IMS Final (7,8,12,13,14)

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A currency exchange arrangement with no separate legal tender is essentially A) adopting the currency of another country. B) allowing the currency to float freely. C) giving up the possibility of holding reserves. D) a stabilized arrangement for maximum monetary control.

A turnkey project includes A) plant design and technology supply. B) direct selling. C) government training. D) construction up to but not including trial runs.

An equity-based entry mode means that a company faces ________ risk and ________ control. A) more; more B) less; less C) more; less D) less; more

Credit cards are an example of a(n) ________ that is marketed globally. A) service B) industrial product C) consumer good D) legal force

Economies of scale, which reduce costs, can be achieved through A) standardization. B) localization. C) customization. D) arbitration.

How was the yen affected after the devastating earthquake and tsunami in Japan in the spring of 2011? A) The yen strengthened. B) The yen reached all-time lows against the dollar and the euro. C) The Japanese monetary authorities allowed the yen to trade against the renminbi. D) The yen stabilized at a 10-year low.

In most market screenings, there is A) no substitute for a personal visit. The market must be visited. B) no need to make a market visit, since the data resources are so abundant. C) ample opportunity for consultants to substitute for a market visit. D) a need for a personal visit when assessing customer need.

Mail surveys can be a difficult foreign market research tool because A) it isn't always clear who should be interviewed. B) commercially generated mail is not welcomed in some areas. C) response validity is lower on mail surveys. D) response bias may be excessive or require payment.

Management contracts usually stipulate that A) a fee be paid to the firm providing the management expertise. B) 30 to 50 percent of sales belong to the licensee. C) 30 to 50 percent of revenues belong to the licensor. D) the contract be annual with renewal options.

Outside environmental forces can affect packaging which is often A) not standardized due to cultural preferences for color. B) changed due to legal restrictions. C) not considered part of the total product, allowing variations. D) a secondary consideration in product aesthetics.

Primary reasons for relative changes in labor costs include increases or decreases in A) compensation. B) total output. C) inflation rates. D) hours worked.

Problems of the gold standard include A) storage cost, weight, doesn't earn interest. B) nations' willingness to agree to it. C) its interference in the jewelry market. D) its purity levels.

Product lines frequently influenced by product purity laws include A) food and pharmaceuticals. B) metals and jewelry. C) industrial goods. D) clothing and "soft" goods.

The Bretton Woods system was in place from A) after World War II to 1971. B) between World War I and World War II. C) from 1952 to 1990. D) World War II to the present.

The name, logo, graphics, colors, and typeface associated with a firm make up its A) corporate visual identity. B) mission statement. C) marketing mix. D) vision statement.

Unlike traditional television advertisements, Internet communications are A) interactive. B) reactive. C) refractive. D) attractive.

What are three important characteristics of segments? A) definable, large, and accessible B) large, unambiguous, and affluent C) affluent, accessible, and actionable D) definable, affluent, and actionable

When screening a market, import data indicate A) that a market has been buying a certain product from abroad. B) the standard of living of a market. C) that market expansion may be a possibility. D) that there are sophisticated segments of the market.

Where are the greatest urban shifts now occurring? A) low- and middle-income countries B) high-income regions C) domestic markets D) developed regions

Which of these products would be the easiest to assess the basic needs potential of a market? A) snow shovel B) coffee C) notebook paper D) televisions

Which product would be considered the most global because it is the same everywhere? A) tonic water B) breakfast cereal C) chocolate D) instant coffee

With Internet domain names, the United States follows A) a first to file approach. B) a first to invent approach, as with brand names. C) international law, which stipulates first to invent. D) a reason to register approach, with names approved by a board.

With increasing inflation, borrowing becomes A) more attractive because repayment can be made with cheaper money. B) less attractive because repayment is made with dearer money. C) impossible because money has lost its value. D) a moot issue because of liquidity issues.

________ is a statistical technique that uses patterns found in market data to estimate future values. A) Trend analysis B) Definable screening C) Economy of scale D) Market segmentation

Generally, we can assume that the higher the GNI/capita value A) the lower the tax rate. B) the smaller the population. C) the larger the population. D) the more advanced the economy.

International status entitles the expatriate to A) work for more than one international company. B) the balance sheet approach to salary. C) work in the host country while living in the home country. D) all applicable allowances and bonuses for the place of residence and employment.

Market size, market growth rate, and e-commerce indexes are all examples of A) big data. B) trend analysis. C) cluster analysis. D) market indicators.

The fixed exchange rates set up at Bretton Woods were based on gold and A) the Japanese yen. B) the British pound. C) the Mexican peso. D) the U.S. dollar.

What is an example of a physical force that can affect standardization of a product? A) safety standards B) income disparity C) language D) climate

What typically occurs as the level of a government's debt increases? A) A higher proportion of resources is invested into productive uses. B) Government investments will increase. C) Consumer confidence will rise. D) More resources are redirected toward payment of interest.

When a government requires a permit to purchase foreign currency, the exchange rates A) are market-driven. B) can be negotiated by the firm. C) are unpredictable. D) are often above the free market rate.

When considering international advertising efforts, a company that adopts a "global" approach is A) focusing on a localized campaign. B) more concerned with other elements of the marketing mix than promotion. C) using more global campaigns than local ones. D) developing a cost-effective common strategy for large regions.

When the law of one price is applied to interest rates, it suggests that A) interest rates do not differ much across national borders. B) inflation is not affected by interest rates. C) inflation and interest rates do not follow the law of one price. D) varying interest rates take into account anticipated differences in inflation rates.

Which equity-based mode of entry might involve two international companies joining forces to conduct business in a third market? A) franchising B) management contract C) licensing D) joint venture

Who took the United States off the gold system? A) President Eisenhower B) President Kennedy C) the Supreme Court D) President Nixon

Withholding tax is described as A) an indirect tax paid by employers before employees receive salaries. B) a direct tax levied on earned income. C) a 30 percent tax levied on foreign residents. D) an indirect tax levied on passive income.

________ is a measure of the number of inhabitants per area unit. A) Market size B) Birthrate C) Population distribution D) Population density

Planning for an expatriate's return should begin once they have been reassigned to return to the home country office. ⊚ true ⊚ false

False

Relatively few expatriate failures are family-related. Most relate to the expatriate's lack of technical skills. ⊚ true ⊚ false

False

Representatives at the Bretton Woods meeting in 1944 agreed that floating exchange rates had proven satisfactory and should be continued. ⊚ true ⊚ false

False

Segment screening involves using countries as the relevant unit of analysis. ⊚ true ⊚ false

False

The Big Mac Index is an example of economies of scale, an international measure of junk food consumption. ⊚ true ⊚ false

False

The Bretton Woods system led to minimal growth in international trade but helped to reduce inflation levels. ⊚ true ⊚ false

False

The basic need potential of any good is always difficult for a company to assess, which is why the initial screening process always takes a long time. ⊚ true ⊚ false

False

The cultural forces screening process is one of the easiest screenings a company has to do. ⊚ true ⊚ false

False

The economic forces associated with the external environment are considered one of the most controllable forces. ⊚ true ⊚ false

False

The geocentric staffing approach is based on the home-country's frame of reference. ⊚ true ⊚ false

False

The packaging is not considered a component of the total product. ⊚ true ⊚ false

False

A business would determine the need for a product in the initial screening process when assessing the international market. ⊚ true ⊚ false

True

A company would use a cluster analysis to divide market areas into groups in which the variables within each group would be similar. ⊚ true ⊚ false

True

A cost-of-living allowance provides an expat with money that would cover price differences in food, transportation, clothing, and medical expenses. ⊚ true ⊚ false

True

A disadvantage of hiring local managers is that they are often unfamiliar with the home country of the IC and with its policies and practices. ⊚true ⊚false

True

BOP accounts are recorded in a double-entry bookkeeping method, with each transaction having a debit and credit side. ⊚ true ⊚ false

True

Consumer products that are "trendy" or based on a fad, generally require greater adaptation to local markets. ⊚ true ⊚ false

True

Countries put limitations on the convertibility of their currencies when they are concerned that their foreign reserves could be depleted. ⊚ true ⊚ false

True

Disintermediation is most often the result of a company's ability to combine the Internet with fast delivery services. ⊚ true ⊚ false

True

Market indicators are based on economic data. ⊚true ⊚false

True

The Jamaica Agreement demonetized gold. ⊚ true ⊚ false

True

A polycentric staffing policy is appropriate when A) there are low levels of pressure for cost reduction and high levels for local responsiveness. B) information technology is of increasing importance. C) there are low levels of pressure for cost reduction and low levels for localization. D) there are more females involved in management.

A product targeting significant local market penetration will probably have A) considerable adaptation for the local market. B) mass manufacturing prices. C) a standardized, global marketing mix. D) gold packaging and a low price.

A spot exchange rate is the A) rate for exchange within two business days. B) best rate in the market for exchange within 10 days. C) rate for preferred exchanges among central bankers. D) rate established by the BIS.

A trade fair is A) an opportunity for companies to promote the sale of their products. B) a way for governments to claim leadership in a sector. C) an industry-wide holiday. D) a government-sponsored trip to explore business opportunities.

Accessibility in a segment screening means that the segment is A) reachable for promotion and distribution. B) communicating in a shared language. C) willing to be contacted by researchers. D) ready to focus on our questions about the product.

According to the Paris Convention, a company that registers its name in one country has how much time to register it elsewhere? A) six months B) two years C) eight weeks D) seven days

An actionable segment is one that A) allows the marketing mix to operate. B) has resources to purchase the product. C) perceives that the product line is useful. D) can be measured and identified.

An employee who is a citizen of the nation in which the parent company is headquartered is known as A) a home-country national. B) a host-country national. C) an ethnocentric employee. D) an expatriate.

An example of a political force of concern in market screening is A) an import quota. B) a significant number of local competitors. C) a change in voter registration numbers. D) a religious belief.

At Mighty-Tuf Industrial Products Group, 30 percent of its employees are neither a citizen of the parent company nation nor the host nation where they have a manufacturing plant. These employees would be classified as A) third-country nationals. B) home-country nationals. C) host-country nationals. D) parent-country nationals.

