MK0018 International Marketing

MODEL QUESTION PAPER

MK0018 – INTERNATIONAL MARKETING

SECTION A – 1 MARK QUESTIONS

1. The striking difference between international marketing and domestic

marketing lies in ___________.

A. analyzing competition by the two

B. the environment in which the two take place

C. customer segmentation

D. positioning of products and services

2. The major objective behind ______________ is the protection of

home industries from the competition of the foreign commodities.

A. quantitative restrictions

B. exchange control

C. tariffs

D. custom duties

3. A ______________ is a total offer of benefits or advantages that is

more attractive to customers than any other competitor.

A. Sustained superior performance

B. Core competency

C. Strategic advantage

D. Competitive advantage

4. The _____________ orientation represents a “world-view” that sees

similarities and differences in markets and countries, and seeks to

create a global strategy that is fully responsive to local needs and

wants.

A. regiocentric

B. ethnocentric

C. geocentric

D. polycentric

5. Trans-nationality Index is calculated as the average of three ratios:

foreign assets to total assets, foreign sales to total sales and

________________.

A. foreign income to national income

B. foreign income to total income

C. foreign employment to total employment

D. foreign income to total assets

6. _______________ is based on the belief that if the individual was

permitted to pursue his or her own interest without the interference

from the state, he or she would promote the well-being of all.

A. Comparative advantage theory

B. Classical theory

C. Adam Smith’s theory

D. Factor endowment theory

7. According to David Ricardo’s ________________, the exporting

country should look at the relative efficiencies of production for both

commodities and make only those goods it could produce most

efficiently.

A. Adam Smith’s theory

B. Classical theory

C. Factor endowment theory

D. Comparative advantage theory

8. A _________ may be defined as the imposition of an “absolute limit on

the physical quantity of value of goods or services that may be traded

over a set period of time”

A. quota

B. tariff

C. exchange restriction

D. custom duty

9. A _____________ is a strategic alliance where two or more parties

form a partnership to share markets, knowledge and profits without

the transfer of ownership.

A. merger

B. joint venture

C. licensing

D. franchising

10. The final step in marketing research is ___________________.

A. data evaluation

B. summarizing the result of research and making a report

C. data collection and compilation

D. interpretation

11. ________________ is a fact finding mission, conducted for the

purpose of obtaining all relevant information about the market.

A. Market survey

B. Sales information system

C. Segmentation

D. Market intelligent system

12. _______________ involves determining which products to introduce

into which countries, what modifications to make in the products,

what new products to add, what brand names to use and when to

enter the market.

A. International market segmentation

B. International product planning

C. Global business strategy

D. Market intelligent system

13. _____________________ is based on measurable characteristics of

population such as age, gender, income, education and occupation.

A. Behavioral segmentation

B. Psychographic segmentation

C. Geographic segmentation

D. Demographic segmentation

14. _________________ involves grouping people in terms of their

attitudes, values and lifestyles.

A. Behavioral segmentation

B. Psychographic segmentation

C. Geographic segmentation

D. Demographic segmentation

15. The three main pricing factors are costs, demand and __________.

A. competition

B. quality

C. quantity

D. brand image

16. In arriving at the export pricing under __________ method the total

cost of production of the article is taken into account.

A. cost-plus method

B. variable cost method

C. marginal cost method

D. common cost method

17. In international marketing, ________________ is employed when a

manufacturer develops an overseas channel.

A. local channel

B. indirect selling

C. direct selling

D. domestic channel

18. Domestic channel is also known as _________________.

A. direct channel

B. local channel

C. direct selling

D. franchise

19. _______________ is the process of identifying potential purchasers

and assessing their probability of purchase.

A. Prospecting

B. Promotion

C. Targeting

D. Positioning

20. ________________ is a paid form of non-personal presentation of

ideas, goods and services by an identified sponsor.

A. Promotion

B. Publicity

C. Public Relations

D. Advertisement

21. _____________ refers to the policy where the advertising in

domestic market is extended to foreign markets in its forms, appeals

and other selling propositions.

A. Indirect advertising

B. Diversified advertising

C. Unified advertising

D. Corporate advertising

22. ________________ is the total of activities by which products and

services are offered to market segments

A. Indirect advertising

B. Diversified advertising

C. Unified advertising

D. Corporate advertising

23. In _____________ Strategy the advertising is not the same as in

the domestic market but it requires proper adaptation of the

advertising strategy to various elements such as religion, culture,

traditions, etc. of diverse nature peculiar to the foreign market or

market segment.

