MKT 435 Exam 2 Quizzes
A country is ruled by one woman alone. This country's form of government is most likely a(n) A) dictatorship. B) oligarchy. C) democracy. D) aristocracy. E) monopoly.
A
A heavy equipment manufacturer is in talks with several other similar businesses about moving into a foreign market. Their primary goal for working together is to lower their financial risk, so they are considering a consortium. What should they know about consortia? A) A consortium usually operates in a country where none of the participants is currently active. B) A consortium is a partnership between individuals rather than companies. C) A consortium restricts the right to hold an equity position to its majority partners. D) A consortium is formed mainly for executing short-term projects. E) A consortium does not involve the creation of a separate legal entity.
A
After Russia's interference in the U.S. election, Congress issued ________ against the country. A) trade sanctions B) an injunction C) an expulsion of Russian citizens D) a freeze on bank accounts E) a travel ban
A
An American fabric manufacturing company sells its products to Big Box Store, a Japanese retailer. Big Box Store retails these products in major Japanese cities. Which form of entry best describes the strategy that the American company is engaged in? A) direct exporting B) joint venture C) franchising D) direct foreign investment E) licensing
A
Brenden's Coffee, a coffee chain, has recently decided on the mode of entry into a particular market. Which phase of the planning process is the coffee chain currently in? A) developing the marketing plan B) standardization of the marketing mix C) defining market segment D) implementation and control E) preliminary analysis
A
Changes in governments or ruling political parties can affect businesses. The main concern of a multinational corporation is A) the continuity of the set of rules, codes of behaviors, and the rule of law. B) which government is in power. C) change in the economic risk. D) the exchange rate and trade policies. E) access to open markets.
A
Identify the true statement about indirect exporting. A) It carries a lower risk than other modes of foreign-market entry. B) It accounts for about 90 percent of global economic activity. C) It has the highest rate of return. D) It offers the highest possible control than any other modes of foreign market entry. E) It involves more investments than direct foreign investment.
A
In the context of building strategic international alliances, ________ is usually the last step in the relationship activity and primarily deals with relying on mature and established relationships and facilitating interaction and relationships with future successors. A) fine-tuning B) dating C) interfacing D) imaging E) initiating
A
In the international arena, what poses the greatest problem in sampling? A) the lack of sufficient demographic data from which meaningful samples can be drawn B) an inability of international market researchers to speak foreign languages C) the lack of adequate population size to draw samples D) the lack of expertise in designing sampling layouts for a domestic market E) the difficulty in determining sample size suitable for the relevant foreign market
A
Private brands are those that are owned by A) retailers. B) countries. C) wholesalers. D) manufacturers. E) individuals.
A
Product homologation is a term used in many countries to describe A) changes mandated by local product and service standards. B) the process of marketing products similar to the ones already on the market in a manner as congruent as possible with existing cultural norms. C) the process of establishing new technical standards for a product. D) the process by which innovation spreads in a new market. E) the influence of the manufacturing country on a consumer's perception of a product.
A
Qualitative research A) is used to formulate and define a problem more clearly. B) is generally associated with survey research that involves yes/no questions. C) usually involves asking respondents to select a response from a set of choices. D) can be summarized in percentages, averages, or other statistics. E) provides a marketer with responses that can be presented with precise estimations.
A
The country-of-origin effect refers to the influence of the A) country of manufacture or design on a consumer's perception of a product. B) home country's laws on the products marketed in foreign markets. C) success of a product in the domestic market on the marketing strategies in foreign markets. D) economic conditions of foreign markets on the acceptance of a product in those markets. E) international trade regulations on the marketing of a product.
A
The marketing team at Tovio Technologies is drafting a plan to convey the benefits of its newly developed software to users in its international markets. In this scenario, the marketing team is working on improving the ________ of the product. A) complexity B) observability C) relative advantage D) compatibility E) trialability
A
What company is most likely to have a direct sales force in the foreign country where it intends to sell its products? A) a company manufacturing fiber optics B) a company manufacturing decorative candles C) a company manufacturing shirts D) a company manufacturing kitchenware E) a company manufacturing plasticware
A
When a Chinese company tried to purchase Unocal, it was perceived by some in the U.S. as A) a threat to sovereignty. B) a drain on the economy. C) an avenue for illegal immigration. D) a potential devaluing of the dollar. E) a sign that the Chinese economy was stronger than the U.S. economy.
