International Marketing Chapter 1-19

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Which of the following is the reason why the international marketer’s task is more complicated than that of the domestic marketer?`
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The international marketer must deal with at least two levels of uncontrollable uncertainty instead of one.
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Which of the following is a controllable element in the environment of an international marketer?
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Research activities
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Elements such as geography and infrastructure, level of technology, and cultural forces in the marketing environment of an international marketer are regarded as _____.
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uncontrollable elements
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Denimen Group, a clothing brand, is looking to establish itself in Northern Ireland and is devising a plan to market its products. A lot of factors in the domestic environment can have an impact on their success. Which of the following elements in the market can be altered by the team to adjust to market conditions?
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Pricing strategies
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A person’s _____ can prevent him from being aware of the existence of cultural differences or from recognizing the importance of those differences.
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self-reference criterion
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Justin, who works as a manager in a global enterprise with a diverse workforce, is of the opinion that the employees from his country are more time-conscious and good at taking decisions. He always allots responsible positions to people from his country and trusts them more compared to other employees. This notion of Justin is referred to as _____.
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ethnocentrism
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To be _____ is to be tolerant of cultural differences and to have knowledge of cultures, history, world market potential, and global economic, social, and political trends.
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globally aware
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Which of the following factors favors faster internationalization?
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Firms with key managers well networked internationally.
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A company in the _____ stage of international marketing involvement sells its goods to foreign markets only when there is a surplus due to variations in production levels. Such a company has little or no intention of maintaining continuous market representation.
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infrequent foreign marketing
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A company at the stage of international marketing:
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sells products that are a result of planned production for markets in various countries.
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Balance of payments is best defined as:
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The system of accounts that records a nation’s international financial transactions.
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Tariffs, quotas, and nontariff barriers designed to shelter a country’s markets from intrusion by foreign companies are indicative of _____.
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Protectionism
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Which of the following best defines a quota?
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It is a specific unit or dollar limit applied to a particular type of good.
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_____ are absolute restrictions against the purchase and importation of certain goods and/or services from other countries.
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Boycotts
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_____ refer to agreements between the importing country and the exporting country for a cap on the volume of exports.
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Voluntary export restraints
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Antidumping laws were primarily aimed at:
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Preventing foreign producers from using predatory pricing
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_____ was the original agreement that provided a process to reduce tariffs and create an agency to serve as a watchdog over world trade.
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The GATT (General Agreement on Tariffs and Trade)
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The ____, unlike its predecessor it replaced, provides for a trade dispute process as well as provides a permanent, comprehensive forum to address the trade issues of the 21st century global market.
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The WTO
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To encourage development of industry and protect existing industry, governments may establish such barriers to trade as tariffs and a variety of _______ including quotas, boycotts, monetary barriers and market barriers.
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Non-tariff Barriers
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The _____ and the _____ are two global institutions created to assist nations in becoming and remaining economically viable by maintaining stability in financial markets and by assisting countries that are seeking economic development and restructuring.
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The Monetary Fund (IMF) and World Bank
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When designing a product, the style, uses, and other related marketing activities must:
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be made culturally acceptable.
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Whatever the degree of acceptance of a novel product in a market, the use of something new is the beginning of cultural change, and the marketer becomes a(n) _____.
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change agent
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In the context of the origins and consequences of culture in global marketing, humans make adaptations to changing environments through _____.
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innovation
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According to Hofstede, which of the following pertains to societies in which everyone is expected to look after himself or herself and his or her immediate family?
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Individualism
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Cultures with _____ tend to be hierarchical, with members citing social roles, manipulation, and inheritance as sources of power and social status
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high Power Distance Index
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_____ are important because they coordinate everyday interactions and special occasions, and let people know what to expect.
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Rituals
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Product styling must be _____ to be successful, as must advertisements and package designs.
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aesthetically pleasing
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Being attuned to the nuances of culture so that a new culture can be viewed objectively, evaluated, and appreciated is indicative of:
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cultural sensitivity.
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With regard to resistance to change, innovations that hold the greatest interest within a society, and are least disruptive are the ones that:
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are readily accepted into society.
