MULTIPLE CHOICE QUESTIONS

 

 

1. One of Phillipe Ortiz’s difficulties in marketing his line of Philippine cabinetry in Los Angeles is that he is still tied culturally to the business models that work in the Philippines. These models do not work

well in the United States. Which of the following best explains the difficulty Philippe is experiencing?

*A)*      Xenophobia

*B)*      Self-reference criterion

*C)*      Globalism

*D)*      Racism

*E)*      Intellectual challenges

2. Randy, the marketing manager at Bryte Systems Inc., decides to sell to foreign markets as goods are available in surplus amounts. He has little or no intention of maintaining continuous market representation. Randy’s firm is at which of the following stages of international marketing involvement?

*A)*      Aggressive foreign marketing

*B)*      Infrequent global marketing

*C)*      Global marketing

*D)*      Regular foreign marketing

*E)*      International marketing

3. Domestic marketing differs from international marketing as domestic marketing:

*A)*      involves performance of business activities across national borders.

*B)*      fails to consider the political, legal or economic issues of the marketing environment.

*C)*      involves business activities like pricing, production and distribution, aimed toward a single market.

*D)*      involves the task of adapting and adjusting to the uncontrollable geographic forces of the marketing environment.

*E)*      involves development of strategies to adjust to the cultural differences that exist in the new market.

 

4. Which of the following would be considered an uncontrollable element in the foreign environment?

*A)*      Channels of distribution

*B)*      Research

*C)*      Cultural forces

*D)*      Promotion

*E)*      Domestic economic climate

 

5. Which of the following is true regarding balance-of-payments records?

*A)*      The fact that assets and liabilities balance does not mean that a nation is in particularly good financial condition.

*B)*      The fact that assets and liabilities balance means a nation is in poor financial condition.

*C)*      A balance of payments is not a record of condition.

*D)*      A balance of payments is a determinant of condition.

*E)*      A balance of payments reflects all the financial transactions within the country.

6. Which of the following would be the balance-of-payments account that records all merchandise exports, imports, and services plus unilateral transfers of funds?

*A)*      Current account

*B)*      Capital account

*C)*      Credit account

*D)*      Receivables account

*E)*      Reserves account

 

7. _____ refers to the system of accounts that records a nation’s international financial transactions.

*A)*      Trade balance

*B)*      National accounts system

*C)*      EX-IM (exports-imports) account

*D)*      Balance of payments

*E)*      Exchange rate

 

8. Which of the following barriers require the importers who want to buy a foreign good to apply for an exchange permit?

*A)*      Special supplementary duties

*B)*      Import quota

*C)*      Blocked currency

*D)*      Government approval

*E)*      Prior import deposit requirements

 

9. In the context of social institutions, the _____ of a country is a potent force in economic development.

*A)*      male-female ratio

*B)*      literacy rate

*C)*      currency exchange rate

*D)*      infrastructure

*E)*      birth rate

10. In the context of Hofstede’s four dimensions, the _____ Index measures the tolerance of social inequality within a social system.

*A)*      Individualism/Collectivism

*B)*      Power Distance

*C)*      Uncertainty Avoidance

*D)*      Cultural Value

*E)*      Consumer Behavior

 

11. Which of the following is true of the effect of technology on culture?

*A)*      The U.S. delivers the best healthcare system in the world due to its superior technology.

*B)*      In 1968, the Roman Catholic Church actively recommended the use of birth control pills.

*C)*      Women have become tied to distinct gender roles after the advent of birth control technologies.

*D)*      Technology offers a solution for all cultural problems.

*E)*      Birth control pills have forced schools to address the issue of abstinence.

 

12. Which of the following is true of the strategy of planned and unplanned change in global marketing?

*A)*      Cultural congruence involves deliberately changing certain aspects of culture to meet marketing goals.

*B)*      All marketing efforts require planned or unplanned change in order to be accepted.

*C)*      Planned change involves marketing products similar to the ones already on the market.

*D)*      The first step in bringing about planned change in a society is to remove obstacles for acceptance of a product.

*E)*      Protein-rich diets were marketed using the strategy of planned change.

 

13. _____ decision making allows executives at different levels of management to exercise authority over their own functions.

*A)*      Decentralized

*B)*      Top-level management

*C)*      Committee

*D)*      Autocratic

*E)*      Politically backed

 

14. Which aspect of Japanese culture, predicted by many to favor bribery, makes Japan’s success in reducing corruption more remarkable?

*A)*      Relationship-orientation

*B)*      Multiple marriages

*C)*      The extended family

*D)*      Strong organizational hierarchy

*E)*      Increase in consumerism

 

15. Which of the following is true of cultural electives?

*A)*      They are behaviors and customs accepted internationally as signs

of friendship.

*B)*      They are business customs that must be followed if relationships

are to be successful.

*C)*      They are business customs that one may opt to conform to.

*D)*      They are customs or behavior patterns reserved exclusively for

the locals.

*E)*      They are behaviors that must be avoided if relationships are to

be successful.

 

16. Which of the following best explains why group decision making predominates in Asian cultures?

*A)*      Most Asian cultures lay an emphasis on rank and hierarchy.