Bacia Pizza Products Corp. markets into many different areas of the world and in order to do well in local markets it has to print instructions on its products in the native language of each market. Which environmental force is the company responding to? A) sociocultural B) economic C) legal D) physical

Basic needs potential can be assessed the easiest by A) using data obtainable from standard sources. B) visiting the market and doing on-the-ground research. C) doing calculations on present imports. D) examining product substitutions.

Because of the importance of economic information to the control and planning functions at headquarters, the collection of data and preparation of reports are usually the responsibility of A) the home office. B) national agencies. C) economic consultants. D) the international affiliate.

Companies in which there is little pressure to reduce costs or adjust for local responsiveness and where most decisions are made using the home country's frame of reference have adopted which type of staffing policy? A) ethnocentric B) polycentric C) regiocentric D) geocentric

Companies wishing to sell internationally with minimal risk usually begin with A) exporting directly. B) local manufacturing. C) establishing a local sales company. D) licensing.

Compared to marketing consumer products, marketing services are A) generally easier. B) always more difficult. C) the opposite of marketing industrial products. D) about the same.

Computer memory chips are the same everywhere in the world. This means they are ________ to the foreign environment. A) insensitive B) highly sensitive C) nonsense D) sensitive

Cultural patterns sometimes affect the product produced by a company because they can A) require adjustment of the physical and total product. B) create inflationary measures. C) create trade barriers such as high tariffs. D) allow the marketing mix to be standardized.

Currency exchange controls are found most frequently in A) developing countries. B) developed countries. C) countries with pegged exchange rates. D) nondemocratic countries.

Currently, what percentage of the world's total population is found in developing countries? A) more than 75 percent B) around 25 percent C) close to 5 percent D) under 50 percent

Different meanings that colors have in various cultures include A) blue is warm and feminine in the Netherlands. B) pink represents baby boys in Belgium. C) black is hopeful in the northeast United States. D) red is calming in Japan.

Disintermediation is A) the unraveling of traditional distribution structures. B) a way to avoid higher taxes through transfer pricing. C) separating markets, sometimes based on segmentation. D) allowing orders to be placed via the Internet but delivered traditionally.

During a segment screening, it is important that the company is able to identify and measure segments. In other words, the segment must be A) definable. B) accessible. C) actionable. D) capturable.

During market screening, a company assesses the basic needs potential as A) a screening of the market's need for the good or service. B) an assessment of the quality of life and level of economic development. C) a measure of the market size. D) an assessment of the purchase to potential ratio.

Environmental scanning is mostly used A) during the planning process to assess world threats. B) during the second screening, to gather information on market weaknesses. C) to determine triple bottom-line report data. D) to predict weather conditions in the agricultural sector.

Examples of goods that can be sold worldwide without adaptation include A) memory chips. B) clothing. C) cars and trucks. D) packaged cake mixes.

Exchange rate fluctuations are best described as A) not yet fully understood by economists. B) well understood and supported by solid theory. C) random phenomena. D) the result of so many variables that they cannot be explained.

Exchange rate forecasting is A) important because exchange rates influence many aspects of business. B) important because markets depend on solid information and not estimates. C) unimportant because exchange rate forecasting does not have a theoretical model. D) unimportant because exchange rate movements do not impact international transactions.

Fairway Golf Inc. traditionally received a telephone order for its products and shipped them out. Since the packaging was bulk, customers would receive their order in about three weeks. The company has recently promoted overnight delivery service and find that most customers are willing to pay the price for this faster shipping method. What trend does this represent? A) disintermediation B) self-fulfilling prophecy C) economies of scale D) mass customization

Following the oil tanker spill, E-Source Energy Company needed to foster goodwill with its foreign consumers. The company launched a campaign that showed the cleanup efforts and new technologies that would prevent future disasters. What type of global advertising strategy was the company using? A) public relations B) personal selling C) sales promotion D) pop-up ads

Fordham Fresh Foods relies on an exchange rate that is based on trade for delivery within two business days. What type of exchange rate does the company use? A) spot rate B) ask rate C) bid rate D) forward rate

Foreign language labels can be used to enhance the total product, as in A) French labeling on perfume in the United States. B) Mandarin labeling on clothing in Europe. C) Japanese language labeling and instructions on Toyotas. D) Portuguese language labeling on exports from Brazil.

Frank is an economist and often measures the overall economic output of a nation even though he realizes it doesn't account for the flows of FDI and income into and out of the nation. What measure is Frank using? A) gross domestic product B) international income debt C) gross national income D) purchasing power parity

From comparisons of income distribution studies over time, it generally appears that A) income is more evenly distributed in the richer nations. B) there are few variations in income distribution among developed and developing nations. C) comparisons over time demonstrate that income redistribution changes relatively quickly, so older data have limited value. D) the middle quintiles in most nations are growing at the expense of the bottom 20 percent.

Generally, consumer products require ________ adaptation than/as industrial products to meet the demands of the world market. A) greater B) less C) the same amount of D) much less, almost no

Generally, management prefers global product standardization because A) it creates lower costs. B) marketing campaigns must be consistent. C) packaging cannot be changed to please a single market. D) it eliminates economies of scale.

Gig-Em Electronics signed an agreement with Small Bytes, a computer components company that allows Gig-Em to use its trademark on its marketing materials. In return, Gig-Em pays Small Bytes a royalty of 4 percent of sales over the life of the contract. Which type of foreign market entry does this represent? A) licensing B) exporting C) acquisition D) wholly owned subsidiary

Governments can force local product adaptation by enacting laws that A) set product standards, such as noise, safety, and emissions. B) reduce tax liability for certain products. C) prohibit the import of certain goods. D) reward consumers with incentives for specified behaviors.

Green Turf Lawn Corp. developed a product that eliminates weeds with just one application. The company has been overwhelmed by the number of new markets asking for the product and has to find a way to create groups with common characteristics that it can market to. What can the company use to achieve this? A) cluster analysis B) greenfield venture C) economies of scale D) trend analysis

Guest workers are immigrants who A) immigrate for specified periods to perform service, factory, or construction work. B) travel seasonally, usually without visas, in agricultural work. C) obtain visas to work on specific projects, usually in scientific research. D) work in a country illegally, usually in 3-D jobs.

Guest workers are usually associated with jobs in what industries? A) factory and construction B) health care and elder care C) education and childcare, D) data entry and economics

Hennessey Fashion Corp. is an online retail clothing group that plans to enter the European market after its analysis showed that the number of digital clothing buyers has increased steadily over the past ten years and is projected to double in the next year. What is the company using to make its decision? A) market indicator B) economies of scale C) competitive screen D) political stability

Historically, gold has been used as a way for people to store value because of its A) purity and scarcity. B) high transportation and security costs. C) lack of interest-earning ability. D) accessibility and convenience.

How can the current free floating and managed exchange rate system best be described? A) It seems to be meeting its present challenges, including the 2008 liquidity crisis. B) It is in dire need for redesign due to debt defaults. C) It can continue as is for a while but is holding back international finance. D) It will need to be replaced with a fixed rate system soon.

How did the Jamaica Agreement affect IMF members? A) It established the rules for the floating rate currency exchange rate system. B) It led to the free trade agreement in the Caribbean. C) It created guidelines for the gold standard. D) It controlled exchange rates in the South Atlantic region.

How has disparity of income worldwide affected companies' attempts at standardization? A) It is an obstacle to standardization. B) It makes it easier for a company to use standardization. C) It has led to standardization of the physical product but not total product. D) It does not affect standardization.

If a company is able to standardize the marketing mix globally, how does it affect economies of scale? A) The company can take advantage of economies of scale based on longer production runs and lower manufacturing costs. B) The company misses out on economies of scale because it is customizing products for individual markets. C) The company only reaches economies of scale if it returns to the domestic market. D) The company will enjoy economies of scale for the initial introduction of a product but then lose those economies once a product matures.

In Saudi Arabia, labeling of what product line requires source stipulation? A) Any meat product must identify the kind of animal that is the source of the product. B) All foodstuffs (not drinks, which are prohibited) containing alcohol must be clearly labeled. C) Any footwear product made from leather. D) All cotton-fiber clothing.

In a managed float currency arrangement, the currency fluctuates while A) the country's monetary authority intervenes on the currency market without making its goals and targets public. B) the currency uses the currencies of trading partners as ballast. C) a group of nations decide to manage their currencies jointly and publicly, relying on the market. D) gold is used to stabilize the currency values, hence, managed.

In general, with regard to exchange controls, developed countries A) rarely use them. B) use them only to discourage foreign investment. C) use them when needed to implement monetary policy. D) use them secretly.

In most countries outside of the United States, a brand name belongs to the person A) registering it first. B) using it first. C) with the best legal resources. D) who invented the product and holds the patent.

In terms of worker compensation associated with an IC, health insurance is considered a(n) A) perk. B) bonus. C) premium. D) allowance.

In the United States, OSHA is an example of a(n) ________ force that can affect the distribution of products. A) legal B) physical C) economic D) sociocultural

In the market screening process, the personal visit to a market is meant to A) appraise the suitability of the company's current marketing mix. B) be an opportunity to meet local potential partners. C) assess the competition's supply chains. D) close the market screening with a well-deserved reward.

In what country must maximum retail price be a part of the label? A) Venezuela B) Brazil C) the United States D) China

In which level of the market screening process does a company examine the distribution channels of companies who make similar products? A) fifth—competitive forces B) first—basic needs potential C) second—financial and economic forces D) third—political and legal forces

Income distribution studies confirm the belief that, generally, income is more evenly distributed in the A) richer nations. B) developing nations. C) newly industrialized nations. D) Pacific Rim nations.

Incomes measured by the Atlas conversion factor are generally A) more stable over time. B) less stable over time. C) impossible to stabilize. D) not ready to be stabilized.

International firms employ contracted manufacturing in order to A) enter a foreign market without investing in plant facilities. B) increase their export earnings. C) establish tax havens and manage location of profits. D) maintain production capabilities in-house.

Internet domain names belong to A) whomever registers them first. B) the country in which the name is registered. C) the company that uses the name first in each market. D) the search engine used to apply for the name.

Jala works for a diamond importer. The company uses the U.S. dollar for international trade deals. In this instance, the U.S. dollar is acting as a(n) A) vehicle currency. B) spot currency. C) intervention currency. D) reciprocal currency.

