Chapter 1: The Scope and Challenge of International Marketing1.
__________ is the performance of business activities designed to
plan, price, promote, and direct the flow of a company's goods and
services to consumers or users in more than one nation for a
profit.A)Global strategyB)MarketingC)Marketing conceptD)Regional
marketing conceptE)International marketing2. Which of the following
is the most critical difference between domestic marketing and
international marketing?A)The environment in which marketing plans
must be implementedB)The different concepts of marketingC)The
change in marketing goalsD)The difference in technological
standardsE)The change in corporate objectives3. Dylan is planning
to take his successful fast food venture global. Which of the
following is the reason why his task could be more complicated than
that of the domestic marketer?A)The international marketer must
change his marketing goals in the various countries of
operation.B)The international marketer must deal with at least two
levels of uncontrollable uncertainty instead of one.C)Technological
standardization could challenge effective customization in
different markets.D)International trade regulations still do not
allow free trade in most markets across the globe.E)Lack of
competent skills makes effective service a major challenge.4. Which
of the following would be considered to be an uncontrollable
element in the foreign environment?A)Channels of
distributionB)ResearchC)Economic forcesD)PromotionE)Product
elements5. Such elements as geography and infrastructure, structure
of distribution, and cultural forces are part of which of the
following international marketing task environments?A)Foreign
environment (uncontrollable)B)Foreign environment
(controllable)C)Domestic environment (uncontrollable)D)Domestic
environment (controllable)E)Global environment (controllable)6.
Which of the following is NOT true of the impact of culture?A)The
reaction to much of the environment's (cultural) impact on the
marketer's activities is automatic.B)In dealing with unfamiliar
markets, frames of reference are unimportant in evaluating the
potential of a market. (In dealing with unfamiliar markets,
marketers must be aware of the frames of reference they are using
in making their decisions or evaluating the potential of a
market.)C)Judgments are derived from experience that is the result
of acculturation in the home country.D)An established frame of
reference is an important factor in determining a marketer's
reaction to situationssocial and even nonsocial.E)As a result of
acculturation, we react in a manner acceptable to our society
without consciously thinking about it.7. When Rita Thomas' clothing
company began to market its line of inexpensive cotton shirts in
Africa, it assumed that it would be able to use its television and
print advertising that had worked so well in the United States and
other countries. However, the company was soon to learn that
literacy rates and ability to access television was not the same as
in the other areas of the world. Which of the following factors
includes this decision-making factor in Rita's international
marketing task?A)Domestic environment (controllable)B)Domestic
environment (uncontrollable)C)Global environment
(uncontrollable)D)Foreign environment (uncontrollable)E)Foreign
environment (controllable)8. The _____ and issues abroad are often
amplified by the "alien status" of the company, which increases the
difficulty of properly assessing and forecasting the dynamic
international business climate.A)structure of
distributionB)competitive forcesC)economic forcesD)level of
technologyE)political/legal forces (Political and legal issues face
a business, whether it operates at home or in a foreign country.
However, the issues abroad are often amplified by the "alien
status" of the company, which increases the difficulty of properly
assessing and forecasting the dynamic international business
climate.)9. The task of _____ is the most challenging and important
one confronting international marketers.A)cultural
adjustmentB)dealing with politicsC)international
standardizationD)caring for the environmentE)international
branding10. One of Phillipe Ortiz's difficulties in marketing his
line of Philippine cabinetry in Los Angeles is that he is still
tied culturally to business models that work in the Philippines.
These models do not work in the United States. Which of the
following best explains the difficulty Philippe is
experiencing?A)XenophobiaB)Self-reference criterion( The
self-reference criterion is an unconscious reference to one's own
cultural values, experiences, and knowledge as a basis for
decisions.)C)GlobalismD)RacismE)Intellectual challenges11. _____ is
generally a problem when managers from affluent countries work with
managers and markets in less-affluent
countries.A)XenophobiaB)RacismC)Cultural
backlashD)EthnocentrismE)Global redlining12. The primary obstacles
to success in international marketing are a person's _____ and an
associated ethnocentrism.A)regionalismB)holismC)self-reference
criterionD)segregationE)integration13. The most effective way to
control the influence of ethnocentrism and the SRC is to:A)reduce
interaction with culturally diverse audience.B)ask for feedback on
every possible occasion.C)recognize their effects on our
behavior.D)learn at least two foreign languages to understand the
cultural differences.E)ask for second opinion in a decision-making
scenario.14. The Ajax Corporation does not actively cultivate
customers outside the United States; however, this company's
products do reach foreign markets through trading companies. Ajax
is probably in the _____ stage of international marketing
involvement.A)infrequent foreign marketingB)pre-global
marketingC)pre-international marketingD)anti-foreign marketingE)no
direct foreign marketing15. Randy, the marketing manager at Bryte
Systems Inc. decides sell to foreign markets as goods become
available, and he has little or no intention of maintaining
continuous market representation. Randy's firm is at which of the
following stage of international marketing involvement?A)No direct
foreign marketingB)Infrequent global marketingC)Global
marketingD)Regular foreign marketingE)International
marketing---------------------------------------------------------------Chapter
2: The Dynamic Environment of International Trade1. Which of the
following was the main objective of the American efforts to improve
world trade by fostering economic growth in Europe and the
underdeveloped world after World War II?A)Halting the growth of
Nazi GermanyB)Dissolving the colonial powersC)Gaining access to the
European marketD)Dampening the spread of communismE)Creating a
trade bloc to counter the OPEC countries' clout2. In addition to
U.S. economic assistance, _____ was a significant move toward
international cooperation among trading nations.A)negotiation of
the General Agreement on Tariffs and TradeB)forming of the United
Nations Development ProgrammeC)signing of the Treaty on Open
SkiesD)signing of the Montreal ProtocolE)establishment of the World
Federation of Trade UnionsDifficulty Level: MediumPage:
29Explanation: In addition to U.S. economic assistance, a move
toward international cooperation among trading nations was manifest
in the negotiation (1986-1994) of the General Agreement on Tariffs
and Trade (GATT).3. The _____, part of the American effort to
infuse the ideal of capitalism throughout as much of the world as
possible, was aimed at assisting in rebuilding Europe.A)Eisenhower
PlanB)Marshall PlanC)Bradley PlanD)Roosevelt PlanE)Truman
PlanDifficulty Level: EasyPage: 28Explanation: The Marshall Plan to
assist in rebuilding Europe, financial and industrial development
assistance to rebuild Japan, and funds channeled through the Agency
for International Development and other groups designed to foster
economic growth in the underdeveloped world were used to help
create a strong world economy.4. _____ refers to the system of
accounts that records a nation's international financial
transactions.A)Trade balanceB)National accounts system.C)EX-IM
(exports-imports) accountD)Balance of paymentsE)Exchange
rateDifficulty Level: EasyPage: 33Explanation: A nation's
balance-of-payments statement records all financial transactions
between its residents and those of the rest of the world during a
given period of timeusually one year.5. Which of the following is
true regarding balance-of-payments records?A)The fact that assets
and liabilities balance means a nation is in particularly good
financial condition.B)The fact that assets and liabilities balance
does not mean a nation is in particularly poor financial
condition.C)A balance of payments is not a record of condition.D)A
balance of payments is a determinant of condition.E)A balance of
payments reflects all the financial transactions that occurred in
the country.Difficulty Level: HardPage: 33Explanation: The fact
that assets and liabilities balance does not mean a nation is in
particularly good or poor financial condition. A balance of
payments is a record of condition, not a determinant of condition.
