Deck 1: The Scope and Challenge of International Marketing

Question 1

Companies from the Netherlands are the leading group of investors in the United States.

Answer 1

False
Explanation: Foreign direct investment in the United States is more than $3 trillion. Companies from the United Kingdom lead the group of investors, with companies from Japan, the Netherlands, Canada, and France following, in that order.

Question 2

The geography and infrastructure of a country are uncontrollable factors that influence the business decisions of a company in an international market.

Answer 2

True
Explanation: Refer Exhibit 1.3-The International Marketing Task.

Question 3

International marketing involves selling of a company's goods and services to consumers or users in more than one nation for a profit.

Answer 3

True
Explanation: International marketing 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.

Question 4

Political and legal forces, economic climate, and competition are some of the domestic environment's controllable factors.

Question 5

The foreign policies of a country have a direct effect on a firm's international marketing success.

Question 6

Level of technology remains unchanged across countries making it a fairly controllable factor in international marketing.

Question 7

In a broad sense, the uncontrollable elements of the foreign business environment constitute the culture.

Question 8

For companies today, becoming international is a luxury only some can afford.

Question 9

The business activities of international marketers are not affected by competition in their domestic market.

Question 10

The level of technology in a country is an uncontrollable element for international marketers.

Question 11

The uncontrollable factors a company has to deal with decreases with the number of foreign markets in which it operates.

Question 12

Abolition of apartheid in South Africa is an example of a positive effect on foreign policy, an uncontrollable element, in an international marketing scenario.

Question 13

The difference between domestic and international marketing lies in the different concepts of marketing.

Question 14

Political and legal issues a company may face abroad are mitigated by the "alien status" of the company.

Question 15

The political and legal environment is a controllable element for international marketers because of their potent ability to lobby and influence legislation in foreign markets.

Question 16

The uncontrollable factors affecting international marketing are limited to political forces, economic climate, and competitive structure.

Question 17

An international marketer must deal with at least two levels of uncontrollable uncertainty.

Question 18

The process of evaluating the uncontrollable elements in an international marketing program involves substantial doses of cultural, political, and economic shock.

Question 19

The controllable elements can be altered in the long run and, usually, in the short run to adjust to changing market conditions, consumer tastes, or corporate objectives.

Question 20

The political details and the ramifications of political and legal events are often more transparent in a domestic situation than they are in a foreign market.

Question 21

Which of the following elements in the marketing environment poses a challenge to both domestic and international marketers due to its dominantly uncontrollable nature?

A) Price
B) Promotion
C) Research activities
D) Political/legal forces
E) Channels of distribution

Question 22

Understanding one's own culture normally requires no additional study.

Question 23

Which of the following is an uncontrollable element for an international marketer?

A) Firm characteristics
B) Channels of distribution
C) Price
D) Research
E) Level of technology

Question 24

The most effective approach to build global awareness into an organization is to increase the diversity mix of the employee profile for entry-level jobs.

Question 25

For an international marketer, the _____ can be altered in the long run and, usually, in the short run to adjust to changing market conditions, consumer tastes, or corporate objectives.

A) competitive structure
B) economic climate
C) structure of distribution
D) environmental factors
E) controllable elements

Question 26

The self-reference criterion is closely related to ethnocentrism.

Question 27

To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that emphasizes the need for ethnocentrism.

Question 28

A company in the "no direct foreign marketing" stage of international marketing involvement does not actively cultivate customers outside national boundaries.

Question 29

The global marketing concept views the marketplace as consisting of one primary domestic market that is complimented by several smaller regional markets.

Question 30

Which of the following is a controllable element for an international marketer?

A) Level of technology
B) Geography and infrastructure
C) Channels of distribution
D) Cultural forces
E) Competitive forces

Question 31

_____ 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) Internal marketing
B) Importing
C) Performance appraisal
D) International marketing
E) Domestic trade

Question 32

Which of the following is the most critical difference between domestic marketing and international marketing?

