International Marketing Midterm Exam Review

Which of the following statements is true with respect to the economic effects of controlling population growth? Fertility rates increase proportionately to the rate of economic growth. A decline in fertility rate is a function of economic prosperity. Lower male-female ratios favor higher fertility rates. Developing nations tend to have lower fertility compared to developed nations. Higher population growth rates have resulted in increased global trade.

A decline in fertility rate is a function of economic prosperity.

Which statement describes the consumption of petroleum products by the United States? America is the largest producer of petroleum products. America is likely to stay self-sufficient for the next several decades. America is the third largest consumer of petroleum products. America has become a major importer of petroleum products. Petroleum products are no longer the largest source of energy for the U.S.

America has become a major importer of petroleum products.

During the early 1800s, the British taste for tea was creating a huge trade deficit for Britain with what country? France Italy Belgium Finland Correct! China

China

In the last few years, most of the countries of the world saw a dramatic slowdown in the growth of their economies with the exception of China. France. Greece. the United States. Spain.

China.

What is the most profound change for firms at the global marketing stage of internationalization? Temporary surpluses marketed in foreign markets is the only element of internationalization. Domestic demand always exceeds the firm's production capacity. More than half of the multinational firm's revenue is generated from domestic markets. Companies treat the world, along with home market, as one market. Sales to foreign markets are made as and when goods become available.

Companies treat the world, along with home market, as one market.

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

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

According to Manifest Destiny, who gave Americans the power to create a model society? Roosevelt the people God family big business

God

What is one of the four ongoing activities that support the growth of international trade? Warsaw Pact International Monetary Fund World Summit on Sustainable Development Kyoto Protocol Treaty of Waitangi

International Monetary Fund

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

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

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

Monroe Doctrine

A company decided to expand its presence in northern Europe. Toward that end, it selected the countries where it would market its products. It also selected a mode of entry. It is now in the process of implementing specific plans. The company is currently in which phase of the international planning? Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

Phase 4

A culture with a low ________ score is likely to have greater respect for equality. Power Distance Index Individualism/Collectivism Index Distance from English Index Uncertainty Avoidance Index Masculinity/Femininity Index

Power Distance Index

What factor increases the volatility in demand in industrial markets? Professional buyers in the industrial market tend to act in concert. The demand for industrial goods is independent of changes in economic development. Small, noncyclical swings in demand are inherent in industrial markets. Experienced purchasers tend to make buying decisions independently. The demand for industrial goods is highly inelastic.

Professional buyers in the industrial market tend to act in concert.

________ development is a joint approach among those who seek economic growth with "wise resource management, equitable distribution of benefits and reduction of negative effects on people and the environment from the process of economic growth." Parallel Global Correct! Sustainable Unrestricted Holistic

Sustainable

How did the British respond in 1839 after the Emperor of China ordered the destruction of opium inventories in Canton? The British taxed China for existing inventories. Correct! The British sunk ships in the Pearl River. The British opened all Chinese ports. The British joined forces with China and also destroyed its inventories. The British made an agreement with America for opium supplies.

The British sunk ships in the Pearl River.

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

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

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

They were considered an unwelcome intrusion in Latin American affairs.

_______ provide the facilities for a manufacturer to exhibit and demonstrate products to potential users and to view competitors' products. Catalogs Direct mail campaigns Banners Trade shows Specialty advertising blogs

Trade shows

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

a boycott.

A small-scale apparel manufacturer in Florida collaborates with several other similar firms and they form a separate company in India. None of the participants in this collaboration has previously had active operations in the Indian market. The newly created firm manufactures apparel suited to the tastes and preferences of the Indian customers. Identify the type of foreign market-entry approach depicted in this scenario. a franchising agreement a consortium a licensing agreement direct exporting indirect exporting

a consortium

The part of the world with the largest portion of people over 65 years is also the part of the world with the fewest number of people under age 15 years. Based on this, what might occur in this area of the world? a conscious effort to slow down rapid urbanization and industrialization. a larger focus on automation and technology in industries. a heavy tax burden on future workers. an increased focus on lower birthrates through incentives. an increase in migration to other nations.

a heavy tax burden on future workers.