Each of the nation's financial transactions with other countries is
reflected in its balance of payments.6. Which of the following
would be the balance-of-payments account that is a record of all
merchandise exports, imports, and services plus unilateral
transfers of funds?A)current accountB)capital accountC)credit
accountD)receivables accountE)reserves accountDifficulty Level:
EasyPage: 33Explanation: The current account is a record of all
merchandise exports, imports, and services plus unilateral
transfers of funds.7. A(n) _____ is simply a tax imposed by a
government on goods entering at its borders.A)quotaB)trade
penaltyC)tariffD)boycottE)embargoDifficulty Level: EasyPage:
36Explanation: A tariff is a tax imposed by a government on goods
entering at its borders. Tariffs may be used as revenue-generating
taxes or to discourage the importation of goods, or for both
reasons.8. In general, tariffs restrict:A)inflationary
pressures.B)special interests' privileges.C)government control in
economic matters.D)the number of tariffs.E)manufacturers' supply
sources.Difficulty Level: HardPage: 37Explanation: In general,
tariffs restrict manufacturers' supply sources, choices available
to consumers, and competition.9.Which of the following types of
nontariff barriers would be considered to be "specific limitations
on trade" by international marketers?A)FeesB)Export
subsidiesC)Voluntary export restraintsD)EmbargoesE)Packaging,
labeling, or marking standardsDifficulty Level: HardPage:
38Explanation: Refer Exhibit 2.6 - Types of Nontariff Barriers10.
Exporting countries sometimes agree to voluntary export restraints
(VER) as an alternative to the threat of:A)expulsion.B)disorderly
marketing agreements.C)stiffer quotas and tariffs.D)export
subsidiesE)standardization disparitiesDifficulty Level: MediumPage:
39Explanation: Similar to quotas are the voluntary export
restraints (VERs) or orderly market agreements (OMAs).11. Which of
the following trade policy tools require the importers who want to
buy a foreign good to apply for an exchange
permit?A)TariffsB)Import quotaC)Blocked currencyD)Government
approvalE)Export leviesDifficulty Level: HardPage: 40Explanation:
Government approval requires that importers who want to buy a
foreign good must apply for an exchange permit, that is, permission
to exchange an amount of local currency for foreign currency.12.
_____ is the practice whereby a foreign producer intentionally
sells their products in the United States for less than the cost of
production to undermine the competition and take control of the
market.A)Basing point pricingB)Offensive pricingC)Defensive
pricingD)Counterpoint pricingE)Predatory pricingDifficulty Level:
EasyPage: 41Explanation: Antidumping laws were designed to prevent
foreign producers from "predatory pricing." Violators are assessed
"antidumping" duties for selling below cost and/or "countervailing
duties" to prevent the use of foreign government subsidies to
undermine American industry. Many countries have similar laws, and
they are allowed under WTO rules.13. Which section of the Omnibus
Trade and Competitiveness Act recognizes that foreign penetration
of U.S. markets can cause serious competitive pressure, loss of
market share, and, occasionally, severe financial harm?A)The market
access sectionB)The export expansion sectionC)The import relief
sectionD)The foreign exchange regulation sectionE)The trade deficit
sectionDifficulty Level: HardPage: 43Explanation: Recognizing that
foreign penetration of U.S. markets can cause serious competitive
pressure, loss of market share, and, occasionally, severe financial
harm, the import relief section of the Omnibus Trade and
Competitiveness Act provides a menu of remedies for U.S. businesses
adversely affected by imports.14. Which was the most notable
achievement of the Uruguay Round of GATT negotiations?A)The signing
of the Trade-Related Aspects of Intellectual Property Rights
(TRIPs) agreementB)The formulation of the Kyoto ProtocolC)The
inclusion of Africa and Indonesia into its member-listD)The
creation of the World Trade OrganizationE)The ratification of the
Internet as a global business platformDifficulty Level: MediumPage:
45Explanation: Perhaps the most notable achievement of the Uruguay
Round was the creation of a new institution as a successor to the
GATTthe World Trade Organization.15. The five institutions of the
World Bank Group perform all the following services
EXCEPT:A)lending money to the governments of developing countries
to finance development projects in education, health, and
infrastructure.B)providing assistance to governments for
developmental projects to the poorest developing
countries.C)helping strengthen the private sector in developing
countries with long-term loans, equity investments, and other
financial assistance.D)providing investors with investment
guarantees against "commercial risk".E)providing facilities for the
conciliation and arbitration of disputes between governments and
foreign investors.Page: 48Explanation: The institutions provide
investors with investment guarantees against "noncommercial risk,"
such as expropriation and war, to create an environment in
developing countries that will attract foreign
investment.----------------------------------------------------Chapter
3: History and Geography: The Foundations of Culture1. The single
most horrific civil war in the history of the world was the
_____.A)American RevolutionB)Taiping RebellionC)Boxer
RebellionD)Hong Kong RevolutionE)Satsuma RebellionDifficulty Level:
MediumPage: 56Explanation: The Taiping Rebellion is the single most
horrific civil war in the history of the world. Estimates of the
death toll from the Taiping Rebellion stand between 20 and 40
million people.2. Historians interpret history differently,
especially if they are from different cultures. Which of the
following could explain the difference?A)The level of funding
receivedB)The historian's self-reference criteriaC)The technical
tools to examine historyD)The extent of government supportE)The
amount of time spent on observation and analysisDifficulty Level:
HardPage: 57Explanation: Historical events always are viewed from
one's own biases and self-reference criteria (SRC), and thus, what
is recorded by one historian may not be what another records,
especially if the historians are from different cultures.3. Which
of the following reflects Mexico's attitude toward the United
States, which is voiced as a variation of President John F.
