INTL quiz 1-7

What is a criterion for adaptation when dealing with individuals, firms, or authorities in foreign countries? A. flexibility B. zero tolerance C. ability to resist varying tempos D. hypersensitivity E. lack of curiosity

A. flexibility

Marziland found that a large amount of capital was leaving the country due to foreign corporate ownership, so it instituted controls over all movements of capital to conserve the supply of foreign exchange. These are called ________ controls. A. exchange B. tax C. local-content D. price E. production

A. exchange

When considering the role of time in business, which of the following is true of P-time and M-time? A. As global markets expand, more businesspeople from P-time cultures are adapting to M-time. B. M-time is characterized by the simultaneous occurrence of many things, unlike P-time. C. The American desire to get down to business is a manifestation of a P-time culture as contrary to Japan's M-time approach. D. The M-time system gives rise to looser time schedules, unlike P-time. E. Contrary to P-time businesspeople, interruptions are routine for M-time businesspeople.

A. As global markets expand, more businesspeople from P-time cultures are adapting to M-time.

Following World War II, it is noted that the West created the trade patterns. This was especially true in which one of the following? A. Asia B. Central America C. Europe D. South America E. North America

A. Asia

Which of the following conventions is responsible for the promotion of the protection of intellectual property rights among all the member countries of the UN? A. The World Intellectual Property Organization B. The Eurasian Convention C. The Tokyo Agreement D. The Basel Convention E. The Madrid Arrangement

A. The World Intellectual Property Organization

Kim is the director of operations at her company and hires an agent to obtain a license to build a warehouse in an industrial district. The agent gets caught offering a bribe to a government official for issue of the license. Which of the following describes Kim's liabilities? A. The manager is liable if she was aware of the fact that part of the agent's fee will be used as a bribe. B. The manager is liable since the agent used part of her fees for bribery, although the manager was unaware of the agent's intentions. C. The manager is liable only if the act of building the warehouse at the given location is illegal. D. The manager is not liable since the use of an agent absolves her of any responsibility. E. The manager is not liable if the agent can prove that extortion, rather than bribery, took place.

A. The manager is liable if she was aware of the fact that part of the agent's fee will be used as a bribe.

On September 13, the president of Mexico, the cabinet, and diplomatic corps assemble to recall "despojo territorial." What is its significance? A. U.S. troops claimed 890,000 square miles of land that became Arizona, California, New Mexico, and Texas. B. U.S. and Mexican soldiers defeated the Chinese attempt to take over this land. C. Trade barriers were lifted between Mexico and the U.S. D. U.S. border officials allowed the peaceful crossing of Mexican citizens into the United States. E. Mexico joined forces with Europe to defeat the U.S. attempt to purchase Louisiana.

A. U.S. troops claimed 890,000 square miles of land that became Arizona, California, New Mexico, and Texas.

In general, tariffs weaken A. balance-of-payments positions. B. the number of reciprocal tariffs by other countries. C. inflationary pressures. D. special interests' privileges. E. government control in economic matters.

A. balance-of-payments positions.

M&G Inc., a company producing musical instruments, had dominated its home market for several years before venturing into international markets. The company was focusing more on international operations until Beige N, a German company in the same business, entered its home market. Beige N started selling good quality products at prices much lower than M&G's and affected its sales adversely. Which of the following elements in the marketing environment has affected the business of M&G Inc. with the market entry of Beige N? Question options: A. competition in the domestic market B. promotion of the product C. cultural forces D. level of technology E. structure of distribution

A. competition in the domestic market

For a multinational firm, the ideal political climate is a A. country with a stable and friendly government. B. country where international laws do not apply. C. country where favors can be purchased easily. D. government that radically shifts its philosophy. E. government with absolute power.

A. country with a stable and friendly government.

What argument regarding the need for protectionism is recognized by economists as valid? A. industrialization of a low-wage nation B. maintenance of employment and reduction of unemployment C. encouragement of capital accumulation D. conservation of natural resources E. need to keep money at home

A. industrialization of a low-wage nation

he special drawing rights (SDRs) developed by the IMF can be thought of as A. paper gold. B. black gold. C. virtual dollars. D. floating currencies. E. exchange permits.