A) The difference in marketing principles being followed
B) The different concepts of marketing
C) The difference in marketing theories being followed
D) The environment in which marketing plans must be implemented
E) The basic processes used to market products and services

Question 33

Research has revealed that smaller home markets and larger production capacities appear to favor internationalization.

Question 34

Companies from _____ lead in foreign investment in the United States.

A) Kingdom of Saudi Arabia
B) Japan
C) the Netherlands
D) the United Kingdom
E) Canada

Question 35

In dealing with unfamiliar markets, marketers must be aware of the frames of reference they are using in making their decisions.

Question 36

Which of the following is an essential requirement for already experienced as well as new firms to succeed in international markets?

A) Adhering strictly to their traditional methods of production and operations
B) Focusing primarily on their production to exclusively meet domestic demand
C) Venturing into multiple markets by investing in all of them at once
D) Committing themselves completely to foreign markets
E) Having beneficial relations with lobbyists of foreign markets

Question 37

Which of the following is the most dynamic trend that is affecting current global business strategies?

A) The trend toward buying American cars in Europe
B) The trend toward the acceptance of the free market system among developing countries
C) The trend toward using English as the global language
D) The trend toward establishing a world currency
E) The trend toward providing aid to developing and less developed nations

Question 38

Sam just ate cookies and, therefore, feels justified in refusing food offered by his Middle Eastern host. In this instance, Sam's self-reference criterion has just saved him from making a cultural blunder.

Question 39

John refuses to buy Japanese products because he sees this as a way of selling out to a nation known for its aggressive behavior. John uses a self-reference criterion to make his decision.

Question 40

Which of the following is true regarding the impact of globalization on domestic markets in the United States?

A) Companies with only domestic markets have been able to sustain their customary rates of growth.
B) Multinational companies are making more profits from their domestic operations compared to their earnings from the foreign markets.
C) Only multinational companies with large production facilities have outperformed their strictly domestic U.S. counterparts.
D) The domestic companies have reduced their manufacturing employment more than U.S. multinationals.
E) Multinational manufacturing companies in all industries and sizes have outperformed their domestic counterparts.

Question 41

Which of the following political actions is most likely to favor international marketing?

A) Placing trade embargo on Cuba owing to widespread political instability in the country
B) The U.S. government placing a trade ban on Libya owing to rampant terrorism
C) Paraguay imposing low tariffs and tax rates on manufacturing industries
D) Tariff hike for imports established by China
E) The U.S. government coupling human rights issues with foreign trade policy

Question 42

_____ is a controllable element in both domestic and international marketing environments.

A) Economic climate
B) Competition within the home country
C) Price of products
D) Political force
E) Foreign policy

Question 43

Which of the following best illustrates the political and legal issues faced by companies because of their "alien status" when they attempt to do business in foreign countries?

A) A company doing moderate business in international markets because of violent history of its home country
B) A company being forced by the local government to share its core competencies in order to continue doing business
C) A product not being widely accepted in the foreign market because of its irrelevance to the customers
D) A company utilizing an identical promotional campaign it used in the domestic country
E) A company not succeeding in a foreign market because its product pricing is above the purchasing power of the local customers

Question 44

_____ is an unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions.

A) Xenocentrism
B) Holism
C) Self-reference criterion
D) Segregation
E) Orientalism

Question 45

The uncontrollable issue of _____ faced by a company abroad is often amplified by the "alien status" of the company, which increases the difficulty of properly assessing and forecasting the dynamic international business climate.

A) research
B) channel of distribution
C) product specification
D) politics
E) product promotion

Question 46

Ralph Waite, a marketing manager at a video game console manufacturing firm, is asked to review the marketing opportunities of his company in a foreign market. He is aware that he can modify certain elements of the marketing environment to suit the foreign market needs. He focuses his attention on the uncontrollable factors that might affect their business prospects. Which of the following uncontrollable elements is most likely to affect the company's business prospects in the foreign market?

