Multiple Choice Questions

Multiple Choice Questions26. 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) 9/11. Answer: C Page: 4 Difficulty: Easy Type: Comprehension 27. 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) None of the above is among the trends mentioned in the chapter. Answer: B Page: 5 Difficulty: Moderate Type: Comprehension 28. 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 oil company profits in the 21st century. E) the mandate to properly manage the resources and global environment for the generations to come. Answer: D Page: 5 Difficulty: Hard Type: Comprehension 29. 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. Answer: C Page: 5 Difficulty: Hard Type: Fact 30. 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. Answer: C Page: 5 Difficulty: Moderate Type: Application 31. Foreign investment in the United States is growing yearly. At present, foreign investment in the United States is in excess of $2.6______________. A) trillion B) million C) billion D) thousand E) cannot be determined. The government does not track foreign investment. Answer: A Page: 6 Difficulty: Moderate Type: Fact 32. Companies from ____________________ lead in foreign investment in the United States: A) Kingdom of Saudi Arabia B) Russia C) China D) United Kingdom E) Canada Answer: D Page: 7 Difficulty: Hard Type: Fact 33. 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 Answer: C Page: 7 Difficulty: Hard Type: Fact 34. 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 $285 billion annually? A) IBM B) ExxonMobil C) Ford Motor D) Wal-Mart Stores E) Hewlett-Packard Answer: D Page: 9, Exhibit 1.2 Difficulty: Moderate Type: Fact 35. For firms venturing into international marketing for the first time, the first requirement is: A) visas for all executives involved in the venture. B) a thorough and complete commitment to foreign markets. C) a visit to the 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. Answer: B Page: 9 Difficulty: Moderate Type: Fact According to the text. B) the revenues necessary to be successful. 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. E) international marketing. price. Answer: A Page: 10 Difficulty: Hard Type: Comprehension . Answer: E Page: 9 Difficulty: Moderate Type: Definition 38. ___________ is the performance of business activities designed to plan. A) Global management B) Global business C) Marketing D) International marketing E) Global marketing concept Answer: D Page: 9 Difficulty: Moderate Type: Definition 37. D) the global marketing concept. The performance of business activities designed to plan. B) global business. C) the demand charts available to the marketer. Answer: B Page: 9 Difficulty: Moderate Type: Comprehension 39. promote. C) marketing. 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. D) focus on distribution in the domestic market. D) the control over the budget. E) the accountability of board of directors. C) follow traditional communication paths in domestic markets. B) take place in more than one country. E) are usually non-regulated in foreign markets. promote. 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.36. price. and direct the flow of a company's goods and services to consumers or users in more than one nation for a profit. E) all of the above are considered to be controllable elements of marketing. D) research. Answer: B Page: 9 Difficulty: Easy Type: Definition 41. C) promotion. E) All of the above are valid differences between the international and domestic marketing task. such factors as competition. legal restrains. and the weather would all be examples of what are called: A) controllable elements. With respect to the environment in which a business operates. government controls. C) predictable elements. 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. B) price. D) demographic elements. Answer: E Page: 9 Difficulty: Easy Type: Definition 42.40.3 Difficulty: Moderate Type: Comprehension . E) cultural elements. Considering the model of the international marketing task displayed in the text. B) uncontrollable elements. Answer: A Page: 10. D) The international marketer is never certain about supply. All of the following would be considered to be controllable elements of marketing decisions EXCEPT: A) product. Exhibit 1. C) The international marketer is never certain about demand. Jonas devises his plan? A) Competitive forces B) Cultural forces C) Geography and infrastructure D) Economic forces E) Political/legal forces Answer: C Page: 10. C) product forces. In order for his company to effectively market and distribute to all of Peru's major cities.3 Difficulty: Easy Type: Fact .3 Difficulty: Moderate Type: Comprehension 46. D) cultural forces. Exhibit 1. Compared to the foreign environment uncontrollable variables. Mr. C) product. 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. Robert Jonas is in charge of a new marketing effort directed toward Peru.3 Difficulty: Moderate Type: Application 44. B) competitive forces. D) channels of distribution. All of the following would be among the domestic marketer's controllable environmental variables EXCEPT: A) research. Jonas must devise a logistics plan for crossing the Andes Mountains on a daily basis. Exhibit 1. Which of the following foreign environment uncontrollable variables would be a chief concern as Mr. Exhibit 1. B) price. E) level of demand. which of the following elements is excluded from the domestic marketer's list of uncontrollable variables? A) Political/legal forces B) Competitive structure C) Economic climate D) Level of technology E) All of the above are considerations for the domestic marketer in the uncontrollable environment.3 Difficulty: Hard Type: Comprehension 45. Exhibit 1. Answer: D Page: 10. Answer: C Page: 10. Answer: E Page: 10.43. E) political/legal forces. C) competition. B) A