Japan is mentioned in the age distribution discussion of the text because A) it is the fastest-graying nation in the industrial world. B) in the future it may have almost as many retirees as children. C) its declining population means that the country's wealth will be spread among a smaller number of people, increasing its overall prosperity. D) its declining population means that the country's social security funds will last longer.

Jason wants to lock in today's exchange rate because he is worried rates might skyrocket in the next few months. He wants to lock in this rate for the shipments he has due in the next 60 days. What type of rate is Jason interested in? A) forward rate B) spot rate C) ask rate D) bid rate

Jeremiah works for an all-natural breakfast cereal company. He has recommended that the company market their high-cost Oats 'n More Cereal to parts of South America because there are millions of people there that have never heard of their products. Which socioeconomic factor is Jeremiah basing his recommendation on? A) population size B) market activity C) age distribution D) rural-to-urban shift

Kellen has been asked to determine how many people live in the 50 square miles surrounding the location of the proposed building project. What does Kellen need to find? A) population density B) birthrate C) population distribution D) age distribution

Kenneth thought the company should promote the new product in foreign markets by having a contest in which the winner would receive a one-year supply of the product. Which type of advertising strategy is Kenneth suggesting? A) sales promotion B) pop-up ads C) personal selling D) public relations

Local content restrictions are an example of a A) political and legal force. B) marketing force. C) sustainability force. D) cultural force.

Low birthrates and low levels of immigration are causing populations in developed countries to A) decline. B) increase. C) stabilize. D) implode.

Manufacturers increasingly are using global and regional advertising due to A) cost, ease of transmission, brand image, and economies of scale. B) the centralization of the marketing function. C) the ease of supervising fewer promotion programs. D) the demands from consumers.

Market factors are similar to market indicators except that A) they tend to correlate with the market demand for a given product. B) indicators are an international measure. C) factors are more general and domestic. D) they are less reliable.

Market screening is used by a company to A) pinpoint the most attractive prospects. B) understand the financial obligation of global exports. C) prevent noncompetitive firms from joining alliances. D) filter out potential competitors.

Marketers are interested in knowing the trend of women entering the workforce because this may A) result in larger family income. B) provide a smaller market for consumer durables. C) be responsible for a baby boom. D) reduce the rate of rural-to-urban shift.

Matmann Floor Coverings didn't feel it would be successful in the foreign market because all of the countries it wanted to enter had tight price controls on the products the company produced. Which aspect of segment screening would reveal this to the company? A) actionable B) large C) definable D) capturable

Matteson Materials Corp. has a presence in more than 50 markets. The company is in the process of designing a software program that will create groups within each of these markets based on customer data. What is the purpose of this software? A) cluster analysis B) trend analysis C) political analysis D) growth analysis

Migrant labor is often involved in "3-D" jobs, which stands for A) dirty, dangerous, and degrading. B) detailed, diverse, and digital. C) demanding, demeaning, and decorated. D) displaced, daily, and dismissed.

Nonequity modes of entry include A) exporting, licensing, and franchising. B) joint ventures and licensing. C) subsidiaries and franchising. D) a publicly held company.

One cultural difference that companies have had to adjust to when entering the global market is the local habits of daily shopping. This habit requires companies to A) market their products in smaller packages. B) focus more on price than value. C) focus more on value than price. D) source more materials locally.

Online research communities are A) online platforms that connect researchers to interested consumers willing to collaborate in the research. B) groups of graduate students who travel to do research part time. C) a sophisticated collection of proprietary data sources. D) a loosely connected collaboration of local researchers who will collaborate with major marketing companies in their home markets.

Product adaptation for a new market A) can be any part of the product, not necessarily the physical product. B) must be the physical product, because that is what the customer is buying. C) is a wasted effort, since the consumer wants what is in the product's home market. D) requires a complete overhaul of the existing product.

Product safety standards can act as A) barriers to trade, in that they protect local manufacturers. B) an impetus to increase standards voluntarily across the industry. C) sociocultural forces. D) a way to build export markets.

Purchasing power parity is a way to compare A) the purchasing power between two currencies. B) the cost savings of economies of scale. C) the impact of financial aid in several economies. D) meals in different economic systems, via the Big Mac Index.

Rather than try to find an existing facility to purchase, Barton Manufacturing Group decided to hire a company to build a manufacturing facility in the overseas market that would erect the plant, supply the process technology, train personnel, and conduct a trial run of operations. Once that was complete, the facility would be turned over to Barton ready to use. What form of entry does this represent? A) turnkey operation B) acquisition C) wholly owned subsidiary D) franchising

Researchers have found three dimensions associated with cross-cultural adjustment, including: interaction with local nationals, adjusting to the general environment, and A) the work context. B) level of education. C) ethnocentric patterns. D) daily habits.

Some luxury consumer goods sometimes need no adaptation for foreign markets. Examples are A) champagne and perfume. B) Porsches and Ferraris. C) winter clothing. D) cheeses and milk.

Sorrell Agri Products needs to determine how it will promote the new product, how much it will cost, and where it will be distributed. In other words, the company is making decisions about A) the marketing mix. B) the corporate visual identity. C) the vision statement. D) standardization versus customization.

Standardization consists of A) using the same marketing mix in all of the firm's markets. B) respecting traditional, standard approaches to the marketing mix. C) respecting international measurement and technical standards set by the UN. D) focusing on the local markets to develop the best marketing mix for them.

Standardization is best described as A) much harder than it sounds. B) much easier in developing markets. C) increasingly more difficult the further from the home office the market is. D) less costly in the short run, but produces suboptimal results in the market.

Strategic alliances are collaborations with A) customers, competitors, and suppliers. B) exporters and importers. C) government groups and corporations. D) internal departments of the company.

Talia's Tea Shoppes has entered into an agreement with Consumer Rail Corp. The tea company will have a shop in each of the 50 stations located along the commuter rail line. What type of entry mode does this represent? A) strategic alliance B) wholly owned subsidiary C) greenfield venture D) licensing

Taxation is a financial force in that A) firms achieving a lower tax burden than their competitors can generate higher revenues. B) governments enacting taxes are formal institutions that enforce tax law via force. C) businesses are compelled by foreign governments to pay taxes. D) it is not controlled by the firm.

Technical difficulties researchers in international markets may encounter include A) outdated maps. B) an overabundance of competitors. C) unusual work schedules and work values. D) language differences.

Terri Henson represents his union at the negotiations table as they talk with the company management team about higher wages and more health insurance coverage. The process Terri engages in with the company is called A) collective bargaining. B) reverse brain drain. C) guest work. D) repatriation.

The Bank for International Settlements is A) a bank for central bankers. B) a last resort for overdue national debt. C) an organized arbitration panel sponsored by the UN. D) an arbitrage clearinghouse for Organisation for Economic Co-operation and Development (OECD) economies.

The Economist's Big Mac Index suggests that A) if currencies are trading equivalently, the prices of a Big Mac will be similar. B) if a currency is undervalued, the price of a Big Mac in that currency will be up to 50 percent more expensive than the United States dollar price of a Big Mac. C) the dollar price of the Big Mac will always be higher, because it is the home market. D) when the dollar is trading at a historical premium, the price of a Big Mac will be cheaper in the United States.

The FT900 is a A) U.S. Department of Commerce monthly report on trade. B) measure of quality levels necessary for the target market. C) financial measure of disposable income. D) stock market index that is keyed to imports.

The International Monetary Fund would characterize a developing economy as one in which A) technology is not as developed. B) political activism is tempered. C) there is a fair distribution of income. D) the economy is more dependent on agrarian production than manufacturing.

The Triffin paradox refers to what occurs when A) a national currency that is also a reserve currency runs a deficit. B) a reserve currency replaces a national currency. C) inflation occurs as the result of a lower currency rating. D) spot exchange rates replace forward exchange rates.

The U.S. current account deficit can be explained partially by A) citizens of other nations wanting to hold dollars, and invest in the United States. B) citizens of other nations wanting to avoid the dollar. C) U.S. citizens exporting more than they are importing. D) a lack of investment opportunities in the United States.

The ________ includes all the uncontrollable forces originating outside the home country that surround and influence the firm. A) foreign environment B) international environment C) host country environment D) global environment

The ability to ship products quickly may mean that A) companies don't need to rely on the traditional distribution structures. B) expenditures will increase in consumer durables. C) the process of disintermediation will be slowed down. D) new markets will develop more quickly.

The balance part of the BOP is explained by A) the accounts being double-entry, so they are always balanced. B) imbalances showing immediately. C) actions governments take to achieve the balance. D) equal payments being made to all parties.

The bid price is the A) highest-priced buy order currently in the market. B) lowest-priced buy order currently in the market. C) highest-priced sell order currently in the market. D) lowest-priced sell order currently in the market.

The evolution of the combination supermarket-discount store in Europe suggests that A) consumers are demanding more variety in products. B) people everywhere want the suburban lifestyle. C) people still enjoy shopping. D) daily shopping around the world will soon be over.

The executives from the Japanese company did not like the advertisement created by the U.S. agency. The executives said that telling the consumers about the benefits of the product was too pushy and would be viewed as arrogant. Which cultural dimension are the executives concerned with? A) directness B) comparison C) gender roles D) sophistication

The final step in the screening process will generally include A) a personal visit to the market. B) the use of primary data. C) a cost-benefit analysis. D) a visit to a trade fair.

The general purpose of a trade mission is to A) search for business opportunities. B) extend the political influence of a country. C) spend time in the field to gather specific market data on consumer use. D) gather additional data sources for market screening.

The increasing levels of the population moving to urban areas in developing countries results in a labor pool of A) low-skilled workers. B) workers demanding higher wages. C) fewer workers. D) technically-skilled workers.

The international Fisher effect says that interest rate differentials A) predict exchange rate movement. B) can be used to determine purchasing power parity. C) are an example of the law of one price. D) illustrate production levels.

The international marketing manager's task is more complex than the domestic marketing manager's in part because A) there are greater variations in uncontrollable environmental forces among nations. B) there are no trade barriers in international markets. C) international markets are geographically dispersed and require coordination. D) marketing personnel are difficult to find in an international context.

