question

_____ refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members.

answer

Sovereignty

question

All of the following are political causes of instability in international markets:

answer

1. inherently unstable governments. 2. changes in political parties having major effects on trade conditions. 3. animosity targeted toward specific countries. 4. trade disputes.

question

Which of the following is the top political issue concerning foreign businesses?

answer

Stability of prevailing government policies

question

What is true of nationalism?

answer

1. Economic nationalism has as one of its central aims the preservation of national economic autonomy. 2. A call to "buy our country's products only is one form of manifestation of national feelings. 3. Nationalist feelings may lead to control over foreign investment. 4. The more a country's domestic economy declines, the more nationalistic it becomes.

question

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

answer

Confiscation

question

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

answer

nationalized

question

Which of the following is true regarding confiscation, expropriation, and domestication?

answer

Nowadays, companies have to become domesticated as a condition for investment.

question

If there is a substantial amount of capital leaving the country, which of the following is the country likely to implement to control the situation?

answer

Exchange controls

question

Price controls are used during inflationary periods to:

answer

control the cost of living

question

Which of the following is more likely to be subjected to price control?

answer

Aspirin and antacids

question

Which of the following represents a new and powerful tool of PSAs?

answer

The Internet

question

The newest form of terrorism directed toward a peaceful world is:

answer

cyberterrorism

question

Relations between governments and MNCs are generally positive if the investment leads to all of the following:

answer

1. uses locally produced resources. 2. transfers capital, technology, and/or skills. 3. creates jobs. 4. makes tax contributions

question

Which of the following strategies minimizes political risks for the multinational corporation in situations in which the technology is unique and the risk is high?

answer

Licensing

question

Which of the following best describes the U.S. government's policy toward multinational corporations that are confronted with situations where bribery is an issue?

answer

It is illegal for a U.S. citizen to pay a bribe--period.

question

Under common law, ownership is established by _____; under code law, ownership is determined by _____.

answer

use; registration

question

Islamic law is known as the _____.

answer

Shari'ah

question

Under _____, the legal system is subordinate to prevailing economic conditions.

answer

Marxist-socialist tenets

question

The World Court can adjudicate disputes between which of the following?

answer

disputes between governments

question

A nonbonding agreement between parties to resolve disputes by asking a third party to mediate differences is called:

answer

conciliation

question

When all else fails in an international commercial dispute, the final step is:

answer

litigation

question

One authority suggests that settlement of every dispute should follow four steps. Which of the following is considered to be the first step in this process?

answer

try to placate the injured party

question

In a common-law country, ownership of intellectual property rights is established by "prior use versus registration." What does the phrase "prior use versus registration" mean?

answer

Whoever can establish first use of a trademark is typically considered the rightful owner

question

Which of the following is the most comprehensive multilateral agreement on intellectual property to date?

answer

Trade-Related Aspects of Intellectual Property Rights

question

_____ buy and register descriptive nouns, geographic names, names of ethnic groups and pharmaceutical substances, and other similar descriptors and hold them until they can be sold at an inflated price.

answer

Cybersquatters

question

According to Canadian law, what is the standard expected by courts in Canada in determining whether a representation is false or misleading?

answer

Credulous person standard

question

Which of the following countries has enacted the most stringent green marketing laws that regulate the management and recycling of packaging waste?

answer

Germany

question

The first objective of these laws is to protect American consumers by ensuring that they benefit from products and ideas produced by foreign competitors as well as by domestic competitors. Which law is in discussion?

answer

Antitrust laws

question

Which of the following are the licenses required for products exported from the United States?

answer

General or a validated license

question

Which of the following indicates the exportability status of the item based on the ECCN?

answer

Commerce Control List

question

Robert is a citizen of the United States and works there as a market researcher. Soon he will be conducting a marketing research in Japan for one of his clients situated in the United States who wants to expand its operations in Japan. Robert will most likely experience which of the following differences between domestic and foreign marketing research?

