chapter 10, chapter 11, chapter 15, chapter 16, International Marketing Chapter 17, intl marketing chapter 18, Int'l Ch. 16

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Due to their inherent entertainment value, satellite TV and the Internet have become major communications media in almost all nations.

False

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

False

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

False

In the context of international advertising, advertisers prefer global television (satellite broadcasts) due to the availability of accurate market data in most countries.

False

In the context of international advertising, an advertiser must consider local variations when choosing an appropriate medium.

False

Industrial advertisers rarely use direct mail for advertising.

False

International advertisers use foreign national consumer magazines extensively because they have dependable circulation figures.

False

Sales promotions are long-term IMC efforts directed to the consumer or retailer.

False

Television is an advertising medium where there are no restrictions in most countries.

False

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

False

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

False

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

False

the costs of production of the goods.

Firms that are unfamiliar with overseas marketing and firms that produce industrial goods orient their pricing solely on the basis of

variable-cost

In ________ pricing, a firm is concerned only with the marginal or incremental cost of producing goods to be sold in overseas markets.

factoring

In ________, a company has an ongoing relationship with a bank that routinely buys its short-term accounts receivable at a discount.

_____ are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation. A. Sales promotion B. Advertising C. Trade shows D. Direct selling E. Public relations

_____ are short-term efforts directed to the consumer or retailer to achieve such specific objectives as consumer product trial or immediate purchase. A. Sales promotion B. Advertising C. Trade shows D. Direct selling E. Public relations

_____ at the southern tip of the Liaodong Peninsula in China is the focus of bi-national relationships and has one of the world's largest and most modern port facilities. A. Dalian B. Jilin C. Heilongjiang D. Guangdong E. Hainan

_____ is one of the major barriers to effective communication through advertising. A. Language B. Jingoism C. Technology D. Religion E. Power structure

________ in countries can distort media choice by changing the cost ratios of various media. A. Advertising taxation B. Political structure C. Power distance D. Cultural traits E. Technological development

keep prices low and raise brand value.

In a deflationary market, in order to win the trust of consumers, it is essential for a company to

forfaiting

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.

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

True

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

True

Of all the elements of the marketing mix, decisions involving advertising are those most often affected by cultural differences among country markets.

True

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

True

Problems of literacy, media availability and types of media create problems in the international communications process at the encoding step.

True

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

True

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

True

The feedback step of the international communications process is important as a check on the effectiveness of the other steps.

True

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

True

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

True

bills of exchange

With ________, the seller assumes all risk until the actual dollars are received.

A _____ is an agreement between two or more countries to reduce or eliminate customs duties and nontariff trade barriers among partner countries while members maintain individual tariff schedules for external countries. A. political union B. common market C. regional cooperation for development (RCD) D. customs union E. free trade area (FTA)

The European Union was created when the 12 nations of the European Community ratified the _____ Treaty. A. Kent B. Paris C. Rome D. Cannes E. Maastricht

The World Trade Organization is wholly dedicated to ____. A. the expansion of capitalism B. the elimination of language barriers in trade C. free and open national borders D. the enforcement of international anti-bribery laws E. making trade among nations more efficient

A company needs to make clear the opportunities of what?

growth within the firm

Learning a foreign language ...

improves cultural understanding and business relationships

Grameen Bank is a private commercial enterprise in _____. A. Bangladesh B. China C. Japan D. Sri Lanka E. South Korea

Half of Shanghai's GDP is derived from its _____. A. financial services industries B. steel industries C. electronic products D. shipping sector E. software industries

Which of the following regions is considered as the information technology (IT) corridor in north China? A. Beijing-Tianjin B. Heilongjiang C. Liaoning D. The Jilin River Delta E. Fujian

According to C. K. Prahalad, which of the following represents the misconception that leads international markets to ignore the bottom-of-the-pyramid markets? A. Products usually developed for more affluent consumers will not be appropriate for BOPMs. B. Most BOPMs are geographically isolated and thus difficult to access. C. Protective policies make BOPMs difficult to penetrate. D. Exchange-rate fluctuations make BOPMs very volatile. E. Language and cultural barriers make BOPMs unattractive and sometimes hostile.

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

Cremics, a multinational drug manufacturing company, used a saffron trident in a promotional campaign for one of their 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 of the following steps of an international communications process? A. Encoding B. Decoding C. Media channel selection D. Message transmission E. Information source selection

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

Immediately after World War II, a shattered Japanese nation arrived at a consensus goal for national recovery. That consensual goal provided the incentive for its spectacular progress, decade after decade. Then during the late 1980s, the Japanese people stepped back and looked around at their manifest achievement. It was easy to conclude they had reached their coveted goal. So the question for them became, "all right, what's next?" This theory tries to explain the Japanese crisis of the 1990s. Which of the following theory are we talking about? A. The Cultural Causation theory. B. The Power Shift theory. C. The Third Way theory. D. The Hybridity theory. E. The Cultural Capital theory.

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

Liaoning province of Northeast China has the closest economic ties with _____. A. Japan B. South Korea C. Russia D. United Kingdom E. North Korea

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

Most analysts predict that China would see an 8 to 10 percent average GNP growth in the next 10 to 15 years. All of this growth is primarily dependent on China's: A. ability to deregulate industry. B. ability to prevent the privatization of its state owned enterprises. C. preparedness to resist the capitalist wave. D. ability to put embargoes on foreign investment. E. ability to uphold its traditional legal system.

Of the seven steps involved in international advertising, _____ almost always represents the most daunting task for international marketing managers. A. developing messages B. selecting effective media C. executing the campaign D. composing and securing a budget E. specifying the goals of the communication

The first meeting of the members of the ASEAN+3 was devoted to devising a system whereby the member countries could: A. defend their currencies against future attack. B. improve the multilateral trade. C. keep inflation under check. D. acquire nuclear technology. E. improve agricultural production.

The most important advantage of Northeast China that mainly contributed toward its being the industrial and technological center of the country in the 1970s and 1980s is: A. its juxtaposition with China's most important industrial neighbors. B. the lack of economic diversity in this area. C. the existence of oil fields these areas. D. that it contains Hong Kong, Macau, Guangzhou, and Shenzhen. E. that it has the authority to impose embargoes upon its trading partners.

The rural population, which accounts for almost three-fourths of the Chinese population, usually receives about _____ percent of the central government budget. A. 10 B. 25 C. 30 D. 45 E. 55

What is common among the Asian countries Hong Kong, South Korea, Singapore, and Taiwan? 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.

Which of the following Asian countries was the first to move from a status of developing country to a newly industrialized country? A. Japan B. Thailand C. South Korea D. Malaysia E. Sri Lanka

Which of the following elements of integrated marketing communications is related to encouraging the press to cover positive stories about companies and managing unfavorable rumors, stories, and events? A. Public relations B. Direct selling C. Trade shows D. Personal selling E. Sales promotion

Which of the following is an example of the primary attribute of a product? A. The ability of a camera to take a picture. B. The design and form factor of a phone. C. The color of a laptop. D. The prestige associated with driving a car. E. The eco-friendly functioning of a digital watch.

Which of the following is one of the primary targets of ASEAN Vision 2020? A. To implement fully and as rapidly as possible the ASEAN Free Trade Area. B. To form the ASEAN+3 to deal with trade and monetary issues facing Asia. C. To shift Asian economies from manufacturing based to commodity based. D. To aid Japan's emergence as the major provider of technology and capital necessary to develop new industries. E. To prevent the further privatization of state owned industries.

Which of the following is true of advertising agencies for international advertising? A. Cross-cultural communication between a foreign client and a local agency can be problematic. B. A multinational agency always has the best feel for a market. C. A multinational agency provides the best cultural interpretation in a situation in which local modification is required. D. A local domestic agency may provide a company with a high level of sophistication. E. Agency commission patterns are consistent throughout the world.

Which of the following most accurately represent the "three direct links" leading to the establishment of One China? A. Transportation, trade, and communications. B. Culture, language, and religion. C. History, language, and transportation. D. Federal bodies, education, and trade. E. Technology, natural resources, and people.

cartel

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

penetration pricing

A ________ policy is used to stimulate market and sales growth by deliberately offering products at low prices.

minimum access volume

A ________, which restricts the amount a country will import, may be imposed on foreign goods benefiting from subsidies, whether in production, export, or transportation.

letter of credit

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.

cash in advance

A company manufactures extremely specialized equipment for medical imaging. Because of its value, when the company exports this equipment overseas to hospitals, it generally requires ________, which is a nonrefundable deposit.

places a low priority on foreign business.