The major motivation for immigration is a A) better economic situation. B) more stimulating environment. C) safer, more secure environment. D) chance to leave urban areas for a rural lifestyle.

The marketing of services ________ the marketing of industrial products. A) shares a complexity level with B) is easier than C) is less difficult than D) requires more adaptation than

The monetary arrangements made at Bretton Woods resulted in what type of exchange rates assigned to member nations' currencies? A) fixed B) forward C) spot D) floating

The percentages of household expenditures spent on food and beverages by residents of industrialized nations are ________ the percentages spent by residents of developing nations. A) half B) twice C) equal to D) triple

The principal ingredient that a franchiser exports is A) a brand name. B) local expertise. C) commercial goods. D) accounting methods and legal assistance.

The purpose of the fifth screening, just before the final selection of markets, is to A) look at the markets in terms of what and how the competition is doing. B) determine that potential consumers can buy the product. C) ensure that markets exist for the product. D) analyze government involvement in trade.

The ratio between the number of older people and younger people, on whom elders are dependent to supply the funds to provide social security benefits, is called the A) dependency ratio. B) population distribution. C) population density. D) graying challenge.

The screening for cultural forces is considered A) difficult because culture is a perceived phenomenon. B) easy to complete using cultural databases and desk research. C) unnecessary if there are locals involved in the process. D) optional because globalization is integrating cultures.

The social desirability bias is A) the respondent's desire to please the researcher, leading to answers calculated to please. B) the desire to be accepted as a foreigner in the local setting, so assuming local dress and mannerisms. C) the desire to become part of the social in-group in the new setting, with high status. D) a bias in favor of those locals who pretend to like and accept the researcher.

The three factors that contribute to changes in labor costs include A) compensation, productivity, exchange rates. B) education, inflation, recession. C) exchange rates, agriculture, political policy. D) poverty rates, birthrates, death rates.

The three main approaches to exchange rate forecasting are A) the efficient market approach, the fundamental approach, and the technical analysis. B) the efficient market approach, the random walk hypothesis, and the pragmatic approach. C) the random walk hypothesis, the pragmatic approach, and the fundamental approach. D) guesswork, estimation, and approximation.

The three major taxes governments use to generate revenue are A) VAT, income tax, and withholding tax. B) sales tax, VAT, and income tax. C) property tax, VAT, and sales tax. D) income tax, property tax, and sales tax.

There are ________ basic promotional strategies available to international marketers, which can be made by making different combinations of three product options. A) 9 B) 27 C) an infinite number of D) 12

To be successful in international markets, one has to A) adapt to local culture and commit to a long-term presence. B) sell what is most fashionable in the home market. C) avoid employing locals. D) avoid joint ventures and alliances.

To exert control of brand names, companies are advised to A) register them quickly in every possible country in which they may do business, now and in the future. B) begin using them everywhere to establish ownership rights. C) secure first-rate local legal representation in all of their potential markets. D) go after violations with legal threats immediately.

Trend analysis assumes that A) past conditions affecting the dependent variable will remain constant. B) trends or patterns are rare. C) the historical data are accurate. D) researchers are subjective.

Trent has worked for the same company in Maryland for the past ten years. He was recently offered a position at a different company in Australia and has decided to take the job because it offers better pay, more responsibility, and his cost of living expenses will be lower. Employees like Trent who move from country to country in seek of a job are examples of A) labor mobility. B) population growth. C) the labor force. D) economies of scale.

What does the international monetary system consists of? A) institutions, rules, procedures, and processes B) treaties among nations in trade blocks C) bilateral legal arrangements among nations and then, belief in the system D) relationships among sellers in the international market

What is a characteristic of the FX markets? A) They are largely unregulated. B) They operate from 7:00 am to 7:00 pm even on weekends. C) They are governed by trading partners. D) They tend to be small but highly competitive.

What is a cultural issue that might impede home-country researchers in a target market? A) language differences B) jet lag C) cluster analysis D) government interference

What is a good promotional strategy to use when target markets vary little in regard to product use and consumer attitudes? A) same product-same message B) product adaptation-same message C) different product-same message D) product adaptation-message adaptation

What is considered the central focus of the marketing mix for every company? A) product B) price C) placement D) promotion

What is known to be the most discreet financial institution in the world? A) Bank for International Settlements B) World Bank C) International Monetary Fund D) Federal Deposit Insurance Corporation

What is the analyst mostly concerned with during the second screening? A) Trends in inflation, interest rates, exchange rates B) Banking legislation and regulation C) Market growth D) Consumer profile

What occurs when GNI increases faster than the population? A) There probably is an expanding market. B) The market is probably contracting. C) The country where this occurs may be subject to political unrest. D) The market is becoming less attractive for business.

When assessing imports during a market screening, companies should remember that imports A) do not completely measure a market's potential. B) completely measure a market's potential. C) are not related to a market's potential. D) do not reflect the effects of nontariff barriers and other government actions.

When determining the product strategy, marketers know that the product is A) more than a physical object. B) less than the sum of its parts. C) the same as the brand name. D) designed with obsolescence in mind.

When measuring the value produced in an economy, most international organizations prefer to use A) GNI. B) GDP. C) GNP. D) PPP.

________ are paid by firms in recognition that expatriates and their families undergo some hardships and inconveniences and make sacrifices while living abroad. A) Bonuses B) Allowances C) Perks D) Salaries

A business would rely on the GINI Index to understand A) the growth rate in production of competitor industries. B) the degree to which family income is distributed equally within a country. C) the relationship between income and expenses in a nation. D) how industry is developed based on factors of endowment.

A currency arrangement that is based on free floating exchange rates relies on A) income from tariffs. B) the markets. C) the government. D) reserve funds.

A large international debt may result in A) reduction in the level of component production at the local level. B) decreased levels of foreign exchange available for importing components for local assembly. C) increased numbers of importers. D) growing levels of sales by home country factories that sell to the subsidiary in the indebted nation.

A market analyst may determine a country is not a good market by making a simple calculation based on A) GNI/capita, total population, and the size of the hidden economy. B) GNI, total population, and income distribution. C) GNI/capita, population by state or province, and the number of pharmacies. D) pet sales, number of CD players, and per capita lint production.

A measure of an economy's size based on the market value of goods and services produced within a nation in a year is A) net national income. B) gross domestic product. C) gross national product. D) gross national income.

A measure of the degree to which family income within a country is distributed equally is called A) gross national income. B) the GINI index. C) gross domestic product. D) the Atlas conversion factor.

A middle ground between an ad campaign that is standardized worldwide and an entirely local ad campaign is called a A) hybrid advertising campaign. B) programmed-management approach. C) computerized-management approach. D) shared-management approach.

A purchase of foreign goods in the United States (goods that were imported from another country) will be recorded in the BOP as A) an asset in the current account. B) a debit in the current account. C) no record, because the purchase is made in the United States. D) a liability in the foreign transfer account.

A value-added tax is actually a sales tax that is A) paid by the firm rather than the consumer. B) paid in stages along the process from raw materials to consumer. C) paid by the government. D) voluntarily paid on exports.

About ________ percent of medium and large companies have employees working abroad. A) 25 B) 80 C) 55 D) 10

After graduating from the University of Nebraska, Camilla took a three-month tour through Europe. During her travels, she noticed that she could rent a car from Hertz in Europe just like she could in the United States and she could order a pizza from Pizza Hut and mail a package at the UPS store. The three companies she identified are all examples of A) licensing. B) franchising. C) greenfield ventures. D) acquisitions.

American firms contribute to reverse brain drain from the United States by A) terminating foreign workers. B) outsourcing knowledge work, which pulls talent back to the home country. C) encouraging their best U.S. researchers to accept foreign postings. D) hiring globally.

Arbitrage functions to A) provide French markets access to other EU markets. B) exploit price differences between markets, so as to profit with no risk. C) create wealth through interest rate swaps. D) create increased trading in commodity markets.

As of 2008, what percentage of the world's population was living in cities? A) 85 percent B) 50 percent C) 10 percent D) 1 percent

Casey Conglomerates only hires regional employees to fill key positions in host countries. What type of staffing policy is the company using? A) polycentric B) regiocentric C) ethnocentric D) geocentric

Credit availability, paying habits of customers, and rates of return are considered in the A) first screening. B) second screening. C) third screening. D) fourth screening.

Dissatisfaction with both the purchasing power parity (PPP) and conversions using official exchange rates caused the World Bank to adopt what methodology to derive per capita GNI estimates? A) GINI coefficients B) Atlas conversion factors C) inflation-growth coefficient D) Zurich formula

Donaldson Equipment Corp. began marketing in parts of Europe last year. It has found that the best way to reach its customer base of housing contractors is by placing advertisements on the sides of concrete trucks. Which element of the marketing mix does this represent? A) product B) promotion C) price D) portion

Economic analyses become more complex when a firm enters overseas markets because unlike the situation for a company operating domestically, A) the uncontrollable economic variables must be forecast. B) management must operate in two new environments, foreign and international. C) economists know less about foreign exchange rates. D) analysts must now forecast the values for both socioeconomic and economic variables.

Elizabeth is a highly-sought-after scientific researcher. She relocated to Europe ten years ago but is now returning to the United States. While the United States welcomes her skill level, there is also some concern regarding the contributions she made in Europe. This situation demonstrates the idea of A) groupthink. B) reverse brain drain. C) self-fulfilling prophecy. D) brain drain.

Employee compensation payments added to base salaries because of higher expenses encountered when living abroad are considered A) bonuses. B) allowances. C) perks. D) tax exempt.

Financial forces such as inflation and taxation are considered uncontrollable because A) only developing nations have to deal with them. B) they are external forces beyond the influence of the firm. C) they are easily avoided. D) they are predictable.

Franchising is a form of A) contract management. B) licensing. C) contract manufacturing. D) joint venture.

Generally, as marketers go down the economic and social strata in each country, they will tend to find A) greater similarities among countries in social and cultural values. B) greater dissimilarities among countries in social and cultural values. C) no significant differences in social and cultural values. D) greater government support and thus disposable income for each succeeding lower stratum.

Generally, because of higher birthrates, developing countries often have A) lower infant mortality rates. B) more youthful populations than do developed nations. C) an increasing demand in products for millennials D) more highly-skilled medical facilities.