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Neo footwear has just opened its branch in Japan. Since they found that products with a Manga theme were thriving in the market, they decided to launch a range of Manga-themed footwear. It became an instant success, as the company had predicted. This is an example of:
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cultural congruence.
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A lack of _____ for and knowledge of foreign business practices can create insurmountable barriers to successful business relations.
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empathy
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Which of the following is true of cultural electives?
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They relate to customs that cultural aliens may wish to conform to or participate in but that are not required.
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Which of the following is true of management styles in the United States?
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Personnel selection and reward must be made on merit.
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Which of the following management concepts of the United States reflects the belief that change is not only normal but also necessary, that nothing is sacred or above improvement?
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Never-ending quest for improvement.
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In the context of management styles in collectivist cultures, such as Japan and China, _____ is more salient and efficiencies are attained through reduced transaction costs.
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cooperation
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No matter how thoroughly prepared a marketer may be when approaching a foreign market, a certain amount of _____ occurs when differences in the contact level and communications emphasis are encountered.
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cultural shock
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A low-context culture depends more on:
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explicit, verbally expressed communications.
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Which of the following is true of P-time?
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It lays emphasis on the completion of a human transaction.
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In the context of business ethics, which of the following is true of subornation?
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Its purpose is to entice an official to commit an illegal act.
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Which of the following is a characteristic of information-oriented cultures?
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Low distance from English
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Which of the following is true of a sovereign state?
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It has the power to enter into agreements with other nations.
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Which of the following is a political cause for instability in international markets?
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Nationalism
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Which of the following can be understood as a manifestation of feelings of nationalism?
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A call to “buy our country’s products only.”
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Which of the following is considered to be a political risk?
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Confiscation
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Expropriation is:
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when the government seizes an investment but makes some reimbursement for the assets.
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Countries often require a portion of any product sold within the country to contain locally made parts. This relates to _____.
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local-content laws
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Relations between governments and MNCs are generally positive if the investment:
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uses locally produced resources
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Which of the following strategies can be effective in forestalling or minimizing the effect of a total takeover of a multinational corporation’s holdings by a foreign government?
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Expanding the investment base
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_____ can be with locals or other third-country multinational companies to limit a company’s financial exposure.
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Joint ventures
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In cases in which a host country is demanding local participation, the most effective long-range solution is _____.
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planned domestication
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Which of the following forms the basis of the legal system in Marxist-socialist economies of Russia and the Republics of former Soviet Union?
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Commercial legal system
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The legal system in Salmia is based on all inclusive system of written rules of law. According to the legal system, ownership is established by registration, and agreements are not enforceable unless properly notarized or registered. The legal system in Ukraine is based on _____ law.
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code
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The legal system in Lenya is based on interpretations of the Koran. It encompasses religious duties and obligations, as well as the secular aspect of law regulating human acts. Which of the following laws forms the basis of the legal system in Lenya?
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Islamic law
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Which of the following is true regarding the method of conciliation used to solve commercial disputes?
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Its sessions are private and all the conferences between the parties and mediator are confidential.
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If an international dispute cannot be resolved through conciliation, the next step is _____.
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arbitration
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Two international firms have had dispute over the right to a specific patent. The two companies have approached the International Chamber of Commerce to appoint a third party as a referee to resolve their dispute. The third party is attempting to resolve the dispute through a standard process and the decision taken by this authority is enforceable under law. The dispute resolution method being used is referred to as _____.
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arbitration
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Laurel group is involved in a dispute with an electronics company over the registration of a trademark. The two companies have failed to reach an agreement and hence proceedings are now being conducted in an open court to resolve the dispute. Which of the following dispute resolution methods is being used to resolve the dispute between the two companies?
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Litigation
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In the United States, a common-law country, ownership of IP rights is established by:
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prior use.
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The Foreign Corrupt Practices Act in the United States:
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makes it illegal for companies to pay bribes to foreign officials, candidates, and political parties.
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Which of the following judicial concept holds that even if an act is committed outside the territorial jurisdiction of U.S. courts, those courts can nevertheless have jurisdiction if the act produces effects within the home country?
