International Marketing Exam 2 (Ch. 5-7) – Flashcards

An awareness of one's own culture and the recognition that differences in others can cause anxiety, frustration, and misunderstanding of the host's intentions is essential to effective _____. A) evolution B) integration C) standardization D) adaptation E) competition

Mark, an American manager, visited Saudi Arabia for a business meeting. Despite being a Christian, he attempted to act like a Muslim in a misguided attempt to please his host. Mark has violated a cultural _____. A) imperative B) elective C) exclusive D) landmark E) standard

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.

_____ 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

Despite the emphasis on rank and hierarchy in Japanese social structure, business emphasizes _____ decision making—but at the top management level. A) committee B) decentralized C) centralized D) group E) autocratic

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.

In the context of communication styles, Edward T. Hall has described the symbolic meanings or _____ of time, space, things, friendships, and agreements and how they vary across cultures. A) silent languages B) significance C) emblematic import D) notions E) hieroglyphics

In a high-context culture, "who says it," "how it is said," and "when it is said" is very important. Which of the following countries is found to be a high-context culture with respect to communication practices? A) Switzerland B) Saudi Arabia C) France D) The United States E) Germany

Brazilian timepieces are less reliable and public clocks less available than in the United States. This shows that notions of _____ are followed in Brazil. A) polychronic time B) bimodal time C) dual time D) monochronic time E) sequence time

Which of the following increases the possibility of misinterpretation of others' motives in a negotiation scenario? A) Using one's self-reference criteria as the basis for assessment B) Insufficient probing about unclear and ambiguous areas C) Lack of documentation of the negotiation process D) Involvement of a neutral third-party mediator E) Lack of interest in the other's language

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

According to the Corruption Perception Index (CPI) formulated by Transparency International, Japan's CPI score rose from 5.8 in 1998 to 8.0 in 2011. Which of the following factors is most likely to explain such a major change? A) Japan is a relationship-oriented culture. B) There was a marked increase in outside influence in Japan since 1999. C) Japan had a communist past that frowned upon corruption. D) Japan is a high-power distance country. E) The collectivist culture is predominant in Japan.

In the context of business ethics, during the 1997-1998 financial crisis, many government leaders in Southeast Asia decried _____ as the worst kind of corruption. A) individualism B) consumerism C) American movies D) currency speculation E) intellectual property

The fourth type of capitalism common in Chinese culture that was omitted by Lester Thurow is characterized by: A) a focus on community building. B) the formation of trade unions. C) state capitalism. D) a feudal-capitalist nexus. E) an emphasis on one's network of personal connections.

Which of the following is a characteristic of a relationship-oriented culture? A) Monochronic time B) Linguistic directness C) Low power distance D) Collectivism E) Low level of bribery

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.

Which of the following is a political cause for instability in international markets? A) Varied taxing conventions B) Differences in philosophical ideologies C) Global focus D) Activism E) Animosity toward specific countries

At the top of the list of political issues concerning foreign businesses is: A) the existence of local-content laws. B) the government support to labor unions. C) the feeling of nationalism in the opposing political party. D) cyberterrorism and cybercrime. E) the stability of prevailing government policies.

As per the ancient Greeks, a form of government ruled by one is referred to as: A) oligarchy. B) monopoly. C) democracy. D) monarchy. E) aristocracy.

Monarchy is a form of government ruled by _____. A) one B) none C) few D) many E) all

In which of the following countries can you vote at 18 if you are married and at 21 if single? A) Croatia B) Iran C) Bolivia D) Saudi Arabia E) Peru

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.

Which of the following is an instance of how nationalism can be manifested? A) Membership in bilateral trade treaties B) Call to buy eco-friendly products C) Restrictions on exports D) Imposition of tariffs E) Focus on global security

Often an expropriated investment becomes _____ (i.e., it becomes a government-run entity). A) democratized B) domesticated C) nationalized D) prioritized E) socialized

Confiscation, expropriation, and domestication are classified as: A) political risks. B) social risks. C) financial risks. D) environmental risks. E) legal risks.

