MK 416 International Marketing Exam 2

James Barker is the marketing manager of a firm with small international sales volume. He is looking for a middleman who can take responsibility for promotion of the company's products, credit arrangements, physical handling, and market research. Also, the middleman must be able to provide information on financial, patent, and licensing matters. In addition, the middleman should agree to work under the name of the firm. Which of the following types of middlemen would be the best choice for Mr. Barker if he wants to meet his objectives? A trade representative. An export merchant. A manufacturer's export agent. A complementary marketer. An export management company.

A manufacturer's export agent.

The primary multinational trade group in Asia is _____. SADC COMESA NAFTA ASEAN CEFTA

ASEAN

Consumers have broad but somewhat vague stereotypes about specific countries and specific product categories that they judge "best." Which of the following would not fit in the "best" stereotype scheme? English tea Jamaican rum French perfume Chinese silk American chocolate

American chocolate

A multinational company, with its headquarters in the U.S., wants to sell a new high-technology product in foreign markets. For effective selling, the sales force for this company should consist mostly of: veterans. local nationals. American expatriates. college recruits. temporary personnel.

American expatriates.

Which of the following is an example of comparative advertising? a. An ad showing the superiority of synthetic materials used in its products as compared to cotton. b. An ad showing a celebrity smoking his preferred brand of cigarettes. c. An ad using shocking or taboo material to promote a product. d. An ad showing a dog choosing one brand of dog food over another. e. An ad using a scantily clad model to promote a soft drink.

An ad showing a dog choosing one brand of dog food over another.

A European chocolate manufacturer received several complaints from customers about the quality of its product when it began selling them in a tropical country. The firm had to re-package its chocolate bars in an extra plastic wrapper to protect it from the heat and dust. Which of the following factors in the local market dictated product adaptation in the current scenario? Legal requirements. Political requirements. Technological requirements. Economic requirements. Climatic requirements.

Climatic requirements.

Which of these levels of economic integration lacks only political unity to become a political union? Customs union Trade friendly zone Free trade area Common market Regional cooperation group

Common market

C. K. Prahalad has cited two primary misconceptions behind the international marketers ignoring the bottom-of-the-pyramid markets. One of the reasons is that the products and services developed for more affluent consumers are not appropriate for these markets. Which of the following is the other misconception? The heavy taxation system in bottom-of-the-pyramid markets allows little profit. Unwillingness of consumers in the bottom-of-the-pyramid markets to buy international products. The lack of uniformity in bottom-of-the-pyramid markets. Consumers in the bottom-of-the-pyramid markets lack both money and technology. Consumers in the bottom-of-the-pyramid markets are characterized by conservative traditions and culture.

Consumers in the bottom-of-the-pyramid markets lack both money and technology.

Which of the following is true of advertising agencies for international advertising? a. A multinational agency always has the best feel for a market. b. A local domestic agency may provide a company with a high level of sophistication. c. Agency commission patterns are consistent throughout the world. d. A multinational agency provides the best cultural interpretation in a situation in which local modification is required. e. Cross-cultural communication between a foreign client and a local agency can be problematic.

Cross-cultural communication between a foreign client and a local agency can be problematic.

The Red Lobster seafood restaurant is considering opening branch operations in China. However, the restaurant chain's labor union has already pointed out a potential problem with this expansion. In China, it is considered to be in bad taste to allow employees to collect tips for service. Since a great portion of a typical wait-staff person's compensation comes in the form of tips, the union would like to know how employees would be compensated for this loss. The above example illustrates which of the following barriers a consumer services marketer faces in a foreign market? Protection of intellectual property. Controls on transborder data flows. Protectionism. Cultural requirements for adaptation. Language translation barriers.

Cultural requirements for adaptation.

A clothing company in Singapore which specialized in women's clothing, had to modify its clothes before introducing them to Iranian markets, to suit the needs of women in that country. Women in Iran are expected to cover themselves completely. The company mostly used opaque material and provided accessories like scarves. Which of the following factors is dictating product adaptation in the above scenario? Technological requirements. Economic requirements. Climatic requirements. Legal requirements. Cultural requirements.