A) The pricing policies in the domestic market
B) The research methodologies used by his company
C) The promotional activities required to market the product
D) The level of technology in the targeted market
E) The product distribution channels adopted by his company

Question 47

Compared to the foreign environment variables, which of the following uncontrollable variables is least likely to affect a domestic marketer?

A) Political forces
B) Competitive structure
C) Economic climate
D) Cultural forces
E) Legal forces

Question 48

Robert Jonas is in charge of a new marketing effort directed toward Peru. In order for his company to effectively market and distribute to all of Peru's major cities, Jonas must devise a logistics plan for crossing the Andes Mountains on a daily basis. Which of the following foreign environment uncontrollable variables would be a chief concern as Jonas devises his firm's logistics plan?

A) Price
B) Product
C) Geography and infrastructure
D) Promotional strategies
E) Channels of distribution

Question 49

The marketing tasks of an international marketer differs from that of a domestic marketer as the:

A) international marketer has fewer uncontrollable elements to deal than a domestic marketer.
B) level of technology and cultural forces are controllable elements for the international marketer.
C) structure of distribution is an uncontrollable element for the international marketer.
D) competitive structure is one of the controllable factors for an international marketer.
E) international marketer is less concerned about geography and infrastructure than the domestic marketer.

Question 50

When confronted with a set of facts, one reacts spontaneously on the basis of knowledge assimilated over a lifetime-knowledge that is a product of the history of one's culture. One seldom stops to think about a reaction; one simply reacts. Thus, when faced with a problem in another culture, one's tendency is to react instinctively and refer to one's _____ for a solution.

A) self-space principle
B) segregation principle
C) integration criterion
D) space command criterion
E) self-reference criterion

Question 51

The primary obstacles to success in international marketing are a person's _____ and an associated ethnocentrism.

A) conscious regionalism
B) holism
C) self-reference criterion
D) moral relativism
E) moral nihilism

Question 52

Which of the following is closely related to the self-reference criterion?

A) Differentiation
B) Marketing myopia
C) Ethnocentrism
D) Multiculturalism
E) Pluralism

Question 53

Which of the following best defines adaptation on the part of an international marketer?

A) It is a conscious effort to make themselves aware of the home cultural reference in their analyses and decision making.
B) It is a conscious effort to anticipate the influences of both the foreign and domestic uncontrollable factors on a marketing mix and then to adjust the marketing mix to minimize the effects.
C) It is the notion that people in one's own company or country know best how to do things.
D) It is the process of identifying the similarities that exists between the domestic and foreign markets.
E) It is an unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions and then to adjust the marketing mix in order to closely reflect these decisions.

Question 54

With respect to the environment in which a business operates, factors such as competition, political and legal forces, and economic climate would all be classified as:

A) controllable elements.
B) uncontrollable elements.
C) tractable elements.
D) demographic elements.
E) cultural elements.

Question 55

M&G Inc., a company producing musical instruments, had dominated its home market for several years before venturing into international markets. The company was focusing more on international operations until Beige N, German company in the same business, entered its home market. Beige N started selling good quality products at prices much lower than M&G's and affected its sales adversely. Which of the following elements in the marketing environment has affected the business of M&G Inc. with the market entry of Beige N?

A) Level of technology
B) Structure of distribution
C) Competition in the domestic market
D) Cultural forces
E) Promotion of the product

Question 56

Which of the following reflects the relationship between international business and domestic business?

A) The domestic economic climate has no effect on a company's competitive position in foreign markets.
B) Domestic businesses must focus on capital mobility toward international businesses before capital generation.
C) Countries must not restrict foreign investment even if domestic economic conditions deteriorate.
D) The ability to invest abroad is to a large extent a function of domestic economic vitality.
E) Domestic businesses are more viable than international businesses as capital tends to move toward minimum use.

Question 57

_____ impedes the ability of a person to assess a foreign market in its true light.

A) Polycentrism
B) Pluralism
C) Xenocentrism
D) Ethnocentrism
E) Relativism

Question 58

Amy Sims has been assigned the task of preparing a marketing plan for her company for the upcoming year's business activities. She knows that she should begin her plan by examining the variables that she has some control over. These controllable variables would include price, product, channels-of-distribution, and _____.