A
When he was unable to find the statistics he needed for his report on market demand, Raphael decided to estimate based on historical and current data and trends reported by the UN. One problem with this is A) trends of the past may not continue in the future. B) the UN's data is also secondary source and not reliable. C) he isn't taking into account the source of the data. D) he should be using primary data instead. E) estimating is never a good idea.
A
Which country is experiencing maximum losses due to software piracy? A) the United States B) Vietnam C) Russia D) India E) Japan
A
Which mode of foreign market entry is the riskiest? A) direct foreign investment B) contractual agreement C) strategic alliance D) exporting E) joint venture
A
Which question should be asked by a marketing researcher when trying to establish the reliability of secondary data sources in the international arena? A) Are the data internally consistent in light of known data sources? B) How much does the data cost? C) Does the parent country's government encourage marketing research? D) How long did it take to complete the survey in question? E) What language is used in the parent country?
A
A Canadian company placed an order with a Korean company for electronic equipment. The Korean company was unable to deliver the goods on time due to a technical failure and the Canadian company incurred losses. Initial attempts to informally settle the dispute failed. Consequently, each party chose a person to defend their case and to make a judgment that both parties agreed to honor. The method of dispute resolution being used is A) coercion. B) arbitration. C) informal settlement. D) litigation. E) conciliation.
B
An electronics manufacturer in Norway has developed a training program to train its support staff in foreign markets on the repair and maintenance of its products. The firm also ensures that there is enough stock of spare parts in all its distribution centers. According to the Product Component Model, the company is making improvements in the ________ component of the product. A) global B) support services C) packaging D) design E) core
B
Countries, such as South Korea and Singapore, now view foreign investment as A) a drag on pricing in the industries that receive the investment. B) a path to economic growth. C) an environmental danger. D) a political risk to the country receiving the investment. E) a way to learn new technologies to make local companies more successful.
B
Joffrey is a part of the marketing team in his company. There is a conflict between the finance team and the marketing team of the company on the issue of market segmentation. While the finance team is arguing for a standardized approach toward market segmentation, Joffrey and his team members feel that it is more important to understand customer requirements on an individual basis for greater customer satisfaction. Which of these terms best describes the approach adopted by Joffrey's team? A) standardization B) customization C) homogenization D) normalization E) integration
B
Services are classified as intangible because A) they have a physical presence. B) they have an intrinsic value that results from a process, a performance, or an occurrence. C) their intrinsic value is embedded within their physical presence. D) they can be processed and stored in inventories for an indefinite period. E) they are things or objects that can be stored and possessed.
B
The Export-Import Bank provides A) risk insurance for companies investing in less-developed countries. B) underwriting of trade and investments for U.S. firms. C) a means to helping U.S. business compete in the global marketplace. D) credit insurance that minimizes nonpayment risk caused by financial, economic, or political uncertainties. E) aid to underdeveloped countries and has limited protection in support of "essential" projects in approved countries and for approved products.
B
The ________ license, issued only on formal applications, is a specific document authorizing exportation within specific limitations designated under the EAR. A) export B) validated C) specific D) general E) declaration
B
Tidal, a popular laundry detergent brand made in the United Kingdom, repackaged its washing powder in 20 gram and 50 gram packs in Kenya to enable them to sell them at lower prices. In this scenario, the factor that is influencing product adaptation in the local market is a(n) ________ requirement. A) climatic B) economic C) cultural D) political E) technological
B
What best describes the view toward market segmentation in the 1990s? A) adaptation versus one-to-one marketing B) global integration versus local responsiveness C) global integration versus one-to-one marketing D) standardization versus adaptation E) standardization versus localization
B
What is the first step in adapting a product to a foreign market? A) developing a strategy to convey the benefits of the product to a consumer B) determining how new a product is to a market and how people react to newness C) developing a successful product strategy D) determining which physical attribute to modify to suit the local needs E) determining ways in which the product can be modified
B
What is the process of back translation? A) A questionnaire is translated from one language to another, and then the original translator translates the questionnaire into different languages, and the different translations are then compared. B) A questionnaire is translated from one language to another, and then a second party translates it back into the original, and the two original language versions are compared. C) A questionnaire is translated from one language to another, and then a second party translates the questionnaire into third language, and the three translations are then compared. D) A questionnaire is translated from one language to another, and then multiple parties translate the questionnaire into different languages, and the different translations are then compared. E) A questionnaire is translated from one language to another, and then the original translator translates it back into the original, and the two original language versions are compared.