Kennedy's proclamation?A)Immigration can become a form of
conquest.B)The rich require an abundant supply of the poor.C)A man
who thinks of himself as belonging to a particular national group
in America has not yet become an American.D)Geography has made us
closer, tradition has made us far apart.E)The people of this
country are too tolerant. There's no other country in the world
where they'd allow it.Difficulty Level: MediumPage: 58Explanation:
Most Americans would agree with President John F. Kennedy's
proclamation during a visit to Mexico that "Geography has made us
neighbors, tradition has made us friends." North Americans may be
surprised to learn that most Mexicans "felt it more accurate to say
'Geography has made us closer, tradition has made us far apart.'"4.
During which of the following engagements did the United States
secure California and other parts of the West?A)The Battle of San
JacintoB)The War of 1812C)The Mexican War of 1836D)The Mexican War
of 1846-1848E)The Gadsden Purchase of 1912Difficulty Level:
MediumPage: 59Explanation: Refer Exhibit 3.1 - Territorial
Expansion of United States from 17835. U.S. foreign policy during
much of the nineteenth and twentieth centuries was based on two
important approaches. One of them was the Manifest Destiny. Which
of the following is the other one?A)The "Big Stick" approachB)The
Monroe DoctrineC)The Hays CorollaryD)The Grant MandateE)The Latin
American Security TreatyDifficulty Level: EasyPage: 59Explanation:
Manifest Destiny and the Monroe Doctrine were accepted as the basis
for U.S. foreign policy during much of the 19th and 20th
centuries.6. _____, in its broadest interpretation, meant that
Americans were a chosen people ordained by God to create a model
society.A)The Roosevelt CorollaryB)The Monroe DoctrineC)The Hays
CorollaryD)The Grant MandateE)The "Manifest Destiny"Difficulty
Level: MediumPage: 59Explanation: Manifest Destiny, in its broadest
interpretation, meant that Americans were a chosen people ordained
by God to create a model society. More specifically, it referred to
the territorial expansion of the United States from the Atlantic to
the Pacific.7. Further to the inclusion of the Roosevelt Corollary,
all of the following were considered to be integral parts of the
Monroe Doctrine EXCEPT:A)no further European colonization in the
New World.B)abstention of the U.S. from European political
affairs.C)nonintervention of European governments in the
governments of the Western Hemisphere.D)"entrance tax" for European
nations wanting to engage in trade with the U.S.E)the United States
would police Latin American nations.Difficulty Level: HardLearning
Objective: 03-3Page: 60Explanation: The Monroe Doctrine proclaimed
three basic dicta: no further European colonization in the New
World, abstention of the United States from European political
affairs, and nonintervention of European governments in the
governments of the Western Hemisphere. Theodore Roosevelt applied
the Monroe Doctrine with an extension that became known as the
Roosevelt Corollary which stated that not only would the United
States prohibit non-American intervention in Latin American
affairs, but it would also police the area and guarantee that Latin
American nations met their international obligations.8. After the
U.S. House of Representatives voted to censure Mexico for drug
corruption, President Ernesto Zedillo came under pressure to take a
hard stand with Washington. Which of the following did Ernesto
Zedillo use as a "symbol of Mexico's historical struggles for
sovereignty?"A)The Imperial Crown of MexicoB)Our Lady of
GuadalupeC)The Mexican-American warD)The Mexican state oil monopoly
PemexE)The Cinco de Mayo holidayDifficulty Level: MediumPage:
60-61Explanation: Mexican President Ernesto Zedillo praised the
state oil monopoly Pemex as a "symbol of our historical struggles
for sovereignty." Union members cheered him on, waving a huge
banner that read: "In 1938 Mexico was 'decertified' because it
expropriated its oil and it wontoday we were decertified for
defending our dignity and sovereignty."9. Which of the following
best describes the present day view on mountains, oceans, seas, and
jungles in Europe?A)Natural protection from potentially hostile
neighborsB)Impediments to efficient trade in an integrated economic
unionC)Natural landmarks that symbolize national
treasureD)Fortuitous blessings that provide a wealth of natural
resourcesE)Symbols of national heritage and historyDifficulty
Level: EasyPage: 65Explanation: Once seen as natural protection
from potentially hostile neighbors, physical barriers that exist
within Europe are now seen as impediments to efficient trade in an
integrated economic union.10. Which of the following agreed to a
total ban on the export of hazardous wastes by developed
nations?A)The United NationsB)The Basel ConventionC)NAFTAD)The
European UnionE)The Soviet BlocDifficulty Level: MediumPage:
69Explanation: A treaty among members of the Basel Convention that
required prior approval before dumping could occur was later
revised to a total ban on the export of hazardous wastes by
developed nations.11. _____ provide(s) the major chunk of energy in
much of the underdeveloped world.A)Hydroelectric powerB)Human
laborC)Wind energyD)Solar renewable batteriesE)Alkaline
batteriesDifficulty Level: MediumPage: 70Explanation: In much of
the underdeveloped world, human labor provides the preponderance of
energy. The principal supplements to human energy are animals,
wood, fossil fuel, nuclear power, and, to a lesser and more
experimental extent, the ocean's tides, geothermal power, and the
sun.12. According to the text, which is the most important
deterrent to population control?A)Financial benefits of having
large familiesB)Poor enforcement mechanismC)Lack of awareness about
population trendsD)Government welfare schemes for the
homeless/orphansE)Cultural attitudes about the importance of large
familiesDifficulty Level: HardPage: 75Explanation: Perhaps the most
important deterrent to population control is cultural attitudes
about the importance of large families.13. Which of the following
reflects the view held by economists regarding population
growth?A)Fertility rates increase proportionate to the rate of
economic growth.B)A decline in fertility rate is a function of
economic prosperity.C)A difference in the male-female ratio heavily
influences the fertility rate.D)Developing nations tend to have
lower population growth rates compared to developed
nations.E)Increased global trade and migration will eventually
even-out population growth rates across different
nations.Difficulty Level: HardPage: 75Explanation: Family planning
and all that it entails is by far the most universal means
governments use to control birthrates, but some economists believe
that a decline in the fertility rate is a function of economic
prosperity and will come only with economic development.14.
According to the text, which of the following is one of the reasons
for the decreasing birthrates in Europe and Japan?A)Decreasing
fertility rates of women in industrialized nationsB)More women are
choosing careers instead of childrenC)Modern work-life reduces
potency of males in industrialized nationsD)Governments favor
immigration to balance population requirementsE)Punitive measures
for larger families lead to decreasing birthratesDifficulty Level:
MediumPage: 76Explanation: Birthrates in western Europe and Japan
have been decreasing since the early or mid-1960s; more women are
choosing careers instead of children, and many working couples are
electing to remain childless.15. Which of the following is the
region of the world most affected by aging and thus by a steadily
decreasing worker-to-retiree ratio?A)AfricaB)The United
StatesC)ChinaD)AsiaE)EuropeDifficulty Level: MediumPage:
78Explanation: Europe is the region of the world most affected by
aging and thus by a steadily decreasing worker-to-retiree
ratio.----------------------------------------------Chapter 4:
Cultural Dynamics in Assessing Global Markets1.The sum total of
knowledge, beliefs, art, morals, law, customs, and any other
capabilities and habits acquired by humans as members of society is
called:A)sociology.B)psychology.C)culture.D)reference
groups.E)cohort groups.Difficulty Level: EasyPage: 96Explanation:
Culture is the human-made part of human environmentthe sum total of
knowledge, beliefs, art, morals, laws, customs, and any other
capabilities and habits acquired by humans as members of society.2.
