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Chapter 1: The Scope and Challenge of International Marketing


1. __________ 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 strategy
B) Marketing
C) Marketing concept
D) Regional marketing concept
E) International marketing
2. Which of the following is the most critical difference between domestic marketing and
international marketing?
A) The environment in which marketing plans must be implemented
B) The different concepts of marketing
C) The change in marketing goals
D) The difference in technological standards
E) The change in corporate objectives
3. 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 distribution
B) Research
C) Economic forces
D) Promotion
E) Product elements
5. 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.)
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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 distribution
B) competitive forces
C) economic forces
D) level of technology
E) 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 adjustment
B) dealing with politics
C) international standardization
D) caring for the environment
E) international branding
10. 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) Xenophobia
B) 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) Globalism
D) Racism
E) Intellectual challenges
11. _____ is generally a problem when managers from affluent countries work with
managers and markets in less-affluent countries.
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A) Xenophobia
B) Racism
C) Cultural backlash
D) Ethnocentrism
E) Global redlining
12. The primary obstacles to success in international marketing are a person's _____ and an
associated ethnocentrism.
A) regionalism
B) holism
C) self-reference criterion
D) segregation
E) integration
13. 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 marketing
B) pre-global marketing
C) pre-international marketing
D) anti-foreign marketing
E) no direct foreign marketing
15. 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 marketing
B) Infrequent global marketing
C) Global marketing
D) Regular foreign marketing
E) International marketing
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Chapter 2: The Dynamic Environment of International Trade
1. 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 Germany
B) Dissolving the colonial powers
C) Gaining access to the European market
D) Dampening the spread of communism
E) Creating a trade bloc to counter the OPEC countries' clout
2. 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 Trade
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B) forming of the United Nations Development Programme
C) signing of the Treaty on Open Skies
D) signing of the Montreal Protocol
E) establishment of the World Federation of Trade Unions
Difficulty Level: Medium
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Explanation: 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 Plan
B) Marshall Plan
C) Bradley Plan
D) Roosevelt Plan
E) Truman Plan
Difficulty Level: Easy
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Explanation: 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 balance
B) National accounts system.
C) EX-IM (exports-imports) account
D) Balance of payments
E) Exchange rate
Difficulty Level: Easy
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Explanation: 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 time
usually 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: Hard
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Explanation: 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
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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 account
B) capital account
C) credit account
D) receivables account
E) reserves account
Difficulty Level: Easy
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Explanation: 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) quota
B) trade penalty
C) tariff
D) boycott
E) embargo
Difficulty Level: Easy
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Explanation: 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: Hard
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Explanation: 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) Fees
B) Export subsidies
C) Voluntary export restraints
D) Embargoes
E) Packaging, labeling, or marking standards
Difficulty Level: Hard
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Explanation: Refer Exhibit 2.6 - Types of Nontariff Barriers
10. Exporting countries sometimes agree to voluntary export restraints (VER) as an
alternative to the threat of:
A) expulsion.
B) disorderly marketing agreements.
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C) stiffer quotas and tariffs.
D) export subsidies
E) standardization disparities
Difficulty Level: Medium
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Explanation: 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) Tariffs
B) Import quota
C) Blocked currency
D) Government approval
E) Export levies
Difficulty Level: Hard
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Explanation: 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 pricing
B) Offensive pricing
C) Defensive pricing
D) Counterpoint pricing
E) Predatory pricing
Difficulty Level: Easy
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Explanation: 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 section
B) The export expansion section
C) The import relief section
D) The foreign exchange regulation section
E) The trade deficit section
Difficulty Level: Hard
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Explanation: 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.
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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) agreement
B) The formulation of the Kyoto Protocol
C) The inclusion of Africa and Indonesia into its member-list
D) The creation of the World Trade Organization
E) The ratification of the Internet as a global business platform
Difficulty Level: Medium
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Explanation: 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.
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Explanation: 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.
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Chapter 3: History and Geography: The Foundations of Culture
1. The single most horrific civil war in the history of the world was the _____.
A) American Revolution
B) Taiping Rebellion
C) Boxer Rebellion
D) Hong Kong Revolution
E) Satsuma Rebellion
Difficulty Level: Medium
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Explanation: 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 received
B) The historian's self-reference criteria
C) The technical tools to examine history
D) The extent of government support
E) The amount of time spent on observation and analysis
Difficulty Level: Hard
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Page: 57
Explanation: 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: Medium