A. Corporate advertising

B. Diversified advertising

C. Unified advertising

D. Indirect advertising

24. _____________ is the duplication of public events in other

geographical areas, while retaining the original brand (logo),

mission, concept and format of the event.

A. Manufacturing franchising

B. Product franchising

C. Social franchising

D. Event Franchising

25. Under __________________ the franchisee is permitted to

manufacture the products under license and sell them using the

originator’s trademark and name.

A. product franchising

B. manufacturing franchising

C. business franchising

D. social franchising

26. As part of ________________ agreement, one company will custom

produce parts or other materials on behalf of their clients and in

most cases, the manufacturer will also handle the ordering and

shipment processes for the client.

A. contract manufacturing

B. strategic alliance

C. FDI

D. Joint ventures

27. _________________ are intended to raise the Government revenue

without intending to protect any industry of the country.

A. Quotas

B. Protective tariffs

C. Revenue tariffs

D. Anti-dumping duties

28. _________________ are based on the value of imports and are

charged in the form of a specific percentage of the value of goods.

A. Ad-valorem tariffs

B. Anti-dumping duties

C. Quantity restrictions

D. Revenue tariffs

29. ___________ holds that expanding the labour pool leads to decline

in the accumulation of capital per worker, lower worker productivity

and lower incomes per person, eventually, causing stagnation or

economic decline.

A. Adam Smith theory

B. Classical theory

C. Theory of comparative advantage

D. Factor endowment theory

30. __________ occurs when there are two contracts or a set of parallel

cash sale agreement each paid in cash.

A. Buy back

B. Compensation trade

C. Barter

D. Counter purchase

31. ___________ requires a company to provide machinery, factories or

technology and to buy products made from this machinery over an

agreed on period.

A. Compensation-trade

B. Counter purchase

C. Offset

D. Barter

32. _________ is a specially delineated duty free enclave and shall be

deemed to be foreign territory for the purposes of trade operations.

A. Special Economic Zones

B. Free Trade Warehousing Zones

C. Trade Zones

D. Intermediate Zones

33. ___________ is issued to a merchant-exporter or manufacturer-

exporter for the import of inputs used in the manufacture of goods

without payment of Basic Customs Duty.

A. Advance release order

B. Advance License

C. Duty free replenishment Certificate

D. Duty free License

34. _________________ is issued to allow duty free import of inputs

which are physically incorporated in the export product.

A. Advance release order

B. Advance License

C. Duty free replenishment Certificate

D. Duty free License

35. ___________ Scheme allows import of capital goods for pre-

production, production and post-production at a certain percentage

customs duty subject to an export obligation.

A. Trade promotion

B. Export Promotion Capital Goods

C. Duty exemption

D. Duty remission

36. ____________ refers to the application of one country’s laws to

activities outside its border.

A. Sovereignty

B. Extra-territoriality

C. Trans-nationality

D. Cross-border law

37. _____________ is a method of dispute resolution using the offices of

third party.

A. Mediation

B. Arbitration

C. ADR method

D. Litigation proceeding

38. ____________ is one who seeks out need in foreign markets and

makes purchases from manufacturers in its own country to fill those

needs.

A. Export distributor

B. Export merchant

C. Export drop shipper

D. Forwarding agent

39. An export drop shipper is also known as a ____________.

A. desk jobber

B. export distributor

C. export merchant

D. Resident buyer

40. _____________ is an independent agent that is usually located near

the highly centralized production industry but more or less functions

like a regular purchasing agent.

A. Resident buyer

B. Country controlled buying agent

C. Co-operative exporter

D. Export merchant

SECTION B – 2 MARK QUESTIONS

1. The types of arbitration are ____________ and ___________.

A. Implicit, Explicit arbitration

B. Ad-hoc arbitration, Institutional arbitration

C. Flexible arbitration, structured arbitration

D. Third-party arbitration, internal arbitration

2. Fill up the blanks:

1) _________ is a sign that serves to distinguish the goods of

industrial or commercial enterprise from those of other

enterprise.

2) ___________ appear either because a seller has priced goods

differently in different markets or because currency value

changes.

A. 1- Trademark, 2-Grey market goods

B. 1- Patent, 2-Counterfeiting

C. 1- Copyrights, 2-Grey market goods

D. 1- Trademark, 2-Counterfeiting

3. State True (T) or False (F):

1) Under quantity restrictions, the maximum quantity of different

commodities, which would be allowed to be imported over a

period of time from various countries, is fixed in advance.