Based on the growing popularity of smaller families worldwide, what
do experts predict for the future?A)As countries move toward
service economies, larger families will be more favored in
future.B)Countries with larger families will outdo developed
countries owing to their larger talent pool.C)As smaller families
increase, the multiplier effect could increase world population
beyond control by the year 2050.D)Countries facing labor shortages
will encourage and popularize larger families.E)The planet's
population will actually begin to decline after 2050.Difficulty
Level: MediumPage: 96-97Explanation: Almost everywhere, smaller
families are becoming favored. This cultural change now leads
experts to predict that the planet's population will actually begin
to decline after 2050 unless major breakthroughs in longevity
intervene.3. All of the following are ways individuals learn
culture EXCEPT:A)application.B)socialization.C)acculturation.D)role
modeling.E)imitation of peers.Difficulty Level: MediumPage:
103Explanation: Individuals learn culture from social institutions
through socialization (growing up) and acculturation (adjusting to
a new culture). Individuals also absorb culture through role
modeling, or imitation of their peers. People make decisions about
consumption and production through application of their
cultural-based knowledge.4.Michele Phillips has just begun to
understand the French culture even though she has lived there for
two years. She speaks the language almost fluently; however,
learning to live in France will certainly take time. The process of
how a person learns and adjusts to a new culture is
called:A)socialization.B)democratization.C)a reference
path.D)acculturation.E)embodiment.Difficulty Level: EasyPage:
103Explanation: Individuals learn culture from social institutions
through socialization (growing up) and acculturation (adjusting to
a new culture).5. Which of the following best summarizes Professor
Jared Diamond's contribution regarding the influence of geography
on history and cultural values?A)People in the plains are more
likely to invade than those settled in higher
altitudes.B)Historically, societies in the north are more developed
than those in the south.C)Civilizations near major rivers are more
developed than those settled near major oceans.D)Historically,
innovations spread faster east to west than north to
south.E)Historically, invasions have always happened from the west
to the east.Difficulty Level: HardPage: 104Explanation: Jared
Diamond, a professor of physiology, tells us that historically,
innovations spread faster east to west than north to south.6.
According to the text, which of the following technological
innovations has had the greatest impact on institutions and
cultural values in the past 50 years in the United States?A)Mobile
phonesB)ComputersC)AircraftD)The InternetE)Birth control
techniquesDifficulty Level: MediumPage: 105Explanation: Birth
control pills, or more broadly birth control techniques, have had a
huge effect on everyday life for most Americans and people around
the world. Before the advent of the pill, men's and women's roles
were proscribed by reproductive responsibilities and roles.7. In
most cultures, the first social institution infants are exposed to
outside the home takes the form of a:A)day care
center.B)school.C)religious institution.D)shopping
mall.E)government agency.Difficulty Level: EasyPage:
107Explanation: In most cultures, the first social institution
infants are exposed to outside the home takes the form of a church,
mosque, shrine, or synagogue.8. Which of the following languages is
the most distant from
English?A)FrenchB)GermanC)SpanishD)ArabicE)TaiwaneseDifficulty
Level: HardPage: 110Explanation: Refer Exhibit 4.6 - Hofstede's
Indexes, Language, and Linguistic Distance9. The _____ measure the
tolerance of social inequality within a social
system.A)Individualism/Collectivism indexB)Power Distance
indexC)Uncertainty Avoidance indexD)Cultural Value indexE)Consumer
Behavior indexDifficulty Level: MediumPage: 111Explanation: The
Individualism/Collective Index refers to the preference for
behavior that promotes one's self-interest.10. Which of the
following countries would have the most affinity (score highest)
for collectivism (cohesive groups are honored and
encouraged)?A)Great
BritainB)AustraliaC)CanadaD)FranceE)JapanDifficulty Level:
HardPage: 110Explanation: Refer Exhibit 4.6 - Hofstede's Indexes,
Language, and Linguistic Distance11.According to anthropologist
Edward T. Hall, culture is:A)all-encompassing.B)relatively minor in
the scheme of life.C)communication.D)strongly linked to
physiology.E)standard throughout the world.Difficulty Level:
EasyPage: 114Explanation: Anthropologist Edward T. Hall tells us
that culture is communication. In his seminal article about
cultural differences in business settings, he talks about the
"languages" of time, space, things, friendships, and agreements.12.
What is the main idea suggested by linguistic distance that helps
in determining differences in values across countries and the
amount of trade between countries?A)The closer the languages the
tougher the interactions.B)Crossing "wider" language differences
increases transaction costs.C)The more distant a language from the
other, the more valuable the brand becomes in the new
territory.D)Major languages have "syntactical superiority" over
minor languages or dialects which help in brand positioning.E)A
'neutral' language is required to address the differences arising
out of linguistic distances.Difficulty Level: HardPage:
114-115Explanation: Linguistic distance has been shown to be an
important factor in determining differences in values across
countries and the amount of trade between countries. The idea is
that crossing "wider" language differences increases transaction
costs.13. Based on Richard Nisbett's metaphor involving Confucius's
worthy picture, what is his analysis regarding the thought process
or perceptual process of westerners?A)Westerners can provide great
detail about central figures but see relatively little in the
background.B)Westerners observe things sequentially, thus fail to
comprehend the larger picture.C)Westerners are good at observing
details but fail to comprehend the central message.D)Westerners
prefer larger than life figures to convey messages.E)Westerners
tend to focus on the brighter colors in the image and fail to see
the lines and finer drawings.Difficulty Level: HardPage:
118Explanation: A good metaphor for Richard Nisbett's views
involves going back to Confucius's worthy picture. Asians tend to
see the whole picture and can report details about the background
and foreground. Westerners alternatively focus on the foreground
and can provide great detail about central figures but see
relatively little in the background.14. Which of the following is
the most important factors in determining what kind and how much of
an innovation will be accepted?A)The time required for the change
to occurB)The number of people that could be benefitedC)The degree
of interest in the particular subjectD)The power or authority of
the change agentE)The financial impact, immediate and long-term, of
accepting the changeDifficulty Level: MediumPage: 121Explanation:
Studies show that the most important factors in determining what
kind and how much of an innovation will be accepted is the degree
of interest in the particular subject, as well as how drastically
the new will change the oldthat is, how disruptive the innovation
will be to presently acceptable values and behavior patterns.15.
