Safavi FInal
Suppose you have a friend from India who is a lifelong vegetarian and who does not like McDonald's because the company sells hamburgers in many countries. Which of the following describes your friend?
"vegetarianism" represents a value; "dislike McDonald's" represents an attitude
Upper-middle-income countries, also known as industrializing or developing countries are those with GNI per capita ranging from:
$3,956 to $12,235.
Which of the following is true about the innovation diffusion process in Asia?
* Japan has a high-context culture with a relatively homogeneous population. * Because risk avoidance is a cultural value, there are fewer innovators in Asia than in the United States * Once innovators in Asia have tried a product, early adopters and the early majority quickly follow suit. * After a new product has achieved success in one Asian market, it is likely to be adopted in other Asian markets at an even faster rate.
Which of the following is true of the arbitration framework created by the New York Convention?
* Signatory countries can require parties to an arbitration agreement to actually use arbitration * Signatory countries recognize and can enforce arbitration judgments * There are limited grounds for appealing arbitration decisions * The grounds that are recognized are different than the typical appeals that are permitted in a court of law.
According to the authors of the Harvard Business Review article, "Serving the World's Poor, Profitably," which of the following is a mistaken assumption that global companies might have about the BOP (bottom of the pyramid)?
* The poor have no money. * The poor are too concerned with fulfilling basic needs to "waste" money on nonessential goods. * People in BOP markets will be criticized for exploiting the poor. * People in BOP markets cannot use advanced technology
Because they are in transition, the markets of Central and Eastern Europe present interesting opportunities and challenges, which include:
* new sources of growth * first mover advantage * exporting as an entry mode * lower wage rate
The Organization for Economic Cooperation and Development (OECD) is described as the:
* organization of 35 nations. * rich-man's club. * pluralistic democracies. * economic think tank.
Management strategic options pertaining to products that are facilitated by a single European market include:
* standardized packaging and labeling * consolidated production * shift from brand to benefit segmentation * seeking marketing economies
The fastest-growing sector of world trade includes:
* travel and entertainment. * accounting and legal services. * royalties and license fees. * engineering services
In West Africa, Burkina Faso, the Ivory Coast and Senegal are former French colonies, while Nigeria, Sierra Leone, and Ghana are former British colonies. Based on this information, which of the following would be correct?
Burkina Faso, the Ivory Coast and Senegal are civil-code countries, while Nigeria, Sierra Leone, and Ghana are common-law countries.
In the post-September 11 business environment in the United States, imports have come under increased security. One of the initiatives taken in the interest of national security is:
C-TPAT
Which of the following is true about protection of computer software?
Copyright laws protect the actual code, while patent laws protect the idea
________ builds upon the elimination of internal tariff barriers, the establishment of common external barriers, and the free flow of factors.
Customs union
Toyota learned many things from its partnership with GM, however American managers involved in the venture complained that:
Toyota did not apply manufacturing expertise at GM plant.
Which of the following is true about Japanese keiretsu?
Toyota is a vertical keiretsu, Mitsubishi is a horizontal keiretsu
When Walt Disney Company's executives were planning to build a theme park in France, they firmly believed that the success of McDonald's and Coke as well as their own success in Tokyo ensured the runaway success of their plans. Disney policies prohibit sale or consumption of alcohol inside their theme parks, which they also implemented in France. This proved to be a failure since consuming wine with the midday meal is a long-established custom in France. This is most likely a classical example of:
being victim to the self-reference criterion
Which of the following documents represents title to goods in an export transaction?
bills of lading
The kind of brand awareness a company wants to project is identified by:
buyer perception
Which of the following completely eliminates the risk of nonpayment by an importer or a bank in an international transaction?
cash in advance
The Swedish government has significant holdings in key business sectors and has a hybrid economic system that incorporates
centrally planned socialism and capitalism.
Uber's rapid growth is an example that ________ is gaining traction.
collaborative consumption
________ provides technical specifications to a subcontractor or local manufacturer, who then oversees production.
contract manufacturing
The words that are the spoken or written communication elements in advertisements are known as:
copy
Markets of Central and Eastern Europe present interesting opportunities and challenges. Companies such as 3M International, Philips Electronics, and Henkel are moving into the region for all of the following reasons except:
core products and Western brand names need changes that are appropriate for business.
Which of the following types of duties would be imposed on a company whose home-country government provides export subsidies?
countervailing duty
in order to prevent a licensor-competitor from gaining unilateral benefit, licensing agreements should provide for:
cross licensing
A vice-president of an American software company introduced himself to a group of Korean partners and added "you may just call me John." Although this verbal cue shows the underlying reality that Americans have a high value on informality and equality, it needs adaptation due to the reason that:
customs, hierarchies, and class structure of Korean culture have to be respected
Bhutan has relied on a measure besides economic growth, namely, gross national happiness (GNH). The GNH Index includes all of the following indicators except:
economic vitality
In many parts of the world, McDonald's utilizes TV advertising that shows parents interacting with their happy children. Such advertising utilizes:
emotional appeals
To speed adoption of a new product, a marketing team should:
ensure that features and benefits can be communicated or demonstrated.