Harrison Electric Corp. previously outsourced all the component parts it needed for its lighting products but now produces those parts in-house to use in the manufacture of these items. What concept did Harrison Electric Corp. adopt? A) economies of scale B) vertical integration C) purchasing power parity D) parallel exchange

Hilton Hotels provides management for foreign hotels that use the Hilton name. What is this an example of? A) a joint venture B) a management contract C) a strategic alliance D) contract manufacturing

How does knowledge of foreign languages help an expat? A) It requires too much work to be worth the effort. B) It can be of great assistance in making sales abroad. C) It is useless if you know English. D) It is of academic but not business value.

In order to strengthen the U.S. dollar, the Federal Reserve might sell yen and buy dollars, in which case the yen functions as A) a stronger currency than the dollar. B) an intervention currency. C) an arbitrage currency. D) none of these alternatives.

In which type of currency arrangement would a currency be readjusted periodically at a fixed, preannounced rate? A) stabilized B) crawling peg C) managed floating D) conventional fixed-peg

International economic analyses should A) provide data to governments regarding a company's traditional markets. B) provide economic data on actual and prospective markets. C) be focused on economic conditions of nations in which a company's major competitors are located. D) rely on published government data for input.

It has been found that as much as 90 percent of expatriate failure is the result of A) language barriers. B) family-related issues. C) lack of knowledge of the host country. D) local customs.

Jamie lives in a country with oppressive tax rates and overwhelming government red tape that a company must go through to export its products. How might these factors affect the underground economy in this country? A) The underground economy would be neutralized. B) The underground economy would be bigger. C) The underground economy would be smaller. D) The underground economy would not exist.

Jet Spray Water Equipment Corp. decided to pull out of doing business in Europe when it learned that some governments required more than 50 percent of the product be made in that country. Which foreign environmental force is causing the company to make this decision? A) sociocultural B) legal C) physical D) economic

Market screening helps a business to eliminate A) undesirable products. B) less attractive markets. C) environmental forces. D) competition.

Most of the transactions in the foreign currency market are OTC which means that A) they can take place in the domestic or foreign market. B) trades are done electronically. C) that its categories are quite general and easy to apply. D) trades are conducted on a trading floor.

Nations listed in the text as losing the largest number of their people to emigration include A) Mexico, Canada, and the United States. B) Russia, China, and India. C) Germany, Russia, and Ukraine. D) India, Russia, and the United States.

One challenge presented to employers by the rural to urban migration is A) educating the rural immigrants in etiquette associated with city life. B) supporting the social and psychological adjustment necessary for rural immigrants in an urban work setting. C) maintaining the rural immigrant's interest in work. D) fully utilizing the new pool of highly skilled immigrant workers.

Parul reminded her coworkers that regardless of the number of consumers living in the target area, they should focus on where people live specifically within the target area. What aspect of the population is Parul concerned with? A) population density B) population distribution C) population shift D) population propensity

Reductions in birthrates are occurring worldwide because A) governments are scaling back family planning programs. B) of an increased level of urbanization. C) women are experiencing a decline in status. D) governments are encouraging higher levels of marriage and at earlier ages.

Regency Hotel Group uses an ethnocentric staffing policy. Based on this, how would the company most likely handle an issue involving labor in a host country? A) The home country office would not be aware of the matter since this staffing policy creates two separate organizations. B) They would send a labor negotiator from the home country to mitigate the issue. C) They would expect the host country management team to handle the issue. D) They would seek out a third-party group more familiar with the host country policies to handle the matter.

SDR refers to A) a special deposit for corporate reimbursement. B) special drawing rights, an international reserve asset. C) a special deficit refund, made to compensate for currency devaluation. D) a paper credit issued by the Bank for International Settlements.

Signature Appliance Group decided to remove the grill unit from the ovens it sells in South America after customers complained they preferred to grill outside and would never use this feature. Which environmental force caused the company to change its product? A) legal B) sociocultural C) economic D) physical

Studies show that approximately ________ of expatriates leave their firms during the course of their overseas assignment. A) one-tenth B) one-quarter C) about one-third D) one-half

The ________ environment includes the interactions between domestic and foreign environmental forces, or between sets of foreign environmental forces when an affiliate in one country does business with customers in another. A) foreign B) international C) host country D) global

The amount of income left after paying taxes and making essential purchases is known as A) personal savings. B) discretionary income. C) gross income. D) disposable income.

The anxiety that people often experience when they move from a familiar culture to one that is entirely different is known as A) self-fulfilling prophecy. B) culture shock. C) brain drain. D) expatriate syndrome.

The balance of payments account is a record of A) the total tangible trade flows of a country over a five-year period. B) a country's transactions with the rest of the world. C) a country's total debt service payments during a one-year period. D) the outstanding balance of a country's debt payments for the fiscal year.

The continuum from insensitive to sensitive to foreign environment begins with ________ and ends with ________. A) basic consumer staples; high style and faddish consumer products B) industrial products; high style and faddish consumer products C) high style and faddish consumer products; industrial products D) basic consumer staples; industrial products

The management team met to discuss the best way to promote, price, and distribute the new product. What is the management team working on? A) personal selling B) the marketing mix C) financial analysis D) sociocultural forces

The percentages of household expenditures spent on consumer durables by residents of industrialized nations are ________ the percentages spent by residents of developing nations. A) half B) twice C) equal to D) triple

The process in which a union represents the interests of everyone in the union when bargaining with management is called A) economies of scale. B) collective bargaining. C) comparative advantage. D) a greenfield investment.

The proportion of expatriates who are women has A) declined. B) increased. C) remained steady. D) dropped to zero.

The rate of growth of GNI/capita may be more important to marketers than just GNI/capita because A) a stable rate indicates low risk for entry. B) a high rate indicates a fast-growing market. C) a high rate indicates economic instability. D) low rates indicate political stability.

The staffing policy at Super Food International is based on the specific local context in which the company's subsidiaries operate. What type of staffing policy does this reflect? A) ethnocentric B) polycentric C) regiocentric D) geocentric

The total product consists of A) the preproduction stage of manufacturing. B) the physical product, brand name, accessories, and after-sales service. C) available competitor products. D) the physical product minus marketing.

The use of third-country nationals as IC executives in developing countries is a growing practice because A) they tend to prefer working in developing countries. B) there is frequently a shortage of skilled host-country nationals. C) they are not limited by cultural values. D) they do not need work permits for the host country.

Unit costs of labor will decrease even though the firm is required to pay more to workers, provided A) management compensation decreases significantly. B) productivity increases fast enough. C) advertising costs are proportional. D) interest rates rise slowly.

What is predicted to happen with the population of many developed countries? A) Population levels will soar as the result of economic upturn. B) Population levels will fall by mid-century due to low birthrates. C) Population levels will become static as younger generations remain childless. D) Population levels will continue to move upward and downward as a reflection of political involvement.

What occurs with a licensing agreement? A) An international firm receives permission from a foreign government to set up a subsidiary in that country. B) One firm grants to another the right to use stipulated parts of its expertise. C) A foreign company receives products made for it by another company. D) One firm grants to another the right to use all of its expertise.

What was originally appealing about the gold standard was its A) flexibility. B) simplicity. C) transportability. D) carrying costs.

When a country experiences a sustained increase in prices, it is feeling the effects of A) a depression. B) inflation. C) recession. D) capital gains.

When host-country nationals are employed, companies know that A) training costs are a minimum. B) they are familiar with local customs, culture, and language. C) they are already familiar with the home country. D) any conflict of interest is removed.

Balance of payments data is used by countries to A) reveal a country's assets. B) suggest areas of concern in monetary and fiscal policy. C) predict changes in the economic environment. D) show how the country's currency arrangement (fixed, pegged, floating) is valued.

Because ________ consumer expenditures eliminate differences in relative prices, marketers use these data to analyze how the composition of consumption changes with the level of development. A) normalized B) inflation-free C) PPP-based D) historical-cost

Brain drain affects developing countries because A) lower-skilled workers demand higher wages. B) multiple companies are competing for the same business. C) they lose talent to migration, and this impacts their development. D) their pool of low-cost, unskilled workers is reduced, damaging potential for incoming foreign direct investment.

Bretton Woods led to an exchange rate agreement known as the Bretton Woods System or A) the floating rate system. B) the India Accord system C) the gold exchange standard. D) the French rate system.

Callie lives in Europe and received a survey in the mail from a U.S. company wanting to know how her family used disposable paper towels. Callie never uses paper towels but she doesn't want to reveal that in the survey so she answers the questions to please the company. Callie's response is an example of A) self-fulfilling prophecy. B) ethnocentrism. C) social desirability bias. D) cluster analysis.

Companies should keep in mind that planning for an expat's return should start A) when the expat announces they want to return home. B) within six months of the return date. C) well before the assignment even begins. D) on the first day of the expat assignment.

Companies that use a polycentric staffing policy would A) feel pressure to reduce costs. B) rely on home country policies for issues related to human resources. C) face pressures for local responsiveness. D) be more concerned with home country than host country cultural issues.

Con-Tractors Inc. decided not to conduct business in some parts of South America after it learned that governments hold all imports for up to 18 months before releasing to the importing country. What aspect of segment screening fostered this decision? A) capturable B) actionable C) accessible D) definable

Contract termination payments are A) made to induce the employee to quit. B) made to prevent the employee from completing the contract term. C) frequently made for work in hardship areas. D) made by the employee in order to return early from an expatriate assignment.

Countries put limitations on the convertibility of their currency when they are concerned that A) there is too much domestic spending. B) foreigners will hold control of their monetary policy. C) their foreign reserves could be depleted. D) there is not enough domestic spending.

Country screening differs from segment screening in that A) it looks at the country level, while segment screening is international. B) there is no real difference, just terminology differences. C) it looks at the country level, while segment screening is within the country. D) segment screening is larger than country screening

During the initial screening process, Carlock Inc. decided not to pursue activity in South America because consumers weren't interested in purchasing high-end door locks for their automobiles. What was Carlock assessing in the initial process? A) economic/financial forces B) competitive forces C) basic needs potential D) cultural potential

Entry barriers, profit remittance barriers, and government controls are all part of the A) first screening. B) second screening. C) third screening. D) fourth screening.