A company that views pricing as a static element in a business decision most probably

price skimming

A company uses ________ when the objective is to reach a segment of the market that is relatively price insensitive and thus willing to pay a premium price for the value received.

potential demand

A crucial problem confronting a seller in a countertrade negotiation is determining the ________ for the goods offered as payment.

labor costs may be lower in the importing country.

A marketer may face lower costs by shipping unassembled goods to a free trade zone (FTZ) in an importing country because

specific

A(n) ________ duty is a flat charge per physical unit imported.

letter of credit

A(n) ________ means that once the seller has accepted the credit, the buyer cannot alter it in any way without permission of the seller.

________ in countries can distort media choice by changing the cost ratios of various media.

A. Advertising taxation

Which of the following is true of advertising agencies for international advertising?

A. Cross-cultural communication between a foreign client and a local agency can be problematic.

Of the seven steps involved in international advertising, _____ almost always represents the most daunting task for international marketing managers.

A. Developing messages

In the communications process in advertising, during the _____ stage, a consumer takes certain actions to respond to a decoded message. A. feedback B. receiver C. message channel selection D. encoding E. source identification

In the context of international advertising, _____ is the neon capital of the world. A. Paris B. Honk Kong C. London D. Sydney E. Brasília

A. Encoding

A. Encoding of the message

A. Information source selection

_____ is one of the major barriers to effective communication through advertising.

A. Language

A. Length and number

A. Public relations

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

A. Sales promotion

_____ are short-term efforts directed to the consumer or retailer to achieve such specific objectives as consumer product trial or immediate purchase.

A. Sales promotion

Which of the following is an example of the primary attribute of a product?

A. The ability of a camera to take a picture.

In the international communications process, an international marketing executive with a product message to communicate acts as a(n) _____. A. decoder B. information source C. receiver D. encoder E. noise source

Due to differences in culture in different markets, standardized products that are marketed globally will require:

A. a different advertising appeal.

In-store demonstrations, samples, coupons, contests, and sweepstakes are examples of _____ devices. A. personal selling B. sales promotions C. trade shows D. direct selling E. public relations

Which of the following statements about advertising laws around the world is correct?

B. Toy, tobacco, and liquor advertising is restricted in numerous countries.

leasing

An important selling technique to alleviate high prices and capital shortages for capital equipment is the ________ system.

Direct mail is an unpopular medium in Chile because: A. the literacy level in Chile is extremely low. B. the letter carrier must collect additional postage for every item delivered. C. it uses paper and hence it is considered as a threat to the environment. D. its reach is extremely limited. E. it is subject to complicated government regulations.

screwdriver

Assembly in the importing country is a way companies attempt to lower prices and avoid dumping charges. These assembly plants are known as ________ plants.

set the right price for the goods or services.

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

In Spain, a new medium for advertising called Publicoche includes: A. lasers projected onto clouds. B. private cars that are painted with advertisements. C. buses fitted with television sets showing promotional messages. D. financing of popular sporting and entertainment events. E. hot air balloons printed with promotional messages.

ASEAN+3 is a forum for ASEAN ministers plus ministers from China, Japan, and _____. A. United States B. South Korea C. Russia D. Australia E. New Zealand

C. 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. $1,200 C. $ 2500 D. $ 3700 E. $ 4200

One of the reasons for the notably low use of foreign national consumer magazines by international advertisers is that: A. consumers in most countries rarely read magazines. B. few magazines provide reliable circulation data. C. they publish content only in English. D. subscription to magazines has reduced as the Internet gains popularity. E. advertising in magazines is costly as compared to other advertising media.

The negotiators in the Pearl River Delta are reputed to be: A. much more calculating than traders in Shanghai. B. relatively honest and forthright. C. very poor traders. D. more interested in making long-term gains. E. cut-off from foreign influences.

Two major events that occurred in 2000 had a profound effect on China's economy. One of these is the United States's granting normal trade relations (NTR) to China on a permanent basis (PNTR). Which of the following is the other one? A. Inclusion in the board of the World Bank. B. Admission to the World Trade Organization. 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.

Using newspapers or magazine ads as a channel of communication when the majority of the intended users are illiterate, is an example of ineffective _____ in the communications process. A. feedback B. media channel selection C. noise D. market selection E. message selection

Which of the following are considered to be major communications media in most countries due to their inherent entertainment value? A. Newspapers and magazines. B. Radio and television. C. Newspapers and the Internet. D. Billboards and television. E. Radio and newspapers.

Which of the following is a cultural hurdle in the path of China becoming a vast market in the long run? A. Caste system B. Xenophobia C. Excessive focus on human rights D. Excessive bureaucracy E. Excessive spending

Which of the following is at present the center of trade links with north China and the Asian republics of the former Soviet Union? A. Japan B. South Korea C. Malaysia D. Singapore E. India

Which of the following is most closely associated with negotiators from the Beijing area? A. Traditional thought pattern B. Bureaucratic sloth C. Forthrightness D. Shrewdness E. Aggression

Which of the following is one of the important reasons behind the fact that there is no one-growth strategy for China? A. Inclusion of Hong Kong as a special administrative region of China. B. Each region in China being at a different stage economically. C. Inability to prevent the privatization of its state owned enterprises. D. Each region within China being completely isolated from other regions. E. Complete absence of autonomy in the various regions of China.

Which of the following is one of the primary reasons behind the persistence of economic stagnation in Japan in the 1990s? A. The caste system B. Inept political apparatus C. Aggressive internal competition D. Theocratic rule E. Lack of natural resources

Which of the following is the primary reason behind the inaccessibility of most of the 1.3 billion potential consumers? A. Most of them have little disposable income. B. The distribution network is poor or absent. C. They are mostly Communist party members who avoid purchasing imported goods. D. They are restricted to settlement zones where marketing is prohibited. E. They are unfamiliar with the English language.

Which of the following is true of the Tianjin region in China? A. It is China's largest industrial city. B. It is China's fastest growing city. C. It has the closest economic ties with Japan. D. It is referred to as "Little Moscow." E. It harbors the world's largest and most modern port facilities.

Which of the following is true of the marketing opportunities in Greater China? A. It has an efficient distribution and channel system and so companies can save on infrastructure building. B. There are extreme differences in economic well-being, cultures, and political structures. C. Unlike the United States, luxury cars sell better in rural areas of the west. D. The economic system of China is based entirely on capitalist principles. E. Selling consumer products in China requires little cultural nuance.

Which of the following is true regarding Hong Kong, post its turnover to the People's Republic of China? A. After becoming a special administrative region of the People's Republic of China, Hong Kong has lost its autonomy. B. The Hong Kong government negotiates bilateral agreements and makes major economic decisions on its own. C. The central government in Beijing has no jurisdiction over matters related to foreign affairs and defense of Hong Kong. D. The Hong Kong dollar has ceased to be freely convertible after its turnover to the People's Republic of China. E. The Hong Kong SAR government openly opposes economic policies that stresses the predominant role of the private sector.

Which of the following provinces of China shares the closest economic ties with South Korea? A. Liaoning B. Jilin C. Heilongjiang D. Guangdong E. Hainan

Which of the following statements about advertising laws around the world is correct? A. Advertising of pharmaceuticals is unrestricted in most countries. B. Toy, tobacco, and liquor advertising is restricted in numerous countries. C. Advertising on television is unregulated in most countries. D. The Internet is the only medium where no restrictions exist in any country. E. Television ads are not taxed by most governments around the world.

With regard to consumer products, which of the following is the major limitation of the Internet? A. Knowledge of how to use the Internet. B. Coverage of the Internet. C. Government regulations on the use of the Internet. D. Difficulty in tracking the effectiveness of advertisements on the Internet. E. Cost of using the Internet.

_____ a boomtown bordering Hong Kong and a fishing village just 20 years ago has replaced the provincial capital Guangzhou to lead the local economy. A. Dongguan B. Shenzhen C. Huizhou D. Foshan E. Zhongshan

_____ allows ESPN to fill visual real estate—blank walls, streets, stadium sidings—with computer-generated visuals that look like they belong in the scene. A. Self-extracting archive B. Princeton Video Imaging C. High Definition Television D. Word of Mouth E. Conditional Access System

_____ is known as China's Silicon Valley. A. Liaoning B. Zhongguancun C. Jilin D. Guangzhou E. Heilongjiang

With regard to consumer products, which of the following is the major limitation of the Internet?

B. Coverage of the Internet

In the context of international advertising, _____ is the neon capital of the world.

B. Hong Kong

In the international communications process, an international marketing executive with a product message to communicate acts as a(n) _____.

B. Information source

Using newspapers or magazine ads as a channel of communication when the majority of the intended users are illiterate, is an example of ineffective _____ in the communications process.

