International Marketing Midterm

Which of the following is a dynamic trend that is affecting the current global business strategies?

a) The trend toward buying American cars in Europe.

b) The trend toward the acceptance of the free market system among developing countries.

c) The trend toward worldwide instant communication.

d) The trend toward establishing a world currency.

e) The trend toward using English as the global language.

c) The trend toward the acceptance of the free market system among developing countries.

Which of the following is the most critical difference between domestic marketing and international marketing?

The different concepts of marketing.

The environment in which marketing plans must be implemented.

The change in marketing goals.

The difference in marketing principles being followed.

The basic processes used to market products and services.

The environment in which marketing plans must be implemented.

Which of the following elements in the marketing environment poses a challenge to both domestic and international marketers due to its uncontrollable nature?

Political/legal forces

Price

Research activities

Promotion

Channels of distribution

Political/legal forces

With respect to the environment in which a business operates, factors such as competition, political and legal forces, economic climate, would all be classified as:

controllable elements.

predictable elements.

uncontrollable elements.

cultural elements.

demographic elements.

uncontrollable elements.

Robert Jonas is in charge of a new marketing effort directed toward Peru. In order for his company to effectively market and distribute to all of Peru's major cities, Mr. Jonas must devise a logistics plan for crossing the Andes Mountains on a daily basis. Which of the following foreign environment uncontrollable variables would be a chief concern as Mr. Jonas devises his plan?

Economic forces

Competitive forces

Political/legal forces

Cultural forces

Geography and infrastructure

Geography and infrastructure

_____ is the conscious effort on the part of the international marketer to anticipate the influences of both the foreign and domestic uncontrollable factors on a marketing mix and then to adjust the marketing mix to minimize the effects.

Standardization

Projection

Segregation

Segmentation

Adaptation

Adaptation

The primary obstacles to success in international marketing are a person's _____ and an associated ethnocentrism.

effort at adaptation

self-reference criterion

regionalism

holism

effort at integration

self-reference criterion

In the United States, unrelated individuals keep a certain physical distance between themselves and others when talking or in groups. Americans do not consciously think about that distance; they just know what feels right without thinking. Someone from another culture would not necessarily understand this and would apply their rules for contact when speaking. The preceding is an illustration of what is called applying a _____ when reviewing the mentioned social custom of contact.

segregation principle

space command criterion

self-space principle

self-reference criterion

integration criterion

self-reference criterion

Which of the following is true of ethnocentrism?

It is the cornerstone of effective adaptation in the field of international marketing.

It is the cultural binding force among a diverse employee population in an organization.

It is a problem that arises when managers from affluent countries work with managers and markets in less affluent countries.

Self-reference criterion is universally considered the technique to reduce or eliminate ethnocentrism.

American managers have generally been uninfluenced by it, especially in the beginning of the 21st century.

It is a problem that arises when managers from affluent countries work with managers and markets in less affluent countries.

Which of the following is true regarding the stages of international marketing involvement?

A firm begins its international involvement at the second stage.

A firm may be in more than one stage simultaneously.

The final stage of the process is involves no direct foreign marketing.

The international marketing stage represents the highest level of international involvement.

A firm essentially progresses through the stages in a linear order.

A firm may be in more than one stage simultaneously.

In the late 1990s, most of the countries of the world saw a slow down in the unprecedented and precipitous growth of their economies. However, _____ remained unaffected by this trend.

France

Japan

the United States

Germany

China

China

The _____ of the balance-of-payments statement is most likely to record all merchandise exports, imports, and services plus unilateral transfers of funds.

receivables account

reserves account

capital account

current account

credit account

current account

Randall Smithe-Jones believes that protectionism is the only way to save the United Kingdom from outside competitors. He has seen small businesses go bankrupt because cheaper foreign goods have been more popular. The cell-phone manufacturing industry has just started in U.K and Smithe-Jones' company is one of the first to try its hand at cell-phone manufacturing. Which of the following would probably be the argument that Smithe-Jones would use to persuade his government representatives that protectionism is still needed in the U.K.?