Marketing strategy is judged culturally in terms of
_____.A)inclusion or exclusionB)cultural intensity or cultural
sublimityC)acceptance, resistance, or rejectionD)sensitivity to
hidden aspects of culture in a societyE)spread, intensity, and
degree of change requiredDifficulty Level: MediumPage:
122Explanation: Marketing strategy is judged culturally in terms of
acceptance, resistance, or rejection. How marketing efforts
interact with a culture determines the degree of success or
failure.--------------------------------------------Chapter 5:
Culture, Management Style, and Business Systems1. _____ are the
business customs and expectations that must be met and conformed to
or avoided if relationships are to be successful.A)Functional
imperativesB)Business imperativesC)Global axiomsD)Universal
axiomsE)Cultural imperativesDifficulty Level: EasyPage:
127Explanation: Cultural imperatives are the business customs and
expectations that must be met and conformed to or avoided if
relationships are to be successful.2. Sheila became an
embarrassment to her company when she joked about the ruling
monarchy in England before a group of visiting English businessmen
and women. Sheila should have known that political ridicule by a
foreigner is rarely accepted. Sheila has violated what is known as
a
cultural:A)imperative.B)elective.C)exclusive.D)landmark.E)standard.Difficulty
Level: HardPage: 129Explanation: Cultural exclusives are those
customs or behavior patterns reserved exclusively for the locals
and from which the foreigner is barred.3. Which of the following is
the fundamental concept of U.S. corporations?A)Individual
self-interest is socially beneficial.B)The corporation has no
soul.C)An organization is the world in miniature.D)Independent
enterprise is an instrument for social action.E)The government
should be an integral part of any organizationDifficulty Level:
HardPage: 130Explanation: The acceptance of the idea that
independent enterprise is an instrument for social action is the
fundamental concept of U.S. corporations. A corporation is
recognized as an entity that has rules and continuity of existence
and is a separate and vital social institution.4. In _____
countries, subordinates are not likely to contradict bosses, but in
_____ countries, they often do.A)low collectivism; low PDIB)low
PDI; high individualismC)high-PDI; low-PDID)high individualism;
high collectivismE)high-PDI; low individualismDifficulty Level:
HardPage: 132Explanation: In high-PDI countries, subordinates are
not likely to contradict bosses, but in low-PDI countries, they
often do.5. As businesses grow and professional management
develops, there is a shift toward:A)dilution of standards in
decision making.B)decentralized management decision
making.C)centralized decision making.D)concentration of
authority.E)laissez-faire management.Difficulty Level: MediumPage:
132Explanation: As businesses grow and professional management
develops, there is a shift toward decentralized management decision
making. Decentralized decision making allows executives at
different levels of management to exercise authority over their own
functions.6. What explains the fact that group decision making
predominates in Asian cultures?A)Asian leaders consider themselves
benevolent and inclusive leaders.B)Asian cultures lack sufficient
aggressiveness for bold individual decision making.C)Most Asian
cultures and religions emphasize harmony and collectivism.D)Most
Asian countries lack expert professionals capable of bold decision
making.E)Ownership, if things go wrong, is distributed amongst all
decision makers.Difficulty Level: MediumPage: 132Explanation:
Because Asian cultures and religions tend to emphasize harmony and
collectivism, group decision making predominates there.7. According
to Max Weber, part of the standard of living in the United States
today can be attributed to:A)the historical hard-working Protestant
ethic.B)the (artificially) low price of gasoline.C)the near
complete penetration of the Internet.D)the leveling of statuses
brought about by the American business class.E)the slave-labor that
formed the basis for early industry.Difficulty Level: HardPage:
134Explanation: According to Max Weber, at least part of the
standard of living that we enjoy in the United States today can be
attributed to the hard-working Protestant ethic from which we
derive much of our business heritage.8. In a high context implicit
communication environment who says something, how it is said, and
when it is said is very important. Which of the following countries
would we find to be "high context implicit" with respect to
communication practices?A)SwitzerlandB)Saudi ArabiaC)FranceD)United
StatesE)GermanyDifficulty Level: HardPage: 137Explanation: Refer
Exhibit 5.2 - Context, Communication, and Cultures: Edward Hall's
Scale9. In societies with this time orientation, being involved
with people and being sensitive to relationships is just as
important (if not more important) than sticking to a schedule.
Which of the following time models involves these
characteristics?A)P-time--polychronic timeB)B-time--bimodal
timeC)D-time--dual timeD)M-time-monochronic timeE)S-time-sequence
timeDifficulty Level: HardPage: 139Explanation: P-time is
characterized by the simultaneous occurrence of many things and by
"a great involvement with people." P-time allows for relationships
to build and context to be absorbed as parts of high-context
cultures.10. According to the text, 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 assessmentB)Insufficient probing about unclear and
ambiguous areasC)Lack of documentation of the negotiation
processD)Involvement of a neutral third-party mediatorE)Lack of
proficiency in the other's languageDifficulty Level: HardPage:
140Explanation: The possibility of offending one another or
misinterpreting others' motives is especially high when one's
self-reference criteria (SRC) is the basis for assessing a
situation.11. When a U.S. female is selected for an international
assignment, the going might be difficult given the attitude of many
foreign organizations toward females in positions of authority. In
addition to training, which of the following would be a key to the
female's success in a foreign assignment?A)Amount of money to be
paid for the assignmentB)Bonus optionsC)Social
backgroundD)AgeE)Strength of the firm's backingDifficulty Level:
MediumPage: 143Explanation: A key to success for both men and women
in international business often hinges on the strength of a firm's
backing. When a female manager receives training and the strong
backing of her firm, she usually receives the respect commensurate
with the position she holds and the firm she represents.12. Which
aspect of Japanese culture, predicted by many to favor bribery,
makes Japan's success in reducing corruption more
remarkable?A)Relationship-orientationB)Multiple marriagesC)The
extended familyD)Strong organizational hierarchyE)Increase in
consumerismDifficulty Level: HardPage: 148Explanation: Japan's
successes in reducing corruption in its business system are all the
more remarkable because of its relationship-oriented culture, which
would be predicted by many to favor bribery.13. Which of the
following ethical principles tries to optimize the "common good" or
benefits of all constituencies?A)Secularism and
philanthropyB)Rights of the partiesC)Justice or