company could attempt to bribe elected officials to influence policy decisions. companies attempt to influence domestic foreign policy? A) A company could lobby with respect to its own interests.47. D) A company could threaten to withdraw operations from foreign markets. D) economic climate.S. Amy Sims has been assigned the task of preparing a marketing plan for company for the next year's business activities. Answer: A Page: 11 Difficulty: Hard Type: Comprehension . Which of the following would be a chief way that U. C) A company could ask a foreign government to bring pressure on U. Answer: E Page: 11 Difficulty: Easy Type: Fact 48. E) promotion. product. A) domestic foreign policy B) retirement age C) the makeup of a board of directors D) farm subsidies E) airline regulation Answer: A Page: 11 Difficulty: Moderate Type: Fact 49. and: A) demand. legislative bodies. A political decision involving _______________ would most likely have a direct effect on a firm's international marketing success. E) A company could threaten to move its corporate headquarters to a foreign market. channels-of-distribution. These controllable variables would include price.S. B) supply. She knows that she should begin her plan by examining the variables that she has some control over. With respect to challenges faced by the international marketer. B) foreign environment uncontrollables.S. Competition within the home country can have a profound effect on the international marketer's task. film market. C) The ability to do research in the foreign country. D) Several name companies are still under investigation because of the Enron scandal. D) Manufacturing capabilities in the foreign country. He knows that his view of the list of opportunities should be tempered by foreign environment uncontrollables that might be encountered. Answer: B Page: 12 Difficulty: Easy Type: Comprehension 52. C) Fuji opened a $300 million plant in the U. D) parallel environment uncontrollables.50. C) domestic environment controllables. E) The ability to do advertising in the foreign country.S. E) All of the above are good illustrations of the statement. 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 joined a consortium to investigate the technology of the future. Ralph Waite has just been assigned the task of reviewing his company's international investment opportunities. B) Pricing policies in the foreign country. Waite should investigate? A) A country's level of technology. E) parallel environment controllables. a significant source of uncertainty is the number of factors in the: A) foreign environment controllables. and now commands a 12 percent share of the lucrative U. Answer: C Page: 11 Difficulty: Moderate Type: Application 51. Which of the following would be the BEST illustration of a foreign environmental uncontrollable that Mr. Answer: A Page: 12 Difficulty: Hard Type: Application and Comprehension . The _____________ is an uncontrollable element that can often be misread because of the vast differences that may exist between developed and undeveloped countries. Global businesses must be willing to adjust and adapt a marketing program to a foreign market. E) commerce landscape. Answer: C Page: 14 Difficulty: Hard Type: Comprehension . 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. the environmental uncontrollable elements constitute the: A) problem. A) structure of distribution B) competitive forces C) economic forces D) political/legal forces E) level of technology Answer: E Page: 12 Difficulty: Hard Type: Fact 54. In a broad sense. C) culture. E) None of the above is a good illustration of the political/legal forces issue.K. D) French Canadians prefer French to English when conducting business in Canada. B) The Indian government told Coca-Cola that it must reveal its “secret formula” if it wished to continue do business in India. A) structure of distribution B) competitive forces C) economic forces D) political/legal forces E) level of technology Answer: D Page: 13 Difficulty: Moderate Type: Fact 55. recently purchased Ben & Jerry's ice cream operations. 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. C) Richard Branson's Virgin Cola was not widely accepted in the United States. Answer: B Page: 13 Difficulty: Moderate Type: Application 56. D) marketplace.53. B) opportunity. 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. The primary obstacles to success in international marketing are a person's _________ and an associated ethnocentrism. B) Many teens earn extra income by working. in Asia it is the color of mourning. white is an accepted color for wedding gowns. C) Women out number men in the United States. D) Most Middle Eastern women do not work outside the home. A) regionalism B) holism C) self-reference criterion D) segregation E) integration Answer: C Page: 15 Difficulty: Easy Type: Comprehension . E) Many European nations require a period of national service for youth. A) Standardization B) Adaptation C) Segregation D) Segmentation E) None of the above matches the statement Answer: B Page: 15 Difficulty: Moderate Type: Definition 60. The task of ____________ is the most challenging and important one confronting international marketers.57. ____________ 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) care for the environment B) dealing with politics C) international standardization D) cultural adjustment E) international branding Answer: D Page: 14 Difficulty: Moderate Type: Comprehension 58. Answer: A Page: 14 Difficulty: Hard Type: Application 59. The most effective way to control the influence of ethnocentrism and __________ is to recognize their effects on our behavior. we just know what feels right without thinking.61. We do not consciously think about that distance. Your ____________ can prevent you from being aware that there are cultural differences or from