*B)*      Asian cultures in general are non-aggressive and peaceful.

*C)*      Most Asian cultures emphasize harmony and collectivism.

*D)*      Most Asian countries lack expert professionals capable of bold

decision making.

*E)*      Most Asian cultures are feudal and paternalistic.

 

17. Which of the following is true of nationalism?

*A)*      The more a country feels threatened by some outside force the

less nationalistic the country becomes.

*B)*      It can be best described as an intense feeling of national of

national pride and unity.

*C)*      Nationalist feelings lead to loss of control over foreign investment.

*D)*      The more a country’s domestic economy declines, the less

nationalistic it becomes.

*E)*      Nationalistic feelings are rarely prevalent in economically

prosperous countries.

 

18. Often an expropriated investment becomes _____ (i.e., it becomes a government-run entity).

*A)*      democratized

*B)*      domesticated

*C)*      nationalized

*D)*      prioritized

*E)*      socialized

 

19. The International Trade Administration:

*A)*      provides aid to underdeveloped countries and has limited protection in support of “essential” projects in approved countries and for approved products.

*B)*      provides credit insurance that minimizes nonpayment risk caused by financial, economic, or political uncertainties.

*C)*      is dedicated to helping U.S. business compete in the global marketplace.

*D)*      underwrites trade and investments for U.S. firms.

*E)*      provides risk insurance for companies investing in less-developed countries.

 

20. Which of the following is true of a sovereign state?

*A)*      It is obligated to be a member of the World Trade Organization.

*B)*      Its political and economic systems are dependent on other nations.

*C)*      It governs its own territory.

*D)*      It has the power to enter into agreements only with nations in

its trade bloc.

*E)*      It is bounded by external control.

 

21. Which of the following legal systems prohibits investment in businesses that deal with alcohol, gambling, and casinos?

*A)*      Islamic

*B)*      Common

*C)*      Civil

*D)*      Socialist

*E)*      Commercial

 

22. Which of the following legal systems seeks interpretation through the past decisions of higher courts which interpret the same statutes or apply established and customary principles of law to a similar set of facts?

*A)*      Islamic law

*B)*      Civil law

*C)*      Commercial law

*D)*      Common law

*E)*      Roman law

 

23. Which of the following disputes can be adjudicated by the World Court?

*A)*      A dispute between a company from England doing business with a

company in China.

*B)*      A dispute between two technological companies based in the United

States.

*C)*      A personal dispute between the citizens of two countries.

*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.

 

24. Common law differs from civil law in that common law:

*A)*      is considered complete because of the catchall provisions found

in most law systems.

*B)*      does not enforce agreements unless properly notarized or registered.

*C)*      is recognized as not being all-inclusive.

*D)*      establishes ownership by registration rather than prior use.

*E)*      excuses compliance on unforeseeable human acts such as labor

strikes and riots.

 

25. Which of the following countries is experiencing maximum losses due to

software piracy?

*A)*      Russia

*B)*      India

*C)*      The United States

*D)*      Japan

*E)*      Vietnam

 

26. If you conduct a marketing research with the help of information that has been collected already by some other agency, it implies that you are using _____ data sources for your research.

*A)*      referential

*B)*      secondary

*C)*      tertiary

*D)*      parallel

*E)*      derived

 

27. Which of the following statements is true about qualitative research?

*A)*      It provides the marketer with responses that can be presented

with precise estimations.

*B)*      It is used to formulate and define a problem more clearly.

*C)*      It usually involves asking respondents to select a choice from a

set of responses.

*D)*      Data from such research can be summarized in percentages,

averages, or other statistics.

*E)*      It is generally associated with survey research that involves

“yes” or “no” questions.

 

28. Which of the following is a method of demand forecasting that is particularly suitable for international marketers?

*A)*      Probabilistic forecasting

*B)*      Expert opinion

*C)*      Simulation

*D)*      Extrapolation

*E)*      Scenario building

 

29. Samantha is carrying out a marketing research study. Even after seeking all reasonable available data sources, she has not been able to adequately answer the research questions. In such a situation, Samantha must collect _____ data.

*A)*      cohort

*B)*      bipolar

*C)*      derived

*D)*      primary

*E)*      referential

 

30. Which of the following questions should be asked by a marketing researcher when trying to establish the reliability of secondary data sources in the international arena?

*A)*      How much does the data cost?

*B)*      What language is used in the host country?

*C)*      Does the host country’s government encourage marketing research?

*D)*      Are the data internally consistent in light of known data sources?

*E)*      Was the data available on the Internet?

 

31. According to the evolution of the marketing process, which of the following substage is associated with functions such as market and product planning, development?

*A)*      Mass distribution

*B)*      Commercial-transition

*C)*      Self-sufficient

*D)*      Surplus commodity product

*E)*      Small scale

 

32. _____ is a fully industrialized country.

*A)*      Brazil

*B)*      Russia

*C)*      Japan

*D)*      Peru

*E)*      Uruguay

 

33. _____ is a part of the free trade group Mercosur.