For cost-of-living allowances, the U.S. Department of State index is A) considered suitable for all locations. B) adjusted frequently. C) based on costs in Washington, D.C. D) equated to currency value changes.

For expatriate employees, the salary portion of the compensation package is A) usually higher than employees at the same level in the home company. B) usually lower than employees at the same level in the home company. C) usually within the range of the employees at the same level in the home company. D) usually on a separate, expatriate schedule.

GNI/capita, a crude estimate of purchasing power, must be further refined by A) an examination of the amount of income tax paid. B) a census to determine the total population. C) incorporating data on how the national income is actually distributed. D) determining the amount of discretionary income.

Generally, ________ products require greater modification to meet local market requirements worldwide. A) insensitive B) maintenance C) consumer D) industrial

Gibson Baking Company sells its brownie mixes all over the world. The company includes directions on the package for baking the product at high altitude levels since this can affect baking times. Which type of environmental force caused this decision? A) economic B) legal C) physical D) sociocultural

If a nation's GNI is small, but a small percentage of its population receives a large percentage of that income, it may be a good market for A) high-priced industrial products. B) high-volume, high-priced consumer products. C) low-volume, high-priced luxury products. D) low-priced, high-volume discretionary goods.

In 1717, Sir Isaac Newton took Britain from the silver standard to A) floating exchange rates. B) fixed exchange rates, using silver. C) the gold standard, with fixed rates. D) pegged rates.

In 2010, what percent of the population in developed countries was 65 or older? A) 42 percent B) 56 percent C) 12 percent D) 25 percent

In 2017, what percentage of the U.S. population was foreign-born? A) 29 percent B) 5 percent C) 14 percent D) 40 percent

In terms of product modification when selling worldwide, Industrial products typically require ________ than do consumer products. A) greater adaptation B) greater segmentation C) less adaptation D) greater localization and distribution

Jake asked his team to find out how many employees were available in the proposed foreign market that had the data analysis skills the company needed to complete the task. This information will help him decide if the foreign market is viable for the company to enter into. What type of information is Jake looking for? A) population size B) population growth C) labor market D) labor force

Jenae is negotiating with a foreign electrical supply company that includes an organization of workers who formed a group that advances and protects the interests of the group. This group is asking for higher wages than Jenae's company can afford. This group is an example of A) a promotional mix. B) a brain drain. C) a labor union. D) a manufacturing supply company.

One response to a large international debt is for a government to A) remove wage controls. B) increase government spending. C) impose price controls. D) reduce debt payments.

One study found that Europe and Australia's advertising portrayed a less traditional lifestyle than the United States. Which cultural dimension does this demonstrate? A) sophistication B) comparison C) gender role D) directness versus indirectness

Parul is part of a team assessing international markets for the company. It is her job to learn the marketing strategies and pricing policies of companies already in the market. Which aspect of the screening process is Parul responsible for? A) cultural forces B) financial and economic forces C) competitive forces D) political and legal forces

Reductions in birthrates are occurring worldwide because A) governments are scaling back family planning programs. B) of a reduced level of urbanization. C) women are gaining an enhanced status. D) governments are supporting alternatives to marriage.

Relative changes in wage rates among nations may cause the multinational firm to A) choose new exchange rates. B) reduce the number of workers. C) change its sources of supply. D) install labor-saving machinery.

Sir Isaac Newton put England on the gold standard when he A) declared, as master of the English mint, that he would sell gold for 1 pound, 1 shilling, 1 pence, under the law of one price. B) set a market price for gold, the British pound and the U.S. dollar. C) established a fixed equivalency between gold and the British currency. D) brought the matter to Queen Anne, who declared Britain would follow the gold standard.

The Fisher effect states that the real interest rate A) is the nominal rate plus the recorded inflation rate. B) is the only measure to use in calculating PPP. C) is the nominal rate minus the expected inflation rate. D) is the difference between the nominal rate and the inflation rate.

The Japanese yen is an example of a convertible currency because it can be A) converted to gold at a higher rate. B) assigned an arbitrary value higher than its value in the free market. C) exchanged for other currencies without restriction. D) exchanged at the spot forward rate.

The board of directors told the corporate offices to hire the best person for the management position in the host country office. That person did not have to be from either the home or host country but had to have the skills to do the job. Which type of staffing policy does this demonstrate? A) regiocentric B) ethnocentric C) geocentric D) polycentric

The failure rate for expatriate assignments, including failing to achieve performance targets for an international assignment or prematurely returning from the assignment, range from ________ percent. A) 6 to 10 B) 50 to 75 C) 25 to 45 D) 40 to 65

The law of one price says that A) only one price can be charged for an item in a contract deal. B) in an efficient market, one price only is the permissible price. C) in an efficient market, like goods will have like prices. D) the cost to produce a product must reflect the cost at which it is sold.

The present floating exchange rate system is not a totally free float because A) free floating exists in theory only. B) some governments refuse to manage their free float. C) some central banks from time to time intervene in the market to buy or sell large amounts of currency. D) fixed exchange rates limit the amount of transactions that affect the currency.

Tiger Appliance Group needs to fill a management position in its foreign office in Germany. They haven't been able to find anyone in Germany with the skills for the job, so they are extending their search to other parts of Europe hoping to find someone with similar cultural values as the German office. Which category of employee are they looking for? A) home-country national B) host-country national C) third-country national D) parent-country national

To avoid translation errors, the experienced advertising manager will use A) a common language such as English, Mandarin, or French. B) local translators. C) back-translation along with keeping the copy short. D) both local and home-country translators in teams.

Training and development of potential candidates for expatriate assignments is A) universal for all situations. B) unnecessary with home-country nationals. C) based on whether the candidate is a home-, host-, or third-country national. D) typically done after the assignment starts.

What is a characteristic of a geocentric staffing policy? A) It enables the practices used at headquarters to be transferred worldwide. B) It only hires regional employees to fill positions in the host country. C) It selects the best person for each job, without considering national origin. D) It involves human resources policies that are created at the local level for the specific context in which the local operations operate.

What is an accurate description of the spouses of expatriates? A) They are able to legally work in the host nation, although their pay and benefits may face limits. B) Nearly one-quarter of spouses were employed during the course of the expat assignment. C) Many experience stages of grief, similar to the loss of a loved one, due to career effects of the assignment. D) They typically aren't pursuing a professional career.

What is the motivation behind brain drain? A) the need to move from a rural to urban setting B) government trade barriers that prevent the free flow of trade C) the desire to seek improved economic circumstances D) the search for economies of scale to lower production costs

When an international manager is considering where to do business, one of the first considerations is A) whether the country has a democratically elected government. B) the dominant religion in the country. C) the size of the economy. D) whether the country has a manufacturing sector.

Which form of market entry is equity-based? A) turnkey project B) management contract C) wholly owned subsidiary D) licensing

Which products are especially influenced by laws that regulate product ingredients and labeling? A) shoes B) office equipment C) pharmaceuticals D) clothing

Why does McDonald's use the color hunter green as the background for its golden arches logo in Europe when it uses red in the United States? A) The color red symbolizes war. B) Green is used by several competitors in the same market. C) The green is viewed as eco-friendly. D) Red is equated with the lower class.

Worldwide, labor tends to be A) immobile. B) unreliable. C) mobile. D) well-trained.

Zip Mart Inc. has been able to forecast potential growth of their products in the Latin America market based on the pattern of historical growth rates their products have shown in the past. What is Zip Mart using to make these forecasts? A) market factors B) cluster analysis C) trend analysis D) basic needs potential

________ are the most insensitive to the foreign environment. A) High style products B) Faddish and consumer products C) Industrial products D) Basic consumer staples

________ is a measure of how the inhabitants are distributed over a nation's area. A) Urbanization B) Population size C) Population distribution D) Population density

________ refers to the total value of all income generated by the residents of a nation, including both the domestic production of goods and services and income from abroad. A) Gross domestic product B) Gross domestic income C) Gross national income D) Net national product

Quick Stop Fashion House produces "fast fashion" clothes that represent the current fad. In the foreign environment, this type of product is considered A) sensitive. B) highly sensitive. C) insensitive. D) nonsense.

Urban Necessities is planning its promotional strategy as it enters the foreign marketplace. The company's line of clothing serves the same function around the world so it can be promoted in the same way. However, the company will need to make slight changes to some of the clothing to meet local customer needs. Which promotion strategy should the company use? A) Different product-same message B) Product adaptation-same message C) Same product-same message D) Same product-different message

Walter is an executive for a large company. He has two children who are considered "third-culture kids." What does this mean? A) Walter has returned from an expat assignment and brought his children gifts from the local culture he was assigned to. B) Walter and his family are expats who have lived in several different countries. C) Walter and his family are expats and the children are unwilling to learn the host-country language. D) Walter works for a company that employs people from many different cultures and societies.

What are two levels of market screening? A) Environmental and contextual screening B) Country and segment screening C) Competitive and price screening D) Regional and environmental screening

What has been the most used central reserve asset in the world since World War II? A) English pound B) U.S. dollar C) gold D) Japanese yen

What has been the traditional destination for migrating skilled workers? A) Western Europe B) the United States C) China D) the United Kingdom

Cooper Electric locked in today's exchange rate for all trades occurring 60-90 days from now. What rate will the company use in these transactions? A) bid price B) ask price C) forward rate D) spot rate

McDonald's, Pizza Hut, and Subway are examples of A) joint ventures. B) management contracts. C) franchises. D) strategic alliances.

More than one-third of the world's population age 15-24 live in which two developing countries? A) Indonesia and South Africa B) U.S. and Germany C) India and China D) Brazil and Argentina

Of all the promotional mix elements, ________ is the one with the greatest similarities worldwide. A) public relations B) personal selling C) advertising D) sales promotion

Peterson Home Centers is in the process of a market analysis. The latest reports about the project show that it is difficult for many consumers in their target market to obtain home improvement loans. Based on this, the company doesn't think there will be much demand for their business and decides to search elsewhere. What step in the screening process helped Peterson Home Centers make this decision? A) third—political and legal forces B) fourth—cultural forces C) second—financial and economic forces D) first—basic needs potential

Sasha is an expat who is currently on home leave. This means that A) he is recuperating from an illness. B) his family was not allowed to travel with him on the expat assignment, so he is visiting them. C) his company allows periodic trips back to the home country. D) his expat position was terminated but he will be assigned a new job at the home office.