A) level of technology
B) political forces
C) competition
D) economic climate
E) promotion

Question 59

Which of the following is a possible unfavorable outcome of the "alien status" of a company?

A) Prejudiced treatment by the host country's politicians and legal authorities
B) An inflated balance of trade
C) A sharp rise in domestic and international demand
D) Lower trade tariffs in the host country
E) An economic situation of the magnitude of the Great Depression

Question 60

Which of the following is an uncontrollable factor for a marketer in a domestic environment?

A) Firm characteristics
B) Competitive structure
C) Channels of distribution
D) Price of the product
E) Promotional measures

Question 61

Which of the following organizations seems better equipped for internationalization?

A) A firm that sells its products only to those foreign customers who directly contact the firm
B) A firm that has a production capacity that is much greater than home market demand
C) A firm that focuses its production activities on meeting the demands in the home market
D) A firm that has a culturally diverse employee profile but few competitive offerings at the global level
E) A firm that has little intention of maintaining a continuous market representation

Question 62

The most effective way to control the influence of ethnocentrism and the SRC is to:

A) reduce interaction with culturally diverse audience.
B) design products and services in a traditional manner.
C) recognize their effects on our behavior.
D) learn at least two foreign languages to understand the cultural differences.
E) establish beneficial relations with the host country's government.

Question 63

Which of the following is true of firms in the first two stages of international marketing involvement-no direct foreign marketing and infrequent foreign marketing?

A) They do not begin internationalization at these stages.
B) They take a strategic approach to decision making regarding international expansion.
C) They are more reactive in nature and embark on internationalization without planning.
D) They intend to maintain a continuous market representation in foreign markets.
E) They are a result of dedicated production capacity maintained for foreign markets.

Question 64

James Bright's company seeks markets all over the world and attempts to sell products that are a result of planned production for markets in various countries. Which of the following stages best characterizes the stage of international marketing involvement for Mr. Bright's company?

A) Infrequent foreign marketing
B) Domestic marketing
C) No direct foreign marketing
D) International marketing
E) Internal marketing

Question 65

Understanding one's own culture requires additional study:

A) to find out why cultural traits in one's own country does not affect market behavior.
B) as much of the cultural influence on market behavior is at the subconscious level.
C) without which understanding the cultural traits of one's own country is impossible.
D) because an average manager must have extensive cultural knowledge of all countries in the world.
E) as cultural influence on one's own market behavior is generally minimal.

Question 66

Which of the following is the most effective way to achieve organizational global awareness?

A) Hiring entry-level employees based on the sole criterion of global awareness
B) Organizing frequent employee trips to foreign cultures to increase their sensitivity
C) Increasing the diversity mix of the front-level employee profile
D) Having a culturally diverse senior executive staff or board of directors
E) Promoting social networking as a means to improve inter-cultural communication

Question 67

Which of the following is true regarding the stages of international marketing involvement?

A) A firm essentially progresses through the stages in a linear order.
B) The international marketing stage is a direct result of temporary surpluses caused by variations in production levels or demand.
C) A larger home market with a smaller production base favors internationalization.
D) A firm may be in more than one stage simultaneously.
E) At the global marketing level, a firm focuses on market segmentation based on geographical borders.

Question 68

Which of the following characterizes a globally aware manager?

A) Using one's home culture's values alone to market one's products in foreign countries
B) Accepting the cultural ways of another individual as his or her own
C) Tolerating cultural differences and allowing others to be different and equal
D) Discarding one's home culture's standards to adopt the global cultural standards
E) Controlling any influences that the global cultural standards may have on the marketing process

Question 69

Companies in the regular foreign marketing stage:

A) fail to actively seek customers in international markets.
B) market their products in international markets only when there is an extensive demand.
C) do not, under any circumstance, adapt their products to meet the needs of individual foreign markets.
D) lack permanent productive capacity that is devoted for production of goods and services to be marketed in international markets.
E) primarily focus their operations and production to service domestic market needs.