B. Media channel selection

_____ allows ESPN to fill visual real estate—blank walls, streets, stadium sidings—with computer-generated visuals that look like they belong in the scene.

B. Princeton Video Imaging

Which of the following are considered to be major communications media in most countries due to their inherent entertainment value?

B. Radio and television

In the communications process in advertising, during the _____ stage, a consumer takes certain actions to respond to a decoded message.

B. Receiver

In-store demonstrations, samples, coupons, contests, and sweepstakes are examples of _____ devices.

B. Sales promotions

One of the reasons for the notably low use of foreign national consumer magazines by international advertisers is that:

B. few magazines provide reliable circulation data.

In Spain, a new medium for advertising called Publicoche includes:

B. private cars that are painted with advertisements.

Direct mail is an unpopular medium in Chile because:

B. the letter carrier must collect additional postage for every item delivered.

Aside from the United States and Japan, _____ is the most important single national market. A. United Arab Emirates B. Union of Soviet Socialist Republics C. People's Republic of China D. Dominican Republic E. French Southern Territories

Many companies are making stronger efforts to recruit people who are.....

Bilingual or multilingual

duties are typically assessed at lower rates for unassembled goods.

By shipping unassembled goods to a free trade zone (FTZ) in an importing country, a marketer can typically lower costs because

A survey of U.S. manufacturers shows that 95 percent of respondents with Indian operations plan on expanding, and none say they are leaving. Which of the following is primarily behind this new trend? A. Government machinery is one of the most efficient in the world. B. Living standards for expatriates are comparable to the world's best. C. Qualified labor is cheap, and the market potential is massive. D. Proximity to China makes sourcing of parts easier. E. There is a lack of competitiveness among local firms.

An especially effective promotional tool when a product concept is new or has a very small market share is known as _____. A. sponsorship B. sweepstakes C. product sampling D. contests E. product tie-ins

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

Creating good relationships with the popular press and other media to help companies communicate messages to their publics—customers, the general public, and governmental regulators—is the role of _____. A. trade shows B. direct selling C. public relations D. personal selling E. sales promotion

For most companies, which of the following are the major components in the marketing communications mix? A. Public relations and advertising. B. Direct selling and trade shows. C. Advertising and personal selling. D. Public relations and sales promotions. E. Direct selling and sales promotions.

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

In the context of media planning and analysis, billboards are especially useful in countries: A. with high income levels. B. where the laws governing the Internet are very complicated. C. with high illiteracy rates. D. where sales promotions are not efficacious. E. where people prefer buying in small quantities.

In the international communications process, _____ is defined as the interpretation by the receiver of the symbolism transmitted from the information source. A. encoding B. message selection C. decoding D. message channel selection E. feedback evaluation

In which of the following countries is the time spent on social media sites the highest? A. Britain B. United States C. Israel D. Spain E. Italy

One result of the Asian financial crisis of 1997 to 1998 was the creation of _____ A. SADC B. NAFTA C. ASEAN+3 D. CEFTA E. COMESA

The assault on advertising of _____ is escalating internationally, as evidenced by the World Health Organization launching a global campaign against it. A. trans-fats B. alcohol C. tobacco D. pharmaceuticals E. animal derived products

The most rapidly growing economies in the Asia Pacific region during the 1980s and 1990s, Hong Kong, South Korea, Singapore, and Taiwan are often referred to as the _____ A. Four Lions B. Four Elephants C. Four Dragons D. Four Horses E. Four Swans

The true consumer market in China is probably limited to no more than _____ percent of those who live in the more affluent cities. A. 9 B. 15 C. 25 D. 33 E. 48

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

Which of the following 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. Lack of common language. D. The rigid adherence to traditional values. E. Lack of investment.

Which of the following is one of the nations referred to as the Four Asian Tigers? A. India B. Thailand C. South Korea D. Malaysia E. Sri Lanka

Which of the following provinces of China shares the closest economic ties with Russia? A. Liaoning B. Jilin C. Heilongjiang D. Guangdong E. Hainan

Which of the following was primarily instrumental in decreasing the historical tension between People's Republic of China (PRC) and the Republic of China (ROC)? A. ROC acquiring U.N membership. B. Rise of communism. C. Increase in direct trade. D. American military involvement in peacekeeping. E. ASEAN mandates overruling former hostilities between member nations.

Which of the following was the greatest hindrance to the development of software innovations appropriate for world markets in Japan? A. The deeply-rooted bureaucratic structure. B. The rise in global oil prices. C. The complex Japanese language. D. The growing fiscal deficit. E. The burgeoning population.

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

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

_____ might be classified as an aspect of sales promotions or public relations, though their connections to advertising are also manifest. A. Trade shows B. Cent-offs C. Road shows D. Sweepstakes E. Corporate sponsorships

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

False

_____ in advertising is a thorny issue, because most member countries of the European Commission have different interpretations of what constitutes a misleading advertisement.

C. Deception

For most companies, which of the following are the major components in the marketing communications mix?

C. Advertising and personal selling

Which of the following is an example of comparative advertising?

C. An ad showing a dog choosing one brand of dog food over another.

In the international communications process, _____ is defined as the interpretation by the receiver of the symbolism transmitted from the information source.

C. Decoding

In which of the following countries is the time spent on social media sites the highest?

C. Israel

With reference to the communication process in advertising, using the Internet as a medium when only a small percentage of an intended market has access to it, is an example of an error related to:

C. Message channel selection

An especially effective promotional tool when a product concept is new or has a very small market share is known as _____.

C. Product Sampling

C. Public relations

Certain advertising media are forbidden by government edict to accept some advertising materials. Such restrictions are most prevalent in:

C. Radio and television broadcasting

_____ might be classified as an aspect of sales promotions or public relations, though their connections to advertising are also manifest.

C. Road Shows

The assault on advertising of _____ is escalating internationally, as evidenced by the World Health Organization launching a global campaign against it.

C. Tobacco

In the context of media planning and analysis, billboards are especially useful in countries:

C. With high illiteracy rates

What is important of maintaining high levels of motivation

Communication

full-cost

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.

What kind of training is important in foreign markets?

Continual

price skimming.

Cosmeticon, a U.S.-based firm, has recently started exporting cosmetics to India. Cosmeticon has introduced a new range of mineral-based makeup products for the first time in the Indian market. As Cosmeticon has no competitors in this segment of the Indian cosmetics market, it has set a very high price for its products in order to reach the premium, price insensitive segment of the market. This is an example of

Companies should provide home office personnel with what kind of training?

Cross cultural training

All of the following are specific objectives of sales promotion EXCEPT: A. immediate purchase. B. consumer introduction to the store. C. gaining retail point-of-purchase displays. D. building brand loyalty. E. encouraging stores to stock the product.

Blogs, social networking, and video sharing are examples of media commonly known as _____. A. global media B. local media C. social media D. Texas Visual Imaging E. widespread media

C. K. Prahalad and associates introduced the concept of a global market, not necessarily defined by national borders but rather by the pockets of poverty across countries, and consisting of 4 billion people across the globe with annual incomes of less than $1,200. They refer to these consumers, concentrated in the LDCs and LLDCs, as _____ markets. A. subsistence B. third-world C. underdeveloped D. bottom-of-the-pyramid E. peripheral

C. K. Prahalad has cited two primary misconceptions behind the international marketers ignoring the bottom-of-the-pyramid markets. One of the reasons is that the products and services developed for more affluent consumers are not appropriate for these markets. Which of the following is the other misconception? A. Unwillingness of consumers in the bottom-of-the-pyramid markets to buy international products. B. The lack of uniformity in bottom-of-the-pyramid markets. C. The heavy taxation system in bottom-of-the-pyramid markets allows little profit. D. Consumers in the bottom-of-the-pyramid markets lack both money and technology. E. Consumers in the bottom-of-the-pyramid markets are characterized by conservative traditions and culture.

During which step of the international communications process does the receiver of the message interpret symbolism transmitted from the information source? A. Selecting a message B. Encoding C. Selecting a message channel D. Decoding E. Identifying the sources of noise

IBM entered into a venture with the Chinese Railways Ministry that allowed IBM to set up a national network of IBM service centers in railway stations that has enabled IBM to ship computer parts via the railroad around the country within 24 hours. This venture was dubbed the _____. A. Blue Connect B. China Express C. China Blue D. Blue Express E. China Connect

In the context of international advertising, it has been observed that advertising expenditures are generally _____. A. linear B. supplemental C. mutually reinforcing D. cyclical E. constrained

In the context of the communications process in advertising, problems of literacy, media availability, and types of media create challenges in the communications process at the _____ step. A. feedback B. decoding C. message channel selection D. encoding E. message selection

In the international communications process, the sales force of a company that conveys the encoded content to the intended receiver acts as a _____. A. decoder B. message source C. receiver D. message channel E. noise

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

Political explanations of Japan's crisis during the 1990s identified two villains. One of them was the powerful Japanese bureaucracy. Which of the following is the other one? A. Japan's trade policies with the United States. B. Japan's refusal to join Asian trade blocs. C. The powerful influence of the royalty in political issues. D. The long entrenched Liberal Democratic political party. E. The splintering of most of Japan's right-wing political parties.

