Question 1

The self-reference criterion is closely related to collectivism-or the importance of the group.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

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

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Natasha'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 stage best characterizes the stage of international marketing involvement for Natasha's company?

Accepted Answer

A)  infrequent foreign marketing 
B)  domestic marketing 
C)  no direct foreign marketing 
D)  international marketing 
E)  internal marketing

Question 6

Watson'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. Watson's is currently in the ________ stage of international marketing involvement.

Accepted Answer

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

Question 7

Tomas is a manager at a frozen food company and wants to understand the way people in different countries think and act so that the company can respond to their needs appropriately. What is the best aid he can use to accomplish this?

Accepted Answer

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 8

People seldom stop to think about a reaction; they simply react. Thus, when faced with a problem in another culture, their tendency is to react instinctively and refer to their ________ for a solution.

Accepted Answer

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

Question 9

Kentax Corporation makes industrial cleaning products and 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 Kentax Corporation to formulate its international policies and strategies?

Accepted Answer

A)  domestic market extension 
B)  multidomestic market 
C)  mass marketing 
D)  regional marketing 
E)  standardized marketing

Question 10

The process of evaluating the uncontrollable elements in an international marketing program may involve cultural, political, and economic shock.

Accepted Answer

A) True 
 B)False

Question 11

In what stage 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?

Accepted Answer

A)  no direct foreign marketing 
B)  internal marketing 
C)  regular foreign marketing 
D)  international marketing 
E)  financial marketing

Question 12

Why does understanding one's own culture require additional study?

Accepted Answer

A)  to find out why cultural traits in one's own country does not affect market behavior 
B)  because much of the cultural influence on market behavior is at the subconscious level 
C)  since 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)  because cultural influence on one's own market behavior is generally minimal

Question 13

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

Accepted Answer

A)  political forces 
B)  competitive structure 
C)  economic climate 
D)  cultural forces 
E)  legal forces

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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.

Accepted Answer

A) True 
 B)False

Question 16

What is one of the most dynamic trends that is affecting current global business strategies?

Accepted Answer

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 17

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, a 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?

Accepted Answer

A)  level of technology 
B)  structure of distribution 
C)  competition in the domestic market 
D)  cultural forces 
E)  promotion of the product

Question 18

When considering the stages of international marketing involvement, it is important to remember that

Accepted Answer

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 19

While Heidi's company does not typically sell internationally, they have a temporary surplus in the small appliances they manufacture and decide to promote them in other countries. Which stage of international marketing involvement does this represent?

Accepted Answer

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 20

What characteristic would impede the ability of a person to assess a foreign market in its true light?

Accepted Answer

A)  polycentrism 
B)  pluralism 
C)  xenocentrism 
D)  ethnocentrism 
E)  relativism

Exam 1: The Scope and Challenge of International Marketing

The self-reference criterion is closely related to collectivism-or the importance of the group.

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

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

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

Natasha'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 stage best characterizes the stage of international marketing involvement for Natasha's company?

Tomas is a manager at a frozen food company and wants to understand the way people in different countries think and act so that the company can respond to their needs appropriately. What is the best aid he can use to accomplish this?

People seldom stop to think about a reaction; they simply react. Thus, when faced with a problem in another culture, their tendency is to react instinctively and refer to their ________ for a solution.

The process of evaluating the uncontrollable elements in an international marketing program may involve cultural, political, and economic shock.

In what stage 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?

Why does understanding one's own culture require additional study?

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

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

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.

What is one of the most dynamic trends that is affecting current global business strategies?

When considering the stages of international marketing involvement, it is important to remember that

While Heidi's company does not typically sell internationally, they have a temporary surplus in the small appliances they manufacture and decide to promote them in other countries. Which stage of international marketing involvement does this represent?

What characteristic would impede the ability of a person to assess a foreign market in its true light?