Cultural requirements.

_____ is often the approach of choice in markets with insufficient or underdeveloped distribution systems. A big wholesale store A discount house Internet selling Television advertising Direct marketing

Direct marketing

Booster bar is a popular brand of energy bars in Canada. The company sold these bars singly or in packs of two in the South Asian markets, instead of their regular multiple-item packaging containing 10 or 20 bars to make it more affordable for the consumers. Which of the following requirements of the local market is influencing product adaptation in the above scenario? Cultural requirements. Political requirement. Technological requirements. Legal requirements. Economical requirements.

Economical requirements.

Which of the following is the main reason for the failure of individual incentives to motivate employees in Japan? Practice of cultural chauvinism. Emphasis on paternalism. High corruption levels. Encouraging individualism. Democratic form of government.

Emphasis on paternalism.

The _____ initiates policy and supervises its observance by member states, and it proposes and supervises execution of laws and policies. Council of Ministers European Commission Commonwealth of Independent States World Trade Organization United Nations

European Commission

The _____ originally had only a consultative role that passed on most European Union legislation but now has the power to amend and adopt legislation. European Commission Legislative Commission Council of Ministers European Parliament Court of Justice

European Parliament

Which of the following is the main disadvantage of hiring local nationals in the sales force? Headquarters personnel tend to ignore the advice of local nationals. Poaching of experienced personnel by competitor companies increases. Most local nationals turn out to be costlier in the long run. Cultural differences lead to communication issues. National interests conflict with the corporate strategy.

Headquarters personnel tend to ignore the advice of local nationals.

In the context of designing an international sales force, which of the following is true of Japan? Japan is not a member of World Trade Organization. Japan has an information-oriented culture. Japan allows for greater use of expatriates. In Japan, personal selling need not be localized. In Japan, complete local knowledge is important for salespeople.

In Japan, complete local knowledge is important for salespeople.

Which of the following is true of the APEC? It is opposed to open trade. It aims to increase barriers to investment. It promotes economic cooperation. Russia is not a member of this grouping. Its members meet once in six months.

It promotes economic cooperation.

_____ is one of the major barriers to effective communication through advertising. Religion Power structure Technology Jingoism Language

Language

Which of the following characterizes the business philosophy of the Japanese distribution channels? Price competition Variety Direct sales Fast delivery Loyalty

Loyalty

What are the two dimensions that help in defining the quality of a product of quality? Product quality and service quality. Market-perceived quality and performance quality. Absolute quality and relative quality. Actual quality and assumed quality. Product quality and process quality.

Market-perceived quality and performance quality.

While developing an international advertisement campaign, which of the following is the first step of the process? Compose and secure a budget based on what is required to meet goals. Select effective media. Specify the goals of the communication. Perform marketing research. Execute the campaign.

Perform marketing research.

Which of the following elements of integrated marketing communications is related to encouraging the press to cover positive stories about companies and managing unfavorable rumors, stories, and events? Trade shows Sales promotion Personal selling Direct selling Public relations

Public relations

_____ are considered to be the foundation of the Japanese distribution system. Brokers Small retailers Consumers Manufacturers Wholesalers

Small retailers

ASEAN+3 is a forum for ASEAN ministers plus ministers from China, Japan, and _____. Russia United States Australia New Zealand South Korea

South Korea

Which of the following is one of the nations referred to as the Four Asian Tigers? Thailand Malaysia Sri Lanka South Korea India

South Korea

Which of the following is true regarding Hong Kong, post its turnover to the People's Republic of China? The Hong Kong dollar has ceased to be freely convertible after its turnover to the People's Republic of China. After becoming a special administrative region of the People's Republic of China, Hong Kong has lost its autonomy. The central government in Beijing has no jurisdiction over matters related to foreign affairs and defense of Hong Kong. The Hong Kong SAR government openly opposes economic policies that stresses the predominant role of the private sector. The Hong Kong government negotiates bilateral agreements and makes major economic decisions on its own.