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

The three contiguous provinces in Northeast China _____, Jilin, and Heilongjiang have long represented a cohesive unit in terms of culture and the political economy and are referred to as "dongbei", meaning Northeast, or "dong sansheng", meaning Northeastern Three Provinces. A. Gansu B. Shanxi C. Henan D. Liaoning E. Sichuan

This region in China includes three cities of over 5 million inhabitants (Hong Kong, Guangzhou, and Shenzhen); five cities with more than 1 million inhabitants (Zhuhai, Huizhou, Foshan, Zhongshan, and Dongguan); and a number of cities that each contain approximately half a million inhabitants, such as Macau. Identify the region. A. Shanghai B. Northeast China C. Yangtze River Delta D. The Greater Pearl River area E. Taiwan

This region in China is the political and R&D center of China. The 75-mile corridor in this region hosts some 5,000 Chinese high-tech companies, and more than 1,000 international IT companies. Perhaps the key to this region is the quality of its higher education. Identify the region in discussion A. The coastal Dalian city B. The Pearl River Delta C. The Yangtze River Delta D. Beijing-Tianjin E. Fujian

Which of the following is true of the APEC? A. Russia is not a member of this grouping. B. It is opposed to open trade. C. Its members meet once in six months. D. It promotes economic cooperation. E. It aims to increase barriers to investment.

Which of the following is true of the standard of living of the eight most populous countries of the Asia/Pacific region? A. The Japanese rail system is the most underdeveloped in the world. B. In the Philippines, most people travel by train. C. As a result of communism, China and Vietnam place low emphasis on health. D. The Japanese healthcare system produces the longest lifespans in the world. E. Consumption patterns indicate that the Chinese place much lower emphasis on education, compared to Indians.

With respect to advertising, _____ is especially important when a budget is small or where there are severe production limitations. A. class distinction B. politicization C. technology D. creativity E. following a formula

_____ contains Hong Kong, Macau, Guangzhou, and Shenzhen and it is considered as the world's manufacturing base for the IT industry. A. Northeast China B. The Yellow River Delta C. The Yangtze River Delta D. The Pearl River Delta E. Southwest China

_____ is China's third largest industrial city after Shanghai and Beijing. A. Wuhan B. Chengdu C. Qingdao D. Tianjin E. Kaohsiung

In the context of international advertising, it has been observed that advertising expenditures are generally _____.

D. Cyclical

During which step of the international communications process does the receiver of the message interpret symbolism transmitted from the information source?

D. Decoding

Of all the elements of the marketing mix, decisions involving _____ are those most often affected by cultural differences among country markets.

D. Advertising

All of the following are specific objectives of sales promotion EXCEPT:

D. Building brand loyalty

With respect to advertising, _____ is especially important when a budget is small or where there are severe production limitations.

D. Creativity

In the context of the communications process in advertising, problems of literacy, media availability, and types of media create challenges in the communications process at the _____ step.

D. Encoding

In the international communications process, the sales force of a company that conveys the encoded content to the intended receiver acts as a _____.

D. Message channel

Blogs, social networking, and video sharing are examples of media commonly known as _____.

D. Texas Visual Imaging

The only way to avoid linguistic problems in advertising communication is by:

D. in-country testing with the target consumer group.

How to design the sales force?

Decisions must be made regarding the numbers, characteristics, and assignments of sales personnel Different market requirements regarding direct sales and customer approach Territory allocation Customer call plans

Which of the following are the two most important steps China has to take to ensure that the road to economic growth is smooth? A. Decreasing export barriers and promoting indigenous technology. B. Strengthening the hold of its communist party and promoting innovative thinking. C. Investing in more developing countries and changing its education system. D. Acquiring membership in more regional trade blocs and increasing embargoes. E. Improving human rights and reforming the legal system.

at a price below the cost of production.

Dumping has been defined as the situation in which a product is sold in the international market

demand in the home country is low.

Dumping in the world markets is most likely to increase when

In the 1970s, Frank Gibney had called Japan "The Fragile Superpower", which was confirmed with the crisis of the 1990s. In his new appraisal, Gibney writes that Japan has become the victim of: A. social loafing. B. compensating errors. C. being penny-wise and pound-foolish. D. herd behavior. E. one-party sickness.

In the context of integrated marketing communications, in many markets, the availability of appropriate _____ to customers can determine entry decisions. A. demonstrations B. cultural appeal C. technological aid D. services E. communication channels

In the context of international advertising, global mass media advertising is a powerful tool for _____. A. relationship orientation B. long-term performance C. product stability D. emotional appeal E. cultural change

In the international communications process, during _____, the message from the source is converted into effective symbolism for transmission to a receiver. A. transmitting B. scrambling C. standardizing D. decoding E. encoding

Integrated marketing communications are composed of all of the following EXCEPT: A. advertising. B. sales promotions. C. trade shows. D. public relations. E. political rallying.

Negotiators from this region in China have been the closest to foreign influences, which has yielded their special forms of entrepreneurship and spontaneity. They are excellent traders and particularly interested in making short-term gains. Identify the region. A. Taiwan B. Yangtze River Delta C. Beijing D. Shanghai E. The Pearl River Delta

Of all the elements of the marketing mix, decisions involving which of the following are those most often affected by cultural differences among country markets? A. Price of the product. B. Benefits offered by the product. C. Services offered along with the product. D. The place of offering the product. E. Advertisement of the product.

One of the drawbacks of satellites is: A. the cost of creating a high quality ad for satellite television. B. the limited market penetration of satellite television. C. the number of intermediaries required for satellite service transmission. D. the government regulations placed on satellite advertising. E. their ability to span a wide geographical region.

Social media such as blogs and social networking permits consumers to: A. obtain discounts on the brands they endorse on their blogs. B. obtain free Internet access that is supported by brand ads. C. create content about brands whether marketers like it or not. D. contact the manufacturer directly about warranty issues. E. become authorized virtual brand agents for the product manufacturers.

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

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. Hakka D. Xiang E. Mandarin

The primary multinational trade group in Asia is _____. A. NAFTA B. COMESA C. CEFTA D. SADC E. ASEAN

What is the tenet that China follows to ensure that Hong Kong's exuberant capitalism is retained despite the communist leanings of mainland China? A. Absolute plutocracy B. Sovereignty of the provinces C. Theocracy D. Noninterventionist approach E. One country, two systems

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

Which of the following elements 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? A. Selecting a message source B. Encoding C. Selecting a message channel D. Decoding E. Noise

Which of the following is one of the major events that account for the vigorous economic growth of the ASEAN countries and their transformation from cheap-labor havens to industrialized nations? A. The decision to shift their economies from manufacturing based to commodity based. B. North Koreas' emergence as a major provider of technology and capital necessary to upgrade manufacturing capability. C. A bilateral trade agreement between the United States and Vietnam leading to the granting of NTR status to Vietnam. D. Hong Kong becoming a special administrative region (SAR) of the People's Republic of China. E. The ASEAN governments' commitment to deregulation, liberalization, and privatization of their economies.

Which of the following is the best way to stimulate economic development and growth from within developing countries? A. Imposing embargoes. B. Encouraging governmental regulations. C. Restricting immigration. D. Increasing tariffs on exports. E. Encouraging entrepreneurial activities that are networked.

Which of the following is the biggest threat to the fast pace of growth China is experiencing? A. Increased opening of the market to foreign investments. B. Trade isolation by other ASEAN countries. C. Losing the permanent normal trade relations (PNTR) status conferred by the United States. D. Reformation of the traditional legal system. E. Economic volatility that accompanies fast growth.