Maintenance of standard of living.

Conservation of natural resources.

The need to keep money at home.

National defense.

Protection of an infant industry.

Protection of an infant industry.

A tax imposed by a government on goods entering at its borders is most accurately termed as a(n) _____.

tariff

quota

asterisk bill

boycott

writ

tariff

A specific unit or dollar limit applied to a particular type of good is called a(n):

predatory price.

quota.

exchange rate.

trade license.

asterisk bill.

quota.

The fundamental difference between quotas and import licenses is that:

for quotas the exporting country sets the limits but licenses are issued by the importing country.

quotas impose specific limitations on trade and import licenses take care of standards.

import licenses have greater flexibility than quotas.

quotas are imposed on export goods and import licenses are imposed on import goods.

unlike licenses, quotas limit quantities on a case-by-case basis.

import licenses have greater flexibility than quotas.

When the United States refuses to sell goods to Iran because of the perception that the country harbors radicals and terrorists, the refusal is most accurately referred to as a(n):

voluntary export restraint.

embargo.

orderly market agreement.

tariff.

antidumping penalty.

embargo.

Tall Pine Plywood Company has just received a notice that a shipment of plywood (2 metric tons) has been rejected by Japanese customs because the knotholes commonly found on a plywood sheet are too large. Which of the following categories of nontariff barriers primarily checks such quality issues?

Standards

Quotas

Licenses

Boycotts

Embargoes

Standards

_____ is a new nontariff barrier that was designed to prevent foreign producers from using predatory pricing.

Embargo

Quota

Import license

Antidumping law

License

Antidumping law

Which of the following is the most popular way to circumvent WTO guidelines and impose new duties?

Orderly market agreements

Antidumping duties

Voluntary export restraints

Embargoes

Boycotts

Antidumping duties

Which of the following actions is important for foreign marketers in order to be effective in a foreign market?

Adhering to the prominent prejudices in the foreign society.

Making the product relate to the most prominent religion in the foreign culture.

Learning to appreciate the intricacies of cultures different from their own.

Creating product differentiation by being indifferent to the culture of the foreign market.

Ensuring that the promotions for the product are indifferent to social beliefs.

Learning to appreciate the intricacies of cultures different from their own.

The process of adjusting to a new culture is known as:

culture transfer.

transference.

diffusion.

assimilation.

acculturation.

acculturation.

Mike grew up learning a great deal about his culture from his school, the church, the mass media, and his family. This kind of learning of culture is called:

adaptation.

emancipation.

socialization.

naturalization.

acculturation.

socialization.

Which of the following is true with respect to Professor Jared Diamond's ideas regarding the influence of geography on history and cultural values?

People in the plains are more likely to invade than those settled in higher altitudes.

Historically, societies in the north are more developed than those in the south.

Civilizations near major rivers are more developed than those settled near major oceans.

Historically, innovations spread faster east to west than north to south.

Historically, invasions from warrior tribes have always happened from the west to the east.

Historically, innovations spread faster east to west than north to south.

The most useful information on how cultural values influence various types of business and market behavior comes from work done by:

Geert Hofstede.

Sigmund Freud.

George Gallup.

Milton Friedman.

Ayn Rand.

Geert Hofstede.

In the context cultural values, the _____ Index refers to the preference for behavior that promotes one's self-interest.

Power Distance

Individualism/Collectivism

Linguistic

Uncertainty Avoidance

Masculinity/Femininity

Individualism/Collectivism

On the basis of Hofstede's four dimensions, cultures with high Power Distance Index (PDI) scores tend to be:

hierarchical.

secular.

Mexico

flat in organization.

fragmented.

hierarchical.

Wayne is working at the overseas branch of his organization. He needs some clarification about a project. He approaches a senior manager thinking he would get a good explanation. However, he is instructed to follow protocol and sent away. Also, he is informed that only team leads are allowed to approach senior managers. This implies that the organization has a ______ score.

high Uncertainty Avoidance Index

high Power Distance Index

high Individualism/Collective Index

low Power Distance Index

low Individualism/Collective Index

high Power Distance Index

Cultures with high _____ scores tend to have a high level of anxiety and stress and a concern with security and rule following.

