicit and specific D) a person's word is his or her bond E) negotiations are long and protacted

C) the messages are explicit and specific

Counterfeiting is: A) the use of a formal legal document for illegal purposes B) the ownership of a written, recorded, performed or filmed creative work C) the unauthorized copying or production of a product D) the use of a product name that has different meaning than the original brand E) the use of a distinctive mark of a brand that is no longer producing the original brand

C) the unauthorized copying or production of a product

Which of the following would constitute a copyright violation?: A) manufacturing and selling illegal videocassette copies of "Spiderman 2" B) manufacturing and selling illegal copies of Levi "501" jeans C) printing and selling illegal copies of Harry Potter books D) A,B, and C are copyright violations E) A and B are copyright violations

D) A,B, and C are copyright violations

The Organization for Economic Cooperation and Development (OECD) is comprised of: A) the 34 high-income countries B) countries that believe in market-allocation economic systems C) pluralistic democracies D) countries that demonstrate progress toward economic reform E) All of the above statements are applicable

E) All of the above statements are applicable

The high level of political risk currently evident in Russia can be attributed in part to: A) changing of name of the country B) changing the national flag C) excessive loans from the International Monetary Fund (IMF) D) participation in the WTO (World Trade Organization) E) excessively high taxes on business operations

E) excessively high taxes on business operations

In Great Britain, the Wine and Spirit Association estimates that, on average, cars returning from France are loaded with 80 bottles of wine. This is most likely due to: A) trademarks and copyrights violation B) cross-border smuggling C) bribes accepted by officers D) antitrust scrutiny E) high excise and VAT taxes

E) high excise and VAT taxes

The general characteristics shared by low-income countries do not include: A) high birth rates B) low literacy rates C) concentration in Africa south of the Sahara D) heavy reliance on foreign aid E) lack of genuine market opportunities

E) lack of genuine market opportunities

Among the upper-middle-income countries, also known as industrializing or developing countries, the following aspects are observed except: A) the CNI per capita ranges from $4,126 to $12,475 B) the percentage of the population engaged in agriculture drops sharply C) people move to the industrial sector D) the degree of urbanization increases E) none of the above

E) none of the above

The unauthorized publication or reproduction of copyrighted work is referred to as: A) associative counterfeit B) imitation C) mistake D) trade secrets E) piracy

E) piracy

Which is not considered as a long-term value?: A) persistance B) sense of shame C) thrift D) ordering relationships E) search for truth

E) search for truth

"McDonaldization of culture," a term coined by Geert Hofstede, refers to the wide spread of McDonald's restaurants in the world and its adverse impact on global culture: True or False

False

"Sharia" and "haram" are important concepts in civil-code laws, which are commonly practiced in Middle Eastern countries: True or False

False

A country's currency would be overlapped if the Big Mac price (converted to dollars) is lower than the U.S. price: True or False

False

China is the first BRICs nation in the upper-middle-income category with a GNI per capita income of $6,560 in 2013: True of False

False

If foreign company is taken over by the host country government, and some form of compensation is paid, "confiscation" has occurred: True or False

False

India, Pakistan, Malaysia, Korea, and Japan have common-law jurisdiction: True or False

False

Some observers believe global market integration is enriching national economic sovereignty: True or False

False

The "balance of payments" is a record of all economic transactions between the residents of a country and the developed countries of the world: True or False

False

The high level of political risk currently evident in Russia can be attributed in part to excessively low taxes on business operations: True or False

False

With a 2013 GNI per capita of $1,570, India has transitioned out of the low-income category and is now classified as an upper-middle-income country, also known as an industrializing or developing country: True or False

False

According to Hofstede's research on cultural values, masculinity dimension describes a society in which social roles of men and women overlap: True or False

True

According to Roger's diffusion theory, most customers will not purchase expensive products without the "hands-on" experience marketers call "trial": True or False