recognizing the importance of those differences. experiences. and knowledge as a basis for decisions. A) holism B) personality C) demographic character D) self-reference criterion (SRC) E) concept of integration Answer: D Page: 16 Difficulty: Easy Type: Comprehension 64. A) the self-reference criterion (SRC) B) regionalism C) tunnel vision D) standardization E) xenophobia Answer: A Page: 16 Difficulty: Moderate Type: Fact . Someone from another culture would not necessarily understand this and would apply their own rules for contact when speaking. A) Regionalism B) Holism C) Self-reference criterion D) Segregation E) Xenophobia Answer: C Page: 15 Difficulty: Moderate Type: Definition 62. The preceding is an illustration of what is called applying a ___________ when reviewing the mentioned social custom of contact. In the United States. _____________ is an unconscious reference to one's own cultural values. A) holism B) segregation C) integration D) space command theory E) self-reference criterion (SRC) Answer: E Page: 15 Difficulty: Moderate Type: Application 63. unrelated individuals keep a certain physical distance between themselves and others when talking or in groups. B) a knowledge of cultures. habits. C) Define the business problem or goal in home-country cultural traits.65. or norms through consultation with natives of the target country. D) a knowledge of physiology. Answer: A Page: 17 Difficulty: Easy Type: Comprehension and Application 67. B) Solve the problem for the optimum business goal situation. or norms. To avoid errors in business decisions. B) Isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem. 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. C) a knowledge of history. E) The last step is not indicated in the list of alternatives. Answer: D Page: 17 Difficulty: Hard Type: Comprehension and Application 66. D) Define the business problem or goal in home-country cultural traits. habits. D) Define the business problem or goal in foreign-country cultural traits. or norms. To be globally aware. Answer: D Page: 17 Difficulty: Easy Type: Fact . 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. or norms through consultation with natives of the target country. it is necessary to conduct a cross-cultural analysis that isolates the self-reference criterion influences. E) a knowledge of world market potential. an international marketer must have all the following EXCEPT: A) a tolerance of cultural differences. E) Define the business problem or goal in foreign-country cultural traits. habits. C) Isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem. habits. EXCEPT: A) Canada B) Mexico C) Japan D) France E) China Answer: D Page: 28. There are a variety of stages in the process of becoming involved in international marketing. 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 Answer: B Page: 17 Difficulty: Moderate Type: Fact 69. The United States has many successful trade relationships. Four of these relationships account for a tremendous volume of trade. Exhibit 2. 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 Answer: A Page: 18-20 (19) Difficulty: Moderate Type: Comprehension Multiple Choice Questions 26.68.S. All of the following countries are among the top four producers of trade for the U. 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. 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 Answer: C Page: 18-20 (19) Difficulty: Easy Type: Comprehension 70. For every dollar the United States invested in the economic development and rebuilding .1 Difficulty: Moderate Type: Fact 27. If a marketer is motivated to enter into an international marketing effort because of temporary surpluses in the domestic market. of other countries after World War II, hundreds of dollars returned in the form of purchases of U.S. goods and services. The primary plan after World War II used to rebuild and reinvigorate war ravaged countries was the: A) Eisenhower Plan B) Marshall Plan C) Bradley Plan D) Roosevelt Plan E) Truman Plan Answer: B Page: 29-30 Difficulty: Hard Type: Fact and Application 28. With respect to international trade, MNC stands for: A) Municipal, National, and County districts B) Multilateral and National Cartels C) Multinational Corporations D) Military and National Control districts E) None of the above Answer: C Page: 30 Difficulty: Moderate Type: Fact and Definition 29. With respect to the nationality of the world's 100 largest industrial corporations, the United States is home to the largest number of the top 100 firms. Which of the following countries is home to the second largest number of these firms? A) Germany B) United Kingdom C) France D) Netherlands E) Japan Answer: A Page: 32, Exhibit 2.2 Difficulty: Moderate Type: Fact and Application 30. After 1888, the United States had unparalleled growth and a favorable balance of trade until _________. After this date, the United States has a negative balance of trade. A) 1950 B) 1963 C) 1968 D) 1971 E) 1985 Answer: D Page: 32 Difficulty: Hard Type: Fact 31. Recent economic growth in what country has contributed significantly to global demand for resources? A) Japan B) China C) Germany D) France E) Australia Answer: B Page: 33 Difficulty: Hard Type: Fact 32. The system of accounts that records a nation's international financial transactions is called its: A) trade balance. B) national accounts system. C) EX-IM (exports-imports) account. D) balance of payments. E) none of the above. Answer: D Page: 35 Difficulty: Moderate Type: Definition 33. A nation's balance-of-payments statement records all financial transactions between: A) its member states and its primary trading partners. B) its residents and those of the rest of the world during a given period of time. C) its suppliers and receivers. D) profit and nonprofit organizations over a five-year period of time. E) its top 100 companies and the global top 100 companies. Answer: B Page: 35 Difficulty: Moderate Type: Definition and Fact 34. A balance-of-payments statement includes three accounts. Two of those accounts are the current account and the capital account. What is the third account found on the balanceof-payments statement? A) investment account B) passed due account C) services account D) credit account E) reserves account Answer: E Page: 35-36 Difficulty: Hard Type: Fact and Comprehension 35. 