A. paper gold.

The government of Namibia is strapped for cash, and it has decided to tax all foreign investments (such as food packaged in the country) by up to 40 percent of the appraised value. The Namibian government has found that this is the handiest and quickest means of finding operating funds. The economic risk in discussion here is A. tax controls. B. exchange controls. C. local-content laws. D. price controls. E. tax restrictions.

A. tax controls.

Which commodity dominated the trade between Britain and China during the early 1800s? A. tea B. bamboo C. silk D. porcelain E. mother-of-pearl

A. tea

When studying the dynamics of global population trends, it is important to remember that A. the existence of sheer numbers of people is significant in appraising potential consumer markets. B. the demand for goods worldwide may have no effect on migration patterns. C. the global financial crisis has caused migration from rural to urban areas within countries. D. economic growth forecasts and assumptions about fertility rates are independent of each other. E. changes in the distribution of population among the world's countries may fail to influence demand.

A. the existence of sheer numbers of people is significant in appraising potential consumer markets.

The ________ is a multicountry agreement that has established a regional patent system that allows any nationality to file a single international application for a European patent. A. TRIPs Agreement B. European Patent Convention C. Basel Convention D. Madrid Arrangement E. Paris Convention

B. European Patent Convention

What is a characteristic of culture? A. It is the same across all countries. B. It is the human-made part of human environment. C. It is insignificant in assessing new markets. D. It is radical in nature and readily accepts change. E. It is static in nature.

B. It is the human-made part of human environment

How has the use of birth control pills affected social institutions? A. Educational institutions are finding it tougher to fill in seats. B. Schools are forced to address issues like abstinence and condom distribution. C. Women and men are increasingly adhering to traditional gender roles. D. Midwifery, as a profession, is becoming extinct. E. More men and women are opposing the idea of "one-child family."

B. Schools are forced to address issues like abstinence and condom distribution.

Islamic law is also known as A. Zakat. B. Shari'ah. C. Ulema. D. Barakah. E. Umrah.

B. Shari'ah.

Which organization conducts an international survey of businesspeople, political analysts, and the general public on corruption and compiles the Corruption Perception Index (CPI)? A. Amnesty International. B. Transparency International (TI). C. Organization of American States (OAS). D. Oxfam International. E. CARE International.

B. Transparency International (TI).

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. a monetary barrier. B. a boycott. C. a voluntary export restraint. D. a quota. E. an orderly market agreement.

B. a boycott.

Why does understanding one's own culture require additional study? Question options: A. because an average manager must have extensive cultural knowledge of all countries in the world B. because much of the cultural influence on market behavior is at the subconscious level C. because cultural influence on one's own market behavior is generally minimal D. to find out why cultural traits in one's own country does not affect market behavior E. since without which, understanding the cultural traits of one's own country is impossible

B. because much of the cultural influence on market behavior is at the subconscious level

Modern medicine has thrived in the United States together with the use of herbal remedies from South America. This is an example of A. cultural hegemony. B. cultural borrowing. C. cultural sensitivity. D. cultural ombudsmanship. E. cultural shock.

B. cultural borrowing.

In order to effectively secure foreign exchange, what is most likely to be used by countries experiencing severe shortages of foreign exchange? A. monopoly B. government approval C. privatization D. spot pricing E. voluntary export restriction

B. government approval

What is the most effective way to achieve organizational global awareness? Question options: A. hiring entry-level employees based on the sole criterion of global awareness B. having a culturally diverse senior executive staff or board of directors C. promoting social networking as a means to improve inter-cultural communication D. increasing the diversity mix of the front-level employee profile E. organizing frequent employee trips to foreign cultures to increase their sensitivity

B. having a culturally diverse senior executive staff or board of directors

Rituals are patterns of behavior and interaction that are A. scientifically proven. B. learned and repeated. C. enforced by governments. D. universally accepted as proper behavior. E. the same across all cultures.