Exchange controls are most likely imposed: A) when there is a substantial amount of capital leaving the country. B) when it is required that a portion of any product sold within the country contain locally made parts. C) when there are no adequately developed sources of supply within the country. D) on essential products that command considerable public interest. E) during inflationary period to control the cost of living.

Which of the following is applied during inflationary periods to control the cost of living? A) Price controls B) Exchange controls C) Tax controls D) Import restrictions E) Local-content laws

_____ is an attempt to forecast political instability and help management identify and evaluate political events and their potential influence on current and future international business decisions. A) Political risk assessment B) Political securitization C) Democratization D) Risk conditioning E) Quantification of risk

The Export-Import Bank: 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.

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.

The legal system in non-Islamic and non-Marxist countries is centered on _____ law, which is derived from Roman law. A) common B) civil C) commercial D) Koran E) English

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

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.

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

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.

Axler Inc., an American firm had entered into a business agreement with M.K. Group of Manufacturers. Recently they had a major dispute over the terms of the agreement. Both firms decided informally to resolve the dispute by appealing to an independent tribunal to mediate their differences. Which of the following dispute resolution methods is being used by the companies in the above scenario? A) Conciliation B) Litigation C) Informal settlement D) Arbitration E) Coercion

A Canadian company had placed an order with a Korean company for electronic equipments. The Korean company was unable to deliver the goods on time due to a technical failure and the Canadian company incurred losses. Initial attempts to informally settle the dispute failed. Hence each party chose a person to defend their case and a lawyer was appointed by an international committee to settle the dispute. The decision of the lawyer was binding for both parties. The method of dispute resolution being used in the above scenario is _____. A) conciliation B) litigation C) informal settlement D) coercion E) arbitration

Which of the following methods is considered as the last step in resolving a dispute? A) Coercion B) Litigation C) Informal settlement D) Conciliation E) Arbitration

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

Which of the following is an international convention designed for mutual recognition and protection of intellectual property rights in Europe and includes 26 European nations? A) The Paris Convention for the Protection of Industrial Property B) The Bureau for International Registration of Trademarks C) The Inter-American convention D) The Patent Law Treaty E) The International Chamber of Commerce

Which of the following approaches will help traditional American companies operating in countries like China to protect intellectual property rights? A) Using IP without registering it with the appropriate agencies in United States B) Not engaging local representation C) Avoiding negotiation and alternative dispute resolution D) Expecting the home country to actively police their intellectual property E) Complaining to the U.S. government and World Trade Organization

Which of the following is true regarding the contractual validity of electronic contracts? A) E-mail is not considered as a valid form of communication in most developed countries, including India. B) Electronic contracts are not enforceable by law. C) India recently passed a law that states that digital signatures are not legally binding. D) The EU Commission has adopted an e-commerce directive that will forbid online retailers from trading by the rules of their home country. E) The United Kingdom recognizes digital signatures used in creation of online contracts as legally binding as any paper-based original document.

The Canadian courts use "the credulous person standard" to determine whether a representation is false or misleading. This means that the court will consider a representation to be misleading: A) if it mimics the representation of a competitor. B) if any reasonable person could possibly misunderstand the representation. C) if it is devoid of puffery. D) if it is specifically targeted at a particular market segment rather than the wide audience. E) if it claims to be superior over other competitors' products with evidence.

The _____ license in the United States permits exportation of products that are not subjected to EAR control with a declaration of the product type, its value and destination. A) specific B) declaration C) general D) export E) validated

Which of the following electronic services gives exporters authority to ship their goods for those licenses approved without conditions? A) Export License Application and Information Network (ELAIN) B) Defense Priorities and Allocation System (DPAS) C) Simplified Network Application Process (SNAP) D) Electronic Request for Item Classification (ERIC) E) System for Tracking Export License Applications (STELA)