Question 70

Maria Peron's company treats the world, including the home market in Spain, as one market. Market segmentation decisions no longer focus on national borders. Instead, market segments are defined by income levels, usage patterns, and other factors that span countries and regions. Which of the following stages best characterizes the stage of international marketing involvement for Ms. Peron's company?

A) Infrequent foreign marketing
B) Test marketing
C) No direct foreign marketing
D) Internal marketing
E) Global marketing

Question 71

In the infrequent foreign marketing stage of international marketing involvement, firms:

A) sell products that are a result of planned production in markets in various countries.
B) no longer make market segmentation decisions on the basis of national borders.
C) have a global perspective and view the entire world as one market.
D) have more than half their sales revenues coming from international markets.
E) have no intention of maintaining continuous market representation in foreign markets.

Question 72

Which of the following will best aid a manager in understanding the way people of different countries think and act?

A) A sound financial background
B) Better political connections
C) An understanding of foreign investment opportunities
D) An understanding of macroeconomics
E) Knowledge of the foreign country's history

Question 73

Which of the following firms has a better chance of accelerating the internationalization process?

A) A firm with key managers well networked internationally
B) A firm with more traditional manufacturing practices
C) A firm that primarily focuses all its operations and production capacities to meet the domestic market needs
D) A firm that refrains from using the Internet as its major communication platform
E) A firm with larger home markets and smaller production capacities

Question 74

Which of the following is true of ethnocentrism?

A) It enhances the ability of an organization to assess a foreign market in its true light.
B) It is a problem that arises when managers from affluent countries work with managers and markets in less affluent countries.
C) American managers have generally been uninfluenced by it, especially in the beginning of the 21^st century.
D) It is the cornerstone of effective adaptation in the field of international marketing.
E) Self-reference criterion is universally considered the technique to reduce or eliminate ethnocentrism.

Question 75

In which of the following stages of international marketing involvement do companies primarily focus all their operations and production to service domestic market needs, even though they have a permanent productive capacity devoted to the production of goods to be marketed in foreign markets?

A) No direct foreign marketing
B) Internal marketing
C) Regular foreign marketing
D) International marketing
E) Financial marketing

Question 76

Jefferson's, a firm that specializes in dog food and grooming products, has a very well-established domestic market. The company does not actively sell its products outside national borders but provides goods to customers who contact them directly or place orders with them through the Internet. Jefferson's is currently in the _____ stage of international marketing involvement.

A) frequent foreign marketing
B) active foreign marketing
C) global marketing
D) regular foreign marketing
E) no direct foreign marketing

Question 77

Ajax Corporation decides to enter the international marketing arena by marketing its products to China, Japan, and South Korea, with separate marketing strategies for each country. Which of the following approaches is most likely used by Ajax Corporation to formulate its international policies and strategies?

A) Domestic market extension
B) Multidomestic market
C) Mass marketing
D) Regional marketing
E) Standardized marketing

Question 78

In the context of stages of international marketing involvement, if a marketer is motivated to initiate an international marketing effort mainly because of temporary surpluses in the domestic market, then the marketer is most likely to be in the _____.

A) infrequent foreign marketing stage
B) regular foreign marketing stage
C) no direct foreign marketing stage
D) international marketing stage
E) global marketing stage

Question 79

To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that isolates the self-reference criterion influences. Which of the following should be the first-step to avoid the aforementioned errors?

A) Redefining the problem without the SRC influence
B) Solving the problem for the optimum business goal situation
C) Isolating the SRC influence in the problem
D) Defining the business problem or goal in home-country cultural traits, habits, or norms
E) Examining the isolated SRC influence to see how it complicates the problem

Question 80

In the context of stages of international marketing involvement, a company's products reaches a foreign market without any conscious effort on the part of a marketer during the _____.

A) infrequent foreign marketing stage
B) regular foreign marketing stage
C) no direct foreign marketing stage
D) international marketing stage
E) global marketing stage