B. learned and repeated.

What is a characteristic of a polychronic time schedule? A. get straight to the point B. looser standards of being on time C. concentrate on one thing at a time D. promptness at all times E. more strict scheduling

B. looser standards of being on time

What commonly counterfeited product has the potential for doing the greatest harm to the consuming public? A. clothing B. pharmaceuticals C. software D. toys E. CDs

B. pharmaceuticals

What is the most attractive target for pirates because of high development cost and low reproducibility costs? A. auto parts B. software C. apparel D. books E. agricultural produce

B. software

France is higher on Hofstede's Power Distance Index (PDI) than the United States and formality is evident in French businesses. Which of the following American business practices would be most unacceptable to the French? A. showing enthusiasm at business negotiations B. using first names in business encounters C. slipping in colloquial French words during business meetings D. trying to emulate the French way of business thinking E. exhibiting stubbornness while negotiating

B. using first names in business encounters

What factor is favorable when determining whether or not a company should consider internationalization efforts? Question options: A. A company has minimal storage and transportation capabilities. B. A company has home country managers who have never worked outside of the home country. C. A company has high-technology resources already in place. D. A company wants to pair with an existing international company to access technology. E. A company currently has large home markets but smaller production capacities.

C. A company has high-technology resources already in place

Which firm has a better chance of accelerating the internationalization process? Question options: A. Animal Awareness and Action refrains from using the Internet as its major communication platform. B. Kenilworth Karts has larger home markets and smaller production capacities. C. Box-Co has key managers well-networked internationally. D. Ironworks International uses more traditional manufacturing practices. E. Piano Plus primarily focuses all its operations and production capacities to meet the domestic market needs.

C. Box-Co has key managers well-networked internationally.

Which statement presents the correct picture of the outcome of increased world trade after the 1950s, contrary to Servan-Schreiber's prediction? A. Third World countries have been excluded from this economic growth leading to stark imbalances in wealth. B. The United States has continuously maintained the positive balance of trade it attained during the 1950s. C. Economic power and potential has become more evenly distributed among the countries of the world. D. SDRs and gold have lost their utility as the basic medium of financial exchange and most monetary statistics have started relating to the U.S. dollar. E. The European Union has become the center of world trade, taking the position away from the United States.

C. Economic power and potential has become more evenly distributed among the countries of the world.

Manifest Destiny and the ________ were accepted as the basis for U.S. foreign policy during much of the 19th and 20th centuries. A. Grant Mandate B. Hays Corollary C. Monroe Doctrine D. Roosevelt Corollary E. North American Security Treaty

C. Monroe Doctrine

Which of these organizations is an NGO (nongovernmental organization)? A. Central Intelligence Agency B. Peace Corps C. Oxfam D. FedEx E. Millennium Challenge Corporation

C. Oxfam

What international convention was established to recognize and protect intellectual property rights? A. Eurasian Convention B. Kyoto Protocol C. Paris Convention D. Munich Agreement E. Tokyo Convention

C. Paris Convention

Why do terrorism experts predict multinational businesses will be targeted by terrorists more frequently? A. They destroy and pollute the environment. B. They impose export controls on the underdeveloped nations. C. They are less well defended than government targets. D. They are the major cause for political sanctions against Arab nations. E. They are subterfuge for espionage agents.

C. They are less well defended than government targets.

Adam Smith in his The Wealth of Nations stated, "By pursuing his own interest he frequently promotes that of the society more effectually than when he really intended to promote it." What behavior does this notion attempt to justify? A. cooperation B. collectivism C. competitiveness D. welfare mentality E. loyalty

C. competitiveness

According to Canadian law, what is the standard expected by courts in Canada to determine whether a representation is false or misleading? A. clearly erroneous standard B. informed consumer standard C. credulous person standard D. discretionary standard E. de novo standard

C. credulous person standard

The baby boom generation has affected consumption patterns around the world since it started and continues to do so today. This is one example of how ________ can be reflected in social institutions. A. the political economy B. social institutions C. history D. geography E. technology

C. history

Post-World War II, worldwide economic growth was in strong evidence and countries that were once classified as less developed were reclassified as A. free trade economies. B. communist countries. C. newly industrialized countries. D. tier-II countries. E. developed countries.