A company that is ________ in its approach to public relations (PR) will extend home-country activities into host countries.
ethnocentric
________ is an independent marketing intermediary that acts as the export department for two or more manufacturers whose product lines do not compete with each other
export management company
________ refers to governmental action to dispossess a foreign company or investor. Compensation is generally provided, often not in the "prompt, effective, and adequate" manner provided for by international standards.
expropriation
In 2014, the EU filed a complaint that the government of Washington state violated international trade rules by:
extending tax incentives to Boeing for in-state manufacture of the 777x jetliner
________ are variously referred to as buyer for export, export commission house, or export confirming house
foreign purchasing agents
The specialty retailing industry, as well as the fast-food industry, favors ________ for global growth
franchising
Select the best answer that represents the lowest to the highest level of economic integration
free trade area → customs union → common market → economic union
The export and import process can entail red tape and bureaucratic delays. In an effort to facilitate exports, countries are designating certain areas as:
free trade zones
________ are licensed specialists in traffic operations, customs clearance, and shipping tariffs and schedules. They can be considered as the travel agents for handling export goods
freight forwarders
In 2016, one of the largest merger and acquisition deals was the proposed acquisition of American agricultural giant Monsanto by Germany-based Bayer for $66 billion. This type of transfer is known as:
full ownership
Competitive advertising may impair the effectiveness of the message due to the fact that it may:
get distorted by noise
The ________ the level of environmental sensitivity for a given product, the ________ the need for managers to address country-specific economic, regulatory, technological, social, and cultural environmental conditions.
greater; greater
Market capitalism is an economic system in which
individuals and firms allocate resources that are privately owned
Adopter categories are classifications of individuals within a market, based on their innovativeness. When Apple introduced the Apple watch people waited in long lines before the doors opened. According to experts, those people can be categorized as:
innovators
In a joint venture with Russian manufacturer AvtoVAZ, GM executives were planning to have a stripped-down reengineered car based on its Opel model. However, the market research revealed that a "Made-in-Russia" car would only be acceptable if:
it sported a very low sticker price
As a general rule, the Chinese government allows foreign companies to participate in its market only if those companies agree to establish operations with local Chinese enterprises. Which market entry mode would be the appropriate choice under these circumstances?
joint venture
Strictly speaking, a(n) ________ is an entry strategy for a single target country in which the partners share ownership of a newly created business entity.
joint venture
________ represents a market entry strategy whereby one company permits a foreign company to make use of its patents, know-how, technology, company name, or other intangible assets in return for a royalty payment.
licensing
Critics warn that employees of a company that become reliant on an outside supplier for critical components will:
lose expertise and engineering skills
Measuring elevator populations in countries measured as units installed per thousand people gives an estimate of the market for elevators. That China has about one-half an elevator per thousand people is indicative of:
low product saturation level.
The power distance dimension reflects the degree of trust among members of society. Thus, the higher the power distance (PDI), the:
lower is the level of trust
Linguists have divided the study of languages into four main areas. The system of word formation is referred to as:
morphology
Engineers at a company in a developing country study an American computer chip design, copy it, and produce identical chips that are then sold to local computer makers. What form of intellectual property has been wrongly appropriated?
patent
________ is the technique global marketers use to describe ads with common design elements into which localized elements are inserted for individual country markets
pattern advertising
In an effort to attract assembly operations, Brazil allows certain product components to be imported at reduced tariff rates. This is an example of:
preferential tariffs
One task of the ________ department is to generate nonpaid forms of communication to foster goodwill among customers and others.
public relations
Which promotional mix element is most closely associated with activities designed to foster goodwill and understanding with various constituents both inside and outside the company?
public relations
Ads based on a(n)________ appeal depend on logic and speak to the audience's intellect
rational
An intern from the United Kingdom was working in an American software company during the summer. Her boss gave her a memo asking her to post it, with the intention of having it put on the bulletin board. To her boss's surprise the letter was mailed by the intern since the word "post" means "mail" in British English. In communication terms this error can be attributed due to:
semantics
One of the major issues in trade relations between the high- and lower-income countries is trade in:
services
OPEC is a cartel, a group of separate companies that collectively:
sets prices, controls output, or takes other actions to maximize profits.
If the dollar, the yen, or the euro becomes seriously overvalued, a company with a production capacity in other locations can achieve competitive advantage by:
shifting production among different sites
The enlargement of the EU has affected marketing strategies in the Euro zone countries by:
shifting products from one market to another in the event of shortages.
"Corporate amnesia" in global partnership is a term which refers to:
short-term goals with no memory on how to compete
Which of the following ASEAN countries alone accounts for more than one-third of 2014 two-way trade exports with the United States?
singapore
According to EU regulations, Kraft parmesan cheese cannot be sold in Europe because:
terms such as "Parmesan" are used on the package labels
In southern China, McDonald's is careful not to advertise prices with multiple occurrences of the number 4 because:
the "word" four is pronounced similar to the word "death" in Cantonese.
