Deck 1: The Scope and Challenge of International Marketing

Question 1

Today,every American business is international.

Answer 1

True

Question 2

Today,most business activities are local or regional in scope.

Answer 2

False

Question 3

One event that will influence the shape of international business as the future unfolds is the unprecedented acceptance of communism and socialism in Latin America.

Answer 3

False

Question 4

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 5

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

Question 6

The foreign uncontrollable environment is the same as the domestic uncontrollable environment.

Question 7

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

Question 8

A trend that will impact international business in the future is a mandate to properly manage the resources and global environment.

Question 9

Foreign-made products remain a small portion of all consumer products sold in the United States.

Question 10

What do French farmers,Chinese fishermen,and Russian hackers have in common--they can all receive subsidy payments from the U.S.government.

Question 11

A good illustration of an uncontrollable variable that might impact international business is a marketing decision with respect to research.

Question 12

One event that will influence the shape of international business as the future unfolds is the rapid growth of the World Trade Organization,NAFTA,and the European Union.

Question 13

Global commerce thrives during peacetime.

Question 14

The political and legal environment is a controllable element for international marketers because of the ability to lobby and influence legislation.

Question 15

A self-reference criterion is closely related to ethnocentrism.

Question 16

U.S.companies compete with global competitors in foreign markets and have little competition in domestic markets from global competitors.

Question 17

To date,the lesson for international commerce in the 21^st century is "expect the unexpected."

Question 18

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

Question 19

The leading U.S.multinational with foreign revenues of $345 billion plus annually is Wal-Mart.

Question 20

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

Question 21

To be globally aware,you should be tolerant of cultural differences.

Question 22

Simi Khan wants to move his business into the international arena as quickly as possible;however,to be successful he must consider a variety of factors that have global dimensions.Which of the following factors would be most important to Simi Khan's computer technology business as he moves forward with his global expansion plans?

A)Electricity usage around the world.
B)The drive toward a more ergonomic workplace.
C)Communication and technology networks in third-world countries.
D)Restrictions on advertising in Russia.
E)Increasing licensing fees in Spain and Portugal.

Question 23

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

Question 24

Every American company is international,at least to the extent that:

A)Federal law requires all corporations to outsource whenever it is cost-effective.
B)the Internet generates orders for all American businesses from abroad.
C)its business performance is affected by events that occur abroad.
D)natural disasters create a greater global community.
E)all of the above.

Question 25

Of all the events and trends affecting global business today,four stand out as the most dynamic.Which of the following would be one of those events?

A)The trend toward buying American cars in Europe.
B)The trend toward the acceptance of the free market system among developing countries in Latin America,Asia,and Eastern Europe.
C)The trend toward using English as the global language.
D)The trend toward establishing a world currency.
E)The trend toward worldwide instant communication.

Question 26

For firms venturing into international marketing for the first time,the first requirement is:

A)employment of foreign nationals in target foreign markets.
B)a thorough and complete commitment to foreign markets.
C)obtain market data from consulate of the country being targeted.
D)an assessment of the cost of doing business in the foreign market.
E)performance reviews of all potential salespeople being considered for foreign assignment.

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

Strategic plans that are competitive in global markets are _____.

A)the challenge of international marketing
B)expanded domestic marketing plans
C)not necessary for small firms
D)multilingual and multicultural in scope

Question 29

Of all the stages in international business,a stage called "regular foreign marketing" produces the most profound change in the orientation of the company toward markets and associated planning activities.

Question 30

Many U.S.firms do exceedingly well in the global arena.Which of the following organizations is considered to be the U.S.leader with global revenues approximated at $345 billion annually?

A)IBM
B)ExxonMobil
C)Ford Motor
D)Wal-Mart
E)Hewlett-Packard

Question 31

According to the text,all of the following events have impacted international business EXCEPT:

A)the Indian Ocean tsunami in 2004
B)the high-tech bust of 2001.
C)the steroids in major league sports scandal
D)2003 SARS outbreak in Asia.
E)September 11,2001 disasters.

Question 32

Foreign investment is a two-way street.An organization (through investment and acquisition)from which of the following countries now controls all United Kingdom rail freight business and runs the queen's private train via its English,Welsh,& Scottish Railway unit?