Distance from English Index

Masculinity/Femininity Index

Uncertainty Avoidance Index

Individualism/Collectivism Index

Power Distance Index

Uncertainty Avoidance Index

Feng shui is a Chinese ____, considered to be the process that links humans and the universe to ch'i, the energy that sustains life and flows through our bodies and surroundings, in and around our homes and workplaces.

myth

ritual

illusion

belief

symbol

belief

Which of the following is true of adaptation in international marketing?

Willingness to adapt is a crucial attitude in international marketing.

Mere tolerance of alien cultures is sufficient in international marketing.

Adaptation requires business executives to forsake their ways and change to local customs.

Empathy for foreign cultures may lead to cultural discord.

Open tolerance is considered to be an unnecessary concession to foreign cultures.

Willingness to adapt is a crucial attitude in international marketing.

Which philosophy of U.S. management recognizes that people influence the future to a large extent and that they control their own fates?

Never-ending quest for improvement.

"Master of destiny" viewpoint.

Wide sharing in decision making.

Competition produces efficiency.

Independent enterprise as the instrument of social action.

"Master of destiny" viewpoint.

In _____ decision making, participation by middle management tends to be deemphasized.

decentralized

top-level management

democratic

decentralized committee

non-hierarchical

top-level management

Which of the following aspects of communication is more important in a low-context culture?

Face-to-face communication

Explicit communication

Implicit communication

Contextual communication

Nonverbal communication

Explicit communication

Fredrick Keeble, an American manager, took his Swiss client out for a traditional American dinner. The client did not seem to enjoy the food and left most of it untouched. After dinner, he asked his client if he had enjoyed the dinner. Which of the following responses would indicate that the client comes from a low-context culture?

No, I thought the food was good.

No, I did not like the food.

Yes, it was lovely, thanks.

Yes, unfortunately I was not very hungry.

Yes, but it was a little too oily.

No, I did not like the food.

Which organization conducts an international survey of businesspeople, political analysts, and the general public on corruption and compiles the Corruption Perception Index (CPI)?

Organization for Economic Cooperation and Development (OECD).

World Trade Organization (WTO).

Organization of American States (OAS).

Transparency International (TI).

United Nations Convention against Corruption (UNCAC).

Transparency International (TI).

Which of the following countries is more likely to exhibit higher levels of bribery?

High-income nations.

Countries with low-power distance.

Individualistic cultures.

Nations with a communist past.

Countries with a strong dependence on international trade.

Nations with a communist past.

_____ occurs when payments are extracted under duress by someone in authority from a person seeking only what he or she is lawfully entitled to.

Subornation

Lubrication

Bribery

Larceny

Extortion

Extortion

_____ generally involves giving large sums of money-frequently not properly accounted for-designed to entice an official to commit an illegal act on behalf of the one offering the bribe.

Agent charges

Extortion

Subornation

Lubrication

Ransom

Subornation

A manager hires an agent to obtain a license to build a warehouse in an industrial district. The agent was caught offering a bribe to a government official for issue of the license. Which of the following describes the manager's liabilities?

The manager is liable if he was aware of the fact that part of the agent's fee would be used as a bribe.

The manager is not liable since the use of an agent absolves him of any responsibility.

The manager is liable since the agent used part of his fees for bribery, although the manager was unaware of the agent's intentions.

The manager is liable only if the act of building the warehouse at the given location is illegal.

The manager is not liable if the agent can prove that extortion, rather than bribery, took place.

The manager is liable if he was aware of the fact that part of the agent's fee would be used as a bribe.

Adherence to the WTO means:

more avenues for outsourcing.

loss of some degree of national sovereignty.

procurement of economies of scale.

loss of national security to a large extent.

limited scope for foreign direct investments.

loss of some degree of national sovereignty.