Which of the following is the stereotype of businesspeople in the Northeast area of China? A. Loud and argumentative B. Cold and businesslike C. Aggression D. Dishonesty E. Forthrightness

Which of the following is the term used to refer to both the People's Republic of China (PRC) and the Republic of China (ROC) or Taiwan? A. Integrated China B. The Yellow Route C. Neo China D. Mainland China E. The Greater China

Which of the following organizations provides a formal structure for the major governments of the Asian-Pacific Rim, including the United States and Canada, to discuss their mutual interests in open trade and economic collaboration? A. NAFTA B. ASEAN C. ASEAN+3 D. SADC E. APEC

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

Which of the following was designated as China's first Special Economic Zone? A. Shanghai B. Hong Kong C. Taiwan D. Beijing E. Shenzhen

Which part of China is considered, by other Chinese, to be the most conservative both in terms of behavior and language? A. Hong Kong B. Mainland China C. Beijing D. Shanghai E. Taiwan

While developing an international advertisement campaign, which of the following is the first step of the process? A. Compose and secure a budget based on what is required to meet goals. B. Specify the goals of the communication. C. Select effective media. D. Execute the campaign. E. Perform marketing research.

_____ has replaced Nanjing, to become Jiangsu province's number one economy and foreign trade center. A. Wuhan B. Chengdu C. Qingdao D. Tianjin E. Suzhou

_____ is now Japan's most important trading partner A. Malaysia B. The United States C. Bangladesh D. Bahrain E. China

_____ suffer(s) from issues such as difficulty in assessing taxes, unfair competition, import duties, and privacy. A. The radio B. Direct mail C. Magazines D. Newspapers E. The Internet

Of all the elements of the marketing mix, decisions involving which of the following are those most often affected by cultural differences among country markets?

E. Advertisement of the product

In the context of international advertising, global mass media advertising is a powerful tool for _____.

E. Cultural Change

In the international communications process, during _____, the message from the source is converted into effective symbolism for transmission to a receiver.

E. Encoding

Which of the following steps of a communications process is important as a check on the effectiveness of the other steps?

E. Feedback

Which of the following are especially vulnerable as EU member states decide which area of regulation should apply to these services?

E. Internet services

E. Noise

While developing an international advertisement campaign, which of the following is the first step of the process?

E. Perform marketing research

_____ suffer(s) from issues such as difficulty in assessing taxes, unfair competition, import duties, and privacy.

E. The Internet

Social media such as blogs and social networking permits consumers to:

E. become authorized virtual brand agents for the product manufacturers.

The emergence of pan-European communications media will most likely cause companies to:

E. choose more standardized promotional efforts.

In the context of integrated marketing communications, in many markets, the availability of appropriate _____ to customers can determine entry decisions.

E. communication channels

Integrated marketing communications are composed of all of the following EXCEPT:

E. political rallying

One of the drawbacks of satellites is:

E. their ability to span a wide geographical region.

Third-country nationals

Expatriates working for a foreign company

A majority of the population of less developed countries can be reached readily through the traditional mass medium of advertising.

False

A proper encoding system allows a company to correct errors before substantial damage occurs.

False

countervailing

For ________ duties to be levied on a product, it must be shown that prices are lower in the importing country than in the exporting country and that producers in the importing country are being directly harmed by the dumping of the product.

parallel importing

Gift Group Inc., an importing organization in New York, buys perfume from a company in France for $13 a unit. Unknown to the French company, Gift Group sells this product in the United States for $19 a unit. This leads to a loss of revenue for the French company as it also sells its perfume in the United States but for a higher price of $22. What concept does this demonstrate??

price skimming

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.

as an active instrument of accomplishing marketing objectives.

In general, price decisions are viewed in two ways: pricing as a static element in a business decision, and pricing

administered pricing

In general, the end goal of all ________ activities is to reduce the impact of price competition or eliminate it.

higher costs of exporting.

In most cases, the reason products cost relatively little in one country and cost more in another is the

Corporate control and frequent interactions with peers and supervisors are the means of motivation and control

In their countries

Teamwork is valued over...

Individual effort in other countries

The Japanese finds most important to salesperson

Job security Social recognition Feelings of worthwhile accomplishent

Most expatriate failures are caused by ....

Lack of an understanding of cultural differences and their effect on management skills.

ad valorem

Lower prices to the buyer may also mean lower tariffs, because most tariffs are levied on a(n) ________ basis.

Virtual expatriates...

Manage operations in other countries but don't live there

variable-cost

Marianne's Chocolates sell well in the U.S. at a price of $24 per pound, and she has overproduced one kind of chocolate bar. Marianne has decided to see if she can sell them in Mexico, so she sets a price that is just over her cost. She figures if she makes even a little money, it would be worth it. Marianne is using ________ pricing.

What must be considered when motivating the marketing force?

National differences

cartel

OPEC is an example of a ________; it can control the price of oil by controlling the market.

The United States finds most important to a salesperson

Promotion Merit increase in pay Personal growth and development Feeling of accomplishment

In the context of international advertising, companies are moving from the commission system to a _____ system.

Reward by results

not generally recommended when there is political unrest in the importer's country.

Sales on open accounts are

Efficient sales training can provided though ....

The Internet

Primary control tool used by sales managers is the incentive system in what country?

The United States

unassembled goods may qualify for lower freight rates.

The costs of production may be lowered if a firm ships unassembled goods to a free trade zone (FTZ) in an importing country because

a reduction in the price escalation.

The creation of a free trade zone may lead to

Different cultures often seek the same value or benefits from the primary function of a product.

True

The nature of the training program depends on:

The home culture of the sales person The culture of the business system and foreign market

The largest personnel requirement abroad for most companies is...

The sales force

allows trade with countries short of hard currency.

The use of countertrade in international trade

Errors at the receiver end of the international communications process do not occur if the message is encoded properly.

True

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

True

Competitive advertising is a source of noise in the international communications process.

True

Individual performance, measured by sales revenue performance is emphasised in the what country?

United States

They specialize in trading goods acquired through barter arrangements.

What do barter houses do?

cartels

What is an example of a price-fixing arrangement most directly associated with international marketing?

The company sets prices to achieve specific objectives.

What is most likely to be true of a company that views prices as an active instrument of accomplishing marketing objectives?

Any contribution to fixed cost after variable costs are covered is profit to the company.

What characterizes the variable-cost pricing approach?

restrict the amount a country will import

What is the function of a countervailing duty?

to reduce manufacturing costs

What is the most probable reason a manufacturer would choose to conduct its manufacturing operations in a third country?

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

What is true of price quotations for international sale?

tariffs

What primary discriminatory tax must be taken into account in foreign competition?

price escalation

What results from the added costs incurred as a result of exporting products from one country to another?

Leasing helps guarantee better maintenance on overseas equipment.

What would be considered an advantage of leasing equipment rather than owning it?

countertrade.

When Burger Boys an American fast-food company, wanted to market its burgers and fries in France, it was asked to import French mustard to the United States in return. This is an example of

the middleman markups are not standardized.

When a company exports a product from the United States to another country, the company is most likely to be unable to determine the ultimate price of a product if

raise the price of PCs.

When the Indian rupee depreciated against the U.S. dollar, PC manufacturers who were dependent on imported components had to either absorb the increased cost or

cost-plus

When the value of the dollar is weak relative to the buyer's currency, sellers usually use ________ pricing.

full-cost pricing

Which approach to pricing is most suitable when a company has high variable costs relative to its fixed costs?

barter houses

________ are the primary outside source of aid for companies affected by the uncertainty of a countertrade.

Exclusive

________ distribution, a practice often used by companies to maintain high retail margins to encourage retailers to maintain the exclusive-quality image of a product, can create a favorable condition for parallel importing.

Ad valorem

________ duties are levied as a percentage of the value of the goods imported.

Open accounts

________ leave sellers in a position where most of the problems of international commercial finance work to their disadvantage.

Marginal-cost

________ pricing is a practical approach to use when a company has high fixed costs and unused production capacity.

A _____ involves complete political and economic integration, either voluntary or enforced. A. political union B. common market C. regional cooperation for development (RCD) D. customs union E. free trade area (FTA)

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

Eastern Europe and the Baltic states, satellite nations of the former Soviet Union, have moved steadily toward adopting aspects of _____. A. capitalism B. socialism C. federalism D. democracy

Every type of economic union shares the development and enlargement of market opportunities as a basic orientation. Which of the following best describes the primary way market opportunities are enlarged by economic unions? A. Preferential tariff treatment for participating members. B. A common economic defense force with costs shared by all members. C. Formulation of cartels. D. Seeking economic dominance through boycotts of rivals.

In the context of controlling middlemen, parallel importing is also known as _____. A. secondary wholesaling B. black marketing C. backwashing D. industrial piracy

In the context of the Internet in international marketing channels, technically, e-commerce is a form of _____ selling. A. direct B. parallel C. dual D. mass

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

One of the challenges facing the European Union in the next 50 years is: A. deciding on how to limit the political aspects of union. B. diluting the value of the euro. C. strengthening ties with the United Nations. D. deciding on how to control the individualistic European population. E. how to control rapid expansion.