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) passed due account E) reserves account Answer: A Page: 35 Difficulty: Hard Type: Definition 36. The marketing manager for Healthy Horse Products wants to export to Australia but learns the labeling requirements are quite difficult to comply with limiting imports. This is a type of: A) blockage. B) protectionism. C) trade refusal. D) stonewalling. E) boycotting. Answer: B Page: 37 Difficulty: Moderate Type: Comprehension and Definition Which of the following would probably be the argument that Smithe-Jones would use to persuade his government representatives that protectionism is still needed in the U. All of the following would be considered to be reasons for adopting an attitude of protectionism with respect to world trade EXCEPT: A) to protect religious beliefs. The UK has just started a cell-phone manufacturing industry and Smithe-Jones' company is one of the first to try their hand at cell-phone manufacturing. Which of the following has been effective in reducing tariffs but not in preventing protectionism? A) GATT B) the United Nations C) the International Monetary Fund D) the World Court E) None of the above Answer: E Page: 37 Difficulty: Moderate Type: Fact and Comprehension 38. He has seen small business after small business go bankrupt because cheaper foreign goods have been more popular. C) protection of a home market. E) to encourage capital accumulation. Randall Smithe-Jones believes that protectionism is the only way to save the United Kingdom from outside competitors. Answer: A Page: 37-38 Difficulty: Hard Type: Comprehension 39. B) protection of an infant industry.K.? A) Protection of an infant industry B) The need to keep money at home C) Conservation of natural resources D) National defense E) The industrialization of a low-wage nation Answer: A Page: 37 Difficulty: Moderate Type: Application and Comprehension .37. D) the need to keep money at home. decrease balance-of-payments positions. Answer: C Page: 38. A) Tariffs B) Voluntary export restraints C) Orderly market agreements D) Monetary barriers E) Quotas Answer: A Page: 40 Difficulty: Moderate Type: Comprehension and Application 43. and. government to _____________ and ___________against specific foreign trade barriers judged to be unfair. __________ generally do all of the following: increase inflationary pressures and special interests' privileges. restrict competition. A) suppress and attack B) educate and substantiate C) investigate and retaliate D) market and dominate E) None of the above. In general. Section 301 of the Omnibus Trade and Competitiveness Act authorizes the U. A) tariffs B) standards C) quotas D) boycotts E) embargoes Answer: A Page: 40 Difficulty: Hard Type: Comprehension . A(n) ________ is simply a tax imposed by a government on goods entering at its borders. __________ are arbitrary. A) quota B) trade penalty C) tariff D) boycott E) embargo Answer: C Page: 40 Difficulty: Easy Type: Definition 42. Section 301 lists the number of members of the WTO. discriminatory.1 Difficulty: Hard Type: Comprehension and Fact 41.S. Crossing Borders 2. and require constant administration and supervision.40. Answer: B Page: 40.6 Difficulty: Moderate Type: Application and Comprehension . labeling. Chan look for under the category called customs and administrative entry procedures? A) Orderly marketing agreements B) Voluntary export restraints C) Countervailing duties D) Export subsidies E) Documentation requirements Answer: E Page: 40. B) taxes C) packaging requirements D) border taxes. C) standard. 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. Answer: B Page: 41 Difficulty: Easy Type: Definition 45. E) embargoes. Which of the following nontariff barriers should Ms. A specific unit or dollar limit applied to a particular type of good is called a(n): A) tariff. Exhibit 2. B) quota. All of the following would be considered to be nontariff barriers that could be erected to restrict trade EXCEPT: A) quotas. or marking standards Answer: D Page: 40. Cybil Chan has been asked by her company to review a series of published nontariff barriers that is used by the Hong Kong Port Authority to control customs and administrative entry procedures. E) boycott.6 Difficulty: Hard Type: Comprehension 47. Exhibit 2. D) embargo. Exhibit 2.6 Difficulty: Moderate Type: Comprehension 46.44. B) disorderly marketing agreements. A) Boycotted money B) Embargoed capital C) Blocked currency D) Anti-banking E) International cartel dissolution Answer: C Page: 42 Difficulty: Hard Type: Definition and Fact . C) voluntary export option (VER). Answer: C Page: 42 Difficulty: Easy Type: Definition 50. D) fee. D) orderly market agreement. An agreement between the importing country and the exporting country for a restriction on the volume of exports is called a(n): A) tariff. the refusal is called a(n): A) boycott. Exporting countries sometimes agree to voluntary export restraints (VER) as an alternative to the threat of: A) expulsion. E) None of the above. ____________ is accomplished by refusing to allow importers to exchange its national currency for the seller's currency.48. C) stiffer quotas and tariffs. B) standards option. Answer: B Page: 42 Difficulty: Moderate Type: Definition and Application 51. E) documentation requirement. D) export subsidies E) standardization disparities Answer: C