C. newly industrialized countries.

A boycott on importing produce from Mexico would be an example of a A. revenue tariff. B. specific duty. C. nontariff barrier. D. quota embargo. E. compound duty.

C. nontariff barrier.

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

C. protection for Latin America from European colonization.

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

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

The exporter is responsible for selecting the ________ that leads to a description in the Commerce Control List (CCL) and indicates the exportability status of the item. A. Priority Number B. Entity List Number C. Export License Number D. Export Control Classification Number E. Trade Regulations Number

D. Export Control Classification Number

What does GATT use as the primary method to solve global trade problems? A. GATT implements the legislative agenda of trade members. B. GATT uses coercion. C. GATT creates binding agreements between member nations. D. GATT uses consultation. E. GATT works with government agencies of trade members.

D. GATT uses consultation.

How has globalization impacted domestic markets in the United States? Question options: A. Multinational companies are making more profits from their domestic operations compared to their earnings from the foreign markets. B. The domestic companies have reduced their manufacturing employment more than U.S. multinationals. C. Only multinational companies with large production facilities have outperformed their strictly domestic U.S. counterparts. D. Multinational manufacturing companies in all industries and sizes have outperformed their domestic counterparts. E. Companies with only domestic markets have been able to sustain their customary rates of growth.

D. Multinational manufacturing companies in all industries and sizes have outperformed their domestic counterparts.

Which source of energy dominates the world's energy usage? A. Nuclear power B. Geothermal power C. Hydroelectric power D. Petroleum products E. Wind energy

D. Petroleum products

Based on the metaphor for Richard Nisbett's views involving Confucius's worthy picture, what is his analysis regarding the thought process or perceptual process of Westerners? A. Westerners are good at observing details but fail to comprehend the central message. B. Westerners observe things sequentially, thus fail to comprehend the larger picture. C. Westerners can report details about the background and foreground. D. Westerners can provide great details about central figures but see relatively little in the background. E. Westerners prefer larger than life figures to convey messages.

D. Westerners can provide great details about central figures but see relatively little in the background.

Which firm seems better equipped for internationalization? Question options: A. a firm that has a culturally diverse employee profile but few competitive offerings at the global level B. a firm that focuses its production activities on meeting the demands in the home market C. a firm that sells its products only to those foreign customers who directly contact the firm D. a firm that has a production capacity that is larger than home market demand E. a firm that has little intention of maintaining a continuous market representation

D. a firm that has a production capacity that is larger than home market demand

On the basis of Hofstede's four dimensions, cultures with high Power Distance Index (PDI) scores tend to A. be secular. B. cite knowledge as a source of power. C. be flat in organization. D. be hierarchical. E. value equality.

D. be hierarchical.

Price controls applied during inflationary periods may have the effect of A. restricting exports to foreign countries. B. negotiating trade contracts favoring the host country. C. collecting taxes on foreign investments. D. controlling the cost of living. E. encouraging imports.

D. controlling the cost of living.

Reggie owns a small stationery company in Tennessee and plans to enter the French market to sell his line of fine linen papers. He realizes that there are many business customs he will need to understand and conform to in order to succeed in France. What type of business custom is Reggie concerned with? A. global protocols B. business axioms C. cultural exclusives D. cultural imperatives E. business truism

D. cultural imperatives

Apart from intellectual property laws, an illustration of how fundamental differences in the common and code systems can cause difficulty is in A. conducting civil trials. B. determining laws governing export and import. C. deciding heredity laws. D. evaluating the performance of a contract. E. determining criminal laws.

D. evaluating the performance of a contract.

Which strategy to minimize political vulnerability and risk has the advantage of engaging the power of several investors and banks in the host country whenever any kind of government takeover or harassment is threatened? A. sole proprietorship B. licensing C. political bargaining D. expanding the investment base E. joint ventures

D. expanding the investment base

In the infrequent foreign marketing stage of international marketing involvement, firms Question options: A. have more than half their sales revenues coming from international markets. B. sell products that are a result of planned production in markets in various countries. C. have a global perspective and view the entire world as one market. D. have no intention of maintaining continuous market representation in foreign markets. E. no longer make market segmentation decisions on the basis of national borders.