The item that a customer buys is called the A) promotional product. B) cost product. C) total product. D) physical product.

Unit labor costs will not rise in unison with wage rates if A) the governments institute wage and price controls. B) productivity decreases faster than wages increase. C) the gains in productivity are greater than wage increases. D) interest rates rise less than wage rates.

Unrecorded transactions in an economy, such as goods and services that are bartered, are said to be part of which economy? A) developing B) forward C) informal D) developed

A company would become aware of high tariff barriers that might prevent them from exporting their products during which step in the screening process? A) second—financial and economic forces B) fourth—cultural forces C) first—basic needs potential D) third—political and legal forces

A drawback of polycentric staffing policies is that A) it is less expensive to use employees from the home country. B) there are additional expenses associated with relocating employees. C) these employees may not have experience with the language and culture of the host country. D) there can be a conflict of loyalty between the host country and the employer.

A policy of hiring and promoting based on ability and experience without considering race or citizenship is A) an ethnocentric policy. B) a polycentric policy. C) a regiocentric policy. D) a geocentric policy.

A vehicle currency is a currency A) used to trade in the transportation sector, usually dollar, euro, or yen. B) whose value lies in its function in transfer pricing. C) specifically used in arbitrage deals as a trading medium only. D) used for international trade or investment.

According to the World Bank, populations in high-income economies use how much commercial energy per capita as do people in developing economies? A) half as much B) twice as much C) five times as much D) nearly seven times as much

According to the text, commercial energy use per capita is related to the size of what set of modern sectors? A) commercial buildings, agriculture, transportation B) housing, agriculture, industry C) manufacturing, agriculture, housing D) urban areas, industry, motorized transport

After the taxes are taken out of her pay, Sharon takes home $1,254 in her paycheck. This dollar amount represents her A) personal savings. B) discretionary income. C) gross income. D) disposable income.

Along with using tax benefits to decrease their tax rates, companies might also employ two basic strategies: tax inversion and A) the gold standard. B) a greenfield investment. C) purchasing power parity. D) profit shifting.

An examination of the world's population and predictions for future populations suggests the following: A) The population of developing countries is nearly half of the world's total population. B) The 10 nations predicted to have the largest populations by the year 2050 are all developing countries. C) Developed nations will have a decreased demand for tourism and housing. D) Developed nations will have an increased demand for financial services.

As a general rule, the underground economy in a country will be bigger when A) tax rates are lower. B) drug use is higher. C) income levels are low. D) government red tape is oppressive.

As a way to decrease their tax rate, Shiller Supply Corp. moved its profits out of the United States to a location with lower tax rates. What strategy is the company using? A) tax conversion B) profit sharing C) tax inversion D) profit shifting

Collin's company is interested in the divorce rate in parts of Europe. His company produces single-serving meal kits that might be of interest to people who were married but are now single. Which type of factor is Collin's company analyzing? A) economic B) psychosocial C) political D) socioeconomic

Countries maintain reserve accounts in order to A) control imports. B) provide low-interest loans to struggling businesses. C) earn higher interest rates. D) intervene in currency markets when needed.

Developing nations are greatly concerned when highly-skilled professionals such as scientists, IT specialists, teachers, and health care professionals leave the country to seek better living arrangements. What term is given to this type of emigration? A) self-fulfilling prophecy B) ethnocentrism C) groupthink D) brain drain

During the past century, there has been a noticeable shift in the workforce from A) coastal to inland settings. B) urban to rural settings. C) inland to coastal settings. D) rural to urban settings.

Economies with per capita incomes in the low to middle range that are in a transition toward developed status are known as A) undeveloped economies. B) socialist economies. C) high-income economies. D) emerging market economies.

Examples of socioeconomic data are A) GNI, GNI/capita, income distribution. B) total population, production density, and population distribution. C) GNI/capita, total population, and population distribution. D) total population, age distribution, and population density and distribution.

Ferguson Furniture group has adopted an ethnocentric staffing policy. Based on this, where are most of the decisions made for the home and host country facilities? A) at both the home and host country facilities depending on which is being affected by the decision B) at a third-country national in order to promote collective bargaining C) at the host country facility in order to accommodate for local customs. D) at the company's headquarters, using the home country's frame of reference

Generalizations about TCNs are difficult because A) the IC usually does not know enough about their backgrounds. B) the geocentric staffing policy prohibits these generalizations. C) the use of TCNs is a new phenomenon and we don't know much about them yet. D) people achieve the TCN status in different ways.

Michelle has been tasked with the job of analyzing the economy of three South American countries to determine if they have business potential. In her final report, she makes note of national income that may not be reported because it involves illegal activity. This indicates that Michelle is accounting for what? A) shadow production B) litigation and arbitration C) the gray market D) the underground economy

Most significantly for the international manager, the balance of payments reveals A) demand for a firm's products. B) a firm's financial position. C) a country's import and export patterns. D) demand for a country's currency.

One reason manufacturers are using global advertising is because identical products are easier to make which allows the company to take advantage of A) competitive advantage. B) customization of regional products. C) the industrial goods market. D) economies of scale.

Relatively low levels of authority and decision making in headquarters is associated with A) ethnocentric staffing. B) regiocentric staffing. C) geocentric staffing. D) polycentric staffing.

Repatriation can be associated with A) reverse brain drain. B) the self-fulfilling prophecy. C) ethnocentrism. D) reverse culture shock.

Rinaldo is an expat working in Singapore. As part of his compensation package, a chauffeur drives him to and from work each day. The chauffer is an example of a(n) A) bonus. B) allowance. C) wage. D) perk.

The Ritter Group has assigned two people to travel to their foreign offices in South America to determine why the same data issues keep occurring on order placements. This is a six-month assignment. These two employees are examples of A) inpatriates. B) monopatriates. C) expatriates. D) flexpatriates.

The World Bank categorizes countries based on GNI per capita, using the following categories: A) undeveloped economies, developing economies, developed economies. B) developed economies, industrializing economies, developing economies. C) developing economies, newly industrializing economies, developed economies. D) high-income economies, middle-income economies, low-income economies.

The arithmetic average of the current exchange rate and the exchange rates in the two preceding years, adjusted by the ratio of domestic inflation to the combined inflation rates of the euro zone, Japan, the United Kingdom, and the United States, is known as A) the GINI coefficient. B) the Kolgorov coefficient. C) the Zurich formula. D) the Atlas conversion factor.

The balance of payments account is divided into the following three major subaccounts: A) trade, capital, and debt. B) cash flow, assets, and official reserves. C) services, cash flow, and debt. D) current, capital, and official reserves.

The current account on the BOP has three subaccounts: A) export, import, and capital. B) tangible exports, tariff revenues, and capital. C) fixed assets, current liabilities, and long-term debt. D) merchandise, services, and unilateral transfers.

The international Fisher effect says that the interest rate differentials in any two currencies reflect A) the ratio of their inflation rates minus COL. B) arbitrary differences in the two economies. C) PPP differences in the two economies. D) the expected change in their exchange rates.

The need to change the color of packaging when selling a product in a new market is generally a result of the influence of A) distributive forces. B) competitive forces. C) political conflicts. D) cultural differences.

The part of a nation's income that, because of unreporting or underreporting, is not measured by official statistics is known as the A) hidden economy. B) gray market. C) barter system. D) underground economy.

The percentages of household expenditures spent on transportation, communication, and health care by residents of industrialized nations are ________ the percentages spent by residents of developing nations. A) half B) two-thirds C) equal to D) twice

The price of gold since about 1200 AD has been A) trending downward. B) flat, keeping its value. C) wildly fluctuating. D) trending upward.

The rural-to-urban shift is a reflection of A) varying government standards on birthrates and population. B) a change from industrialization to agricultural efforts. C) property tax differences between geographic areas. D) the movement of the population from rural areas to cities.

What benefit does population size provide when determining market potential? A) Population size alone is an excellent indicator of economic strength. B) Population size alone is a good predictor of demand for consumer durables. C) Population size alone is an excellent indicator of market potential. D) Population size alone is a poor indicator of market potential.

A business is practicing vertical integration when it receives inputs for its production processes from outside sources. ⊚ true ⊚ false

False

A common basis for assessing economic development is gross domestic income. ⊚ true ⊚ false

False

A company would use collective bargaining when purchasing supplies from a vendor. ⊚ true ⊚ false

False

A middle-ground advertising strategy in which the home office and the foreign subsidiaries agree on marketing objectives is called the computerized-management approach. ⊚ true ⊚ false

False

After conducting an initial screening, a company will now have a longer list of prospects to choose from. ⊚ true ⊚ false

False

An expatriate is a person living outside his or her country of birth. ⊚ true ⊚ false

False

Analysts know that a country with a large population is always a better market than a country with fewer people. ⊚ true ⊚ false

False

Buyers of consumer goods usually act on the same motives the world over. ⊚ true ⊚ false

False

Companies with a transnational strategic orientation follow a global staffing policy, selecting the best person for each job without considering national origin and generally having consistent HRM strategy across all subsidiaries. ⊚ true ⊚ false

False

Country and liability are units of analysis for initial market screening. ⊚ true ⊚ false

False

Developed is the term given to nations that have achieved high income per capita. ⊚ true ⊚ false

False

Discretionary income is the amount left after paying taxes. ⊚ true ⊚ false

False

Exchange rate forecasting is an advanced science; with the correct data, we can predict with accuracy exchange rate movements. ⊚ true ⊚ false

False

Generally, industrial products require greater adaptation than consumer products to meet the demands of the world market. ⊚ true ⊚ false

False

Guest workers would be welcomed in a country like the United States where there are too few people for too many jobs. ⊚true ⊚false

False

In a currency board arrangement, a country's government commits to adopt the currency of another. ⊚ true ⊚ false

False

In a joint venture, an arrangement is made in which one firm contracts with another to produce products to its specification in order to enter a foreign market. ⊚ true ⊚ false