fairnessD)Utilitarian ethicsE)Benefit optimizationDifficulty Level:
MediumPage: 151Explanation: Three ethical principles provide a
framework to help the marketer distinguish between right and wrong,
determine what ought to be done, and properly justify his or her
actions. Simply stated, they are as follows:Utilitarian ethics:
Does the action optimize the "common good" or benefits of all
constituencies? And who are the pertinent constituencies?Rights of
the parties: Does the action respect the rights of the individuals
involved?Justice or fairness: Does the action respect the canons of
justice or fairness to all parties involved?14. What is the
characteristic emphasis of the fourth kind of capitalism mentioned
in the text (omitted by Thurow and others)?A)Focus on community
buildingB)Management by the trade unionsC)State
capitalismD)Feudal-capitalist nexusE)Network of personal
connectionsDifficulty Level: HardPage: 153Explanation: Thurow and
others writing in this area omitted a fourth kind of
capitalism-that common in Chinese cultures. Its distinguishing
characteristics are a more entrepreneurial approach and an emphasis
on guanxi (one's network of personal connections) as the
coordinating principle among firms.15. Which of the following
orientations (synthesis) of culture would be described by a culture
that is low-context, has individualism, low power distance, and
uses monochromic
time?A)Information-orientedB)Relationship-orientedC)Hierarchy-orientedD)Power-orientedE)Task-orientedDifficulty
Level: MediumPage: 153Explanation: For example, American culture is
low context, individualistic (IDV), low power distance (PDI),
obviously close to English, monochronic time-oriented,
linguistically direct, and foreground focused, and it achieves
efficiency through competition; therefore, it is categorized
hereafter in this book as an information-oriented culture. Also
refer Exhibit 5.7 - Dimensions of Culture: A
Synthesis----------------------------------------------------------Chapter
6: The Political Environment: A Critical Concern1. _____ refers to
both the powers exercised by a state in relation to other countries
and the supreme powers exercised over its own
members.A)SovereigntyB)Self
governanceC)EthnocentrismD)AutocracyE)Non-interventionismDifficulty
Level: EasyPage: 160Explanation: Sovereignty refers to both the
powers exercised by a state in relation to other countries and the
supreme powers exercised over its own members.2. All of the
following are political causes of instability in international
markets EXCEPT:A)inherently unstable governments.B)changes in
political parties having major effects on trade conditions.C)global
focus.D)animosity targeted toward specific countries.E)trade
disputes.Difficulty Level: HardPage: 161Explanation: There are five
main political causes of instability in international markets: (1)
some forms of government seem to be inherently unstable, (2)
changes in political parties during elections can have major
effects on trade conditions, (3) nationalism, (4) animosity
targeted toward specific countries, and (5) trade disputes
themselves.3. Which of the following is the top political issue
concerning foreign businesses?A)Demographic profile of political
leadersB)Government policies on infrastructureC)Economic awareness
of political leadersD)Stability of prevailing government
policiesE)Membership of governments in trade treatiesDifficulty
Level: HardPage: 162Explanation: At the top of the list of
political issues concerning foreign businesses is the stability or
instability of prevailing government policies.4. Which of the
following is NOT true of nationalism?A)Economic nationalism has as
one of its central aims the preservation of national economic
autonomy.B)A call to "buy our country's products only is one form
of manifestation of national feelings.C)Nationalist feelings may
lead to control over foreign investment.D)The more a country's
domestic economy declines, the more nationalistic it
becomes.E)Nationalistic feelings are not prevalent in economically
prosperous countries.Difficulty Level: HardPage: 167Explanation:
Although militant economic nationalism has subsided, nationalistic
feelings can be found even in the most economically prosperous
countries.5. 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?A)ConfiscationB)ExpropriationC)DomesticationD)Exchange
controlsE)Local-content lawsDifficulty Level: MediumPage:
168Explanation: The most severe political risk is confiscation ,
that is, the seizing of a company's assets without payment.
Confiscation was most prevalent in the 1950s and 1960s when many
underdeveloped countries saw confiscation, albeit ineffective, as a
means of economic growth.6. Often an expropriated investment
becomes _____ (i.e., it becomes a government-run
entity).A)democratizedB)domesticatedC)nationalizedD)prioritizedE)socializedDifficulty
Level: MediumPage: 168Explanation: When the expropriated investment
is nationalized, it becomes a government-run entity.7. Which of the
following is true regarding confiscation, expropriation, and
domestication?A)The ultimate goal of domestication is to force
domestic investors to share more of the profits with the
government.B)Risks of confiscation and expropriation appear to have
increased over the last two decades.C)Expropriation and
nationalization have led to technologically advanced and
competitive businesses.D)Nowadays, companies have to become
domesticated as a condition for investment.E)Nowadays, confiscation
is viewed as a means of economic growth.Difficulty Level: HardPage:
168Explanation: Today, countries often require prospective
investors to agree to share ownership, use local content, enter
into labor and management agreements, and share participation in
export sales as a condition of entry; in effect, the company has to
become domesticated as a condition for investment.8. 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?A)Exchange controlsB)Local-content lawsC)Import
restrictionsD)Tax controlsE)price controlsDifficulty Level:
HardPage: 168-169Explanation: Exchange controls stem from shortages
of foreign exchange held by a country. When a nation faces
shortages of foreign exchange and/or a substantial amount of
capital is leaving the country, controls may be levied over all
movements of capital or selectively against the most politically
vulnerable companies to conserve the supply of foreign exchange for
the most essential uses.9. Price controls are used during
inflationary periods to:A)control the cost of living.B)restrict
exports to foreign countries.C)negotiate trade contracts favoring
the host country.D)encourage imports.E)avoid tax burden on
essential items.Difficulty Level: HardPage: 169Explanation:
Essential products that command considerable public interest, such
as pharmaceuticals, food, gasoline, and cars, are often subjected
to price controls. Such controls applied during inflationary
periods can be used to control the cost of living.10. Which of the
following is more likely to be subjected to price control?A)Leather
garmentsB)Mobile phone accessoriesC)Aspirin and antacidsD)Handycams
and lensesE)Ceramic tilesDifficulty Level: HardPage:
169Explanation: Essential products that command considerable public
interest, such as pharmaceuticals, food, gasoline, and cars, are
often subjected to price controls. Such controls applied during
inflationary periods can be used to control the cost of living.11.