The part of the world with the largest portion of people over 65 years is also the part of the world with the fewest number of people under age 15 years. Based on this, what might occur in this area of the world? a conscious effort to slow down rapid urbanization and industrialization. a larger focus on automation and technology in industries. Correct! a heavy tax burden on future workers. an increased focus on lower birthrates through incentives. an increase in migration to other nations.

a heavy tax burden on future workers.

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

a market analyst's self-reference criterion

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

ad valorem duty

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

ambiguity

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

an innovation

If a country decided to refuse to allow an importer to exchange its national currency for the sellers' currency, it would be an example of a(n) ________ currency. taxed quota embargo spot blocked

blocked

Which account in the balance-of-payments statement is a record of direct investment, portfolio investment, and short-term movement of cash and technology to and from countries? credit account current account reserves account receivables account capital account

capital account

Ian works for a sports equipment manufacturer in Boston and is responsible for shipping products across the United States. What is one factor that would be uncontrollable for Ian? competitive structure promotional measures price of the product channels of distribution firm characteristics

competitive structure

Harry and his team draft a plan for their organization, HD Corp. They primarily establish the overall goals that HD should accomplish in the next 25 years. In this case, Harry and his team are most likely engaged in ________ planning. tactical market corporate strategic personnel

corporate

Which social institution introduces most innovations to society? corporations schools government family religion

corporations

Compared to the foreign environment variables, which of the following uncontrollable variables is least likely to affect a domestic marketer? legal forces cultural forces political forces economic climate competitive structure

cultural forces

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

cultural requirements for adaptation

An important first step in adapting a product to a foreign market is to determine the degree of newness of the product as perceived by the intended market. personal ethics of individuals in the target market. regional political parties present in the domestic market. language problem of the intended market. product's compliancy to irrational beliefs of its potential foreign consumers.

degree of newness of the product as perceived by the intended market.

Innovation spreads by the process of diffusion. filtering. dissolution. flighting. liquidation.

diffusion.

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

direct exporting

A natural off shoot of a person's self-reference criterion is ________ that also creates a concern for the international marketer. ethnocentrism empathy self-actualization sympathy collectivism

ethnocentrism

What is a reason for marketing industrial goods abroad that does NOT necessarily apply to consumer goods? bypassing import tariffs avoiding sales tax reducing the volatility of demand acquiring ISO certification acquiring ACSI certification

reducing the volatility of demand

________ refers to being attuned to the nuances of culture so that a new culture can be viewed objectively, evaluated, and appreciated. Cultural shock Cultural apathy Counter culture Cultural sensitivity Culture transfer

Cultural sensitivity

________ is rapidly becoming a major after-sales service when selling technical products in countries that demand the latest technology. Promotional pricing Product innovation Capacity utilization efficiency Customer training Warranty

Customer training

What statement is a feature of international corporate planning? It only addresses marketing and advertising questions. It specifically deals with a company's products, capital, and research. It predominantly deals with the tactical issues of marketing. It is essentially long term in nature. It refers to the plans that are made at the local level.

It is essentially long term in nature.

How did GATT prevent the repeat of the economic disaster that occurred after World War I? It provided for a third party, the United Nations, to negotiate peace treaties. It promoted dumping policies to allow stronger ties between member nations. It provided a forum for member countries to negotiate a reduction of tariffs and other barriers to trade. It provided short-term loans to struggling nations. It fostered isolationism for nations that were market leaders.

It provided a forum for member countries to negotiate a reduction of tariffs and other barriers to trade.