B
What method of demand forecasting is particularly suited to international marketing, particularly when the foreign country is new to the marketer? A) simulation B) expert opinion C) scenario building D) extrapolation E) probabilistic forecasting
B
What should marketing researchers do once they have determined the sources of information to fulfill the research objectives? A) Assess the suitability of available statistical methods for analyzing the data. B) Consider the costs and benefits of the research effort. C) Interpret and tabulate the information gathered. D) Determine the goals of the research. E) Conduct surveys and in-depth interviews with the respondents.
B
What type of research is used in developing research hypotheses that can be tested in subsequent studies designed to quantify concepts? A) experiments B) qualitative research C) secondary data D) questionnaires E) survey research
B
When determining how to apply international law, U.S. courts have used the "objective theory of jurisdiction," which means that when an act is committed outside the territorial jurisdiction of U.S. courts, A) the World Court has the right to choose who has jurisdiction. B) those courts can nevertheless have jurisdiction if the act produces effects within the home country. C) that act must be adjudicated by the country in which it occurs. D) the home country's courts have no jurisdiction in the matter. E) both the courts in the home country and in the country in which the act occurred have jurisdiction, and the company can be charged in both cases.
B
When two or more participating companies join forces to create a separate legal entity to facilitate doing business in a country where at least one of them is currently active, it is called a A) franchise pact. B) joint venture. C) license arrangement. D) consortium. E) direct investment agreement.
B
Which approach will help traditional American companies operating in countries like China to protect intellectual property rights? A) avoiding negotiation and alternative dispute resolution B) complaining to the U.S. government and World Trade Organization C) not engaging local representation D) expecting the home country to actively police their intellectual property E) using IP without registering it with the appropriate agencies in United States
B
Which characteristic of an innovation is most likely to have a negative impact on the acceptance of a product in the intended market? A) compatibility B) complexity C) relative advantage D) trialability E) observability
B
Which method is considered the final step in resolving a dispute? A) coercion B) litigation C) arbitration D) informal settlement E) conciliation
B
________ law is derived from Roman law and is found in Germany, Japan, France, and non-Marxist countries. A) English B) Code C) Islamic D) Common E) Commercial
B
A company has been able to successfully market most of its new inventions in its target markets because of its focus on niche areas and an efficient and experienced marketing team. The success of this company in launching most of its inventions is referred to as A) green marketing. B) product homologation. C) conversion-ability. D) product congruence. E) mass customization.
C
A product's ________ is among the most important criteria to influence consumers' purchase decisions. A) technology B) design C) cost D) appearance E) size
C
Economic nationalism has what effect on international relations? A) It causes countries to be more economically interdependent, which affects trade policies. B) Economic nationalism does not affect international relations. C) It makes national security and interest more important than international relations. D) Nationalist feelings lead to loss of control over foreign investment. E) It invites foreign investment as a means of shoring up the national economy.
C
Expropriation may result in A) seizing a company's assets without payment. B) assets being seized by the International Trade Administration. C) assets becoming a government-run entity. D) a more gradual change than domestication. E) assets being insured by the Overseas Private Investment Corporation.