A)Germany
B)Switzerland
C)United States
D)Canada
E)Netherlands

Question 33

If a company uses a strategic orientation called domestic market extension,it views its international operations as secondary to and an extension of its domestic operations.

Question 34

___________ 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 management
B)Global business
C)Marketing
D)International marketing
E)Global marketing concept

Question 35

Companies from ____________________ lead in foreign investment in the United States:

A)Kingdom of Saudi Arabia
B)Russia
C)China
D)United Kingdom
E)Canada

Question 36

Foreign investment in the United States is growing yearly.At present,foreign investment in the United States is in excess of $16.3 ______________.

A)trillion
B)million
C)billion
D)thousand
E)cannot be determined.The government does not track foreign investment.

Question 37

International __________ play an important role in promoting global peace and prosperity.

A)foreign aid and treaties
B)competition and consumer spending
C)trade and marketing
D)consumer and industrial services

Question 38

To be globally aware,you should require that all of your international customers know about your cultural rules and adhere strictly to each one.

Question 39

All of the following events and trends are among the four major trends described in the chapter as having a major impact or effect on global business EXCEPT:

A)the trend toward the acceptance of the free market system among developing countries in Latin America,Asia,and Eastern Europe.
B)the rapid growth of the World Trade Organization and regional free trade areas such as NAFTA and the European Union.
C)the burgeoning impact of the Internet and other global media on the dissolution of national borders.
D)the trend toward decreasing OPEC profits as oil reserves decline in the 21^st century.
E)the mandate to properly manage the resources and global environment for the generations to come.

Question 40

If a company is in a stage designated as being one with "no direct foreign marketing," the company does not actively cultivate customers outside national boundaries.

Question 41

With respect to the environment in which a business operates,such factors as competition,legal restrains,government controls,and the weather would all be examples of what are called:

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

Question 42

All of the following appear as a foreign environment uncontrollable variable in the model of the international marketing task shown in the text EXCEPT:

A)economic forces.
B)competitive forces.
C)product demand forces.
D)cultural forces.
E)political/legal forces.

Question 43

All of the following would be among the domestic marketer's controllable environmental variables EXCEPT:

A)research.
B)price.
C)product.
D)channels of distribution.
E)economic climate.

Question 44

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 is called:

A)global management.
B)global business.
C)marketing.
D)the global marketing concept.
E)international marketing.

Question 45

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)political/legal forces
E)level of technology

Question 46

Which of the following would be the BEST illustration of the "alien status" found in the political and legal arena that sometimes cause problems for international marketers as they attempt to do business in foreign countries?

A)A company in the U.K.recently purchased Ben & Jerry's ice cream operations.
B)The Indian government told Coca-Cola that it must reveal its "secret formula" if it wished to continue do business in India.
C)Richard Branson's Virgin Cola was not widely accepted in the United States.
D)French Canadians prefer French to English when conducting business in Canada.
E)British Airlines and Japan Airlines join American Airlines to form OneWorld Alliance.

Question 47

With respect to challenges faced by the international marketer,a significant source of uncertainty is the number of factors in the:

A)foreign environment controllables.
B)foreign environment uncontrollables.
C)domestic environment controllables.
D)parallel environment uncontrollables.
E)parallel environment controllables.

Question 48

Considering the model of the international marketing task displayed in the text,which of the following reasons demonstrates the most important difference between the international marketer's task and that of the domestic marketer?

A)The international marketer must deal with at least two levels of uncontrollable uncertainty instead of one.
B)The international marketer must rely on at least two levels of controllable certainty instead of one.
C)The international marketer is never certain about supply or demand.
D)The international marketer is never certain about total market size.
E)The international marketer must be aware of international monetary exchange rates.

Question 49

Which of the following would be a chief way that U.S.companies attempt to influence domestic foreign policy?

A)A company could lobby with respect to its own interests.
B)A company could attempt to bribe elected officials to influence policy decisions.
C)A company could ask a foreign government to bring pressure on U.S.legislative bodies.
D)A company could threaten to withdraw operations from foreign markets.
E)A company could threaten to move its corporate headquarters to a foreign market.