True

Although Bangladesh is categorized in the low-income countries, the country has opportunities, particularly in the garment industry: True or False

True

Cadbury has trademarked the color purple for its chocolate confectionary packaging: True or False

True

Domino's Pizza had to pull out of Italy because Italians perceived its products to be "too American": True or False

True

If a potential Latin America customer insists on giving you a tour of the architectural highlights of his city prior to discussing business, it's a clue that you are doing business in a high-context culture: True or False

True

In Indonesia, home of the world's largest Muslim population, KFC uses Ramadan-themed outdoor advertising to encourage Indonesians to come to the restaurants at buka puasa, the end of each day's fast: True or False

True

In Korea 4 5683 968 can be interpreted as "I love you": True or False

True

Music is an aesthetic component of all cultures and is accepted as a form of artistic expression and a course of entertainment: True of False

True

One reason cultural factors challenge global marketers is that many of these factors are hidden from view: True or False

True

The World Bank has developed a four-category classification system for stages of marketing development which uses per capita gross national income (GNI) as a base: True or False

True

Westerners doing business in the Middle East must be careful not to reveal the soles of their shoes to hosts or pass documents with the left hand: True or False

True

When marketers refer to "fast-food culture", or "credit-card culture" they are referring to a cosmopolitan culture which is comprised of various segments of the population which are interconnected: True or False

True

Considering Hofstede's notion of culture as "the collective programming of the mind," then attitudes can be defined as: A) a learned tendency to respond in a consistent way to a given object or entity B) an organized pattern of knowledge that an individual holds to be true about the world C) an enduring belief or feeling of a specific mode of conduct D) a personally or socially preferable mode of conduct E) the deepest level of a culture present in the majority of the members of a particular culture

A) a learned tendency to respond in a consistent way to a given object or entity

What type of international disputes would be taken before the International Court of Justice?: A) disputes between two nations B) dispute between two companies C) disputes between a company and a nation D) disputes between a citizen of one country and a company from a different country E) disputes between profit and non-profit organizations

A) disputes between two nations

Upper-middle-income countries are also known as: A) industrializing countries B) BRIC countries C) stabilized countries D) manufacturing countries E) agricultural countries

A) industrializing countries

In a recent case, Revlon sued United Overseas Limited (UOL) in the U.S. District Court for the Southern District of New York for breach of contract. UOL countered by asking the court to dismiss the claim since they are not operating in that area. Revlon cited the presence of a UOL sign above the entrance to the offices of a New York company in which UOL had a 50-percent ownership. The court dismissed UOLs claim. This is an issue related to: A) jurisdiction B) antitrust C) dilution of equity D) bribery and corruption E) intellectual property

A) jurisdiction

Insisting on competitive bidding can cause complications in: A) low-context cultures B) high-context cultures C) low and high context cultures D) Korean cultures E) Japanese cultures

A) low-context cultures

Lawyers are more important in: A) low-context cultures B) high-context cultures C) Indian cultures D) Korean cultures E) Japanese cultures

A) low-context cultures

According to Hofstede, a cultural dimension which describes a society in which the social roles of men and women overlap, with neither gender exhibiting overly ambitious or competitive behavior is known as: A) nurturing B) individualistic C) collectivistic D) power distance E) achievement

A) nurturing

A formal legal document that gives an inventor the exclusive right to make, use, and sell an invention for a specified period of time is known as a: A) patent B) copyright C) trademark D) trade secret E) trade dress

A) patent

Engineers at a company in a developing country study an American computer chip design, copy it, and produce identical chips that are then sold to local computer makers. What form of intellectual property has been wrongly appropriated?: A) patent B) copyright C) trademark D) trade secrets E) technological

A) patent

Any company doing business outside the home country should first carefully study the __________ in the target country: A) political culture B) nationalization C) political risk D) jurisdiction E) sovereignty

