midterm Int. Marketing

3) Which of the following is true of international marketing? A) The international marketer is faced with often inconsistent legal systems when it comes to monitoring environmental pollution. B) International marketing does not retain the basic marketing tenets of value and exchange. C) International marketing does not focus on stakeholders and society whose present positions are to be improved. D) The international marketer is subject to the same set of macroenvironmental factors as a domestic marketer.

A) The international marketer is faced with often inconsistent legal systems when it comes to monitoring environmental pollution.

Which of the following is true about the importance of world trade? A) World trade has deeply affected domestic policymaking and has often resulted in the emergence of totally new threats to firms and individuals. B) The growth of domestic economies has typically outperformed global growth of trade in the past few decades. C) When firms invest on a global scale, it is difficult for entire industries to shift their locations. D) Due to the severe recession that affected much of the world's economy in 2008 and 2009, world trade could not rebound in 2010.

A) World trade has deeply affected domestic policymaking and has often resulted in the emergence of totally new threats to firms and individuals.

"Voluntary" import restraints have been used mainly in areas such as textiles, automobiles, and steel, and are intended to _____. A) help domestic companies regain their trade prominence of years past B) show good political citizenship by members C) penalize exporters of raw materials D) situate the imports as a political component as opposed to a trade embargo

A) help domestic companies regain their trade prominence of years past

Age distribution and _____ correlate heavily with the level of development of the market. A) life expectancy B) gender C) nationality D) lifestyle

A) life expectancy

The manifestations of the total way of life of any group of people are referred to as cultural _____. A) universals B) imperialism C) convergences D) relativism

A) universals

_____ refers to a marketer's decision to focus its resources on a smaller number of markets as opposed to a broad number of markets. A. Concentration B. Differentiation C. Diversification D. Cross-subsidization

A. Concentration

Which of the following approaches uses an intermediary such as an outside research agency to bring headquarters and country operations together? A. Coordinated research approach B. Top-down approach C. Decentralized approach Centralized approach

A. Coordinated research approach

_____ refers to demand for raw materials, parts, and other inputs that depends on demand for some other good. A. Derived demand B. Latent demand C. Effective demand D. Marginal demand

A. Derived demand

Which of the following is true of a focus strategy? A. It is oriented toward either low cost or differentiation. B. It is either industry-wide or focused on a single segment. C. It offers an identical product at a lower cost than the competition. It has a broad target scope

A. It is oriented toward either low cost or differentiation.

_____ are accepted behaviors within a society or group. A. Norms B. Virtues C. Anomies D. Motives

A. Norms

Which of the following is NOT one of the three choices of competitive strategies that the marketing manager has at his/her disposal? A. Target positioning B. Cost leadership C. Differentiation D. Focus

A. Target positioning

_____ refers to a consumer's interest in, and openness to, acquiring goods from other countries. A. World mindedness B. Conspicuous consumption C. Narrowcasting D. Consumer ethnocentrism

A. World mindedness

Which of the following laws states that as a family's income increases, the percentage spent on food will decrease? A) Pareto's law B) Engel's law C) The law of diminishing returns D) Gresham's law

B) Engel's law

____ are designed to deny or at least delay the acquisition of strategically important goods by adversaries. A) Antidumping laws B) Export control systems C) Voluntary restraint agreements D) Domestication activities

B) Export control systems

Which of the following is an example of a dual-use item? A) Handbags B) Life jackets C) Compact cars D) Artillery

B) Life jackets

_____ are companies that traditionally provide low-priced goods for the bottom-of-the-pyramid consumers in their home markets. A) Multinational incumbents B) Local upstarts C) Global aspirants D) Domestic giants

B) Local upstarts

Which of the following United States authorities, in addition to the normal business literature and its anecdotal information, publish specific country studies? A) The Immigration and Naturalization Service B) The Department of Commerce C) The Office of Foreign Assets Control D) The Internal Revenue Service

B) The Department of Commerce

which of the following began in 1947 as a set of rules for nondiscrimination, transparent procedures, and settlement of disputes in international trade? A) The Free Trade Area of the Americas B) The General Agreement on Tariffs and Trade C) The North American Free Trade Agreement D) The General Agreement on Trade in Services

B) The General Agreement on Tariffs and Trade

Which of the following new technologies has allowed consumers to supply and receive products from across the world for personal use? A) Travelogues on cable television B) The Internet C) Automated pensions and individual retirement accounts D) Newly created niche markets

B) The Internet

A country's use of computers, telephones, broadcast media, and print media is an indicator of: A) passive consumers. B) communication. C) distribution channel. D) transportation.

B) communication.

The International Monetary Fund (IMF) was founded to: A) manage monetary policies around the world. B) help restructure impoverished economies. C) provide infrastructural and medical aid to developing countries. D) provide financial assistance to developing countries for development programs.