Page: 42 Difficulty: Moderate Type: Comprehension and Application 49. B) embargo. When the United States refuses to sell goods to Iran because of the perception that the country harbors radicals and terrorists. C) tariff. Tall Pine Plywood Company has just received notice that a shipment of plywood (2 metric tons) has been rejected by Japanese customs because the knotholes commonly found on a plywood sheet are too large. E) none of the above. Answer: C Page: 43 Difficulty: Moderate Type: Comprehension and Definition 54.52. A) a differential exchange rate B) blocked currency C) boycott D) embargo E) all of the above fit the definition Answer: A Page: 42 Difficulty: Moderate Type: Comprehension 53. E) limit pornographic or harmful merchandise from the domestic market. C) require that importers gain permission to exchange an amount of local currency for foreign currency. B) cut-off all exchange. The function of an exchange permit is to: A) regulate the supply of money. According to the material provided in the text. This would be an illustration of which of the following nontariff barriers to trade? A) quota B) predatory pricing C) embargo D) boycott E) standards Answer: E Page: 43-44 Difficulty: Easy Type: Application 55. The practice of ______________ is a particularly ingenious method of controlling imports as it encourages the importation of goods the government deems desirable and discourages importation of goods the government does not want. D) protect monopolies. B) fees. D) antidumping laws. Answer: D Page: 44-45 Difficulty: Moderate Type: Comprehension . C) standards. a new nontariff barrier that was designed to prevent foreign producers from using predatory pricing is called: A) quotas. Protesters have often disagreed with the work of the WTO. protectionism. Where did the first great protest against globalization and WTO policies and plans occur? A) Uruguay B) Chile C) Paris D) Seattle E) Berlin Answer: D Page: 51 Difficulty: Moderate Type: Comprehension and Fact . Which of the following U. and the overall fairness of our trading partners? A) the World Trade Organization Act B) the Omnibus Trade an Competitiveness Act of 1988 C) the League of Nations Act of 1920 D) the Hawley-Smoot Tariff Act of 1930 E) the International Monetary Fund Act Answer: B Page: 45 Difficulty: Moderate Type: Fact and Comprehension 59.56. Which of the following acts was designed to deal with trade deficits. trading partners has become the chief concern of governmental and economic planners? A) the United Kingdom B) Japan C) Germany D) Canada E) China Answer: E Page: 45 Difficulty: Hard Type: Fact 58.S. _____________ 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 Answer: E Page: 44 Difficulty: Moderate Type: Definition 57. One of the most significant was of particular interest to those in the technology field. D) trade shall be conducted on a nondiscriminatory basis. C) IPO D) the World Bank E) International Monetary Fund (IMF). All of the following activities or organizations are designed to support the growth of international trade EXCEPT: A) GATT. Answer: D Page: 46 Difficulty: Moderate Type: Comprehension 63. C) the World Court shall review all claims and make final judgments. Answer: C Page: 46 Difficulty: Moderate Type: Comprehension 61. One of the basic elements of the General Agreement on Tariffs and Trade (GATT) is that: A) no nation shall unfairly create tariffs against another. B) WTO. The Uruguay Round of the WTO achieved many significant breakthroughs in trade.60. the United States and 22 other nations signed _________________ to pave the way for the first effective worldwide tariff agreement. Shortly after World War II. E) all of the above are elements of GATT. Which of the following was considered to be a significant breakthrough of the Uruguay Round? A) Trade-Related Aspects of Intellectual Property Rights (TRIPs) B) Trade-Related Investment Measures (TRIMs) C) Trade-Related Accounting Procedures (TRAPs) D) Trade-Related Operational Methods (TROMs) E) None of the above Answer: A Page: 47 Difficulty: Hard Type: Comprehension . B) all tariffs shall be abolished among member nations by 2010. A) the General Agreement on Tariffs and Trade (GATT) B) the Trade Related Investment Measures (TRIM) C) the World Trade Organization (WTO) agreement D) the International Monetary Fund (IMF) agreement E) the World Bank act Answer: A Page: 46 Difficulty: Moderate Type: Comprehension 62. Congress for all of the following reasons EXCEPT: A) possible loss of sovereignty over its trade laws to the WTO.S. Answer: D Page: 48 Difficulty: Hard Type: Comprehension 67. C) the ability of a WTO member to challenge trade laws of individual states. B) tariffs. B) the lack of veto power by the U. D) the amount of funds that must be supplied to the WTO to run its organization.64. E) all of the above were challenge reasons according to the text. One of the most popular ways to circumvent WTO guidelines for free trade has been for a country to impose: A) antidumping duties. A) illegal B) counseling C) no D) binding E) intelligent Answer: D Page: 48 Difficulty: Hard Type: Fact 66. D) fees. The ratification of the WTO by the United States was challenged in the U. E) all of the above. The World Trade Organization was created during which of the following GATT Rounds? A) Seattle B) Uruguay C) Paris D) Berlin E) Moscow Answer: B Page: 48 Difficulty: Moderate Type: Fact 65. C) quotas. Answer: A Page: 49 Difficulty: Moderate Type: Comprehension .S. Unlike GATT. the WTO issues ______________ decisions. Which of the following is the best description of the interpretation loophole that Mr. C) Taking excess capacity of one nation and moving that capacity to another. However. _____________ and the World Bank Group are two global institutions created to assist nations in becoming and remaining economically viable.S. Answer: D Page: 44 Difficulty: Easy Type: Definition 70. several countries are: A) negotiating bilateral trade agreements. To vent this frustration. he also believes (as many other foreign competitors believe) that one way around the U. B) Flooding a market with so many goods that prices are depressed. C) refusing to honor rules and regulations imposed by the WTO. A) The United Nations B) The World Court C) The International Monetary Fund (IMF) D) The International Red Cross E) The League of Nations Answer: C Page: 49 Difficulty: Easy Type: Fact . Muri that believes will work to his benefit? A) the definition of what a product is B) the definition of what a price is C) the interpretation of what “selling below cost” is D) the interpretation of what a foreign good is E) all of the above are considered to be loopholes Answer: C Page: 44 Difficulty: Moderate Type: Application 69. E) None of the above is the WTO definition of dumping. Answer: A Page: 49 Difficulty: Moderate Type: Comprehension 71. He has always thought that these laws were constructed just to keep competitors out. D) Selling a good at a lower price in the foreign market than in other markets. D) using legal means to sue the WTO. He is apprehensive about running afoul of U.S. B) forming a rival organization. antidumping laws.68. antidumping laws deals with a question of interpretation. According to the WTO. Several nations are frustrated with the slow progress of the most recent round of WTO trade negotiations. which of the following is the definition of dumping? A) Moving questionable goods into a market that does not want them. As Taki Muri readies his company to pursue lucrative markets in the United States. E) doing all of the above to retaliate against the WTO. D) paper gold. Which of the following is one of the primary objectives of the International Monetary Fund (IMF)? A) The abolishment of unfavorable exchange rates for any nation. E) All of the above are primary objectives of the International Monetary Fund (IMF). E) virtual dollars. E) provides all of the above. Answer: D Page: 50 Difficulty: Easy Type: Definition 74. E) the use of the Internet by industrialized nations. Another term for IMF special drawing rights (SDRs) is: A) black gold. B) sweatshops that supplied industrial nations with goods. D) the obesity of citizens of industrialized nations. D) mock governments for a period of five years. Answer: C Page: 50 Difficulty: Easy Type: Comprehension 73. A) Geography B) Culture C) Social class D) History E) A national mission . B) provides technical assistance. The World Bank provides all of the following to reduce poverty and improve standards of living EXCEPT: A) provides loans.72. B) wealth for capitalists. B) The abolishment of debt for impoverished nations. Answer: D Page: 50 Difficulty: Easy Type: Comprehension 75. C) provides policy guidance to developing-country members. One of the major complaints from protestors during the Seattle Round of the WTO meetings centered on: A) the use of the automobile by the industrialized world. C) The stabilization of foreign exchange rates. D) The waiver of all debts from World War II. Answer: B Page: 51 Difficulty: Moderate Type: Comprehension 26. C) peace in our time. C) strike breaking within industrialized nations. ___________ can be defined as a society's accepted basis for responding to external and internal events. D) birth rates. E) none of the above. Answer: A Page: 56 Difficulty: Hard Type: Comprehension . A society's accepted basis for responding to external and internal events is associated with which of the following terms? A) Geography B) Culture C) Social class D) History E) A national mission Answer: B Page: 56 Difficulty: Moderate Type: Definition 28.Answer: B Page: 56 Difficulty: Moderate Type: Definition 27. History helps define a nation's: A) mission. C) wealth. B) personality. ” B) “in the eyes of the beholder. Japan was opened to the West for the first time. C) how the nation sees its place in the world. E) the desire to form partnerships with other nations. E) all of the following true with respect to the statement.1 Difficulty: Hard Type: Fact 32. B) the strong drive to cooperate. “History is: A) “written by intellectuals. Answer: E Page: 56 Difficulty: Moderate Type: Comprehension 30. Crossing Borders 3.” Answer: B Page: 57.” E) “edited by newspapers.” C) “controlled by zealots. All of the following permeate many facets of Japanese behavior EXCEPT: A) loyalty to family. When _____________ sailed to Japan in 1853. Answer: E Page: 57 Difficulty: Moderate Type: Comprehension . A) Marco Polo B) Admiral Halsey C) Commodore Perry D) Admiral Pennington E) None of the above is true Answer: C Page: 56 (see footnote #3) Difficulty: Moderate Type: Fact 31. D) how the nation sees itself. History helps define a nation's perspective of all of the following EXCEPT: A) the nation's mission. B) how the nation perceives its neighbors. C) the strong desire to work together for a common cause.29. D) loyalty to company.” D) “ignored by the uninformed. Which of the following phrases best describes how these differences might occur? A) The mapmakers are wrong in their perception of the world. E) None of the above accurately reflects statements made in the text. Which of the following statements most accurately reflects the feelings of most Mexicans towards the United States (according to information presented in the text)? A) In general. Priscilla Jackson is a noted historian of the feminist movement and believes that she writes objective facts about what she sees. Answer: B Page: 58-59 Difficulty: Easy Type: Application and Comprehension 35. Mexicans trust and favor the United States above other trading partners. like most historians. Answer: D Page: 58 Difficulty: Moderate Type: Comprehension . A) class B) social C) cultural D) physical E) dimension