2) Quotas can be imposed on imports as well as exports.

A. 1T, 2F

B. 1F, 2F

C. 1F, 2T

D. 1T, 2T

4. State True (T) or False (F):

1) A joint venture differs from a merger in the sense that there is no

transfer of ownership in the deal.

2) Joint ventures enable companies to share technology

A. 1T, 2F

B. 1T, 2T

C. 1F, 2F

D. 1F, 2T

5. Fill up the blanks:

1) The advantages frequently associated with entering a market

early are commonly known as _______________.

2) FDI can take the form of ___________ in a new facility.

A. 1- early bird advantage, 2- acquisitions

B. 1- entering advantage, 2- mergers

C. 1- first mover advantage, 2- mergers

D. 1- first mover advantage, 2- Green field investment

6. The types of Survey techniques are ____________, _____________

and _______________.

A. Observation method, indirect interview, schedule method

B. personal interview, telephonic interview, mail questionnaire

survey

C. Observation method, mail questionnaire survey, schedule

method

D. Observation method, direct interview, schedule method

7. State True (T) or False (F):

1) Variation in trade margins may be adopted by the exporter as

the pricing strategy in foreign market.

2) Seasonal discounts aim at shifting the storing function in the

channels

A. 1T, 2F

B. 1T, 2T

C. 1F, 2F

D. 1F, 2T

8. Fill up the blanks:

1) Under _______________, exporters offer a very low

introductory price to speed up their sales and therefore,

widening the market base.

2) Under _______________ strategy, a very high introductory

price is fixed to skim the cream of the demand at the very

outset.

A. 1- Probe pricing strategy, 2- Standard export pricing

B. 1- Skimming strategy, 2- probe pricing

C. 1- market penetration strategy, 2- skimming price

D. 1- differential trade margins strategy, 2- skimming pricing

9. Fill up the blanks:

1) A _____________ acts on behalf of buyer and charges

commission.

2) A _____________ buys goods from market or from a

manufacturer and then sells them to foreign to buyers

A. 1- sales agent, 2- manufacturer exporter

B. 1- buying agent, 2- merchant exporter

C. 1- indenting agent, 2- buying agent

D. 1- buying agent, 2- commission agent

10. Fill up the blanks:

1) An Export Management Company (EMC) is also known as

________________.

2) A ______________ is a manufacturer with its own export

organization that is retained by other manufacturers to sell in

foreign markets.

A. 1- Combination Export Manager, 2- Cooperative exporter

B. 1- Buying agent, 2- Cooperative exporter

C. 1- Cooperative exporter, 2- Resident buyer

D. 1-Combination Export Manager, 2- Export drop shipper

11. Fill up the blanks:

1) A _________________ is formed when two or more firms usually

in the same industry join together to market their products

overseas

2) An export drop shipper is also known as a ______________.

A. 1- cable merchant, 2- desk jobber

B. 1- resident buyer, 2- cable merchant

C. 1- Webb-pomerene association, 2- desk jobber

D. 1- Cooperative exporter, 2- resident buyer

12. State True (T) or False (F):

1) An export drop shipper places an order with a manufacturer

directing the manufacturer to deliver the product directly to the

foreign buyer on the receipt of order from overseas.

2) The export distributer is authorized and granted an exclusive

marketing right to represent the manufacturer and to sell in

some or all foreign markets

A. 1T, 2F

B. 1F, 2T

C. 1T, 2T

D. 1F, 2F

13. State True (T) or False (F):

1) Event franchising is the duplication of public events in other

geographical areas, while retaining the original brand, mission and

concept.

2) Through Foreign Direct Investment, a firm invests directly in

facilities to produce and/or market a product in a foreign country.

A. 1T, 2F

B. 1F, 2T

C. 1T, 2T

D. 1F, 2F

14. Fill up the blanks:

1) ________________ scheme enables import of “inputs” required

for export production.

2) ________________ is issued to a merchant-exporter or

manufacturer-exporter for the import of inputs used in the

manufacturer of goods without payment of basic customs duty.

A. 1 - Export promotion capital goods, 2- Export license

B. 1 – Duty exemption, 2 – Duty free replenishment certificate

C. 1 – Export promotion capital goods, 2- Duty exemption

D. 1 - Export shipment, 2- Duty free replenishment certificate

15. State True (T) or False (F):

1) First mover disadvantages may give rise to pioneering costs that

an early entrant has to bear that a later entrant can avoid.