The ideal political climate for a multinational firm is:

a country where international laws do not apply.

a government where absolute power is a reality.

an authoritarian government that can be dealt with through non-legal channels.

a country with a stable and friendly government.

a country where favors can be purchased cheaply.

a country with a stable and friendly government.

Which of the following is a political cause of instability in international markets?

Global focus

Varied taxing conventions

Differences in economic philosophies

Trade disputes

Activism

Trade disputes

Which of the following is an instance of how nationalism can be manifested?

Restrictions on imports.

Membership in bilateral trade treaties.

Focus on global security.

Removal of tariffs and quotas.

Call to buy a global counterpart's products.

Restrictions on imports.

With respect to political risk that can be faced by a company seeking to invest abroad, which of the following is most severe?

Exchange controls

Local-content laws

Confiscation

Domestication

Expropriation

Confiscation

Stopping or refusing to trade with another nation for political reasons is called:

boycotting.

democratization.

confiscation.

expropriation.

monopolizing.

boycotting

Which of the following statements is true of political sanctions?

Political sanctions are illegal.

The United Nations encourages boycotts as a means of settling disputes.

Political sanctions are generally not very successful.

Political sanctions normally control and rectify situations within a nation.

Political sanctions are least effective against consumer goods.

Political sanctions are generally not very successful.

In terms of political risk, which of the following poses the greatest threat to international marketers?

The possibility of the government actually failing.

Membership or withdrawal of membership of the government in trade blocs.

Exchange rate fluctuations affecting margins.

Newer environmental regulations approved by global trade bodies.

Change of economic policies.

The possibility of the government actually failing.

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 will consider using _____ to enter the market.

joint ventures

externally produced products

foreign technology

a smaller investment base

sole-proprietorships

joint ventures

Which of the following strategies to minimize political vulnerability and risk has the advantage of engaging the power of several investors and banks in the host country whenever any kind of government takeover or harassment is threatened?

Sole-proprietorship

Licensing

Expanding the investment base

Political bargaining

Joint ventures

Expanding the investment base

Dynamic economies differ from static economies in that dynamic economies:

have rapidly changing consumption patterns.

define marketing as typically nothing more than a supply effort.

need not match marketing efforts with the market needs and wants.

do not require the marketer to be prepared for economic shifts and emerging markets.

have rigid consumption patterns.

have rapidly changing consumption patterns.

Most newly industrialized countries (NICs) have moved away from restrictive trade practices and instituted significant free market reforms. As a result these countries have:

obtained significant amount of loans from World Bank.

reduced population pressures through labor outsourcing.

taken measures to protect their cultures and traditions.

overcome environmental damages caused by lack of development.

attracted both trade and foreign direct investment.

attracted both trade and foreign direct investment.

_____ is a free trade group formed by Argentina, Brazil, Paraguay, and Uruguay.

Mercosur

Caricom

DR-CAFTA

NAFTA

SACU

Mercosur

The level of market development roughly parallels the stages of _____.

economic sustainability

economic duress

economic development

economic repression

economic equilibrium

economic development

Markets that are geographically large, have strong growth rates, are regional economic drivers and represent sizable markets for a wide range of products are known as _____.

big emerging markets

contestable markets

niche markets

captive markets

two-sided markets

big emerging markets

All of the following are traits of big emerging markets (BEMs) EXCEPT:

they are regional economic drivers.

they are all physically large.

they have significant populations.

they are of major political importance within their regions.

they import less than smaller markets.

they import less than smaller markets.

Which of the following countries is considered as a BEM (big emerging market)?

Venezuela

Mexico

Egypt

Germany

Australia

Mexico

Which of the following countries is a part of the free trade area known as CFTA?

Uruguay

Brazil

Argentina

France

The United States

The United States

Which key provision of NAFTA restricts Japan from assembling autos in Mexico and avoiding U.S. or Canadian tariffs and quotas, unless the auto had a specific percentage of Mexican (i.e., North American) content?

Rules of origin

Standards

Intellectual property

Services

Government procurement

Rules of origin

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?

Mercosur

CFTA

Jamaica

NAFTA

DR-CAFTA

DR-CAFTA