Answer: C Page: 58 Difficulty: Hard Type: Comprehension 34. A world map sold in England shows Great Britain at the center. B) The mapmakers are expressing cultural bias and self-reference criterion perspective. Mexicans trust and favor Europeans over the United States. she is probably guilty of filtering events through her own ___________ biases. However. D) Mexicans see the United States as a threat to their political. C) The mapmakers have been told what to draw by their respective governments. and cultural independence. E) The mapmakers are idiots and should be corrected. economic. B) In general.33. A world map sold in the United States shows the United States in the center of the page and the rest of the world surrounds it. C) Mexicans see the United States as a protector that will aid them in emerging as a world power in the twenty-first century. D) The mapmakers have recognized the truth about geography. 36. Which of the following is the most accurate description of how U.S. citizens see the Monroe Doctrine? A) The Monroe Doctrine justifies U.S. expansion into Latin America. B) The Monroe Doctrine guarantees that communism cannot enter into Latin America. C) The Monroe Doctrine is rather useless in expanding or protecting U.S. policies toward Latin America. D) The Monroe Doctrine is so dated that became ineffective as a policy in the 1890s. E) The Monroe Doctrine was seen as protection for Latin America from European colonization and the intervention of Europe in the governments of the Western Hemisphere. Answer: E Page: 58 Difficulty: Hard Type: Comprehension and Application 37. All of the following were used by the United States to expand westward toward the Pacific in the 1800s EXCEPT: A) financial deals. B) negotiated settlements. C) forcible annexations. D) WTO rulings E) all of the above been used by the United States to expand its territory. Answer: D Page: 59, Exhibit 3.1 Difficulty: Moderate Type: Comprehension 38. 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. Answer: D Page: 59, Exhibit 3.1 Difficulty: Hard Type: Fact and Comprehension 39. Which of the following occurred during the Mexican Revolution? A) The overthrow of dictator Diaz. B) The modern Mexican state was launched. C) Foreigners were expelled. D) North American businessmen, who were the most visible of the wealthy and influential entrepreneurs in Mexico, were expelled. E) All of the above occurred during the Mexican Revolution. Answer: E Page: 59 Difficulty: Moderate Type: Fact and Comprehension 40. Manifest Destiny and ______________ were accepted as the basis for U.S. foreign policy during much of the nineteenth and twentieth centuries. A) the “big stick” approach B) the Monroe Doctrine C) the Hays Corollary D) the Grant Mandate E) none of the above Answer: B Page: 59 Difficulty: Moderate Type: Fact 41. ___________ and the Monroe Doctrine were accepted as the basis for U.S. foreign policy during much of the nineteenth and twentieth centuries. A) The “big stick” approach B) Manifest Destiny C) The Hays Corollary D) The Grant Mandate E) none of the above Answer: B Page: 59 Difficulty: Moderate Type: Fact 42. _____________, 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” Answer: E Page: 59 Difficulty: Moderate Type: Fact and Comprehension 43. The __________, a cornerstone of U.S. foreign policy, indicated that no further European colonization in the New World would be accepted. A) Roosevelt Corollary B) Monroe Doctrine C) Hays Corollary D) Wilson Policy Position E) Manifest Destiny Answer: B Page: 60 Difficulty: Hard Type: Fact and Comprehension 44. 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) European governments must pay an “entrance tax” to the U.S. if trade was to occur with the Western Hemisphere. E) All of the above were parts of the Monroe Doctrine. Answer: D Page: 60 Difficulty: Moderate Type: Fact and Comprehension 45. Theodore Roosevelt applied the Monroe Doctrine with an extension that became known as the: A) Manifest Destiny. B) Hay Corollary. C) Wilson Mandate. D) Gadsden Policy Position. E) Roosevelt Corollary. Answer: E Page: 60 Difficulty: Easy Type: Fact 46. During the Mexican War of 1846-1848, the ___________ fought for the Mexicans against the United States. This group was a battalion of defectors from the United States military. A) St. Patrick's Battalion B) Irish Republican Guard C) Texicans D) Runaway Brigade E) None of the above Answer: A Page: 60, Crossing Borders 3.2 Difficulty: Hard Type: Fact 47. What was the overall end result of The Mexican War of 1846-1848? A) Mexico was forced to cede half its territory to the United States. B) Mexico signed a non-aggression pact and borders stayed the same as they were before the war. C) Mexico gave up California and the U.S. gave up Baja California. D) Mexico paid the U.S. $5 million for war damages. E) The United States was forced to sign a pledge to never again invade Mexico. Answer: A Page: 60, Crossing Borders 3.2 Difficulty: Hard Type: Fact and Application E) Roosevelt Corollary.S. countries. ____________ is the study of the earth's surface. Answer: E Page: 60 Difficulty: Hard Type: Fact 50.S. B) Hay Corollary. A) Culture B) Geography C) Cartography D) Demography E) Geo-politics Answer: B Page: 62 Difficulty: Easy Type: Definition . B) Popular Revolution was neutralized by U. intervention in Afghanistan in 2002. E) Roosevelt Corollary. invasion to arrest President Noriega on charges of drug trafficking (1989). Answer: A Page: 61.2 Difficulty: Hard Type: Fact 51. attempts to thwart the election of Peron (1946).S. peoples. The manner in which the United States acquired the land for the Panama Canal Zone typifies _________________--whatever is good for the United States is justifiable. C) CIA-organized invasion overthrows Arbenz (1954). economic pressure (1952).48. Exhibit 3. A) Manifest Destiny. and