2) A joint venture differs from a merger in the sense that there is no

transfer of ownership in the deal

A. 1T, 2F

B. 1F, 2T

C. 1F, 2F

D. 1T, 2T

16. State True (T) or False (F):

1) Spot market is the market where transactions are conducted for

the spot delivery of currencies.

2) Forward market consists of transactions that require delivery of

currency at an agreed upon future date.

A. 1F, 2F

B. 1T, 2T

C. 1T, 2F

D. 1F, 2T

17. Fill in the blanks:

1) ______________ is a technique that attempts to predict future

exchange rates by examining the influence of major

macroeconomic variables on the foreign exchange markets.

2) ___________ relies on past exchange rate data to develop

quantitative models and charts that can be used to predict future

exchange rates.

A. 1- Trend analysis, 2- Cyclical trend

B. 1- Fundamental forecasting, 2- Technical forecasting

C. 1- Technical forecasting, 2- Fundamental forecasting

D. 1- Time series analysis, 2- Seasonal trend

18. State True (T) or False (F):

1) Special Economic Zone is a specially delineated duty free enclave

and shall be deemed to be foreign territory for the purposes of

trade operations and duties and tariffs.

2) SEZ unit may export goods manufactured or software developed

through a merchant exporter or status holder.

A. 1T, 2T

B. 1F, 2F

C. 1T, 2F

D. 1F, 2T

19. Fill up the blanks:

1) ____________ refers to those transactions in which the goods

supplied do not leave the country and the payment for such

supplies is received either in Indian Rupees or in free foreign

exchange.

2) With a view to promoting agricultural exports from the country

and remunerative returns to the farming community in a

sustained manner, the concept of ___________ was started.

A. 1- Deemed exports, 2- Special Economic Zones

B. 1- Deemed exports, 2- Agri Export Zones

C. 1- Isolated exports, 2- Free trade warehousing Zones

D. 1- Capital goods exports, 2- Special Economic Zones

20. State True (T) or False (F):

1) Consular Invoice needs to be submitted for certification to the

embassy of the country concerned.