False

In recent decades, there has been a steady growth in the number of union members in most developed countries. ⊚ true ⊚ false

False

Knowing the number of imports to a specific country gives a firm a complete measure of market potential. ⊚ true ⊚ false

False

Many economic migrants are involved in what are sometimes referred to as "3-D" jobs—digital, developmental, and demanding—which are well paid but that have inadequate numbers of qualified host-country workers to satisfy demand. ⊚ true ⊚ false

False

Market screening is a modified version of environmental scanning in which the firm assesses the supply chain to eliminate the less desirable markets. ⊚ true ⊚ false

False

Of all the promotional mix elements, personal selling has the greatest similarities worldwide. ⊚ true ⊚ false

False

The International Monetary Fund uses the U.S. dollar as its unit of account. ⊚ true ⊚ false

False

The United States in recent years has had a significant deficit in its current account. This means that the U.S. citizens are exporting more than they are importing. ⊚ true ⊚ false

False

The balance of payments (BOPs) is a record of a country's transactions with its major trading partners. ⊚ true ⊚ false

False

The great disparity in income throughout the world makes it easier to obtain worldwide product standardization. ⊚ true ⊚ false

False

The international environment includes all the uncontrollable forces originating outside the home country that surround and influence the firm. ⊚true ⊚false

False

The law of one price states that in an efficient market, like products will never have like prices. ⊚true ⊚false

False

The massive amounts of data that businesses collect as they analyze consumer needs and trends is referred to as mass data. ⊚ true ⊚ false

False

The population of developing countries accounts for very little of the world's total population. ⊚true ⊚false

False

The promotional product includes the physical product, brand name, accessories, after-sales service, warranty and instructions for use, company image, and package. ⊚ true ⊚ false

False

Wages tend to vary more widely than hourly compensation because of the differences in the level of fringe benefits. ⊚ true ⊚ false

False

When considering all the forms of promotion, advertising is generally the one that changes most around the world. ⊚ true ⊚ false

False

In the method favored by the majority of American ICs, the salary part of an expatriate employee's compensation package will generally be governed by the employee's level in the organization and will not be higher because of the foreign assignment. ⊚ true ⊚ false

True

Income distribution studies confirm the belief that income is more evenly distributed in the richer nations. ⊚true ⊚false

True

Increasing inflation rates act as encouragement for borrowing because loans can be repaid in the future with cheaper money. ⊚ true ⊚ false

True

International economic analyses should provide economic data on both actual and prospective markets. ⊚ true ⊚ false

True

International markets often differ widely because of great variations in the uncontrollable environmental forces. ⊚ true ⊚ false

True

Licensing refers to a contractual agreement in which the licensor grants access to its patents, trade secrets, or technology for a fee paid by the licensee. ⊚ true ⊚ false

True

Luxury items such as perfume can often be sold without adaptation in many different foreign markets. ⊚ true ⊚ false

True

Once a person has grown accustomed to a new culture, returning to one's home culture can produce an experience of reverse culture shock. ⊚ true ⊚ false

True

One way a company uses sales promotion is by providing point-of-purchase displays to retail stores. ⊚ true ⊚ false

True

Populations in developing nations tend to be growing larger and younger at the same time. ⊚ true ⊚ false

True

Producing a factory that is ready to operate is similar to producing a "turnkey project." ⊚ true ⊚ false

True

Purchasing power parity is a means of adjusting the exchange rates for two currencies so the currencies have equivalent purchasing power. ⊚ true ⊚ false

True

Sir Isaac Newton established the price of gold in 1717 in terms of British currency. ⊚true ⊚false

True

Some firms grant licenses to other firms in order to reduce the competitive level of a potential rival, especially in the fashion industry. ⊚ true ⊚ false

True

The Bank for International Settlements (BIS) operates as the banker for central banks. ⊚true ⊚false

True

The International Monetary Fund is a source of economic data that analysts can access to assess economic conditions. ⊚ true ⊚ false

True

The Internet is considered a valuable marketing research tool because it can reach an affluent, accessible audience. ⊚ true ⊚ false

True

The disadvantages of using employees from the home or host countries can sometimes be avoided by sending third-country nationals to fill management posts. ⊚ true ⊚ false

True

The effectiveness of every organization depends, to a great extent, on how well its human resources are used. ⊚ true ⊚ false

True

The international Fisher effect states that the interest rate differentials for any two currencies will reflect the expected change in their exchange rates. ⊚ true ⊚ false

True

The licensee generally pays a fixed sum when signing a license agreement and then royalties over the life of the contract. ⊚ true ⊚ false

True

The loss by a country of its most intelligent and best-educated people, a phenomenon known as brain drain, is usually due to the desire to seek improved economic circumstances and pursue better professional opportunities. ⊚ true ⊚ false

True

The marketing mix is the name given to the advertising schedule used to promote a product. ⊚ true ⊚ false

True

The marketing of services is similar to the marketing of industrial products in that these products are generally easier to market globally than consumer products. ⊚true ⊚false

True

The movement of people from one country to another in search of jobs is called labor mobility. ⊚ true ⊚ false

True

The percentage of household expenditures spent on consumer durables by households in developing nations is half the percentage spent by consumers in developed nations. ⊚ true ⊚ false

True

The product is the central focus of the marketing mix. ⊚ true ⊚ false

True

The purpose of economic analysis is to assess the overall outlook of the economy and the impact of economic changes on the firm. ⊚ true ⊚ false

True

The value-added tax (VAT) can be rebated to exporters, according to World Trade Organization (WTO) rules. ⊚ true ⊚ false

True

There has been a rapid increase in the proportion of the world's population that is age 65 or older. ⊚ true ⊚ false

True

To avoid changing the product to meet local legal requirements, manufacturers frequently design it to meet the most stringent laws, even though it is overdesigned for other markets. ⊚ true ⊚ false

True

To compare the purchasing power of nations, managers need to know among how many people the gross national income (GNI) is divided. ⊚ true ⊚ false

True

To estimate market potential, managers require data on the sizes and rates of change of a number of economic and socioeconomic factors. ⊚ true ⊚ false

True

Today, the rural-to-urban shift shows that at least half of the world's population is living in cities. ⊚true ⊚false

True

Trade missions are organized by government trade specialists. ⊚ true ⊚ false

True

Under a polycentric staffing orientation, there is little communication flow among subsidiaries. ⊚ true ⊚ false

True

When President Nixon announced that the United States would no longer exchange gold for paper dollars held by foreign banks, currency markets were greatly affected and closed for several days. ⊚ true ⊚ false

True

By the year 2050, what percent of the population in developed countries is projected to be 65 or older? A) 42 percent B) 56 percent C) 12 percent D) 25 percent

"The longer our experience at doing something, the better we get at it," is a description of A) the learning curve. B) economies of scale. C) corporate visual identity. D) mass customization.

A capturable segment is one that A) can be influenced to move from the competition. B) can be traded on the open market. C) can be reached through online communication. D) is open to product modification.

A company can use big data to A) personalize the shopping experience. B) generalize about increasingly larger segments. C) identify outliers more readily. D) promote shopping at home.

A definable segment is one that A) can be identified and measured. B) has a clear reason and purpose. C) is understood by the client. D) relies on lifestyle differences.

A fixed peg currency arrangement means that A) a country's exchange rates fluctuate around a fixed rate within a narrow band. B) monetary authorities will approve any movement; the peg is national. C) currency relationships are under the control of the central bank. D) allied nations' currencies will move in opposition, creating a balance.

A large international debt may cause a government to impose wage controls, which result in A) limiting consumer purchasing power. B) increasing government spending. C) eliminating price controls. D) expanding to a larger market.

A policy of hiring and promoting based on the parent company's home-country frame of reference is A) an ethnocentric policy. B) a polycentric policy. C) a regiocentric policy. D) a geocentric policy.

A company can use the inflation rate to determine the A) capital structure of the firm. B) growth rate of sales. C) real cost of borrowing in capital markets. D) equilibrium point.

A drawback of ethnocentric staffing policies is that A) it is less expensive to use employees from the home country. B) there are no additional expenses associated with relocating these employees and their families. C) home-country employees may not have experience with the language and culture of the host country. D) they expand the experience base of home-country employees.

A local labor market is made up of A) the entire population of people in the local operating area. B) a country's pool of people with the required skill set. C) the pool of available employees with the necessary skills and who are within commuting distance. D) the pool of employees with the necessary skills who are in the country or surrounding nations.

A measure of how a nation's income is apportioned among its people is called A) purchasing power parity. B) gross domestic product. C) income distribution. D) the Atlas conversion factor.

A potential downfall for the home-country office when hiring and training local, host-country employees in a country where talented managers are hard to find is that A) the company has to pay them a higher salary, which creates inflation. B) culture-based knowledge is hard to translate. C) the company may lose them to local firms or other ICs once they are trained. D) it enables reverse brain drain.

According to the book, what is the purpose of economic analyses? A) to anticipate political developments within and across countries B) to forecast exchange rates C) to assess the overall outlook for the economy and the impact of economic changes on the firm D) to compare the rate of economic and political change in order to determine financial variances

Advertisements in the European market tend to have more sexual overtones than advertisements in the United States. Which cultural dimension does this demonstrate? A) gender roles B) comparison C) explicitness D) sophistication

Dissimilar cultural patterns generally necessitate changes in marketing of food and other consumer goods. ⊚ true ⊚ false

True

Economies with per capita incomes in the low to middle range that are in a transition toward developed status are referred to as emerging market economies. ⊚ true ⊚ false

True

Environmental scanning provides the firm with information about world opportunities and threats. ⊚ true ⊚ false

True

Firms that form a strategic alliance will collaborate with one another. ⊚ true ⊚ false

True

Franchising is a form of licensing. ⊚ true ⊚ false

True

Generally, it can be assumed, the higher the GNI/capita value, the more advanced the nation's economy. ⊚ true ⊚ false

True

Generally, the deeper the immediate market penetration desired, the greater the product modification must be. ⊚ true ⊚ false

True

If freely floating currencies are allowed to fluctuate against one another, at times the fluctuations might be quite large. ⊚ true ⊚ false

True

In BOP accounting, a deficit in the current account is always accompanied by a surplus in the capital account. ⊚ true ⊚ false

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