A) political culture

Companies such as Caterpillar have been unable to protect critical innovations in Japan because: A) products very similar to those made by U.S. companies can be patented without fear of infringement B) the Japanese government enforces strict control over infringement rights for security reasons C) inventions that are based on software can be easily download D) U.S. patent laws now harmonize with those in the EU as well as Japan E) patents in Japan are broader than those in the United States

A) products very similar to those made by U.S. companies can be patented without fear of infringement

Which of the following statements is correct?: A) the Paris Convention protects patents, the Berne Convention protects copyrights B) the Paris Convention protects copyrights, the Berne Convention protects patents C) the Berne Convention and Paris Convention are different names for the same thing D) neither the Berne Convention nor the Paris Convention is concerned with intellectual property E) the International Union for the Protection of Literary and Artistic Property is different from the Berne Convention

A) the Paris Convention protects patents, the Berne Convention protects copyrights

Upper-middle-income countries, also known as industrializing or developing countries are those with GNI per capita ranging from: A) $996 to $4,125 B) $4,126 to $12,475 C) $12,475 or higher D) less than $995 E) none of the above

B) $4,126 to $12,475

Which of the following is true about the Triad?: A) Triad countries account for approximately one-third of world income and one-third of world population B) Triad countries account for approximately 75% of world income as measured by GNP C) Triad countries are those in which consumer products, industrial products, and the services sector each contribute one-third to GDP D) Triad countries account for approximately 25% of world income as measured by GNP E) Triad countries account for approximately 50% of world income as measured by the World Bank

B) Triad countries account for approximately 75% of world income as measured by GNP

As part of their alliance relationship, Northwest Airlines and KLM Royal Dutch set air fare prices jointly and coordinate flight schedules. Normally, such behavior would be considered harmful to competition, but the U.S. government has granted the two airlines special exemptions from laws concerning: A) intellectual property B) antitrust C) jurisdiction D) licensing E) arbitration

B) antitrust

In many parts of the world, sales of unauthorized videos of Hollywood movies cost the movie studios billions of dollars. When illegal copies of movies are made, what form of intellectual property has been wrongly appropriated?: A) patent B) copyright C) trademark D) trade secrets E) downloading

B) copyright

Colgate discovered that in Spanish colgate is a verb form that means "go hang yourself." Whirlpool found that consumers in Italy, France, and Germany had trouble pronouncing the name. These are examples which show the importance of ________ in global marketing: A) syntax and morphology B) phonology and morphology C) syntax and semantics D) semantics and phonology E) semantics and morphology

B) phonology and morphology

Categories of political risk listed by EIU (Economist Intelligence Unit) include all of the following except: A) war B) political turmoil C) bureaucracy D) corruption E) crime

B) political turmoil

Prahalad and Hammond have identified several assumptions and misconceptions about the "bottom of the pyramid" (BOP) that need to be corrected. All of the following mistaken assumptions are correct except: A) the poor are too concerned with fulfilling basic needs to "waste" money on nonessential goods B) the goods sold in developing markets are so expensive that there is no room for a new market entrant to make a profit C) the poor have no money D) people in BOP markets cannot use advanced technology E) global companies that target BOP markets will be criticized for exploiting the poor

B) the goods sold in developing markets are so expensive that there is no room for a new market entrant to make a profit

Which of the following best sums up the experience of Walt Disney Company executives when creating Disney's theme park in Paris?: A) they were guided by the "think global, act local" principle B) they fell victim to the self-reference criterion C) they exhibited a geocentric management orientation D) they miscalculated the rate of diffusion of innovations in Europe E) they had an unbiased perception of existing culture in Europe

B) they fell victim to the self-reference criterion

What do value added taxes (VAT) encourage in countries such as China?: A) they make trademarks and copyrights more valuable B) they result in cross-border shopping and smuggling C) they make it harder to bribe officials D) they protect companies from antitrust scrutiny E) global companies refrain from offering bribes