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

Japan

In the context of U.S. foreign policy in the 19th and the 20th centuries, ________, in its broadest interpretation, meant that Americans were a chosen people to create a model society. Roosevelt Corollary Monroe Doctrine Hays Corollary Grant Mandate Manifest Destiny

Manifest Destiny

What was the impetus for the Omnibus Trade and Competitiveness Act? Markets in the U.S. were trading with partners based on how they hoped they would respond rather than how they actually operated. The U.S. market was relatively closed to the rest of the world. Markets in the U.S. were being driven by foreign demand. The trade volume in the U.S. was declining. Markets in the U.S. were open to most of the world but markets in Europe and many Asian countries were relatively closed.

Markets in the U.S. were open to most of the world but markets in Europe and many Asian countries were relatively closed.

Which statement most accurately reflects the feelings of most Mexicans toward the United States in terms of the economy? Mexicans trust and favor the United States above other trading partners. Mexicans prefer Europeans over the United States with respect to trade. Mexico considers the United States a protector who will help it emerge as a world power. Mexicans see the United States as a threat to their political, economic, and cultural independence. Mexicans see the United States as a land of abundant opportunity and good fortune.

Mexicans see the United States as a threat to their political, economic, and cultural independence.

What key tool is necessary for anyone participating in commerce in order to know where goods and services exist and also know where they are needed? sustainable development expropriation immigration Correct! effective communications political stability

effective communications

What characteristic would impede the ability of a person to assess a foreign market in its true light? xenocentrism ethnocentrism polycentrism relativism pluralism

ethnocentrism

The most successful companies in the global marketplace today focus on country as the primary segmentation variable. true false

false

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

global marketing

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

government approval

PG Autos introduces a new technology in its cars to improve their mileage and reduce carbon emissions. It also takes measures to improve its production facilities in order to reduce its carbon footprint. Actual introduction of green measures to meet the government guidelines rather than just through advertising and marketing shows that PG Autos engages in ________ marketing. permission recycle green black greenwash

green

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

high Power Distance Index

Jason's department is responsible for the business activities designed to plan, price, promote, and direct the flow of his company's small appliance products to consumers in various nations around the world for a profit. What is his department in charge of? international marketing domestic trade performance appraisal internal marketing importing

international marketing

What is the largest services export of the United States, ranking behind only capital goods and industrial supplies when all exports are counted? automobile services international tourism banking services research and development education services

international tourism

The process of total quality management (TQM) starts with providing all customers with technologically advanced products. signing trade agreements with developed countries. involving customers in the product development process. reducing the time taken for the product to reach the market. marketing the products at trade shows and fairs.

involving customers in the product development process.

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

matching company and country needs

Mai is a new international sales representative for an industrial supply company that is focusing heavily on technology as a selling feature. She will learn that this strategy will be a key selling feature in all markets. will have the most impact in developing countries. may not be appropriate for all countries. will not make a big difference in the global market. can be easily overcome by competitors.

may not be appropriate for all countries.

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

no direct foreign marketing

Which source of energy is used most in America? wind solar coal Correct! oil and gas wood

oil and gas

A characteristic of a service is that it is ________, since it cannot be stored and must be consumed simultaneously with its creation. durable feasible indelible tangible perishable

perishable

Citizens of the United States felt that the Monroe Doctrine provided an opportunity for Latin America to become a superpower among nations. excessive tariffs on imported goods. higher priced goods in the United States. Correct! protection for Latin America from European colonization. a message to Latin America that Russia was in control.

protection for Latin America from European colonization.

Rishi, a protectionist, has seen several small businesses go bankrupt because they were unable to compete with the cheaper prices of goods provided by foreign companies. The cell-phone manufacturing industry has just started in the United Kingdom, and Rishi's company is one of the first to try its hand at cell-phone manufacturing. What argument is most likely to be used by Rishi to persuade his government to restrict the import of foreign cell phones from foreign companies? the need to keep money at home maintenance of standard of living protection of an infant industry national defense conservation of natural resources

protection of an infant industry

What can be used as a measure to manage volatility in industrial demand? maintaining a narrow product line reducing prices during booms reducing advertising expenditures during booms focusing on market share as a strategic goal avoiding investment in foreign high-yield financial instruments

reducing advertising expenditures during booms

Jamal has been the sales representative for the western region for ten years, calling on the same customers repeatedly. Other companies have brought in reps from their home countries, but Jamal finds his customers prefer to deal with him. Jamal demonstrates qualities associated with relationship marketing. in-country advantage. sales orientation. consistency. efficiency.

relationship marketing.