Sixty percent of the Japanese population lives in the _____ market area, which essentially functions as one massive city. A. Tokyo-Nagoya-Osaka B. Komaki-Tokoname-Kariya C. Nagoya-Handa-Seto D. Nishio-Okazaki-Inazawa E. Inuyama-Nisshin-Takahama

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

The most fully integrated form of regional cooperation is called a: A. political union. B. common market. C. regional cooperation for development (RCD). D. customs union. E. free trade area (FTA).

The negotiators from the Shanghai area are famous for their: A. shrewdness. B. tendency to be closemouthed. C. low spending habits. D. lack of creativity. E. imperialist perspective.

Which of the following European Union institutions originally had only a consultative role, but can now amend and adopt legislation? A. The European Parliament. B. The Council of Ministers. C. The Court of Justice. D. The European Commission. E. European Central Bank.

Which of the following characterizes the business philosophy of the Japanese distribution channels? A. Loyalty B. Direct sales C. Fast delivery D. Variety E. Price competition

Which of the following has proved to be an important way to break the trade barrier imposed by the Japanese distribution system? A. Direct sales through catalogs. B. Large wholesale stores. C. Street corner kiosks. D. Internet shopping. E. Television advertising.

Which of the following is one of the reasons that has hampered the conferences held by the United Nations Economic Commission for Africa to bring about holistic integration? A. Governmental inexperience. B. Depletion of natural resources. C. Excessive influx of products. D. Lack of beneficial funds. E. Excess of cheap labor.

Which of the following is the basic requisite for the development of a supranational market arrangement? A. Political amenability among countries. B. Business strategy sharing. C. Adoption of common cultural prejudices. D. Protection of the market by exercising boycotts. E. Geographic and temporal proximity among countries.

Which of the following statements is true regarding an import-oriented distribution structure? A. The importer-wholesaler traditionally performs most of the marketing functions. B. The relationship between the importer and any middleman is similar to that found in a mass-marketing system. C. Several independent agencies providing functions such as advertising, marketing research, financing are a part of this distribution structure. D. The idea of a channel as a chain of intermediaries performing specific activities is common. E. This distribution system is national in scope.

Which of these levels of economic integration lacks only political unity to become a political union? A. Common market B. Free trade area C. Regional cooperation group D. Customs union E. Trade friendly zone

_____ has the potential to become the newest big emerging market (BEM), but its development will depend on government action and external investment by other governments and multinational firms. A. South Africa B. South America C. East Asia D. West Asia E. South Asia

_____ is often the approach of choice in markets with insufficient or underdeveloped distribution systems. A. Direct marketing B. A big wholesale store C. Internet selling D. A discount house E. Television advertising

_____ take title to manufacturers' goods and assume the trading risks. A. Merchant middlemen B. Brokers C. Buying offices D. Export agent E. Agent middlemen

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 and labor among member nations. A. political union B. Paris C. regional cooperation for development (RCD) D. customs union E. free trade area (FTA)

A disadvantage when using home-country middlemen as intermediaries in the distribution process is: A. the large financial investment required. B. the limited control over the distribution process. C. the large managerial investments required. D. the limited number of retailers in the foreign country who can be reached. E. the large amount of commission.

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

Eastern Europe and the Baltic states, satellite nations of the former Soviet Union, have moved steadily toward establishing postcommunist market reforms. This implies that: A. the region is against establishing free markets. B. new business opportunities emerge in this region. C. all of the eastern European countries can be viewed as one entity. D. all of these countries have made the same progress. E. all of these countries have had the same success in economic reform and growth.

Essentially, a free trade area (FTA) provides its members with: A. political union B. a mass market without barriers among partner countries. C. a regional cooperation for social development. D. customs unionization. E. an international market place without customs duties.

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

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. A. domestic B. traditional C. manufacturer-oriented D. service E. customer-oriented

In the international business arena, which of the following is considered to be one of Walmart's strengths? A. Clean business reputation. B. Internal Internet-based system. C. Ability to beat competitors. D. Outreach programs to placate small retailers. E. Ability to influence foreign governments.

It was not until this single market was established that the United States, Japan, and other countries gave serious thought to creating other alliances. Which of the following is being referred to here? A. European Commission. B. The European Economic Community. C. The European Steel and Coal Community. D. The Asia-Pacific Economic Cooperation. E. The European Community.

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

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

Multinational market groups form: A. a large organization that promotes harmony by mutual agreement to a common peace treaty. B. large markets that provide potentially significant opportunities for international business. C. a conglomerate that seeks to undertake foreign trading ventures as one company. D. a non-profit entity that works together to help the development of under-developed countries. E. regional trading blocs without trade restrictions internally but with borders protected from outsiders.

Similarity of cultures can make or break an economic union. Although there is great cultural diversity in the European Union, key members share _____ and are commonly aware of being European A. a common language B. a long-established Christian heritage C. a dislike for foreigners D. a tradition of monarchy and feudalism E. a democratic background and heritage

The Czech Republic, Hungary, the Slovak Republic, and Poland have become members of the _____. A. UNDP B. OECD C. WTO D. LAIA E. APEC

The _____ is the European Union's Supreme Court. A. International Court of Justice B. European Court of Justice C. International Criminal Court D. European Common Judicial Council E. European Security Council

The _____ originally had only a consultative role that passed on most European Union legislation but now has the power to amend and adopt legislation. A. Court of Justice B. European Parliament C. Council of Ministers D. European Commission E. Legislative Commission

The formation of multinational market groups has resulted in: A. increased difficulties in trade. B. an increased regulation of business activities. C. business activities losing management control. D. an increase in tariffs. E. an increase in border controls.

The ties that bind members of the Commonwealth of Independent States stem mainly from their: A. agreement to the European Trade Pact. B. former Soviet membership. C. UN membership. D. affiliation to the Eurasian Alliance. E. WTO membership.

When the Soviet Union dissolved, the _____ emerged and had 12 members that agreed to a loose economic and political alliance with open borders but no central government. A. European Trade Pact B. Commonwealth of Independent States C. Eurasian Alliance D. Russian Confederation E. Post-Soviet Bloc

Which is the trade group that is part of Europe and Asia and has emerged and persisted since the dissolution of the Soviet Union comprising of all the republics save the Baltic States? A. The European Union East. B. The Commonwealth of Independent States. C. The Eastern Bloc Economic Area. D. The European Free Trade Association. E. The Euro-Soviet Union.

Which of the following actions should be taken to begin with the search for prospective middlemen? A. Short listing the middlemen. B. Studying the target market. C. Evaluating the available financial resources. D. Designing the sales force required. E. Understanding the mission of the manufacturing firm.

Which of the following distribution structures is also known as a traditional distribution structure? A. Export-oriented B. Import-oriented C. Manufacturer-oriented D. Service-oriented E. Customer-oriented

Which of the following is a provision of the commonwealth agreement? A. To reject the powers of the old regimes. B. To keep the ruble but allow new currencies. C. To create disjointed control of nuclear weapons. D. To invalidate all Soviet foreign treaties and debt obligations. E. To avoid creating a European Union-style free trade association.

Which of the following is a type of domestic middleman? A. Sole proprietors. B. Export Management Companies. C. Foreign distributors. D. Lessors. E. Joint ventures.

Which of the following is one of the bilateral free trade agreements that the United States has? A. CETA B. NAFTA C. NATO D. MERCOSUR E. LAFTA

Which of the following is one of the six Cs of distribution channel strategy? A. Communication B. Continuity C. Capacity D. Commission E. Contribution

Which of the following makes the South African market an important base for serving nearby African markets that are too small to be considered individually? A. The official start of apartheid. B. The South African market's developed infrastructure. C. The economic embargo imposed by the United Nations. D. The existence of inward-looking trade and investment policies. E. The South African government's nationalization initiative.

Which of the following modes of distribution affords the most control over the distribution channels but often at a cost that is not practical? A. Complementary marketers. B. Direct sales force. C. Export associations. D. Trading companies. E. Export management companies.

Which of the following statements is true regarding agent middlemen? A. They take title to the merchandise. B. They work on commission and arrange for sales in the foreign country. C. Manufacturers cannot control them as they control merchant middlemen. D. They do not represent the best interests of the manufacturer. E. They assume trading risks.

Which of the following was a goal of the Export Trading Company Act? A. To allow U.S. companies to bypass tax laws with respect to international trading. B. To remove antitrust disincentives to export activities. C. To bypass trade barriers in foreign countries. D. To earn the highest possible profits in foreign countries. E. To combine export shipments within single containers.