answer

the accuracy levels of the foreign market research.

question

Which of the following is most likely to be the first step of a marketing research process?

answer

Define the research problem and establish research objectives.

question

Mike is conducting a marketing research. He has defined the research problem and has established research objectives so his next task is to:

answer

determine the sources of information to fulfill the research objectives.

question

If you conduct a marketing research with the help of some information which is already collected for some other project then such a marketing research is known as _____.

answer

secondary research

question

Most likely, much of secondary research provided by foreign governments is suspect with respect to reliability because:

answer

official statistics are sometimes too optimistic, reflecting national pride rather than practical reality.

question

Samantha is carrying out a marketing research. Even after seeking all reasonable secondary data sources, research questions are still not adequately answered. In such a situation Samantha must collect _____.

answer

primary data

question

In this research method usually a large number of respondents 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. Identify the research method in discussion.

answer

Quantitative

question

Which of the following research techniques is most likely to be used for conducting a quantitative research?

answer

Survey

question

A lot of international consumers are unwilling or unable to respond to research surveys mainly due to the _____.

answer

cultural differences

question

A _____ sample is used when detailed and accurate information for a sampling universe is not available.

answer

convenience sample

question

In an international arena, the greatest problem in sampling stems from:

answer

the lack of adequate demographic data and available lists from which to draw meaningful samples.

question

In this translation method, the 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. Identify the method in discussion.

answer

Back translation

question

_____ and _____ are the two methods of demand forecasting that are particularly suitable for international marketers.

answer

Expert opinion; analogy

question

In the case of Japanese corporate culture, this constitutes a typical significant impediment to averting and responding to a crisis. Identify the issue in the discussion.

answer

It is hard for those lower in the hierarchy to question their superiors.

question

In Japanese corporate culture, _____ refers to the public, face-saving truth.

answer

tatemae

question

_____is a fully industrialized country.

answer

Germany

question

Which of the following organizations classifies a country's stage of economic development on the basis of its level of industrialization into three categories MIDCs, LDCs, and LLDCs?

answer

The United Nations

question

A country is industrially underdeveloped, agrarian, and has subsistence society with rural populations and extremely low per capita income levels. According to the United Nations' stages of economic development for classifying countries with respect to levels of industrialization, the country will fall in which of the following groups?

answer

LLDCs (least-developed countries)

question

_____ is a part of the free trade group Mercosur.

answer

Argentina

question

An NIC (newly industrializing country) has the characteristic of increasing the production for the domestic market and export markets with increases in efficiencies and continual differentiation of exports from competition as its focus. This country is using which of the following factors as a component for growth?

answer

An outward orientation

question

Which if the following is considered as an indicator of economic development?

answer

Extent of social overhead capital

question

Economic planners are often more _____ oriented than _____ oriented.

answer

production; marketing

question

Which of the following is considered as an economy's arbitrator between productive capacity and consumer demand?

answer

Marketing

question

According to the evolution of the marketing process, when the only marketing functions performed in a country are demand creation and physical distribution, the marketing process is said to be in this substage. Identify the substage in discussion.

answer

Mass production

question

With respect to the evolution of the marketing process, this is considered to be the most fundamental substage (first substage) of the process. Identify the substage in discussion.

answer

Self-sufficient

question

With respect to the evolution of the marketing process, the marketing process in the United States currently is in which of the following substages?

answer

Mass distribution

question

With reference to international marketing, BEM stands for:

answer

big emerging markets.

question

_____ is a member of the free trade agreement DR-CAFTA.

answer

Costa Rica

question

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

answer

Mercosur

question

This treaty provides the legal basis for Mercosur. Identify the treaty in the discussion.

answer

Treaty of Asunción

question

The European _____ Community was the first institution that was created to restore prosperity, stability, and peace in Europe after World War II.

answer

Coal and Steel

question

Groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers are called _____.

answer

multinational market regions

question

The most successful multinational market region since World War II is the ______.