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Objective theory
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Commercial sources, trade associations, management groups, and state and local governments provide a marketing researcher with a good source of _____ data.
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secondary
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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?
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How were the data collected?
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Which of the following is a problem associated with the use of secondary data?
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Comparability of data
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Before launching its latest line of health drinks, a beverage manufacturer provided free samples of the health drinks to a large and culturally diverse set of families. It then conducted a survey where the participants were asked to rate those health drinks on a step-wise scale of “not satisfied” to “extremely pleased.” This is an example of _____ research.
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quantitative
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Which of the following statements is true about qualitative research?
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It includes direct observation of consumers in choice or product usage situations.
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If after seeking all reasonable available data sources, research questions are still not adequately answered, the market researcher must collect _____ data.
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primary
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In many countries, telephone directories, cross-index street directories, census tract and block data, and detailed social and economic characteristics of the population being studied are not available on a current basis, if at all. Which of the following aspects of market research is this situation most likely to affect?
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The sampling process
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Marketers use different techniques to help ferret out translation errors ahead of time. Which of those techniques involves using more than two translators for the back translation, comparing the results, discussing differences, and selecting the most appropriate translation?
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Parallel translation
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The key in using expert opinion to help forecast demand is _____, that is, comparing estimates produced by different sources.
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triangulation
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Given the greater uncertainties and data limitations associated with foreign markets, two methods of forecasting demand are particularly suitable for international marketers. Which of the following is one of those methods?
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Analogy
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Which of the following integrates generalized goals for the enterprise as a whole?
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Corporate planning
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Which of the following is true about tactical planning?
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It addresses marketing and advertising questions.
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Which of the following phases of the international planning process provides the marketer with the basic information necessary to evaluate the potential of a proposed country market and identifies problems that would eliminate the country from further consideration?
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Matching company and country needs
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Which of the following modes of foreign market entry offers the most control and the highest potential return for a company?
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Direct foreign investment
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In which of the following phases of the international planning process a marketing mix is decided upon that is adjusted to the cultural constraints imposed by the uncontrollable elements of the environment that effectively achieves corporate objectives and goals?
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Phase 2
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Which of the following market entry strategies is considered the least risky?
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Exporting
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The advantages of _____ are most apparent when capital is scarce, import restrictions forbid other means of entry, a country is sensitive to foreign ownership, or patents and trademarks must be protected against cancellation for nonuse.
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licensing
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Which of the following 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 without forming a separate legal entity?
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A strategic international alliance
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How is a joint venture different from other types of strategic alliances or collaborative relationships?
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It involves the creation of a separate legal entity
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Which of the following refers to a partnership of two or more participating companies that have joined forces to create a separate legal entity to facilitate doing business in a country where none of the participants are currently active?
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A joint venture
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The _____ quality attributes are embedded in the total product, that is, the physical or core product and all the additional features the consumer expects.
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market-perceived
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McDonald’s modified their burgers in India to use chicken, instead of beef, to meet the cultural requirements of the local market. This is an example of:
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product homologation
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The local government in Norfolk Island has developed strict laws that favor environmentally-friendly products. The government has passed legislation to reduce air pollution by making it mandatory for firms to shift to cleaner coal, electricity, and gas, and also requires that the packaging material is recycled and reused. These measures taken up by the government to identify concern with the environmental impact of various marketing activities is known as _____.
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green marketing
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Which of the following statements is true regarding product adaptation?
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The extent of adaptation required depends on cultural differences in product use and perception between the market the product was originally developed for and the new market.
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A product’s _____ refers to the perceived marginal value of the new product relative to the old.
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relative advantage
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If a company is making changes to its product before introducing it to a foreign market by trying to make it acceptable with the behavior, norms, and values in the foreign market, the company is trying to enhance the _____ of the product.
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compatibility
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Which of the following helps identify all the possible ways a product may be adapted to a new market by separating its many dimensions into three distinct components?
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Product Component Model
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The three distinct components of the Product Component Model are packaging, support services, and _____.