B) help restructure impoverished economies.

The availability and quality of _____ is critically important in evaluating marketing operations abroad. A) urban population B) infrastructure C) market diffusion D) education

B) infrastructure

Market information on the percentage of households that own a particular product is known as: A) product categorization. B) product diffusion. C) market potential. D) market penetration.

B) product diffusion.

By erecting barriers, designing quotas, and implementing other import regulations, governments have attempted to: A) prevent illegal trade across borders. B) restrict the impact of global trade and financial flows. C) increase the income of the government. D) capitalize on technology and enforce worldwide standards.

B) restrict the impact of global trade and financial flows.

_____ is the tendency to view domestically produced goods as superior to those produced in other countries. A. Conspicuous consumption B. Consumer ethnocentrism C. Narrowcasting D. World mindedness

B. Consumer ethnocentrism

According to Maslow's hierarchy of needs, which needs have to be fulfilled before a consumer can attempt to fulfill his safety needs? A. Love and belonging needs B. Physiological needs C. Esteem needs D. Self-actualization needs

B. Physiological needs

Firms are increasingly recognizing that ____ variables, such as lifestyles, attitudes, or personality, can play a major role in identifying similar consumer groups in different countries. A. Discrete B. Segmentation C. purchase-related D. economic

B. Segmentation

_____ are special because they can affect currency values and the fiscal and monetary policies of governments, shape public perception of competitiveness, and determine the level of imports a country can afford. A) Protectionist laws B) Mixed aid credits C) Exports D) Non tariffs

C) Exports

1) Which of the following best defines international marketing? A) It is the process of planning and conducting economic forecasting in developing countries. B) It is the process of creating a subsidiary in a neighboring country. C) It consists of the activity, institutions, and processes across national borders that create, communicate, deliver, and exchange offerings that have value for stakeholders and society. D) It is the process of hiring employees from other countries to assist with advertising messages, public communication, and the building of overall awareness.

C) It consists of the activity, institutions, and processes across national borders that create, communicate, deliver, and exchange offerings that have value for stakeholders and society.

Which of the following is true about culture? A) It pertains only to the group being analyzed and does not translate to another group. B) It has been shown that newborns have an understanding of their culture from birth and therefore it is hereditary. C) It is inherently conservative, resisting change and fostering continuity. D) It is difficult to articulate because culture has no distinguishing characteristics.

C) It is inherently conservative, resisting change and fostering continuity.

Which of the following is true regarding technological innovation? A) Technological innovation has complicated the production process. B) Technological innovation has increased demand, therefore products are distributed at a higher cost. C) Technological innovation allows for customization in order to meet diverse clients' needs. D) Technological innovation enables greater access to raw materials around the world which in turn increases production costs.

C) Technological innovation allows for customization in order to meet diverse clients' needs

What is the core mission of the WTO? A) To provide for general difficulties in the market entry of foreign products B) To provide preferential treatment to domestic bidders over foreign bidders C) To facilitate international trade and investment D) To deal with social causes and issues such as labor laws and competition

C) To facilitate international trade and investment

_____ refer to governmental actions that distort the free flow of trade in goods, services, or ideas for decidedly adversarial and political, rather than strictly economic, purposes. A) Gray market activities B) Tariffs and barriers C) Trade sanctions and embargoes D) Expropriation and confiscation

C) Trade sanctions and embargoes

The International Bank for Reconstruction and Development is also known as the _____. A) Export-Import Bank B) UNDP C) World Bank D) IMF

C) World Bank

The process of adjusting and adapting to a specific culture other than one's own is termed as _____. A) cultural imperialism B) ethnocentrism C) acculturation D) back-translation

C) acculturation

When firms refuse to do business with someone, often for political reasons, this is known as _____. A) image tarnishing B) expropriation C) boycotting D) confiscation

C) boycotting

Purchasing power is a function of income, prices, savings, and _____. A) population B) education C) credit availability D) natural resources

C) credit availability

Which of the following strongly influences a consumer's ability to purchase goods and services? A. Legal factors B. Political environment C. Income level D. Sociocultural factors

C. Income level

A(n) _____ is an internal force that orients a person's activities toward satisfying a need or achieving a goal. A. Norm B. Virtue C. Motive D. Intuition

C. Motive

What are the two basic forms of research gathering methods? A. Generic and specific B. Presentation and demonstration C. Primary and secondary D. Limited and scope-oriented

C. Primary and secondary

Which of the following represents the highest level in Maslow's hierarchy of needs? A. Esteem needs B. Physiological needs C. Self-actualization needs D. Safety needs

C. Self-actualization needs

_____ refers to the capability of attracting and influencing all stakeholders, whether through energetic brands, heroic missions, distinctive talent development, or an inspirational corporate culture. A. Cross-subsidization B. Brand awareness C. Soft power D. Segmentation

C. Soft power

Which of the following statements about the WTO is true? A) Provisions are made at the WTO for decisions to be made by majority vote if a consensus cannot be achieved. B) A successful WTO may well endorse the sovereignty of nations. C) The original goal of the WTO was to provide for fixed exchange rates between countries. D) Outside groups such as nongovernmental organizations believe the WTO will assist their causes.