In most cultures, the first social institution infants are exposed to outside the home is in the form of a day-care center. school. religious institution. shopping mall. government agency.

religious institution.

Young children learn about social institutions from their families and when they go to school. This process of learning is called anarchy. socialization. cultural apathy. cognitive dissonance. social rebellion.

socialization.

New cola alternatives (Mecca Cola, Muslim Up, Arab Cola, and Cola Turka) sprang up after the military conflicts in the Middle East in 2003. This is an example that shows how: Coca-Cola played an important role in easing the cultural divide among the warring nations. Coca-Cola catered to new markets through standardization. specific events in history can influence consumer behavior. businesses exploit cheap human labor during war times. technology influences marketing practices.

specific events in history can influence consumer behavior.

New cola alternatives (Mecca Cola, Muslim Up, Arab Cola, and ColaTurka) sprang up after the military conflicts in the Middle East in 2003. This is an example that shows how Coca-Cola played an important role in easing the cultural divide among the warring nations. Coca-Cola catered to new markets through standardization. specific events in history can influence consumer behavior. businesses exploit cheap human labor during war times. technology influences marketing practices.

specific events in history can influence consumer behavior.

In the context of global marketing management, international marketers framed the argument toward market segmentation during the 1970s as global integration versus one-to-one marketing. standardization versus adaptation. adaptation versus one-to-one marketing. global integration versus local responsiveness. standardization versus local responsiveness.

standardization versus adaptation.

The marketing tasks of an international marketer differs from that of a domestic marketer as the: competitive structure is one of the controllable factors for an international marketer. structure of distribution is an uncontrollable element for the international marketer. international marketer is less concerned about geography and infrastructure than the domestic marketer. international marketer has fewer uncontrollable elements to deal than a domestic marketer. level of technology and cultural forces are controllable elements for the international marketer.

structure of distribution is an uncontrollable element for the international marketer.

Russia and Eastern European countries fit in which stage of Rostow's five-stage model of economic growth? the traditional society drive to maturity preconditions for takeoff the age of mass consumption takeoff

takeoff

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

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

In the context of social responsibility and environmental management, which of the following is a by-product of pollution controls? corporate environmental responsibility higher tariffs against developing countries the disposal of hazardous waste reduced availability of petroleum products the emission of greenhouse gases

the disposal of hazardous waste

What event occurred during the Mexican Revolution? the overthrowing of dictator Ernesto Zedillo the youth movement against religion the nationalization of Mexican oil industry the expulsion of North American businessmen the support of French arms for revolutionaries

the expulsion of North American businessmen

What is one of the extraneous variables that affects the rate of diffusion of an object? the absolute marginal value of the innovation relative to the old the actual attributes of the innovation the climatic conditions in which the market is located the method used to communicate the idea the degree of actual novelty of the innovation

the method used to communicate the idea

What is the first stage of Rostow's five-stage model of economic development? the traditional society drive to maturity preconditions for takeoff takeoff the age of mass consumption

the traditional society

A globally aware manager is characterized by discarding one's home culture's standards to adopt the global cultural standards controlling any influences that the global cultural standards may have on the marketing process using one's home culture's values alone to market one's products in foreign countries tolerating cultural differences and allowing others to be different and equal accepting the cultural ways of another individual as his or her own

tolerating cultural differences and allowing others to be different and equal

In Phase 2 of the international planning process, the results of an analysis frequently indicate that the marketing mix would require such drastic adaptation that a decision not to enter a particular market is made. true false

true

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

whatever is good for the United States is justifiable.