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core component
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The government of Northern Ireland has made it mandatory that all support services of the products of foreign firms that are being marketed in their country, have to originate within their country and not from locations outside. This move of the government is intended to shield the domestic industry and employment. Which of the following barriers is being imposed by the government in the above scenario?
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Protectionism.
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Consumers have broad but somewhat vague stereotypes about specific countries and specific product categories that they judge “best”: English tea, French perfume, Chinese silk, Italian leather, Jamaican rum, and so on. These are examples of:
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country-of-origin effect
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Which of the following factors account for greater market similarities among industrial goods customers than among consumer goods customers?
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The motive or intent of the users
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The demand for Boeing 747s is dependent on the worldwide consumer demand for air travel services. This is an example of:
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derived demand.
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Industrialized economies such as Korea and the Czech Republic focus on low-cost manufacturing of a variety of consumer and some industrial goods. Which stage in Rostow’s five-stage model of economic development are they in?
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Drive to maturity
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Service economies where design activities are going on and manufacturing techniques are being developed are in the _____ stage in Rostow’s five-stage model of economic development.
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age of mass consumption
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Total quality management (TQM) requires:
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involving customers in product development.
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Which of the following is true of the ISO 9000 certification?
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It certifies the existence of a quality control system that ensures that a company can meet published quality standards.
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Which of the following statements is true about the American Customer Satisfaction Index (ACSI)?
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The appeal of the ACSI is its focus on results, that is, quality as perceived by product and service users.
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Which of the following is an argument used to justify indirect trade barriers that restrict foreign companies from entering domestic markets?
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The protection of infant industries.
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Which of the following is an example of client following?
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A firm shifts base to a foreign country to serve its clients there and then begins to serve local clients
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Which of the following statements is true about trade shows?
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Trade shows provide the facilities for a manufacturer to exhibit and demonstrate products to potential users and to view competitors’ products.
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Which of the following processes include the passage of ownership (title) and the buying and selling negotiations between producers and middlemen, and between middlemen and customers?
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Distribution channel
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In a traditional distribution structure, market penetration and mass distribution are not necessary because:
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demand exceeds supply and the customer seeks the supply from a limited number of middlemen
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_____ middlemen work on commission and arrange for sales in the foreign country but do not take title to the merchandise.
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Agent
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_____ middlemen take title to manufacturers’ goods and assume the trading risks.
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Merchant
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In the context of the different types of middlemen, Disney and Benetton are examples of _____.
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manufacturers’ retail stores
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A major disadvantage of export management companies is that:
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they can seldom afford to make of the kind of market investment needed to establish deep distribution for products.
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Which of the following is true of manufacturer’s export agents?
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They operate on a straight commission basis.
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Which of the following is one of the six Cs of distribution channel strategy?
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Coverage
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Which of the following is also known as secondary wholesaling?
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Parallel importing
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Which of the following is true of a physical distribution system?
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It includes transportation mode, inventory quantities, and packing.
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_____ is/are short-term efforts directed to the consumer or retailer to achieve such specific objectives as consumer product trial or immediate purchase, consumer introduction to the store or brand, gaining retail point-of-purchase displays, encouraging stores to stock the product, and supporting and augmenting advertising and personal sales efforts.
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Sales promotions
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Which of the following best describes encoding in the international communications process?
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Conversion of the message from the source into effective symbolism for transmission to a receiver.
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In the context of the process of international communications, effective communication demands the existence of a “________” between the sender and the receiver.
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Psychological overlap
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Errors such as Pepsi’s “Come Alive” slogan being interpreted as “Come out of the grave”, and Chevrolet’s brand name for the Nova model (which means new star) being translated into Spanish as No Va!, meaning “it doesn’t go” are examples of problems associated with _______ in the international communications process.
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Decoding
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_____ comprises external influences, such as competitive advertising, other sales personnel, and confusion at the receiving end that can detract from the ultimate effectiveness of the communication.
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Noise
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_____ may diminish the role of advertising in the promotional program and may force marketers to emphasize other elements of the promotional mix.