With the expansion of the European Union, existing members fear: A. retaliation against members by the Soviet Union. B. a flood of cheap labor into their countries. C. OPEC will cut off supplies to countries supporting the expansion of the European Union. D. new political leaders who will overwhelm the existing leadership. E. the dilution of the euro.

_____ has long been considered the most effective nontariff barrier to the Japanese market. A. The Japanese population B. The Japanese distribution structure C. Japanese culture D. The Japanese import and export procedure E. Intense competition in Japan

A _____ of nations is a voluntary organization providing for the loosest possible relationship that can be classified as economic integration. A. conglomerate B. community C. commonwealth D. proprietary colony E. trade association

Companies with marketing facilities in different countries with excess marketing capacity sometimes take on additional product lines for international distribution. The formal name for this type of marketing is: A. skimming. B. backhauling. C. complementary marketing. D. export marketing. E. demand shifting.

Complementary marketing is commonly known as _____. A. backhauling B. demand shifting C. piggybacking D. shape shifting E. skimming

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

Groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers are called: A. multilateral economic associations. B. cartels. C. multinational market regions. D. trade associations. E. political and cultural associations.

Improving economic performance, deciding how to limit political aspects, and deciding about further enlargement are all the long-term challenges faced by the _____. A. UN B. WTO C. European Union D. OPEC E. SAHK

In Japan, under the Large-Scale Retail Store Law, all proposals for new "large" stores are first judged by the _____. A. Transport and Tourism Department B. Internal Affairs and Business Council C. Ministry of International Trade and Industry D. Health and Welfare Committee E. Local Retailers Union

In the context of factors affecting choice of channels, one of the key elements in distribution decisions includes _____. A. the selection of optimum container sizes B. volume discounts and rebates C. the functions performed by middlemen D. the local advertising modes E. the target market culture

Many international trade experts have marveled at how members of the European Union have overcome _____, _____, and _____ differences. A. marketing; management; promotional B. energy; political; geographical C. cultural; legal; social D. time zone; coastal; religious E. language; educational; technological

Most eastern European countries are privatizing state-owned enterprises, establishing free market pricing systems, and: A. permitting greater government control/intervention in foreign trade. B. increasing trade barriers. C. Africa. D. making import controls stringent. E. switching to a socialistic economy.

One of the reasons that channels of distribution often pose longevity problems is that most middlemen _____. A. do not maintain sufficient inventory to serve customers B. lack product knowledge resulting in low sales volume C. have little loyalty to their vendors D. tend to slow down distribution to extract higher commissions E. do not have sufficient knowledge of the target market

South Africa is most likely to experience rapid economic growth in as few as 10 years owing to: A. the beginning of apartheid. B. its recent consumerist trends. C. its industrial base. D. its outsourcing ability. E. the coupling of small African markets with it.

The Treaty of _____ established the European Economic Community (EEC) in 1957 and called for common external tariffs and the gradual elimination of intramarket tariffs, quotas, and other trade barriers. A. Kent B. Paris C. Rome D. Cannes E. Hamburg

The _____ initiates policy and supervises its observance by member states, and it proposes and supervises execution of laws and policies. A. United Nations B. World Trade Organization C. European Commission D. Commonwealth of Independent States E. Council of Ministers

The final step in the European Community's march to union was the ratification of the _____ Treaty (1992). A. Rome B. Berlin C. Maastricht D. Barcelona E. Athens

The first Soviet republics to declare independence from the Soviet Union were the _____. A. Russian SFSR B. Ukrainian SSR C. Baltic States D. Transcaucasian SFSR

The institutions of the European Union form a _____ pattern. A. bilateral B. unitary C. federal D. provincial E. autonomous

The most basic economic integration and cooperation is the: A. political union. B. common market. C. regional cooperation for development (RCD). D. customs union. E. free trade area (FTA).

Which of the following countries has the largest number of retailers? A. United States B. Argentina C. China D. South Africa E. Japan

Which of the following established the parameters of the creation of a common currency for the European Union? A. The Economic and Monetary Union of the European Union. B. The Single European Act of the Treaty of Rome. C. The European Commission of the European Union. D. The European Common Judicial Council. E. The European Economic Council.

Which of the following factors affects the choice of distribution channels? A. Distance from manufacturer. B. Language spoken in the target market. C. Available distribution intermediaries. D. Consumer literacy levels. E. Country's per capita income.

Which of the following is the weakest of political unions that is mostly based on economic history and a sense of tradition? A. A conglomerate B. A community C. A commonwealth D. A proprietary colony E. A trade association

Which of the following statements is true of the Japanese market? A. The costs of Japanese consumer goods are among the lowest in the world. B. Manufacturers are independent of wholesalers for a multitude of services to other members of the distribution network. C. The Japanese distribution structure supports long-term dealer-supplier relationships. D. Japanese law favors the establishment of large retail stores. E. Japanese consumers favor price over personal service.

Which of the following statements is true regarding merchant middlemen? A. They represent the best interests of a manufacturer. B. They can be controlled better than agent middlemen. C. They assume trading risks. D. They work on commission and arrange for sales in the foreign country. E. They do not take title to manufacturers' goods.

Which of these is the most advanced and viable of Africa's regional organizations? A. Economic Community of West African States. B. African Development Bank. C. Southern African Development Community. D. Organization of African Unity. E. Economic Community of Central African States.

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

As George Platt examines markets that might match his company's investment requirements, he is particularly struck by the fact that the European Community has an extensive transportation network. This network seems to draw all the member nations closer together. Which of the following critical factors for ensuring an effective economic union is Mr. Platt most likely examining when reviewing transportation networks? A. Cultural factors B. Trade factors C. Political factors D. Geographic proximity E. Economic factors

At the most general level, the _____ represents the most important and comprehensive trade agreement in history. A. NAFTA B. Amsterdam Treaty C. MERCOSUR D. WTO E. ASEAN

Government bureaucracy, corruption, and organized crime are common problems found in _____. A. Latin America B. The United States C. China D. former Soviet Union E. Japan

Home-country middlemen are also known as _____ middlemen. A. area B. local C. merchant D. domestic E. regional

In the context of distribution patterns, the rate of change in retailing around the world appears to be directly related to the _____. A. literacy rate B. rate of inflation C. population growth D. speed of economic development E. currency exchange rate

In the context of the different types of middlemen, which of the following is an example of a manufacturer's retail store? A. Toys "R" Us B. Walmart C. Costco D. Benetton E. IKEA

In which of the following modes of distribution in the foreign market will a company have to make maximum financial investment? A. Export management companies. B. Trading companies. C. Export associations. D. Direct sales force. E. Complementary marketers.

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

Of all the multinational market groups, none has been more secure in its cooperation or more important economically than the: A. Newly Independent States. B. Economic Community of West African States. C. United Nations. D. European Union. E. Trans-Pacific Union.

One of the first factors that gave the European Union an edge over others in the process of becoming a common market was: A. a similarity in agriculture and monetary policy. B. a similarity in political systems. C. a similarity in languages. D. a well-developed transportation network. E. a common currency.

The European Commission, the Council of Ministers, the European Parliament, and the Court of Justice are institutions of the _____. A. COMECON B. European Free Trade Area C. European Economic Area D. European Union

The European Community uses several forms of legal instruments. A. Regulations B. Decisions C. Codes D. Directives E. Specifications

The European Union is anxious to admit new members; however, there have been problems. Which of the following problems has been deemed to be the most significant regarding new member admission? A. The threat of nuclear war. B. The problem of multiple currencies. C. The rise of Asia in the world arena. D. The prospect of illegal immigrants from the former Soviet Union. E. The economic instability of prospective members.

The _____ has reduced or eliminated internal tariffs and adds a common external tariff on products imported from countries outside the group. A. political union B. common market C. regional cooperation for development (RCD) D. customs union E. free trade area (FTA)

The adoption of the euro has facilitated which of the following? A. Increased complexity of online marketing. B. An increase in parallel imports. C. An increase in unhealthy and unfair competition. D. Easily recognizable price differentials.

Though now disbanded, which of the following was considered to be the most notable enforced political union of the last forty years? A. NATO B. NAFTA C. MERCOSUR D. COMECON

Which of the following are frequently criticized for not representing the best interests of a manufacturer? A. Global wholesalers B. Trading companies C. Consumers D. Merchant middlemen E. Brokers

Which of the following countries rejected the euro? A. Austria B. Greece C. Finland D. Denmark

Which of the following is a requisite for the survival of any economic union? A. Avoiding potentially significant opportunities for international business. B. Having agreements and mechanisms in place in order to settle economic disputes. C. Including, into the union, countries with diverse economies, distinctive monetary systems, developed agricultural bases, and different natural resources. D. Establishing of a comprehensive agriculture and economic policy. E. Ensuring biased treatment of goods produced within the union.