*A)*      Australia

*B)*      China

*C)*      Brazil

*D)*      Russia

*E)*      Thailand

 

34. _____ is the second-largest common-market agreement in the Americas.

*A)*      CFTA

*B)*      NAFTA

*C)*      Mercosur

*D)*      DR-CAFTA

*E)*      SAFTA

 

35. Countries A and B are at a particular level of economic integration. Both these countries enjoy reduced or eliminated internal tariffs on trade between them and have added a common external tariff on products imported from countries outside the union. These countries represent a _____.

*A)*      free trade area

*B)*      customs union

*C)*      political union

*D)*      common market

*E)*      regional cooperation group

 

36. A voluntary organization providing for the loosest possible relationship that can be classified as economic integration is called a(n) _____.

*A)*      joint organization

*B)*      commonwealth of nations

*C)*      integrated nation

*D)*      confederacy

*E)*      proprietary colony

 

37. Which of the following is true with respect to market integration?

*A)*      As businesses become stronger and more experienced in dealing

with large market groups that form as a result of market integration,

world competition will become less complex.

*B)*      Many national markets, too small to bother with individually,

take on new dimensions and significance when combined with markets from

cooperating countries.

*C)*      Economic integration gives rise to smaller markets.

*D)*      The creation of multinational groups increases tariff barriers

and restrictions.

*E)*      Problems of language, customs, and instability are negligible in

international markets.

 

38. John 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, John 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 John’s team?

*A)*      Standardization

*B)*      Localization

*C)*      Globalization

*D)*      Customization

*E)*      Integration

 

39. Which of the following is conducted at the highest levels of management and deals with products, capital, research and the long and short term goals of the company?

*A)*      Operational planning

*B)*      Tactical planning

*C)*      Corporate planning

*D)*      Strategic planning

*E)*      Personnel planning

 

40. LiteFeet, a footwear company, has developed a marketing plan for its target market—teenagers. Budgets, sales and profit expectations have been chalked out. Now, LiteFeet 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 LiteFeet currently in?

*A)*      Phase 1

*B)*      Phase 2

*C)*      Phase 3

*D)*      Phase 4

*E)*      Phase 5

 

41. Which of the following is true of franchising?

*A)*      It is an important form of horizontal market integration.

*B)*      The franchiser provides market knowledge, capital, and personal

involvement in management.

*C)*      Foreign laws and regulations are usually hostile toward franchising.

*D)*      It provides an effective blending of skill centralization and

operational decentralization.

*E)*      The franchiser has little control on marketing of the products at

the point of final sale.

 

42. A _____ refers to a business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective.

*A)*      direct sales group

*B)*      consortia

*C)*      joint venture

*D)*      strategic international alliance

*E)*      franchising organization

 

43. 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, is called a _____.

*A)*      consortium

*B)*      franchise pact

*C)*      license arrangement

*D)*      joint venture

*E)*      direct investment agreement

 

44. R.A. Automobiles has been able to successfully market most of its new inventions in their target markets, because of their focus on niche areas and an efficient and experienced marketing team. The success of R.A. Automobiles in launching most of their inventions is referred to as _____.

*A)*      conversion-ability

*B)*      product penetration

*C)*      diffusion

*D)*      marketization

*E)*      mass-customization

 

45. As illustrated by the Product Component Model, which of the following components of a product will be altered, if a company makes changes to the design of the product to improve its functionality?

*A)*      Core component

*B)*      Support services component

*C)*      Packaging component

*D)*      Functional component

*E)*      Global component

 

46. Demand in industrial markets differs from demand in consumer markets in that:

*A)*      demand is more volatile in consumer markets.

*B)*      the demand for industrial products is linked to the income of the

buyer.

*C)*      the demand for consumer goods is derived demand.

*D)*      the higher cost of production of industrial products makes them

more expensive than consumer products.

*E)*      the level of technology used in industrial goods makes their sale

more appropriate for some countries than others.

 

47. Which of the following is the most advanced stage in Rostow’s five-stage model of economic development?

*A)*      The traditional society

*B)*      Drive to maturity

*C)*      Preconditions for takeoff

*D)*      Takeoff

*E)*      The age of mass consumption

 

48. Firms that sell industrial goods in the international market should focus on after-sales services because these services:

*A)*      require high levels of investment in training and development.

*B)*      cannot be outsourced to other companies.

*C)*      need to be heavily advertised.

*D)*      cost the firm almost nothing.

*E)*      help the firm build customer loyalty.

 

49. Which of the following statements is true about retail patterns?

*A)*      Small dominant retailers can be sold to directly, but there is no adequate way to reach large retailers who handle a great volume of sales.

*B)*      The extremes in size in retailing are drastically different from those that are observed in wholesaling.

*C)*      Selling directly to the consumer is often the approach of choice in markets with sufficient or developed distribution systems.

*D)*      Retailing shows greater diversity in its structure than does wholesaling.

*E)*      Direct sales through catalogs have not proved to be a very successful way to enter foreign markets.

 

50. _____ is one of the six Cs of distribution channel strategy.

*A)*      Communication

*B)*      Contribution

*C)*      Capacity

*D)*      Character

*E)*      Commission