answer

European Union

question

Which of the following is the most fundamental reason for an economic union?

answer

The development and enlargement of markets

question

Political, geographical and cultural factors determine how successful an economic union is. true or false

answer

true

question

At which level of economic integration do member countries maintain individual tariff schedules for external countries but eliminate customs duties and nontariff trade barriers among themselves?

answer

Free Trade Area

question

Company A and Company 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 companies represent a _____.

answer

Customs Union

question

A _____is the most fully integrated form of regional cooperation.

answer

Political Union

question

Company X, Y, and Z have eliminated all tariffs and other restrictions on internal trade, adopted a set of common external tariffs, and removed all restrictions on the free flow of capital and labor among member nations. However, they lack political unity. These companies are most likely a _____.

answer

Common Market

question

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

answer

commonwealth of nations

question

true or false The European Union, European Economic Area, and the European Free Trade Area (EFTA) are the most established cooperative groups in Europe.

answer

true

question

The institutions of the _____ comprise executive, parliamentary, and judicial branches.

answer

European Union

question

The decision-making body of the European Union is the _____.

answer

Council of Ministers

question

In Eastern Europe, countries are trying to move from:

answer

socialism to capitalism.

question

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

answer

Many national markets, too small to bother with individually, take on new dimensions and significance when combined with markets from cooperating countries.

question

Democracy, theocratic republic, communist government

answer

democracy- ruled by many theocratic (aristocracy)- political parties exist but have little power communist (monarchy)- ruled by one

question

Political Risks

answer

Confiscation - the seizing of a company's assets without payment Expropriation - where the government seizes an investment but makes some reimbursement for the assets Domestication - when host countries gradually cause the transfer of foreign investments to national control and ownership through a series of government decrees

question

Political Parties

answer

Labour Party- more restrictive regarding foreign trade than conservative party Conservative Party- tended to liberalize foreign trade when it is in power

question

Nationalism vs. Animosity

answer

Nationalism- an intense feeling of national pride and unity; an awakening of a nations people to pride their country. can take on antiforeign business bias Animosity- target specific nations

question

Economic risks. 6

answer

Exchange controls Stem from shortages of foreign exchange held by a country Local-content laws Countries often require a portion of any product sold within the country to have local content Import restrictions Selective restrictions on the import of raw materials to force foreign industry to purchase more supplies within the host country and thereby create markets for local industry Tax controls A political risk when used as a means of controlling foreign investments Price controls Essential products that command considerable public interest Labor problems Labor unions have strong government support that they use effectively in obtaining special concessions from business

question

4 types of legal systems

answer

Common Law: US uses, Seeks interpretation through the past decisions of higher courts which interpret the same statues Islamic Law- complete system that prescribes specific patterns of social and economic behavior for all individuals Civil or Code Law: non Islamic or communist countries. divided into 3 separate codes: commercial, civil, criminal Commercial Legal System in Marxist- strictly subordinate to prevailing economic conditions

question

3 methods of resolutions

answer

conciliation (mediation)- cheapest nonbinding agreement between parties to resolve disputes by asking a 3rd party to mediate differences arbitration- procedure is for the parties involved to select a disinterested and informed party as referees to determine merits and make judgement litigation- most expensive, process in which a dispute between two parties is contested in a formal judicial setting; instigated by a lawsuit

question

Steps necessary to move goods across country borders

answer

National Security Laws and Determining Export Requirements

question

Primary vs Secondary Data

answer

Primary- data collected, as in market research, specifically for a particular research project Secondary- data collected by an independent agency or individual other than the firm conducting the research

question

International marketing reseach

answer

form of marketing research with two considerations 1) need to communicate info across national boundaries 2) challenge of applying established marketing techniques in the different environments of foreign markets

question

Multicultural research

answer

study of more than two countries and cultures that takes into account differences in language, economic structure, social structure, behavior, and attitude patterns

International Marketing CH. 6-10 – Flashcards

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