International Marketing Final Exam

Family run businesses are more likely to follow the pattern of top-level management decision making

True

Academic studies of the causes and consequences of bribery, conducted by Transparency International (TI), indicate corruption is greater in

collectivistic nations

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?

Competitiveness

What is a criterion for adaptation when dealing with individuals, firms, or authorities in foreign countries?

flexibility

After World War II, the United States set out to infuse the ideal of capitalism throughout as much of the world as possible. As a result, most of the noncommunist economies in the world

Grew significantly

What is one of the most dynamic trends that is affecting current global business strategies?

the trend toward the acceptance of the free market system among developing countries

Kenneth is a bank executive and when one of his customers offers him bax seats to a Chicago Cubs game he knows he cannot accept them because it is n However, in some countries of the world this gift would be perfectly acceptable. This reflects a difference in

Business ethics

Cultures which are low in Uncertainty Avoidance Index are more likely to

take a more empirical approach to understanding and knowledge.

Currently in most international businesses, women represent a small percentage of the employees who are chosen for an international assignment.

True

The Omnibus Trade and Competitiveness Act of 1988 focuses on assisting businesses to be more competitive in world markets, but does not get involved in trade practices.

False

Marcus is the director of a small company in Boston. He is trying to obtain parts from a manufacturer in Taiwan but that company is unwilling to send them because of government regulations limiting exports on small orders. Marcus calls the head of the manufacturing company and says he will pay him an extra $5.000 if he ships them anyway.

What practice is Marcus using to obtain the parts?

Bribery

Antidumping laws encourage foreign producers to sell their products at a higher cost than the cost of production and create more opportunities for free trade.

False

After World War II, the United States led efforts to provide financial and industrial development assistance to rebuild Japan and channeled funds to foster economic growth in the underdeveloped world. These efforts were primarily aimed at

Dampening the spread of communism

What is used to ensure that balance-of-payments records are always in balance?

Double-entry bookkeeping system

The measure of the differences between language is known as linguistic

Distance

Jason's department is responsible for the business activities designed to plan, price, promote, and direct the flow of his company's small appliance products to consumers in various nations around the world for a profit. What is his department in charge of?

International marketing

What was the outcome for GATT after the ratification of the Uruguay Round agreements?

GATT became part of the World Trade Organization

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?

Cultural imperative

The "master of destiny" philosophy is based on the idea that individuals are not in control of their own futures but are at the mercy of decisions made by business and government.

False

Young children learn about social institutions from their families and when they go to school. This process of learning is called

Socialization

Family reference and upbringing provides a complete basis for understanding one's culture and no additional study is required to become aware of cultural norms and activities.

False

A firm that is involved with the international marketing stage of marketing involvement will

plan both marketing and production of goods outside the home market.

The self-reference criterion is closely related to collectivism-or the importance of the group.

False

The main difference between domestic and international marketing lies in the different concepts of marketing.

False

_____ refers to being attuned to the nuances of culture so that a new culture can be viewed objectively, evaluated, and appreciated.

cultural sensitivity

How has the advent of women joining the workforce in growing numbers for the past 30 years affected American culture?

A decrease in the influence of family on American culture

The level of technology in a country is a controllable element for international marketers.

False

Utilitarian ethics is the ethical principle that focuses on the optimization of the "common good."

True

Additional studies based on Geert Hofstede's original study of how cultures differ identified the fifth dimension known as

Power Distance Index

The GATT became part of the World Trade Organization in 1995 with the ratification of the Uruguay Round agreements.

True

Jessica is newto international marketing and assumes that if a country speaks a similar language as another country then both of those countries will also be interested in the same types of products and services. Jessica appears to be suffering from

an illusion of similarity

_____ and the World Bank Group are two global institutions created primarily to assist nations in becoming and remaining economically viable.

International Monetary Fund

Which statements accurately describes the General Agreement on Tariffs and Trade (GATT)?

It created an agency to serve as watchdog over world trade.