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Explanation: 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 Jacinto
B) The War of 1812
C) The Mexican War of 1836
D) The Mexican War of 1846-1848
E) The Gadsden Purchase of 1912
Difficulty Level: Medium
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Explanation: Refer Exhibit 3.1 - Territorial Expansion of United States from 1783
5. 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" approach
B) The Monroe Doctrine
C) The Hays Corollary
D) The Grant Mandate
E) The Latin American Security Treaty
Difficulty Level: Easy
Page: 59
Explanation: 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 Corollary
B) The Monroe Doctrine
C) The Hays Corollary
D) The Grant Mandate
E) The "Manifest Destiny"
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Difficulty Level: Medium
Page: 59
Explanation: 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: Hard
Learning Objective: 03-3
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Explanation: 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 Mexico
B) Our Lady of Guadalupe
C) The Mexican-American war
D) The Mexican state oil monopoly Pemex
E) The Cinco de Mayo holiday
Difficulty Level: Medium
Page: 60-61
Explanation: 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 neighbors
B) Impediments to efficient trade in an integrated economic union
C) Natural landmarks that symbolize national treasure
D) Fortuitous blessings that provide a wealth of natural resources
E) Symbols of national heritage and history
Difficulty Level: Easy
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Explanation: 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 Nations
B) The Basel Convention
C) NAFTA
D) The European Union
E) The Soviet Bloc
Difficulty Level: Medium
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Explanation: 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 power
B) Human labor
C) Wind energy
D) Solar renewable batteries
E) Alkaline batteries
Difficulty Level: Medium
Page: 70
Explanation: 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 families
B) Poor enforcement mechanism
C) Lack of awareness about population trends
D) Government welfare schemes for the homeless/orphans
E) Cultural attitudes about the importance of large families
Difficulty Level: Hard
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Explanation: 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: Hard
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Page: 75
Explanation: 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 nations
B) More women are choosing careers instead of children
C) Modern work-life reduces potency of males in industrialized nations
D) Governments favor immigration to balance population requirements
E) Punitive measures for larger families lead to decreasing birthrates
Difficulty Level: Medium
Page: 76
Explanation: 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) Africa
B) The United States
C) China
D) Asia
E) Europe
Difficulty Level: Medium
Page: 78
Explanation: Europe is the region of the world most affected by aging and thus by a steadily
decreasing worker-to-retiree ratio.
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Chapter 4: Cultural Dynamics in Assessing Global Markets
1.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: Easy
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Explanation: 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.
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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: Medium
Page: 96-97
Explanation: 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: Medium
Page: 103
Explanation: 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: Easy
Page: 103
Explanation: 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: Hard
Page: 104
Explanation: Jared Diamond, a professor of physiology, tells us that historically,
innovations spread faster east to west than north to south.
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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 phones
B) Computers
C) Aircraft
D) The Internet
E) Birth control techniques
Difficulty Level: Medium
Page: 105
Explanation: 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: Easy
Page: 107
Explanation: 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) French
B) German
C) Spanish
D) Arabic
E) Taiwanese
Difficulty Level: Hard
Page: 110
Explanation: Refer Exhibit 4.6 - Hofstede's Indexes, Language, and Linguistic Distance
9. The _____ measure the tolerance of social inequality within a social system.
A) Individualism/Collectivism index
B) Power Distance index
C) Uncertainty Avoidance index
D) Cultural Value index
E) Consumer Behavior index
Difficulty Level: Medium
Page: 111
Explanation: 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 Britain
B) Australia
C) Canada
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D) France
E) Japan
Difficulty Level: Hard
Page: 110
Explanation: Refer Exhibit 4.6 - Hofstede's Indexes, Language, and Linguistic Distance
11.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: Easy
Page: 114
Explanation: 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: Hard
Page: 114-115
Explanation: 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: Hard
Page: 118
Explanation: 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.
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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 occur
B) The number of people that could be benefited
C) The degree of interest in the particular subject
D) The power or authority of the change agent
E) The financial impact, immediate and long-term, of accepting the change
Difficulty Level: Medium
Page: 121
Explanation: 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 exclusion
B) cultural intensity or cultural sublimity
C) acceptance, resistance, or rejection
D) sensitivity to hidden aspects of culture in a society
E) spread, intensity, and degree of change required
Difficulty Level: Medium
Page: 122
Explanation: 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 Systems
1. _____ are the business customs and expectations that must be met and conformed to or
avoided if relationships are to be successful.
A) Functional imperatives
B) Business imperatives
C) Global axioms
D) Universal axioms
E) Cultural imperatives
Difficulty Level: Easy
Page: 127
Explanation: 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: Hard
Page: 129
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Explanation: 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 organization
Difficulty Level: Hard
Page: 130
Explanation: 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 PDI
B) low PDI; high individualism
C) high-PDI; low-PDI
D) high individualism; high collectivism
E) high-PDI; low individualism
Difficulty Level: Hard
Page: 132
Explanation: 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: Medium
Page: 132
Explanation: 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: Medium
Page: 132
Explanation: Because Asian cultures and religions tend to emphasize harmony and
collectivism, group decision making predominates there.
17