D. have no intention of maintaining continuous market representation in foreign markets.

Which form of terrorism is most likely to use the Internet to inflict damage? A. Ecoterrorism B. Narcoterrorism C. Germterrorism D. Bioterrorism E. Cyberterrorism

E. Cyberterrorism

During the early 1800s, the British taste for tea was creating a huge trade deficit for Britain with what country? A. Finland B. Italy C. Belgium D. France E. China

E. China

Which of the following may best explain why the Japanese have such strong loyalty toward their companies? A. Buddhism B. Bushido philosophy C. Zen philosophy D. Taoism E. Confucian philosophy

E. Confucian philosophy

While most European countries are comparable to the United States in terms of the number of women in managerial positions, ________ stands out as the country that is drastically different with only 13 percent of management jobs held by women. A. France B. Italy C. Britain D. Switzerland E. Germany

E. Germany

What is true about Professor Jared Diamond's ideas regarding the influence of geography on history and cultural values? A. Civilizations near major rivers are more developed than those settled near major oceans. B. Historically, invasions by warrior tribes have always happened from west to east. C. People in the plains are more likely to invade than those settled in higher altitudes. D. Historically, societies in the north have been more developed than those in the south. E. Historically, innovations spread faster east to west than north to south.

E. Historically, innovations spread faster east to west than north to south.

Which political action is most likely to favor international marketing? Question options: A. placing trade embargoes on Cuba owing to widespread political instability in the country B. the U.S. government placing a trade ban on Libya owing to rampant terrorism C. the U.S. government coupling human rights issues with foreign trade policy D. tariff hike for imports established by China E. South Africa abolishing apartheid and the U.S. lifting the embargo

E. South Africa abolishing apartheid and the U.S. lifting the embargo

What is true of code-law systems? A. They establish ownership of intellectual property by prior use rather than registration. B. They represent a legal system that is not all-inclusive. C. They originate from tradition, past practices, and legal precedents set by the courts through interpretations of statutes, legal legislation, and past rulings. D. They fail to consider unforeseeable human acts such as riots as acts of nature. E. They sometimes fail to consider agreements to be enforceable unless properly notarized or registered.

E. They sometimes fail to consider agreements to be enforceable unless properly notarized or registered.

According to anthropologist Edward T. Hall, culture is A. standard throughout the world. B. strongly linked to physiology. C. all-encompassing. D. relatively minor in the scheme of life. E. communication.

E. communication.

For an international marketer, the ________ can be altered in the long run and, usually, in the short run to adjust to changing market conditions, consumer tastes, or corporate objectives. Question options: A. structure of distribution B. economic climate C. competitive structure D. environmental factors E. controllable elements

E. controllable elements

With which term would the phrase "Buy American" be most closely associated? A. polarism B. abstractionism C. socialism D. communism E. nationalism

E. nationalism

In North Korea, foreign investors or producers are required to sell products at prices stated by the North Korean government rather than letting market value and demand determine the prices. This implies that there is application of A. tax controls. B. exchange controls. C. import restrictions. D. local-content laws. E. price controls.

E. price controls.

Which event, leading to the overthrowing of the dictator Díaz, is particularly remembered for the expulsion of foreigners—most notably North American businessmen who were the most visible of the wealthy and influential entrepreneurs? A. the Madero Rebellion B. the Los Niños Rebellion C. the Mexican-American War D. the San Patricios Revolution E. the Mexican Revolution

E. the Mexican Revolution

According to the high-context/low-context continuum identified by Edward T. Hall, communication in a low-context culture depends on A. the context. B. when it is said. C. how it is said. D. who says it. E. the verbal expression.

E. the verbal expression.

In order for culture to exist it must be A. seen as the answer to all issues. B. used to create new rituals and norms. C. agreed upon by an entire nation. D. individualized and different for everyone. E. transmitted from one generation to the next.

E. transmitted from one generation to the next.