In the context of cultural values, the _______ index refers to the preference for behavior that promotes one's self interests

Individualism/Collectivism

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

controllable elements

Feng shul is a Chinese

______, considered to be the process that links humans and the universe to chi, the energy that sustains life and flows through our bodies and surroundings, in and around our homes and workplaces.

Belief

The uncontrollable issue of

_____ faced by a company abroad is often amplified by the "alien status" of the company, which increases the difficulty of properly assessing and forecasting the dynamic international business climate.

Politics

What was the most apparent reciprocal impact of the foreign economic assistance given by the United States following World War II?

Purchases of U.S. agricultural products, manufactured goods, and services by the recipient countries increased.

James Day Hodgson, former US AMBASSADOR to Japan, describes culture as a(n) _____ which according to him is tough to get through, but effort and patience could often lead to success

Thicket

What agreement makes it possible to challenge the restrictions in Indonesia that prohibit foreign firms from opening their own wholesale or retail distribution channels?

Trade-Related Investment Measures (TRIMs)

At Norton Manufacturing Corporation, it is believed that consumers want products that provide the best quality and have innovative features. Which marketing orientation does this company use?

Product orientation

Natasha's company seeks markets all over the world and attempts to sell products that are a result of planned production for markets in various countries. Which stage best characterizes the stage of international marketing involvement for Natasha's company?

International Marketing

According to Dutch management professor Geert Hofstede, culture can be referred to as the

"Software of the mind"

How did GATT prevent the repeat of the economic disaster that occurred after World War I?

It provided a forum for member countries to negotiate a reduction of tariffs and other barriers to trade.

Kyle recently transferred to Norway and is working with Britt on a marketing idea, but their different approaches have created a quandary. If Kyle doesn't understand Britt's customs, he is more likely to evaluate Britt's behavior by relying on what is familiar to her.

False

Tomas is a manager at a frozen food company and wants to understand the way people in different countries think and act so that the company can respond to their needs appropriately. What is the best aid he can use to accomplish this?

Knowledge of the foreign country's history

The political/legal environment is a controllable element for international marketers because of their potent ability to lobby and influence legislation in foreign markets.

False

What characteristic would impede the ability of a person to assess a foreign market in its true light?

Ethnocentrism

Mae-Jun works at an overseas branch of her organization. She needs clarification about a project and approaches a senior manager hoping to get a good explanation. However. she is told that only the team leads are allowed to approach the senior managers and sent away. In this scenario, the organization is most likely to have a ____ score.

High Power Distance Index

A desert nation would not rely on agricultural crops to boost its economy. This shows how ___ can affect social culture.

Geography

Data collected specifically for a particular research project at hand is known as secondary data.

False

The most universal survey research problem in foreign countries is fear of government reprisal.

False

If there is a dispute between

_____, the World Court can adjudicate.

Governments

What is the most advanced and viable of Africa's regional organizations?

Southern African Development Community

When dealing with foreign countries, a marketer should refer to the laws of the home country for guidance.

True

With the adoption of the euro, price differentials are much easier to spot, and EU consumers can search for the best bargains in brand-name products more easily.

True

Global concern for the environment includes industrial pollution, hazardous waste disposal, and rampant deforestation, but excludes issues that focus directly on consumer products.

False

Before launching its latest line of environment-friendly and child-friendly wooden toys, a toy manufacturer gave samples of these toys to a large and culturally diverse set of families. It then conducted a survey in which the parents were asked to rate the toys on a step-wise scale of "not satisfied" to "extremely pleased." This research is most likely a example of

_____ research.

Quantitative

Sampling cannot be used if there is a lack of social and economic information.

False

Marco has decided to use information collected by other researchers in his upcoming research project on cultural trends. This is an example of using a _____

data source.

Secondary

Chile, Brazil, Mexico, South Korea, Singapore, and Taiwan are examples of _____ countries.

Newly industrialized

Which institution has the responsibility to debate and decide which proposals of the Single European Act to accept as binding on European Union members?

the Council of Ministers

The ideal approach to multicountry marketing research is to have local researchers in each country, with close coordination and networking between the client company and the local research companies.