Which of the following represents a new and powerful tool of
PSAs?A)International fundsB)National governments backing their
causesC)The InternetD)The United Nations and its affiliated
bodiesE)Private companies providing technical supportDifficulty
Level: EasyPage: 174Explanation: The Internet has become an
effective tool of PSAs to spread the word about whatever cause they
sponsor.12. The newest form of terrorism directed toward a peaceful
world is:A)germ warfare.B)nuclear warfare.C)cyberterrorism.D)hate
crimes.E)extortion.Difficulty Level: MediumPage: 177Explanation:
Cyberterrorism and cybercrime is still in its infancy, and the
Internet provides a vehicle for terrorist and criminal attacks by
foreign and domestic antagonists wishing to inflict damage on a
company with little chance of being caught.13. Relations between
governments and MNCs are generally positive if the investment leads
to all of the following EXCEPT:A)reduces the balance of
payments.B)uses locally produced resources.C)transfers capital,
technology, and/or skills.D)creates jobs.E)makes tax
contributions.Difficulty Level: HardPage: 180Explanation: Relations
between governments and MNCs are generally positive if the
investment (1) improves the balance of payments by increasing
exports or reducing imports through import substitution; (2) uses
locally produced resources; (3) transfers capital, technology,
and/or skills; (4) creates jobs; and/or (5) makes tax
contributions.14. 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?A)Joint
venturesB)LicensingC)Expanding the investment baseD)Planned
domesticationE)Multi-facilitiesDifficulty Level: HardPage:
181Explanation: A strategy that some firms find eliminates almost
all risks is to license technology for a fee. Licensing can be
effective in situations in which the technology is unique and the
risk is high. Of course, there is some risk assumed, because the
licensee can refuse to pay the required fees while continuing to
use the technology.15. 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?A)A bribe may
be paid as long as it is not a domestic situation.B)A bribe is
justified is if is the documented traditional practice in a
country.C)A bribe may be paid in a foreign country if there is a
tie to national security.D)It is illegal for a U.S. citizen to pay
a bribe--period.E)The issue revolves around the customs of the
country and each issue is decided separately.Difficulty Level:
MediumPage: 182Explanation: Bribery poses problems for the marketer
at home and abroad, because it is illegal for U.S. citizens to pay
a bribe even if it is a common practice in the host
country.----------------------------------------Chapter 7: The
International Legal Environment: Playing by the Rules1. Under
common law, ownership is established by _____; under code law,
ownership is determined by _____.A)heredity; shareholdingB)use;
registrationC)tradition; legal rightD)legal right;
patentE)shareholding; useDifficulty Level: HardPage:
187Explanation: Under common law, ownership is established by use;
under code law, ownership is determined by registration.2. Islamic
law is known as the
_____.A)UlemaB)JihadC)FatwaD)Shari'ahE)BarakahDifficulty Level:
EasyPage: 188Explanation: The basis for the Shari'ah (Islamic law)
is interpretation of the Koran.3. Under _____, the legal system is
subordinate to prevailing economic conditions.A)common lawB)code
lawC)Islamic lawD)Marxist-socialist tenetsE)legal
traditionDifficulty Level: MediumPage: 189Explanation: Socialist
economies like the former Soviet Union and China built up entire
commercial legal system under the premise that law, according to
Marxist-socialist tenets , is strictly subordinate to prevailing
economic conditions, such fundamental propositions as private
ownership, contracts, due process, and other legal mechanisms have
had to be developed.4. The World Court can adjudicate disputes
between which of the following?A)disputes between
governmentsB)disputes between a company and a governmentC)disputes
between two companiesD)disputes between a private citizen and a
governmentE)disputes between trade bodies of various
countriesDifficulty Level: HardPage: 190Explanation: The World
Court can adjudicate disputes between governments, whereas the
other two situations must be handled in the courts of the country
of one of the parties involved or through arbitration.5. A
nonbonding agreement between parties to resolve disputes by asking
a third party to mediate differences is
called:A)litigation.B)informal
settlement.C)arbitration.D)conciliation.E)coercion.Difficulty
Level: EasyPage: 191Explanation: Conciliation (also known as
mediation) is a nonbinding agreement between parties to resolve
disputes by asking a third party to mediate differences.6. When all
else fails in an international commercial dispute, the final step
is:A)conciliation.B)to encourage one's government to force the
other party to comply.C)to find fault or wrong doing as a public
relations device.D)litigation.E)coercion.Difficulty Level:
MediumPage: 193Explanation: When all else fails, the final step to
solve a dispute is litigation.7. 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?A)conciliateB)arbitrateC)coerceD)try to placate the injured
partyE)litigateDifficulty Level: MediumPage: 194Explanation: One
authority suggests that the settlement of every dispute should
follow four steps: first, try to placate the injured party; if this
does not work, conciliate, arbitrate, and, finally, litigate.8. 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?A)One must register a
trademark to gain rightful ownership of it.B)One must pay for the
right to own a trademark.C)Whoever can establish first use of a
trademark is typically considered the rightful owner.D)Ownership of
a trademark can only be established in a court of law.E)Ownership
of a trademark is global and is established by the United
Nations.Difficulty Level: MediumPage: 197Explanation: In the United
States, a common-law country, ownership of IP rights is established
by prior use whoever can establish first use is typically
considered the rightful owner.9. Which of the following is the most
comprehensive multilateral agreement on intellectual property to
date?A)World Intellectual Property Organization
CharterB)Trade-Related Aspects of Intellectual Property
RightsC)Inter-American Convention AgreementD)The Madrid
ArrangementE)Paris Agreement for the Protection of Industrial
PropertyDifficulty Level: HardPage: 198Explanation: The
Trade-Related Aspects of Intellectual Property Rights (TRIPs)
agreement, a major provision of the World Trade Organization, is
the most comprehensive multilateral agreement on intellectual
property to date.10. _____ 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.A)Patent trollsB)Server
farmsC)Domain name registriesD)CybersquattersE)Universal resource
locatorsDifficulty Level: MediumPage: 201Explanation:
Cybersquatters 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.11. According to Canadian law, what is the
standard expected by courts in Canada in determining whether a
representation is false or misleading?A)De Novo standardB)Credulous
person standardC)Clearly Erroneous standardD)Arbitrary and
Capricious standardE)Discretionary standardDifficulty Level:
HardPage: 206Explanation: Courts have been directed by Canadian law
to take into account, in determining whether a representation is
false or misleading, the "general impression" conveyed by the
representation as well as its literal meaning. The courts are
expected to apply the "credulous person standard," which means that
if any reasonable person could possibly misunderstand the
representation, the representation is misleading.12. Which of the
following countries has enacted the most stringent green marketing
laws that regulate the management and recycling of packaging
waste?A)BritainB)FranceC)GermanyD)United StatesE)JapanDifficulty
Level: MediumPage: 207Explanation: Germany has passed the most
stringent green marketing laws that regulate the management and
recycling of packaging waste.13. 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?A)Incorporation
lawsB)Intellectual property lawsC)Antitrust lawsD)Incorporation
lawsE)Monopoly lawsDifficulty Level: MediumPage: 212Explanation:
Antitrust enforcement has two purposes in international commerce.