The Hong Kong government negotiates bilateral agreements and makes major economic decisions on its own.

_____ has long been considered the most effective nontariff barrier to the Japanese market. Japanese culture The Japanese distribution structure The Japanese population The Japanese import and export procedure Intense competition in Japan

The Japanese distribution structure

Which of the following is an example of the primary attribute of a product? The color of a laptop. The eco-friendly functioning of a digital watch. The prestige associated with driving a car. The ability of a camera to take a picture. The design and form factor of a phone.

The ability of a camera to take a picture.

Which of the following was the greatest hindrance to the development of software innovations appropriate for world markets in Japan? The deeply-rooted bureaucratic structure. The burgeoning population. The complex Japanese language. The growing fiscal deficit. The rise in global oil prices.

The complex Japanese language

Political explanations of Japan's crisis during the 1990s identified two villains. One of them was the powerful Japanese bureaucracy. Which of the following is the other one? The splintering of most of Japan's right-wing political parties. Japan's trade policies with the United States. The powerful influence of the royalty in political issues. The long entrenched Liberal Democratic political party. Japan's refusal to join Asian trade blocs.

The long entrenched Liberal Democratic political party.

Which of the following is true of the marketing opportunities in Greater China? a. Selling consumer products in China requires little cultural nuance. b. The economic system of China is based entirely on capitalist principles. c. There are extreme differences in economic well-being, cultures, and political structures. d. It has an efficient distribution and channel system and so companies can save on infrastructure building. e. Unlike the United States, luxury cars sell better in rural areas of the west.

There are extreme differences in economic well-being, cultures, and political structures.

Which of the following is an advantage of hiring local nationals in the sales force? They are less likely to accept any form of bribe. They are likely to have superior technical expertise. They are more knowledgeable of the company and its product line. They are more efficient in communicating with and influencing headquarters' personnel. They are more knowledgeable about a country's business structure and systems.

They are more knowledgeable about a country's business structure and systems.

Which of the following statements is true regarding agent middlemen? They do not represent the best interests of the manufacturer. They take title to the merchandise. They assume trading risks. They work on commission and arrange for sales in the foreign country. Manufacturers cannot control them as they control merchant middlemen.

They work on commission and arrange for sales in the foreign country.

Which of the following is a reason for an expatriate's failure to function effectively in a foreign assignment? Unsuccessful family adjustment. Differing customer expectations on product features. Reduced compensation and benefits. Lack of personal career planning. Interference from work councils.

Unsuccessful family adjustment.

At the most general level, the _____ represents the most important and comprehensive trade agreement in history. Amsterdam Treaty ASEAN NAFTA WTO MERCOSUR

WTO

Which of the following is true of an expatriate sales force? a. An expatriate sales force is found to be lacking in knowledge regarding the product line of the company. b. When selling requires an extensive background of information, an expatriate sales force is the best choice. c. Information-oriented cultures do not respond favorably to an expatriate sales force. d. An expatriate sales force is unsuitable when a company wants to sell high-technology products. e. In relationship-based cultures, an expatriate sales force proves to be most efficient.

When selling requires an extensive background of information, an expatriate sales force is the best choice.

Essentially, a free trade area (FTA) provides its members with: a regional cooperation for social development. a mass market without barriers among partner countries. customs unionization. an international market place without customs duties. political union

a mass market without barriers among partner countries.

The Commonwealth of Independent States is: a federation of many states. an economic and political alliance with open borders and no central government. a supranational organization similar to the old European community. a political alliance with a central government. an economic and political alliance with closed borders and a federal government.

an economic and political alliance with open borders and no central government.