C
Ladies Nights, a lingerie company, has developed a marketing plan for its target market. Budgets, sales, and profit expectations have been penciled out. Now, Ladies Nights has begun to implement its specific plans and is anticipating great success in its chosen market. Which of the following phases of the international marketing process is Ladies Nights currently in? A) Phase 3 B) Phase 1 C) Phase 4 D) Phase 5 E) Phase 2
C
Marco is conducting strategic planning, which means that he is A) ignoring the research component of a company. B) disregarding either the long-term or short-term goals of the company. C) conducting his planning at the highest levels of management. D) conducting local market planning. E) solely addressing marketing and advertising questions at the local level.
C
The Canadian courts use "the credulous person standard" to determine whether a representation is false or misleading. A court would consider a representation to be misleading when the representation A) is devoid of puffery. B) is targeted at a particular market segment rather than a wide audience. C) could possibly be misunderstood by any reasonable person. D) claims to be superior over other competitors' products with evidence. E) mimics the representation of a competitor.
C
What statement is true regarding matrix structures? A) They are the least extensive of the other forms of organizational structures. B) They work best when a close relationship with national and local governments is important. C) They are designed to encourage sharing of experience, resources, and expertise among global business units. D) They are the most unpopular form of organizational structures. E) They fail to accommodate customers who themselves have global operations and global requirements.
C
When justices in the U.S. look to past legal precedents to decide a contemporary case, they are practicing ________ law. A) Islamic B) civil C) common D) Roman E) commercial
C
A U.S. company's chocolates had to be sold from refrigerated containers in its Middle East markets to prevent the chocolate from melting due to high temperatures. In this scenario, the factor that is influencing the change in the product is the _______ requirements of the foreign market. A) technological B) economic C) cultural D) climatic E) legal
D
As illustrated by the Product Component Model, which component of a product will be altered if a company makes changes to the design of the product to improve its functionality? A) global B) packaging C) aesthetics D) core E) support services
D
Chun Hei is carrying out a marketing research study. Even after seeking all reasonable available secondary data sources, she has not been able to adequately answer the research questions. In such a situation, Chun Hei must collect ________ data. A) derived B) cohort C) referential D) primary E) syndicated
D
Common law differs from civil law in that common law A) excuses compliance on unforeseeable human acts such as labor strikes and riots. B) is considered complete because of the catchall provisions found in most law systems. C) is recognized as being all-inclusive. D) considers past decisions of higher courts to determine cases. E) includes civil and criminal law.
D
Doreen is a looking into franchising in a foreign country. What should she be aware of when making her decision? A) The franchiser has little control on marketing of the products at the point of final sale. B) Foreign laws and regulations are usually hostile toward franchising. C) Franchising is an important form of horizontal market integration. D) Franchising provides an effective blending of skill centralization and operational decentralization. E) The franchiser provides market knowledge, capital, and personal involvement in management.
D
Exchange controls are most likely imposed by a country A) when there are no adequately developed sources of supply within the country. B) when there is a drop in the price of essential products that command considerable public interest in the country. C) when there is an abundance of foreign exchange in the country. D) when there is a substantial amount of capital leaving the country. E) when it is required that a portion of any product sold within the country contain locally made parts.
D
Mary Louise is conducting tactical planning, which means that she is A) ignoring questions that relate to advertising and marketing. B) specifically dealing with her company's products, capital, and research at a global level. C) excluding plans that are made at the local level. D) dealing with specific actions that are used to implement strategic planning goals. E) conducting her planning at the highest levels of management.
D
To control the cost of living in a country during inflationary periods, what may be applied to essential products that command considerable public interest? A) exchange controls B) import restrictions C) antidumping duties D) price controls E) local-content laws
D
What political risk is occurring when a government decides to take over a business without paying for it? A) expropriation B) restriction C) nationalization D) confiscation E)privatization
D
What type of research usually involves a large number of respondents who are asked to reply, either verbally or in writing, to structured questions using a specific response format or to select a response from a set of choices? A) descriptive research B) focus group interview C) exploratory research D) quantitative research E) in-depth interview
D
When assessing a foreign market, Unisys Corporation undertakes a general, noneconomic review of conditions affecting the business, including safety and leisure time. This demonstrates a focus on the A) market conditions. B) economic and demographic environment. C) competitive situation. D) cultural, sociological, and political climate. E) technological environment.