Question 50

Ralph Waite has just been assigned the task of reviewing his company's international investment opportunities.He knows that his view of the list of opportunities should be tempered by foreign environment uncontrollables that might be encountered.Which of the following would be the BEST illustration of a foreign environmental uncontrollable that Mr.Waite should investigate?

A)A country's level of technology.
B)Pricing policies in the foreign country.
C)The ability to do research in the foreign country.
D)Manufacturing capabilities in the foreign country.
E)The ability to do advertising in the foreign country.

Question 51

All of the following would be considered to be controllable elements of marketing decisions EXCEPT:

A)product.
B)price.
C)promotion.
D)research.
E)government regulations.

Question 52

The _____________ is an uncontrollable element that can often be misread because of the vast differences that may exist between developed and undeveloped countries.

A)Structure of distribution
B)competitive forces
C)economic forces
D)political/legal forces
E)level of technology

Question 53

A political decision involving _______________ would most likely have a direct effect on a firm's international marketing success.

A)domestic foreign policy
B)immigration reform
C)oil exploration policy
D)FCC satellite regulations
E)FAA airline regulations

Question 54

According to the text,the primary difference in the practice of marketing at the domestic versus the international level is:

A)the environment within which the marketing plans must be implemented.
B)the revenues necessary to be successful.
C)the demand charts available to the marketer.
D)the control over the budget.
E)the accountability of board of directors.

Question 55

The only difference between the definitions of domestic marketing and international marketing is that marketing activities:

A)focus on consumers in domestic markets and barterers in foreign markets.
B)take place in more than one country.
C)follow traditional communication paths in domestic markets.
D)focus on distribution in the domestic market.
E)are usually non-regulated in foreign markets.

Question 56

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,Mr.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 Mr.Jonas devises his plan?

A)Competitive forces
B)Cultural forces
C)Geography and infrastructure
D)Economic forces
E)Political/legal forces

Question 57

Compared to the foreign environment uncontrollable variables,which of the following elements is excluded from the domestic marketer's list of uncontrollable variables?

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

Question 58

Competition within the home country can have a profound effect on the international marketer's task.Which of the following BEST illustrates this statement?

A)Boeing recently opened talks with its primary trade union to avoid a forecasted strike.
B)Microsoft and Dell have jointly invested $700 million in a new venture to investigate high technology of the future.
C)Fuji opened a $300 million plant in the U.S.and now commands a 12 percent share of the lucrative U.S.film market.
D)Several name companies are still under investigation because of the Enron scandal.
E)Declaration of independence by Baltic States after the collapse of the Soviet Union.

Question 59

Global businesses must be willing to adjust and adapt a marketing program to a foreign market.In a broad sense,the environmental uncontrollable elements constitute the:

A)problem.
B)opportunity.
C)culture.
D)marketplace.
E)commerce landscape.

Question 60

Amy Sims has been assigned the task of preparing a marketing plan for company for the next 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)demand.
B)supply.
C)competition.
D)economic climate.
E)promotion.

Question 61

The most effective way to control the influence of ethnocentrism and __________ is to recognize their effects on our behavior.

A)the self-reference criterion (SRC)
B)regionalism
C)tunnel vision
D)standardization
E)xenophobia

Question 62

____________ is the conscious effort on the part of the international marketer to anticipate the influences of both the foreign and domestic uncontrollable factors on a marketing mix and then adjust the marketing mix to minimize the effects.

A)Standardization
B)Adaptation
C)Segregation
D)Segmentation
E)Projection

Question 63

Which of the following would be the BEST example to illustrate the fact that international marketers need to make cultural adjustments as they seek to do business abroad?

A)In America,white is an accepted color for wedding gowns;in Asia it is the color of mourning.
B)Many teens earn extra income by working.
C)Women out number men in the United States.
D)Most Middle Eastern women do not work outside the home.
E)Many European nations require a period of national service for youth.

Question 64

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

Question 65

The Ajax Corporation has decided to enter the international marketing arena by marketing its products on a country-by-country basis,with separate marketing strategies for each country.The company is using which of the following concepts to formulate its international policies and strategies?