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: Hard
Page: 134
Explanation: 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) Switzerland
B) Saudi Arabia
C) France
D) United States
E) Germany
Difficulty Level: Hard
Page: 137
Explanation: Refer Exhibit 5.2 - Context, Communication, and Cultures: Edward Hall's
Scale
9. 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 time
B) B-time--bimodal time
C) D-time--dual time
D) M-time-monochronic time
E) S-time-sequence time
Difficulty Level: Hard
Page: 139
Explanation: 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 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 proficiency in the other's language
Difficulty Level: Hard
Page: 140
Explanation: 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.
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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 assignment
B) Bonus options
C) Social background
D) Age
E) Strength of the firm's backing
Difficulty Level: Medium
Page: 143
Explanation: 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-orientation
B) Multiple marriages
C) The extended family
D) Strong organizational hierarchy
E) Increase in consumerism
Difficulty Level: Hard
Page: 148
Explanation: 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 philanthropy
B) Rights of the parties
C) Justice or fairness
D) Utilitarian ethics
E) Benefit optimization
Difficulty Level: Medium
Page: 151
Explanation: 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 building
B) Management by the trade unions
19

C) State capitalism
D) Feudal-capitalist nexus
E) Network of personal connections
Difficulty Level: Hard
Page: 153
Explanation: 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-oriented
B) Relationship-oriented
C) Hierarchy-oriented
D) Power-oriented
E) Task-oriented
Difficulty Level: Medium
Page: 153
Explanation: 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 Concern
1. _____ refers to both the powers exercised by a state in relation to other countries and the
supreme powers exercised over its own members.
A) Sovereignty
B) Self governance
C) Ethnocentrism
D) Autocracy
E) Non-interventionism
Difficulty Level: Easy
Page: 160
Explanation: 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: Hard
Page: 161
Explanation: 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
20

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 leaders
B) Government policies on infrastructure
C) Economic awareness of political leaders
D) Stability of prevailing government policies
E) Membership of governments in trade treaties
Difficulty Level: Hard
Page: 162
Explanation: 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: Hard
Page: 167
Explanation: 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) Confiscation
B) Expropriation
C) Domestication
D) Exchange controls
E) Local-content laws
Difficulty Level: Medium
Page: 168
Explanation: 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) democratized
B) domesticated
C) nationalized
D) prioritized
E) socialized
Difficulty Level: Medium
Page: 168
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Explanation: 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: Hard
Page: 168
Explanation: 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 controls
B) Local-content laws
C) Import restrictions
D) Tax controls
E) price controls
Difficulty Level: Hard
Page: 168-169
Explanation: 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: Hard
Page: 169
Explanation: 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 garments
B) Mobile phone accessories
C) Aspirin and antacids
D) Handycams and lenses
22

E) Ceramic tiles
Difficulty Level: Hard
Page: 169
Explanation: 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 funds
B) National governments backing their causes
C) The Internet
D) The United Nations and its affiliated bodies
E) Private companies providing technical support
Difficulty Level: Easy
Page: 174
Explanation: 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: Medium
Page: 177
Explanation: 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: Hard
Page: 180
Explanation: 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 ventures
B) Licensing
C) Expanding the investment base
D) Planned domestication
E) Multi-facilities
Difficulty Level: Hard
23