You remember our discussion of the new development in the U.S. international trade strategies with its key trade partners. The core issue has been a long history of accumulating trade deficits and the recent government action to reuse it through new trade agreements, tariffs, and other import restriction measures. This issue has affected the U.S. economy by generating negative balance of payments. Accordingly, if an American would like to purchase a Toyota car from Japan for $25,000 and wire the fund through the HSBC Bank in Seattle (a British bank) and pay an additional $500 for its banking services, how this action would affect the U.S. balance of payment (BoP)?
the U.S. BoP would be decreased by $25,500
A person in Kuwait goes to the Bank of America branch in Kuwait City and sends $25,000 to the Bank of Tokyo for importing a Toyota car. The Bank of America charges him $500 for the wired transfer services. In this case:
the U.S. BoP would be increased by $500
One of the most exciting projects in the Central American region in 2014 was
the enlargement of the Panama Canal
The United States has more lawyers than any other country in the world and is arguably the most litigious nation on earth. This is a reflection of:
the low-context nature of the American culture.
The advertising promise that captures the reason that people buy products is known as:
the selling proposition
The United States' growing trade deficit reflects a number of factors, which exclude:
the services trade surplus.
Counterfeiting is:
the unauthorized copying or production of a product.
When companies operate abroad in the absence of home-country legal constraints, the best choice for ethical conduct would be:
to have a product that is clearly superior to that of the competition.
European consumers have faced a number of food-related issues, including an outbreak of hoof-and-mouth disease and continuing concerns over mad cow disease. As a result, many are skeptical about GMOs (genetically modified organisms) and the benefits of eating food products that incorporate genetically engineered ingredients. As one French citizen noted recently, "We have a very risk-averse society that has been completely traumatized by food scares." Thinking about this situation in terms of Hofstede's cultural values framework, one might reasonably interpret this remark to indicate that France ranks relatively high in:
uncertainty avoidance
Sweden applies a system to certain categories of imported agricultural products referred to as:
variable import levies
Another perspective on the future of cooperative strategies envisions the emergence of:
virtual corporations
After recovering from the destruction of its economy during World War II, ________ became an economic superpower as a direct result of export strategies.
Germany
Which of the following establishes classification numbers that must be used by importers and exporters?
HTS
Key characteristics of the Anglo-Saxon model market system consists of private ownership and
a free enterprise economy
The United Nations designates 50 countries in the bottom ranks of the low-income category named as:
LDCs (least-developed countries).
The "Common Market of the South" in Latin America is used to describe
Mercosur
To the extent that a country sells more goods and services abroad than it buys, there will be:
a greater demand for its currency.
Which of the following is true about revised U.S. patent laws?
Patents are valid for 20 years after the filing date of the application
Which of the following is true about advertising expenditures in Germany and Brazil?
Television is the leading medium in Brazil; newspapers are the leading medium in Germany.
Which of the following statements is correct?
The Paris Convention protects patents; the Berne Convention protects copyrights.
Which of the following correctly states the role of banks in import/export transactions involving a letter of credit (L/C)?
The exporter's bank is the advising and/or confirming bank; the importer's bank is the issuing bank.
What happens if a nation has allowed a case against it to be brought before the ICJ (International Court of Justice) and then refuses to accept a judgment against it?
The plaintiff nation can seek recourse through the United Nations Security Council.
What do Ford Motor Company, Coca-Cola, Nike, and McDonald's all have in common?
They have all received a great deal of negative publicity in recent years.
What do value added taxes (VAT) encourage in countries such as China?
They result in cross-border shopping.
Considering Hofstede's notion of culture as "the collective programming of the mind," then attitudes can be defined as:
a learned tendency to respond in a consistent way to a given object or entity.
Coca-Cola billboards were recently put up near the Piazza San Marco in Venice, which has numerous historical landmarks. The major reason for allowing the billboards at a prominent historical site is:
a severe lack of funds for historic renovation.
Political and social instability in the Middle Eastern region can primarily be attributed to:
a wide gap between rich and poor nations due to oil revenues
A duty that represents a certain percentage of the value of a particular product is a(n):
ad valorem duty
In advertising, a(n) ________ is an agent who chooses graphics, pictures, type styles, and other visual elements and has general responsibility for the overall look of an advertisement.
art director
Which of the following shows the correct order of the product adoption process?
awareness → interest → evaluation → trial → adoption
Honda has invested $550 million in building an assembly plant in Greensburg, Indiana; IKEA spent nearly $2 billion to open stores in Russia; and South Korea's LG Electronics purchased a 58% stake in Zenith Electronics. All of these are examples of:
FDI
Which of the following most accurately describes the state of global public relations (PR) today?
Expenditures on PR are increasing
Argentina provides a good example of how a country can emerge from an economic crisis as a stronger global competitor as per the following statement:
Argentina devalued its currency for exports and capital transactions