2) When a draft bill is drawn on a foreign firm, it is termed as a

foreign draft

A. 1F, 2F

B. 1F, 2T

C. 1T, 2F

D. 1T, 2T

SECTION C – 4 MARK QUESTIONS

1. State True (T) or False (F):

1) Exchange rates for each country’s currency are fixed under the

rules framed by the International Monetary Fund

2) Imposition of more local taxes on imported goods is done with

the object to make imported goods costly

3) Through the efforts of GATT, there has been a significant

reduction in tariff globally

4) The existence of different legal systems in different countries

makes the task of businessman more difficult

A. 1T, 2T, 3T, 4F

B. 1F, 2F, 3T, 4T

C. 1T, 2F, 3F, 4F

D. 1T, 2T, 3T, 4T

2. Match the following:

Set A

Set B

1. Ethnocentric A. This orientation views entire world as

one big potential market

2. Polycentric B. This orientation believes that each

region is unique

3. Regiocentric C. This orientation believes that every

country is unique

4. Geocentric D. In this People consider his home

country superior to rest of the world

A. 1D, 2C, 3B, 4A

B. 1B, 2C, 3D, 4A

C. 1C, 2D, 3A, 4B

D. 1D, 2A, 3B, 4C

3. Match the following:

1. Confiscation A) there is some compensation when

Government’s taking the

ownership

2. Nationalism B) process of a Government’s taking

ownership of a property without

compensation

3. Domestication C) involves government ownership in

the business

4. Expropriation D) foreign companies relinquish

control and ownership either

completely or partially to the

nationals

A. 1A, 2C, 3D, 4B

B. 1D, 2C, 3B, 4A

C. 1B, 2C, 3D, 4A

D. 1C, 2D, 3A, 4B

4. Match the following sets:

1. Political Environment A) Income level, market system &

Purchase power parity

2. Legal & Regulatory B) Attitudes and beliefs

3. Socio-cultural

Environment

C) Intellectual property, copy rights

and related rights

4. Economic

Environment

D) Form of government

A. 1A, 2C, 3D, 4B

B. 1D, 2C, 3B, 4A

C. 1B, 2C, 3D, 4A

D. 1C, 2D, 3A, 4B

5. State True (T) or False (F):

1) A marketing Intelligence System is a set of procedures and

sources used by managers to obtain everyday information about

developments in the marketing environment

2) The main aim of product-oriented survey is to identify market for

the exporter’s existing product or product range

3) Exploratory research provides insights into and comprehension of

an issue or situation

4) The final step in marketing research is summarizing and making a

report

A. 1T, 2F, 3F, 4F

B. 1F, 2F, 3T, 4T

C. 1T, 2T, 3T, 4T

D. 1F, 2T, 3F, 4T

6. Match the following

1. Multilateral

Investment

Guarantee Agency

a) The aims of this are to promote policies

designed to achieve the highest sustainable

economic growth and employment and a

raising standard of living in member countries

2. International

Development

Association

b) Established in 1956 to help strengthen the

private sector in developing countries, through

the provision of long term loans, equity

investments, guarantees, etc

3. International

Finance

Corporation

c) It is a lending agency administered by the IBRD

to provide assistance on concessional terms to

the poor and developing countries.

4. OECD d) Established in 1998 to encourage the flow of FDI

to and among developing member countries,

this agency is the insurance arm of the World

Bank

A. 1d, 2c, 3b, 4a

B. 1b, 2c, 3d, 4a

C. 1c, 2d, 3a, 4b

D. 1a, 2b, 3d, 4c

7. Match the following sets:

1. Bill of Lading a) It is a basic document in an

export transaction which

contains the information as

description of goods, price

charged, quantity, costs

charged, terms of shipment

and number of documents

2. Commercial Invoice b) It is an undertaking that the

goods in the same condition as

received will be delivered to the

consignee provided the freight

has been duly paid

3. Shipping bill c) It is a document which needs to

be submitted for certification to

the embassy of the country

concerned

4. Consular Invoice d) It is the main document

required by the customs

authorities for allowing

shipment

A. 1a, 2c, 3d, 4b

B. 1b, 2c, 3d, 4a

C. 1c, 2a, 3b, 4d

D. 1b, 2a, 3d, 4c

8. This document is an acknowledgement by the shipping company

that the goods to be exported have been shipped on board. This

document is also an undertaking that the goods in the same

condition as received will be delivered to the consignee provided the

freight has been duly paid.

Which document are we talking about?

A. Combined transport document

B. Bill of Lading

C. Mate receipt

D. Air consignment note

9. X Ltd. exports its goods by air. Air India issued a receipt for carriage

of goods. The goods are delivered to the consignee mentioned in the

received. Such document related to transportation of goods is

called……….

A. Airways bill

B. Bill of lading

C. Shipping bill

D. Mate receipt

10. X Ltd. an exporter of garment products has to file a declaration form

declaring that the foreign exchange realized in lieu of goods

exported will be deposited with the RBI. This form is prepared in

duplicate; the original has to be submitted to the customs

authorities at the time of shipment, which is sent back by them to

the RBI. The duplicate copy of the form is submitted to the

negotiating bank along with other documents after shipment of the

goods. This declaration form is known as............

A. SC Form

B. VP Form

C. PP Form

D. GR Form

11. Which of the following is a step that transforms the idea or

information into a form that can be transmitted (written or spoken

verbs)?

A. Encoding

B. Decoding

C. Encrypting

D. Debugging

12. Match the following:

Set A Set B

1. Currency Futures

a. It consists of transactions that

require delivery of currency at an agreed upon future date.

2. Foreign currency options b. It is the price to paid by the

purchaser of the option to its

writer

3. Option premium

c. These are contracts that give the

buyer the right but not the obligation to buy or sell a

specified amount of foreign exchange at a set price for an

agreed upon period

4. Forward market

d. These are standard value forward contracts that obligate the parties

to exchange a particular currency on a specific date at a pre-

determined exchange rate

A. 1a, 2c, 3d, 4b

B. 1b, 2c, 3d, 4a

C. 1c, 2a, 3b, 4d

D. 1d, 2c, 3b, 4a

13. Which of the following certificate is issued to a merchant-exporter or

manufacturer-exporter for the import of inputs used in the

manufacturer of goods without payment of Basic Customs Duty?

A. Duty free replenishment certificate

B. Advance license

C. Advance license for annual requirement

D. Advance release orders

14. X Ltd., an Indian company desires to enter into South African

market. X Ltd. forms a partnership to share markets, intellectual

property, knowledge and profit with Y Ltd. a South African company

for 5 years. Such market strategy is known as……….

A. Joint venture

B. Direct Investment

C. Franchising

D. Contract

15. At times the exporter is called upon to certify on the invoice that the

goods are of particular origin, have been manufactured / packed at

a particular place and in accordance with a specific contract. When

such certificated appear on the invoice, it is called _____________.

A. Customs invoice

B. Certified invoice

C. Pro-forma invoice

D. Letter of credit