International Marketing: Quiz 1

Product liability laws....

-if a product is sold in a defective condition such that is becomes dangerous to use, then both the manufacturer and distributor are held accountable

International companies may come under attack from home country pressure groups because of their...

1. for their choice of markets 2. for their methods of doing business

Under socialist law...

Economic power often centralized, market economies are unknown

Most U.S. companies do not do business in Cuba due to ____

Embargoes

Common law is based on...

English Law

The Nigerian government decided to host the All-Africa Games in 2003, despite the fact that building costs for a new stadium exceeded $340 million, twice what the government planned to spend on health care for on year. This action was motivated by the Nigerian government's interest in ____

Enhancing Prestige

Coke decided to abandon its Indian operations in the late seventies because of _____

Foreign Exchange Regulation Act of 1973

In Australia, foreign ownership of television stations is limited to no more than 20 percent. It is feared that if a foreign county controlled the media, it could influence public opinion and national sovereignty. This regulation is motivated by the Australian government's interest in _____

Goal of Self-Preservation

An American company sets up a subsidiary in Thailand, including a production facility and marketing/sales office. In this example USA is a _____ country

Home

An American company sets up a subsidiary in Thailand, including a production facility and marketing/sales office. In this example Thailand is ______ country

Host

Friends of the Earth Indonesia and other non-government complained that Mobil Oil was complicit in human rights abuses that had occured during the construction of its pipeline in the Ache province of Indonesia. They tried to pursue the Indonesian government to end their joint venture with Mobil Oil. These organizations are examples of _____

Pressure Groups or home pressure

In the past, Iran and Venezuela have attempted to outlaw foreign brand names, requiring international marketers to establish names for their products in Persian and Spanish. These governments were interested in _______

Protecting Cultural Identity

To support the local apparel industry, the Bulgarian government pays each Bulgarian apparel company US$1 for each piece of clothing that they export. This is an example of ______

direct subsidy

Ecuador provides electricity to several large exporting companies in Quito, the capital city. This is an example of ______

indirect subsidy

In Germany, rules are strictly applied because its...

of its low HNO and power distance

In Vietnam, foreign electric component manufacturers are required by the Vietnamese government to prove that a minimum of 20 percent of the components must be made with local input products. This is an example of.....

operating conditions

The Iraqi government limits foreign ownership of businesses in Iraq to 49 percent. This is an example of a ______

ownership restriction

A major goal of the European Union government is to provide full employment and increasing standard of living for its citizens by encouraging foreign investment in the EU and promoting EU exports in foreign markets. These actions are motivated by the EU government's interest in _____

prosperity

Sovereignty is defined as ______

supremacy of authority or rule free from external control

Governments subsidies are most likely to be given to firms that ______

will be major exporters