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Media limitations
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Which of the following is an advantage multinational advertisement agencies have over local agencies?
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They are better able to provide a coordinated worldwide advertising campaign.
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Which of the following media has changed the pace and reach of word-of-mouth advertising?
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The Internet
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Which of the following consists of consumer-generated content?
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Social media marketing
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Why have bodies like the International Advertising Association developed self-regulatory codes to ensure that the majority of ads conform to standards set for “honesty, truth, and decency?”
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To prevent government intervention
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The chief disadvantages of a(n) _____ sales force are the high cost, cultural and legal barriers, and the limited number of high-caliber personnel willing to live abroad for extended periods.
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Expatriate.
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Which of the following statements is true regarding expatriates?
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They add to the prestige of the product line in the eyes of foreign customers
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Neil is a U.S. national, who is posted at his company headquarters in the U.S. He is in charge of the native sales force operating in France. In view of the given information, we can say that Neil is a:
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Virtual expatriate
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Which of the following is an advantage of hiring local nationals in the sales force?
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They are better able to lead a company through the maze of unfamiliar distribution systems.
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Expatriates from their own countries working for a foreign company in another country are known as:
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Third-country nationals.
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Which of the following is typically true of third country-nationals (TCNs)?
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TCNs are sought because they speak several languages and know an industry or foreign country well.
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Which of the following qualities is desirable for international marketing personnel?
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They must work independently without constant recourse to the home office.
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Short-term assignments for expatriates involve payments of overseas premiums, sometimes called _____ allowances, if the family does not go along.
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Separation
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In the context of global compensation, which of the following is a favorable practice?
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Allowing local managers to decide the mix between base and incentive pay
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Karen, an American citizen, who works for a multinational company, is preparing to return to the U.S. after completing a three-year assignment in Germany. What is this process called?
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Repatriation
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A clothing company sold its denims in developing nations at low prices to compete in the local market. It soon found that these discounted denims were being exported to several other countries where they were in direct competition with the same denims sold for higher prices by the same firm. In the other countries, these denims are a part of:
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The gray market
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Which of the following is true of exclusive distribution?
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It is often used by companies to maintain high retail margins
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A company charges a premium on its latest cell phone to tap the cell phone market that is found to be relatively price insensitive. Which pricing policy is the company following?
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Price Skimming
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Artemis Inc. increased its market share by intentionally offering products at low prices. This policy helped the firm acquire and hold its share of market as a competitive maneuver. Which of the following pricing policies was used by Artemis Inc.?
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Penetration pricing
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Which term relates to situations in which the ultimate prices in a foreign market are raised by shipping costs, insurance, administrative costs, or exchange rate fluctuations?
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Price escalation
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Which of the following is true of tariffs?
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A product can be modified to qualify for a lower tariff rate within a tariff classification.
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Which of the following is true of foreign trade zones (FTZ)?
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An FTZ is a tax-free enclave and not considered part of the country as far as import regulations are concerned
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Which of the following is true of dumping?
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Countervailing duties can be levied if it is shown that domestic producers are being directly harmed by dumping of foreign goods
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Jeff Foods Ltd., a British corporation, produces and sells a variety of potato chips. When the firm wanted to set up a chips factory in Romania, the Romanian government asked Jeff Foods to accept Romanian wine in order to be allowed to do so. This is an example of _____.
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Countertrade
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A group of international firms decide to set the prices of a key chemical ingredient that is used in the production of fertilizers. They do this by restricting the quantity produced of the chemical and allocating market territories to each firm. In other words, these firms are called _____.
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A cartel
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In the context of international business negotiations, representing Japanese negotiators as having a samurai kind of company loyalty is an example of:
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Stereotyping
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“Americans make decisions based upon the bottom line and on cold, hard facts.” This statement reflects the American notion of the importance of:
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Objectivity
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Which is the next step after selection of an appropriate negotiation team for efficient and effective international business negotiations?
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Management of preliminaries such as training and location of talks
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Which of the following is an important skill in international business negotiations?
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Listening ability
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Which of the following is the first step of the international business negotiations process?
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