C. K. Prahalad and associates introduced the concept of a global market, not necessarily defined by national borders but rather by the pockets of poverty across countries, and consisting of 4 billion people across the globe with annual incomes of less than $1,200. They refer to these consumers, concentrated in the LDCs and LLDCs, as _____ markets. bottom-of-the-pyramid peripheral underdeveloped third-world subsistence

bottom-of-the-pyramid

All of the following are specific objectives of sales promotion EXCEPT: immediate purchase. gaining retail point-of-purchase displays. building brand loyalty. encouraging stores to stock the product. consumer introduction to the store.

building brand loyalty.

The product platform, design features, and functional features are all found in the _____ component of the product, according to the product component model. core support packaging global functional

core

The _____ effect refers to the possibility that the place of manufacture may affect product or brand image. country-of-origin polar alteration plus or minus transfer

country-of-origin

A shoe manufacturer in Puerto Ria shipped his entire production to San Francisco and brought it back to his home country to market it as "Made in the U.S." He knew that people would prefer buying products made in the U.S. rather than those that are domestically produced. The factor that is influencing the perception of the customers in the above scenario is called _____. country-of-origin effect product homologation copycat aversion first-mover advantage host country effect

country-of-origin effect

In the context of the Internet in international marketing channels, technically, e-commerce is a form of _____ selling. direct targeted parallel dual mass

direct

Home-country middlemen are also known as _____ middlemen. regional domestic area merchant local

domestic

The distribution channel process includes all activities, beginning with the manufacturer and ending with the _____. final consumer wholesaler retailer merchant middlemen agent middlemen

final consumer

A _____ is an agreement between two or more countries to reduce or eliminate customs duties and nontariff trade barriers among partner countries while members maintain individual tariff schedules for external countries. customs union common market political union regional cooperation for development (RCD) free trade area (FTA)

free trade area (FTA)

A name, term, sign, symbol, design, or combination used worldwide to identify goods or services of one seller and to differentiate them from those of competitors is called a(n) _____. trademark brand's equity position global brand copymark owner's mark

global brand

In the context of evaluating and controlling sales representative, the primary control tool used by American sales managers is the: threat of termination. threat of foreign postings. incentive system. attraction of a foreign assignment. quota system.

incentive system.

In countries like Japan, a sales force is likely to be most effective if it consists mostly of: local nationals. virtual expatriates. expatriates from Asian countries. professional expatriates. third world nationals.

local nationals

The World Trade Organization is wholly dedicated to ____. the elimination of language barriers in trade making trade among nations more efficient free and open national borders the enforcement of international anti-bribery laws the expansion of capitalism

making trade among nations more efficient

A _____ provides a selling service for a manufacturer, has a short-term relationship, and operates on a straight commission basis. manufacturer's export agent manufacturers' retail store trading company complementary marketer global retailer

manufacturer's export agent

Eastern Europe and the Baltic states, satellite nations of the former Soviet Union, have moved steadily toward establishing postcommunist market reforms. This implies that: new business opportunities emerge in this region. all of the eastern European countries can be viewed as one entity. all of these countries have had the same success in economic reform and growth. all of these countries have made the same progress. the region is against establishing free markets.

new business opportunities emerge in this region.

Integrated marketing communications are composed of all of the following EXCEPT: sales promotions. advertising. political rallying. trade shows. public relations.

political rallying.

An especially effective promotional tool when a product concept is new or has a very small market share is known as _____. product tie-ins sponsorship product sampling sweepstakes contests

product sampling

Creating good relationships with the popular press and other media to help companies communicate messages to their publics-customers, the general public, and governmental regulators-is the role of _____. personal selling direct selling sales promotion trade shows public relations

public relations

The most basic economic integration and cooperation is the: common market. regional cooperation for development (RCD). political union. free trade area (FTA). customs union.

regional cooperation for development (RCD).

Japanese sales representatives are most satisfied with their jobs when: their technological knowledge is superior to that of others. they are better educated than their colleagues. their values are consistent with those of their company. they receive high salaries and many perks. they do not have to travel too much.

their values are consistent with those of their company.