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

Which of the following is true of the Maastricht Treaty? A. It allows for stabilizing currency exchange markets of the member nations. B. It allows each nation to have its own set of defense policies. C. It allows the formation of individual judicial systems of its members. D. The members are committed to a common justice system. E. It aims at economic consistency alone.

Which of the following is true of the distribution process? A. It does not involve the physical handling and distribution of goods. B. It includes activities related to the promotion of goods and services. C. The ownership title remains with the distributor even on completion of the transaction. D. It includes buying and selling negotiations. E. The behavior of channel members is not affected by the cultural environment.

Which of the following was a customs union before becoming a common market? A. NAFTA B. OECD C. The European Steel and Coal Community D. The European Union E. The Council for Mutual Economic Assistance

With respect to political factors that affect supranational markets, which of the following is one of the most cherished possessions of any nation? A. A two-party system. B. A three-party system. C. A high voting rate. D. State sovereignty. E. A benevolent upper class.

_____ are considered to be the foundation of the Japanese distribution system. A. Consumers B. Brokers C. Manufacturers D. Small retailers E. Wholesalers

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

is the intermediate step in the transition from a free trade area to a common market. A. political union B. cartel C. regional cooperation for development (RCD) D. customs union E. monopsony

A major trade-off when using home-country middlemen is: A. the large financial investment required. B. the limited control over the entire distribution process. C. the large managerial investments required. D. the limited number of retailers in the foreign country who can be reached through the home-country middlemen. E. the large amount of commission charged by the home-country middlemen.

A(n) _____ is a domestic middleman set up 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. A. Webb-Pomerene export association B. manufacturer's export agent C. export management company D. complementary marketer E. foreign sales corporation

A(n) _____ is an individual agent middleman or an agent middleman firm providing a selling service for manufacturers that covers only one or two markets. A. complementary marketer B. export management company C. Webb-Pomerene export association D. global retailer E. manufacturer's export agent

E-commerce is more developed in _____ than the rest of the world, partly because of the lower cost of access to the Internet than found elsewhere. A. China B. Brazil C. Switzerland D. South Africa E. the United States

ECOWAS, SADC, and EAC are active regional cooperative groups in _____. A. North America B. Australia C. Africa D. Europe E. Asia

Experienced exporters suggest that the only way to select a middleman is: A. to conduct a background check on all the distributors available in the target market. B. to issue a request-for-proposal to all distributors in the target market and evaluate their responses. C. consult other manufacturers of the similar products and select the distributor recommended by them. D. consult trade organizations and select the distributor recommended by them. E. to personally talk to ultimate consumers to find whom they consider to be the best distributors.

In the context of cultural reactions when engaging in e-commerce, the color red is associated with socialism in _____. A. the United States B. China C. Brazil D. Uruguay E. Spain

Nations with complementary economic bases are least likely to: A. develop a distinctive monetary system. B. outweigh individual differences with the total benefit of economic integration. C. experience internal economic development. D. achieve enlargement of market opportunities through preferential tariff treatment. E. encounter frictions in the development and operation of a common market unit.

The _____ increases the authority of the institutions of the European Union and is designed to accommodate the changes brought about by the monetary union and the admission of new members. A. Treaty of Rome B. Single European Act C. Maastricht Treaty D. Expansion Act E. Amsterdam Treaty

The _____ is the decision-making body of the European Union and can enact into law all proposals by majority vote except for changes in tax rates on products and services, which require unanimous vote. A. United Nations B. World Trade Organization C. European Commission D. Commonwealth of Independent States E. Council of Ministers

The distribution channel process includes all activities, beginning with the manufacturer and ending with the _____. A. wholesaler B. agent middlemen C. merchant middlemen D. retailer E. final consumer

Which agency established the parameters for the creation of the common currency for the European Union? A. The Economic policy agency. B. The Optimal currency area—eurozone. C. The Economy of Europe. D. The European Currency Reserve. E. The Economic and Monetary Union.

Which of the following arrangements are undertaken when a firm wants to keep its seasonal distribution channels functioning throughout the year? A. Price skimming. B. Using the services of a trading company. C. Establishing a retail store. D. Using the services of an export management company. E. Complementary marketing.

Which of the following drafted the Maastricht Treaty that was presented to the European Union member states for ratification? A. The United Nations. B. The World Trade Organization. C. The European Commission. D. The Commonwealth Delineation. E. The Council of Ministers.

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

Which of the following is the reason for East Asia's economic success? A. The optimum usage of natural resources. B. The coupling of small markets into one viable market. C. The wealth of the general population. D. Its rich cultural heritage. E. The emphasis placed on education and healthcare.

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

Which of the following is true of foreign sales corporations? A. They are commonly called piggybackers. B. They can only be related to a manufacturing parent and not an independent broker. C. They virtually control distribution through all levels of channels in Japan. D. They accumulate, transport, and distribute goods from many countries. E. They can function as a principal or a commissioned agent.

Which of the following is true of large multinational markets? A. They lead to negligible marketing efficiencies. B. They are incapable of achieving economies of scale. C. They are particularly important to businesses not accustomed to mass production. D. They result in decreased purchasing power. E. They employ coordinated programs to foster economic growth.

Which of the following statements is true of a traditional distribution structure? A. The distribution system is national in scope. B. The relationship between the importer and any middleman is similar to that found in a mass-marketing system. C. The idea of a channel as a chain of intermediaries performing specific activities and each selling to a smaller unit beneath it until the chain reaches the ultimate consumer is common. D. Independent agencies providing functions such as advertising, marketing research, and financing are a part of this distribution structure. E. The marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers.

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

Yugoslavia has been facing internal strife due to: A. land issues. B. class war. C. high inflation. D. economic recession. E. ethnic divisions.

Good cultural skills can be ...

learned and developed

Individual incentives that work in the U.S. could fail in what...

other cultures or other markets

To be taken seriously in the business community...

the expatriate must be at least conversational in the host language.

Cultural skills provide the individual with the ability

to relate to a different culture even when the individual is unfamiliar with the details of that particular culture.

For Successful Expatriate Repatriation

~Commit to reassigning expatriates to meaningful positions. ~Create a mentor program. ~Offer a written job guarantee stating what the company is obligated to do for the expatriate on return. ~Keep the expatriate in touch with headquarters through periodic briefings and headquarter visits. ~Prepare the expatriate and family for repatriation once a return date is set.

To overcome Reluctance of Accepting a Foreign Assignment, you might be concerned with...

~Concerns for career -An absence will adversely affect opportunities for advancement ~Concerns for family -Education of the children -Isolation from family and friends -Proper health care -The potential for violence ~Special compensations packages deal with concerns

To Reducing the Rate of Early Returns.....

~Evaluation of an employee's family -75 percent of families sent abroad experience adjustment problems with children or marital discord ~Cross-cultural training for families as well as the employee

Designing Compensation Systems for Expatriates

~Fringe benefits ~Compensations comparisons between the home office and abroad ~Short-term assignment compensation ~Using a compensation program to recruit, develop, motivate, or retain personnel

Selecting Sales and Marketing Personnel

~Management must define precisely what is expected of people. ~Prime requisites: *Maturity *Emotional stability *Breadth of knowledge *Positive outlook *Flexibility *Cultural empathy *Energetic and enjoy travel ~Mistakes can be costly ~A manager's culture affects personnel decisions

When preparing U.S. personnel for foreign assignment, the planning process....

~Must begin prior to the selection of those going abroad ~Must extend to their specific assignments after returning home

Factors of Expatriates

~Numbers are declining ~Important for highly technical or involved products ~High cost ~Cultural and legal barriers ~Limited number of high-caliber personnel willing to live abroad

Most companies believe....

~That it is important to have international assignments early in a person's career, and international training is an integral part of their entry-level development programs ~Actively in making the foreign experience an integrated part of a successful corporate career

Factors of Local nationals

~Transcend both cultural and legal barriers ~Familiar with distribution systems and referral networks ~Headquarters personnel may ignore their advice ~Lack of availability ~Sales positions viewed negatively

When preparing U.S. personnel for foreign assignment, the cost of assignment...

~Typically from 150-400 percent of the annual base salary ~Cost increases if the expatriate returns home before completing the scheduled assignment

chapter 10, chapter 11, chapter 15, chapter 16, International Marketing Chapter 17, intl marketing chapter 18, Int'l Ch. 16

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