The first is to protect American consumers by ensuring that they
benefit from products and ideas produced by foreign competitors as
well as by domestic competitors. The second purpose of antitrust
legislation is to protect American export and investment
opportunities against any privately imposed restrictions.14. Which
of the following are the licenses required for products exported
from the United States?A)International or bilateral
licenseB)General or a validated licenseC)Single or multiple
licenseD)Exporter or third-party licenseE)Shipment license or agent
licenseDifficulty Level: HardPage: 214Explanation: Products
exported from the United States require a general or a validated
export license, depending on the product, where it is going, the
end use, and the final user.15. Which of the following indicates
the exportability status of the item based on the ECCN?A)Commerce
Control ListB)Entity ListC)Common ListD)Priority Export
ListE)International Trade ListDifficulty Level: HardPage:
215Explanation: The ECCN leads to a description in the Commerce
Control List (CCL), which indicates the exportability status of the
item.----------------------------------------------Chapter 8:
Developing a Global Vision through Marketing Research1.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?A)the cost of foreign market
research.B)the willingness of the respondents to give
information.C)the accuracy levels of the foreign market
research.D)the complexity of the rules governing the foreign market
research.E)the ability to get accurate pricing data from foreign
markets.Difficulty Level: MediumPage: 221Explanation: The basic
difference between domestic and foreign market research is the
broader scope needed for foreign research, necessitated by higher
levels of uncertainty.2. Which of the following is most likely to
be the first step of a marketing research process?A)Define the
research problem and establish research objectives.B)Analyze,
interpret, and summarize the results.C)Determine the sources of
information to fulfill the research objectives.D)Consider the costs
and benefits of the research effort.E)Gather relevant data from
secondary or primary sources, or both.Difficulty Level: MediumPage:
222Explanation: The first step of a market research process is to
define the research problem and establish research objectives.3.
Mike is conducting a marketing research. He has defined the
research problem and has established research objectives so his
next task is to:A)effectively communicate the problem and
objectives to decision makers.B)analyze, interpret, and summarize
the results.C)determine the sources of information to fulfill the
research objectives.D)determine which statistical methods should be
used for analyzing the data.E)evaluate the cost and benefits of the
research effort.Difficulty Level: MediumPage: 222Explanation: Once
the problem is adequately defined and research objectives
established, the researcher must determine the availability of the
information needed.4. 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 _____.A)primary
researchB)secondary researchC)tertiary researchD)parallel
researchE)simplistic researchDifficulty Level: EasyPage:
223Explanation: Secondary research uses data that is already
collected for some other purpose.5. Most likely, much of secondary
research provided by foreign governments is suspect with respect to
reliability because:A)the data in foreign countries is usually
written in a foreign language and there are translation
difficulties that are often insurmountable.B)the size of the sample
and the technique used for sampling may be faulty.C)official
statistics are sometimes too optimistic, reflecting national pride
rather than practical reality.D)an outdated technology could have
been used for processing the data.E)the data tend to be incomplete,
and outdated.Difficulty Level: MediumPage: 223Explanation:
Available data may not have the level of reliability necessary for
confident decision making for many reasons. Official statistics are
sometimes too optimistic, reflecting national pride rather than
practical reality, while tax structures and fear of the tax
collector often adversely affect data.6. 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 _____.A)parallel
dataB)tertiary dataC)logical dataD)primary dataE)advanced
dataDifficulty Level: EasyPage: 226Explanation: seeking all
reasonable secondary data sources, research questions are still not
adequately answered, the market researcher must collect primary
data that is, data collected specifically for the particular
research project at hand.7. 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.A)QuantitativeB)QualitativeC)DescriptiveD)SecondaryE)ExplanatoryDifficulty
Level: EasyPage: 226Explanation: In quantitative research , usually
a large number of respondents are asked to reply either verbally or
in writing to structured questions using a specific response format
(such as yes/no) or to select a response from a set of choices.8.
Which of the following research techniques is most likely to be
used for conducting a quantitative research?A)Focus
groupB)InterviewC)SurveyD)ObservationE)Data gathering with the help
of mechanical devicesDifficulty Level: MediumPage: 227Explanation:
Survey research is generally associated with quantitative research,
and the typical instrument used is a questionnaire administered by
personal interview, mail, telephone, and, most recently, over the
Internet.9. A lot of international consumers are unwilling or
unable to respond to research surveys mainly due to the
_____.A)fear of government reprisalsB)lack of incentivesC)inability
to use the InternetD)lack of interestE)cultural
differencesDifficulty Level: MediumPage: 228Explanation: Cultural
differences offer the best explanation for the unwillingness or the
inability of many to respond to research surveys. The role of the
male, the suitability of personal gender-based inquiries, and other
gender-related issues can affect willingness to respond.10. A _____
sample is used when detailed and accurate information for a
sampling universe is not available.A)simple random sampleB)cluster
sampleC)convenience sampleD)systematic random sampleE)stratified
sampleDifficulty Level: HardPage: 230Explanation: A lack of
detailed information, however, does not prevent the use of
sampling; it simply makes it more difficult. In place of
probability techniques, many researchers in such situations rely on
convenience samples taken in marketplaces and other public
gathering places.11. In an international arena, the greatest
problem in sampling stems from:A)the lack of adequate demographic
data and available lists from which to draw meaningful
samples.B)the lack of expertise in how to design
samples.C)government intervention in the sampling process.D)an
inability to speak foreign languages.E)the difficulty in
determining adequate sample size.Difficulty Level: HardPage:
230Explanation: The greatest problem in sampling stems from the
lack of adequate demographic data and available lists from which to
draw meaningful samples. If current, reliable lists are not
available, sampling becomes more complex and generally less
reliable.12. 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.A)Serial
translationB)Linear translationC)Back translationD)Random
translationE)Rollback translationDifficulty Level: EasyPage:
232Explanation: In back translation, 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. This process often pinpoints
misinterpretations and misunderstandings before they reach the
public.13. _____ and _____ are the two methods of demand
forecasting that are particularly suitable for international
marketers.A)Probabilistic forecasting; ensemble forecastingB)Expert
opinion; analogyC)Reference class forecasting; simulationD)Linear
progression; linear regressionE)Scenario building;
extrapolationDifficulty Level: EasyPage: 236Explanation: Given the
greater uncertainties and data limitations associated with foreign
markets, two methods of forecasting demand are particularly
suitable for international marketers: expert opinion and
analogy.14. 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.A)Employees like to work on their own rather than in a
group.B)Opinions of all the employees are to be taken into
consideration before taking a decision.C)Decisions are generally
taken by lower level employees who directly deal with the
problem.D)It is hard for those lower in the hierarchy to question
their superiors.E)The process of decision making is extremely
complex and time consuming.Difficulty Level: EasyPage:
241Explanation: The Japanese corporate culture makes it hard for
those lower in the hierarchy to question their superiors or inform
them about problems.15. In Japanese corporate culture, _____ refers
to the public, face-saving
truth.A)kanbanB)tatemaeC)keiretsuD)zaibatsuE)kakemonoDifficulty
Level: MediumPage: 242Explanation: In Japanese corporate culture,
tatemae refers to the public, face-saving truth.4