True

Which strategy is most effective in minimizing political risks for a multinational corporation in situations in which the technology is unique and the risk is high?

Licensing

What principle U.S. agency supports U.S. businesses abroad?

Department of Commerce

Under the United Nations' stages of economic development for classifying countries with respect to levels of industrialization, Brazil falls under the group of more-developed countries (MDCs).

False

What is true of the European Court of Justice?

Its decisions are final and cannot be appealed in national courts.

Developing countries with markets that are geographically large, have strong growth rates, are regional economic drivers, and represent sizable markets for a wide range of products have been identified by the U.S. Department of Commerce as _____ markets.

Big emerging

In April 2009, the G20 nations agreed to cede some sovereignty and

reject protectionism

Which is the comprehensive free trade agreement among Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States that includes a wide array of tariff reductions aimed at increasing trade and employment?

DR-CAFTA

Nongovernmental organizations can affect the policy decisions made by governments through lobbying.

True

What is the most important reason for a country to encourage foreign investment?

to accelerate the development of an economy

Barring Latin America, the risks of confiscation and expropriation have decreased over the last two decades.

True

Nations with complementary economic bases are least likely to

encounter frictions in the development and operation of a common market unit.

A _____ has reduced or eliminated internal tariffs and adds a common external tariff on products imported from countries outside the group

Customs union

Which of these organizations is an NGO (nongovernmental organization)?

Oxfam

Common law prescribes specific patterns of social and economic behavior for everyone.

False

In quantitative research, if questions are asked, they are almost always open-ended or in-depth.

False

In _____ translation, a questionnaire is translated from one language to another, and then a second party translates it again into the original, and the two original language

versions are compared

Back

Juliet is concerned with the potential for political harassment when her company enters a new international market. To reduce the risk of political harassment, she is most likely to consider using _____ to enter the market.

A joint venture

The Mercosur originally envisioned central institutions similar to those of the European Union institutions.

False

One of the reliability problems faced by a marketing researcher who seeks to do secondary research in a foreign market is that official statistics are sometimes too optimistic.

True

Ralph Richards's company has been attempting to solve a problem with a contract default by the Dutch government. He has tried conciliation but the two parties did not find any common ground on which they could begin a fruitful negotiation for settlement. What is likely to be the course of action that both the parties will try next?

Arbitration

What is an indicator of a country's economic development?

the country's infrastructure

The European Commission, the Council of Ministers, the European Parliament, and the Court of Justice are institutions of the

European Union

Which form of terrorism is most likely to use the Internet to inflict damage?

cyberterrorism

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.

Export Control Classification Number

What is a common term for a form of government in use today?

Oligarchy

NAFTA differs from Mercosur in that NAFTA

aims to address and improve all aspects of doing business within North America.

All three Baltic states started off with the same legacy of efficient industry and American-style capitalist economies.

False

What is a severe limitation of using the Internet for primary research?

A sample universe composed solely of Internet respondents represents a potential bias.

Widgets, Inc. is beginning to export its products to Taiwan, but it isn't sure if it needs a license to do so. The responsibility of determining if a license is required rests with the Taiwanese company that is purchasing the products.

False

A free trade area (FTA) provides its members with a mass market without barriers to impede the flow of goods and services.

True

Of the three kinds of distances that international marketers must traverse, time zones have the greatest influence on the success of their commercial efforts abroad.

True

It was not until this single market was established that the United States, Japan, and other countries gave serious thought to creating other alliances. What is being referred to here?

the European Economic Community

What is true about NAFTA?

Its provisions require Canada, Mexico, and the United States to implement uniform customs procedures and regulations.

The Export License Application and Information Network (ELAIN) is an electronic service that enables exporters to

submit license applications via the Internet.

What commonly counterfeited product has the potential for doing the greatest harm to the consuming public?

pharmaceuticals

The CFTA was designed to

eliminate tariffs and other trade barriers between the United States and Canada.

Steps are being taken in common-law countries to codify commercial law, even though the primary basis of commercial law is common law.

True