D
Which of the following disputes can be adjudicated by the World Court? A) a dispute between two technological companies based in the United States B) a personal dispute between the citizens of two countries C) a dispute between a company from England doing business with a company in China D) a dispute between the government of Canada and the government of Iraq E) a commercial dispute between a citizen of America and a company in Russia
D
Which of the following legal systems prohibits investment in businesses that deal with alcohol, gambling, and casinos? A) civil B) commercial C) socialist D) Islamic E) common
D
An American business wants to enter a foreign market, but it is concerned with how political issues may affect the business. Which of the following is most likely to be at the top of the list it should be concerned with? A) the existence of voluntary export restrictions B) the existence of cyberterrorism C) the practice of acculturation D) the presence of nongovernmental organizations E) the instability of prevailing government policies
E
Axler Inc., a U.S. firm, entered into a business agreement with M.K. Group of Manufacturers. Recently they had a major dispute over the terms of the agreement. Both firms decided to resolve the dispute informally by appealing to an independent tribunal to mediate their differences. Which of the following dispute resolution methods is being used by the companies in the above scenario? A) coercion B) litigation C) informal settlement D) arbitration E) conciliation
E
Chocolotto, a chocolate manufacturer, displays a brown dot in a brown square symbol, instead of a green dot in a green square symbol, on the packaging of its products in Indian markets to indicate the presence of animal-based ingredients. Such mandatory requirements that necessitate changes in the labeling of products are part of the ________ requirements in the local marketplace. A) technological B) consumer C) climatic D) economic E) legal
E
Colleen didn't have a lot of time to conduct her marketing research, so she went to the library to see what data she could find from available sources. Colleen is using ________ data sources for her research. A) personal B) primary C) firsthand D) direct E) secondary
E
Confiscation, expropriation, and domestication are classified as ________ risks. A) pricing B) market C) environmental D) social E) political
E
Researchers have discovered a number of factors that are associated with better communication within multinational companies, including A) triangulation. B) fewer communication instances. C) the use of expert opinion. D) the use of email and other written forms of communication. E) face-to-face communication opportunities.
E
The International Trade Administration provides A) risk insurance for companies investing in less-developed countries. B) underwriting of trade and investments for U.S. firms. C) aid to underdeveloped countries and has limited protection in support of "essential" projects in approved countries and for approved products. D) credit insurance that minimizes nonpayment risk caused by financial, economic, or political uncertainties. E) a means to helping U.S. business compete in the global marketplace.
E
The government of a small country has made it mandatory for international banks and insurance firms to obtain the consent of individuals before exchanging their personal data with other branches of the firm in foreign countries. These firms cannot share the personal details of an individual such as income, employment details, and debt repayment histories, even with their branches in other countries, without the approval of the individual. Which barrier to the functioning of service firms is demonstrated? A) language translation barriers B) cultural congruence C) protection of intellectual property D) cultural requirements for adaptation E) controls on transborder data flows
E
What is a new and growing area of concern that limits the availability of data today? A) comparability B) reliability C) storage D) validation E) privacy
E
What is a problem that is most commonly associated with the use of secondary data? A) willingness to respond B) storage of data C) ability to communicate opinions D) defining the research problem E) comparability of data
E
What is an example of a nation giving up some of its sovereign rights to meet a mutually beneficial goal? A) national elections B) the Peace Corps C) disaster relief D) state-run welfare programs E) NATO
E
What is an international convention designed for mutual recognition and protection of intellectual property rights in Europe and includes 26 European nations? A) the Inter-American convention B) the International Chamber of Commerce C) the Paris Convention for the Protection of Industrial Property D) the Patent Law Treaty E) the Bureau for International Registration of Trademarks
E
Which statement is true regarding the contractual validity of electronic contracts? A) Electronic contracts are not enforceable by law. B) India recently passed a law stating that digital signatures are not legally binding. C) The EU Commission has adopted an e-commerce directive that will forbid online retailers from trading by the rules of their home country. D) E-mail is not considered as a valid form of communication in most countries, including India E) The United Kingdom recognizes digital signatures used in creation of online contracts to be as legally binding as any paper-based original document.
E