B) they result in cross-border shopping and smuggling

Harley-Davidson has applied for federal protection of an unusual form of intellectual property; the "soul-pleasing rumble" produced by its motorcycles. What type of protection is Harley-Davidson seeking?: A) copyright B) trademark C) license D) patent E) trade dress

B) trademark

Danes generally are not afraid of taking chances; they are comfortable doing things that are not carefully thought out or planned. Denmark's "flexicurity" policy combines free labor markets with adjustable welfare benefits. This is an example of the application of Hofstede's typology under the values which highlight: A) future orientation B) uncertainty avoidance C) gender differentiation D) power distance E) individualism/collectivism

B) uncertainty avoidance

Which one of the following nations fall in the lower-middle-income category?: A) Burundi B) Bangladesh C) Egypt D) Venezuela E) none of the above

C) Egypt

Any western country doing business in Malaysia or the Middle East should have an understanding of: A) the French Civil Code B) Anglo-Saxon common law C) Islamic law D) the Uniform Commercial Code E) Roman law and the Napoleonic Code

C) Islamic law

A "civil-law country" is one in which the legal system reflects the structural concepts and principles of the Roman Empire in sixth century: True or False

True

Located in The Hague, the International Court of Justice (ICJ) is the judicial arm of the: A) United States B) European Union C) United Nations D) Netherlands E) United Kingdom

C) United Nations

Two countries that score low in uncertainty avoidance are: A) Austria and Belgium B) Japan and Hong Kong C) United States and Switzerland D) Denmark and Finland E) Ireland and Italy

C) United States and Switzerland

The lesson that SRC (Self-Reference Criterion) teaches can be summarized as: A) a person's perception of market needs is framed by others cultural experience B) the perceptual blockage and distortion about cultures are hard to reduce C) an unbiased perception is a vital and critical skill in global marketing D) an unconscious reference to one's cultural values is critical in global marketing E) the prior success and ethnocentrism can override the SRC

C) an unbiased perception is a vital and critical skill in global marketing

The use of the color __________ dates back millennia as seen by artisans in ancient Egypt, China, and Mayan civilizations and is now associated with royalty and divinity: A) red B) green C) blue D) orange E) brown

C) blue

Upper-middle-income countries that achieve the highest rates of economic growth are sometimes referred to collectively as: A) LDCs B) BEMs C) BRICs D) NIEs E) BOPs

D) NIEs

Which of the following is true about protection of computer software?: A) copyright laws protect both the actual code and the idea embodied in the code B) patent laws protect both the actual code and the idea embodied in the code C) patent laws protect both the actual code, while copyright laws protect the idea D) copyright laws protect the actual code, while patent laws protect the idea E) license protects both the actual code and the idea embodied in the code

D) copyright laws protect the actual code, while patent laws protect the idea

Islamic law is a comprehensive code based in part on: A) Anglo-Saxon common law B) Roman law and the Napoleonic Code C) the Uniform Commercial Code D) the Koran E) the French Civil Code

D) the Koran

The United Nations designates 50 countries in the bottom ranks of the low-income category named as: A) low-income countries B) lower-middle-income countries C) BRIC countries D) developing countries E) LDCs (least-developed countries

E) LDCs (least-developed countries

Various types of political risk insurance to U.S. companies is provided by: A) BERI (Business Environment Risk Intelligence) B) PRS Group C) EIU (Economist Intelligence Unit) D) WTO (World Trade Organization) E) OPIC (Overseas Private Investment Corporation)

E) OPIC (Overseas Private Investment Corporation)

The term "Expanded Triad" includes all of the following countries or regions except: A) Japan B) United States C) Canada D) Mexico E) Russia

E) Russia

One of the basic elements of sociologist Everett Roger's Diffusion theory is the concept of an "adoption process." The first step in this adoption process is: A) interest B) evaluation C) trial D) adoption E) awareness

E) awareness