A) Provisions are made at the WTO for decisions to be made by majority vote if a consensus cannot be achieved.

Which of the following statements is true about foreign direct investment? A) Foreign investments may result in growing concern among policymakers about dependency on foreign owners. B) The United States is the sole foreign direct investor in the world. C) Foreign affiliates are not participants of trade. D) Foreign direct investment tends to be distributed equally across all industries.

A) Foreign investments may result in growing concern among policymakers about dependency on foreign owners.

Which of the following is true about values and attitudes? A) In tradition-bound societies, attitude toward change is viewed with great suspicion. B) Attitude toward change is basically negative in industrialized countries. C) Values are the evaluation of alternatives based on attitudes. D) Cultural attitudes are typically a deterrent to foreign business practices.

A) In tradition-bound societies, attitude toward change is viewed with great suspicion.

What is the term used for a firm founded with a global scope in mind from the very beginning? A) Global B) Economic bloc C) Multinational D) Born global

D) Born global

The Soviet Union, as the leader of the Eastern bloc, developed the _____, which focused on developing strong linkages among the members of the Soviet bloc and discouraged relations with the West. A) Gulf Cooperation Council B) Transatlantic Business Dialogue C) MERCOSUR D) Council for Mutual Economic Assistance

D) Council for Mutual Economic Assistance

Apart from population, which of the following is most indicative of the market potential for most consumer and industrial products and services? A) Political stability B) Education levels C) Life span D) Income

D) Income

The trading bloc NAFTA is located in _____. A) Asia B) Europe C) South America D) North America

D) North America

Which of the following determines the roles of managers and subordinates and the way they relate to one another? A) Inequality B) Ethnocentrism C) Cultural assimilation D) Social organization

D) Social organization

Which act raised duties to reduce the volume of imports into the United States, in the hopes that this would restore domestic employment? A) The Export Trading Company Act B) The Gramm-Leach-Bliley Act C) The Sarbanes-Oxley Act D) The Smoot-Hawley Act

D) The Smoot-Hawley Act

When products and goods enter a market in ways not desired by their manufacturers, this is known as _____ market activities. A) black B) white C) green D) gray

D) gray

Marketers who bring about cultural change through dramatic campaigns without the adaptation to culture-specific elements can be accused of cultural _____. A) relativism B) diffusion C) revolution D) imperialism

D) imperialism

The three components of the Physical Quality of Life Index are infant mortality, adult literacy and _____. A) social responsibility B) growth stability C) adolescent sustainability D) life expectancy

D) life expectancy

The unconscious allusion to one's own cultural values is known as _____ criterion. A) high-context B) collectivist C) ethnocentric D) self-reference

D) self-reference

Which of the following are two of the most powerful globalization drivers? A. Concentrating investments in national markets and focusing on economies of scale B. Restricting entry to geographically close markets and pushing standardized solutions on customers C. Centralizing all operations of R&D and providing additional funds for research D. Avoiding cost inefficiencies and duplication of effort

D. Avoiding cost inefficiencies and duplication of effort

Which of the following is true about government barriers to international marketing? A. Global companies support governmental decisions to implement barriers on domestic marketing. B. Government barriers have been implemented to discourage international marketing and concentrate only on domestic marketing. C. Physical, fiscal, and technical barriers are the same globally and apply to all companies. D. Barriers have fallen dramatically in the last years to further facilitate the globalization of markets.

D. Barriers have fallen dramatically in the last years to further facilitate the globalization of markets.

_____ takes advantage of the marketer's real or perceived uniqueness in elements such as design or after-sales services. A. Standardization B. Cross-subsidization C. Diversification D. Differentiation

D. Differentiation

_____ refers to a company's decision to expand its portfolio by developing a strategy characterized by growth in a relatively large number of markets. A. Concentration B. Differentiation C. Cross-subsidization D. Diversification

D. Diversification

2) Export-import trade, licensing, joint ventures, wholly owned subsidiaries, turnkey operations, and management contracts are examples of: A. global positioning systems. B. outsourcing. C. regional agreements. D. international marketing.

D. international marketing.

The recognition that groups within markets differ sufficiently enough to warrant individual marketing mixes is known as _____. A. Targeting B. Positioning C. Diversification D. segmentation

D. segmentation

Outside research is appropriate: A. for small-scale international marketing research. B. for small-scale domestic marketing research. C. when generalized research skills are required. D. when specialized research skills are required.

D. when specialized research skills are required.