A)Domestic market extension concept
B)Multidomestic market concept
C)Global marketing concept
D)Universal marketing concept
E)Standardized marketing concept

Question 66

If a company basically sees the process of international marketing as one where the domestic company seeks a sales extension of its domestic products into foreign markets,the company is using which of the following concepts to formulate its international policies and strategies?

A)Domestic market extension concept
B)Multidomestic market concept
C)Global marketing concept
D)Universal marketing concept
E)Standardized marketing concept

Question 67

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 would be the BEST first-step to take to avoid the aforementioned errors?

A)Redefine the problem without the SRC influence.
B)Solve the problem for the optimum business goal situation.
C)Isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem.
D)Define the business problem or goal in home-country cultural traits,habits,or norms.
E)Define the business problem or goal in foreign-country cultural traits,habits,or norms through consultation with natives of the target country.

Question 68

There are a variety of stages in the process of becoming involved in international marketing.Which of the following best describes the stage of development where the company's products reach a foreign market through no conscious effort on the part of the marketer?

A)Infrequent foreign marketing
B)Regular foreign marketing
C)No direct foreign marketing
D)International marketing
E)Global marketing

Question 69

The task of ____________ is the most challenging and important one confronting international marketers.

A)care for the environment
B)dealing with politics
C)international standardization
D)cultural adjustment
E)international branding

Question 70

In the United States,unrelated individuals keep a certain physical distance between themselves and others when talking or in groups.We do not consciously think about that distance;we just know what feels right without thinking.Someone from another culture would not necessarily understand this and would apply their own rules for contact when speaking.The preceding is an illustration of what is called applying a ___________ when reviewing the mentioned social custom of contact.

A)self-space
B)segregation
C)integration
D)space command theory
E)self-reference criterion (SRC)

Question 71

_____________ commerce thrives during peacetime.

Question 72

Successful businesspeople in the twenty-first century have ___________ and a frame of reference that goes beyond a region or even a country and encompasses the world.

A)a sense of fashion
B)global awareness
C)an intimate knowledge of ecological problems
D)a consumer mind-set
E)a pronounced skill in promotion

Question 73

A company using the ________________ views an entire set of country markets as a unit,identifying groups of prospective buyers with similar needs as an opportunity market segment and develops a marketing plan that strives for standardization wherever it is cost and culturally effective.

A)domestic market extension concept
B)multidomestic market concept
C)global marketing concept
D)universal marketing concept
E)standardized marketing concept

Question 74

Which of the following steps in a cross-cultural analysis to isolate self-reference criterion influences would finalize the process and lead to a solution of the problem?

A)Redefine the problem without the SRC influence and solve the problem for the optimal business goal situation.
B)Isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem.
C)Define the business problem or goal in home-country cultural traits,habits,or norms.
D)Define the business problem or goal in foreign-country cultural traits,habits,or norms through consultation with natives of the target country.
E)The last step is not indicated in the list of alternatives.

Question 75

To be globally aware,an international marketer must have all the following EXCEPT:

A)a tolerance of cultural differences.
B)a knowledge of cultures.
C)a knowledge of history.
D)a knowledge of microeconomics.
E)a knowledge of world market potential.

Question 76

Your ____________ can prevent you from being aware that there are cultural differences or from recognizing the importance of those differences.

A)self-space
B)personality
C)demographic character
D)self-reference criterion (SRC)
E)concept of integration

Question 77

James Bright's company seek 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)Regular foreign marketing
C)No direct foreign marketing
D)International marketing
E)Global marketing

Question 78

If a marketer is motivated to enter into an international marketing effort because of temporary surpluses in the domestic market,which of the following stages BEST characterizes the stage of international marketing involvement for this marketer?

A)Infrequent foreign marketing
B)Regular foreign marketing
C)No direct foreign marketing
D)International marketing
E)Global marketing

Question 79

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)Regular foreign marketing
C)No direct foreign marketing
D)International marketing
E)Global marketing

Question 80

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

A)Regionalism
B)Holism
C)Self-reference criterion
D)Segregation
E)Xenophobia