Page: 181
Explanation: 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: Medium
Page: 182
Explanation: 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 Rules
1. Under common law, ownership is established by _____; under code law, ownership is
determined by _____.
A) heredity; shareholding
B) use; registration
C) tradition; legal right
D) legal right; patent
E) shareholding; use
Difficulty Level: Hard
Page: 187
Explanation: Under common law, ownership is established by use; under code law,
ownership is determined by registration.
2. Islamic law is known as the _____.
A) Ulema
B) Jihad
C) Fatwa
D) Shari'ah
E) Barakah
Difficulty Level: Easy
Page: 188
Explanation: 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 law
B) code law
C) Islamic law
D) Marxist-socialist tenets
E) legal tradition
Difficulty Level: Medium
Page: 189
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Explanation: 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 governments
B) disputes between a company and a government
C) disputes between two companies
D) disputes between a private citizen and a government
E) disputes between trade bodies of various countries
Difficulty Level: Hard
Page: 190
Explanation: 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: Easy
Page: 191
Explanation: 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: Medium
Page: 193
Explanation: 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) conciliate
B) arbitrate
C) coerce
D) try to placate the injured party
E) litigate
Difficulty Level: Medium
Page: 194
Explanation: 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.
25

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: Medium
Page: 197
Explanation: 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 Charter
B) Trade-Related Aspects of Intellectual Property Rights
C) Inter-American Convention Agreement
D) The Madrid Arrangement
E) Paris Agreement for the Protection of Industrial Property
Difficulty Level: Hard
Page: 198
Explanation: 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 trolls
B) Server farms
C) Domain name registries
D) Cybersquatters
E) Universal resource locators
Difficulty Level: Medium
Page: 201
Explanation: 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 standard
B) Credulous person standard
C) Clearly Erroneous standard
D) Arbitrary and Capricious standard
E) Discretionary standard
Difficulty Level: Hard
Page: 206
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Explanation: 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) Britain
B) France
C) Germany
D) United States
E) Japan
Difficulty Level: Medium
Page: 207
Explanation: 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 laws
B) Intellectual property laws
C) Antitrust laws
D) Incorporation laws
E) Monopoly laws
Difficulty Level: Medium
Page: 212
Explanation: 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 license
B) General or a validated license
C) Single or multiple license
D) Exporter or third-party license
E) Shipment license or agent license
Difficulty Level: Hard
Page: 214
Explanation: 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 List
B) Entity List
C) Common List
D) Priority Export List
27

E) International Trade List
Difficulty Level: Hard
Page: 215
Explanation: 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 Research
1.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: Medium
Page: 221
Explanation: 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: Medium
Page: 222
Explanation: 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: Medium
Page: 222
Explanation: 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 research
B) secondary research
C) tertiary research
D) parallel research
E) simplistic research
28

Difficulty Level: Easy
Page: 223
Explanation: 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: Medium
Page: 223
Explanation: 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 data
B) tertiary data
C) logical data
D) primary data
E) advanced data
Difficulty Level: Easy
Page: 226
Explanation: 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) Quantitative
B) Qualitative
C) Descriptive
D) Secondary
E) Explanatory
Difficulty Level: Easy
Page: 226
Explanation: 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 group
B) Interview
29

C) Survey
D) Observation
E) Data gathering with the help of mechanical devices
Difficulty Level: Medium
Page: 227
Explanation: 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 reprisals
B) lack of incentives
C) inability to use the Internet
D) lack of interest
E) cultural differences
Difficulty Level: Medium
Page: 228
Explanation: 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 sample
B) cluster sample
C) convenience sample
D) systematic random sample
E) stratified sample
Difficulty Level: Hard
Page: 230
Explanation: 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: Hard
Page: 230
Explanation: 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.
30

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 translation
B) Linear translation
C) Back translation
D) Random translation
E) Rollback translation
Difficulty Level: Easy
Page: 232
Explanation: 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 forecasting
B) Expert opinion; analogy
C) Reference class forecasting; simulation
D) Linear progression; linear regression
E) Scenario building; extrapolation
Difficulty Level: Easy
Page: 236
Explanation: 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: Easy
Page: 241
Explanation: 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) kanban
B) tatemae
C) keiretsu
D) zaibatsu
E) kakemono
Difficulty Level: Medium
Page: 242
Explanation: In Japanese corporate culture, tatemae refers to the public, face-saving truth.

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