resources. D) Gadsden Policy Position. B) Hay Corollary. D) Gadsden Policy Position. What policy was used to justify the American intervention in the Dominican Republic in 1905? A) Manifest Destiny. climate. interventions in Latin America since 1945 EXCEPT: A) U.S. E) U. C) Wilson Mandate. All of the following have been U.S. continents. industries. C) Wilson Mandate. Answer: E Page: 60 Difficulty: Hard Type: Fact 49. D) U. Geography is part of which of the following? A) An organization's internal environment. Answer: E Page: 63 Difficulty: Moderate Type: Application 55. E) An organization's parallel environment (uncontrollable). These effects range from the obvious influences on product adaptation to more profound influences on the development of: A) marketing systems. Answer: B Page: 62 Difficulty: Easy Type: Definition 53. climate. Answer: A Page: 63 Difficulty: Moderate Type: Comprehension . E) all of the above. C) An organization's uncontrollable external environment. industries. Larry Lam has the responsibility of doing a geographic appraisal for his company as it attempts to build a manufacturing facility in Borneo. peoples. Lam should consider all of the above factors.52. B) An organization's controllable external environment. Answer: C Page: 62 Difficulty: Moderate Type: Definition 54. B) high-level strategic statements. Geographic features affect marketing. countries. C) corporate executives. D) An organization's parallel environment (controllable). B) geography. Which of the following elements of geography will be of particular interest to Mr. C) cartography. D) new theories of chaos management. D) demography. The study of the earth's surface. and resources is called: A) culture. E) geo-politics. continents. Lam as he prepares an appraisal of the feasibility of a venture in this tropical country? A) Altitude B) Humidity C) Temperature extremes D) Climate E) Mr. B) less important. Answer: D Page: 65 Difficulty: Moderate Type: Comprehension 58. expansion. Which of the following statements would best complete the statement that “countries that suffer the most from major calamities are:”? A) “usually at fault. B) European expansion. environmental issues become: A) more apparent. Answer: A Page: 66 Difficulty: Moderate Type: Comprehension 59.” B) “usually helped by neighbors to overcome the difficulties. All of the following have the tendency to propel less-privileged countries into further economic stagnation EXCEPT: A) religious practices.” C) “usually among those that are prepared to handle such difficulties. C) lack of resources to solve problems. As the global rush toward industrialization and economic growth accelerates.S. C) civil wars. C) easier to solve. D) natural disasters. E) all of the above.56.” E) all of the above could be used to complete the statement. inadequate hazardous waste management. Answer: D Page: 66-67 Difficulty: Easy Type: Comprehension . Disruption of ecosystems. D) the responsibility of governments to solve. D) processes that have contributed significantly to economic development and lifestyles. Answer: A Page: 65 Difficulty: Moderate Type: Comprehension 57. E) none of the above adequately completes the sentence. B) climate and topography.” D) “usually among the poorest in the world. E) all of the above are causes of economic stagnation. relocation of people. and industrial pollution are mostly by-products of: A) U. Which of the following is considered to be a by-product of pollution controls? A) corporate responsibility B) evading responsibility C) the disposal of hazardous waste D) increased labeling of products E) increasing advertising to explain environmental policies Answer: C Page: 67 Difficulty: Hard Type: Fact and Comprehension 62. Which of the following agreed to a total ban on the export of hazardous wastes by developing nations? A) The United Nations B) The Basel Convention C) NAFTA D) The European Union E) The Soviet Bloc Answer: B Page: 67 Difficulty: Hard Type: Fact . I am environmentally conscious. Mary Blankenship has just written her congresswoman complaining about the high taxes imposed on her by her government. To quote Mary. E) None of these views is applicable to Mary's situation. D) Many people believe that the rich should pay for everything (a wealth-class issue or view).60. B) Many people believe there is no problem (a “hole in the sand” view).” Which of the following statements most likely is being used by Mary to justify her response to the congressman? A) Many people view ecological problems as a global issue rather than a national issue (an isolationist view). “I don't see why I should have to pay taxes to clean up the environment. Answer: A Page: 67 Difficulty: Moderate Type: Application 61. I didn't dirty it up. C) Many people believe that cleaning the environment is everyone's responsibility (a responsibility view). Tax those that are not. B) global development. C) sustainable development. D) restricted development. A) minerals B) money C) patents D) labor E) the Internet Answer: A Page: 70 Difficulty: Moderate Type: Fact . A treaty among members of the ____________ requires a total ban on the export of hazardous wastes by developed nations. ______________ is the concept that guides many governments and multinational companies with respect to the wise use of resources and economic benefits. E) biased development. Answer: C Page: 67 Difficulty: Moderate Type: Definition and Application 66. A) Parallel development B) Global development C) Sustainable development D) Restricted development E) Biased development Answer: C Page: 67 Difficulty: Moderate Type: Definition 65. The availability of ___________ and the ability to generate energy are the foundations of modern technology. A) The United Nations B) The Basel Convention C) NAFTA D) The European Union E) The Soviet Bloc Answer: B Page: 67 Difficulty: Hard Type: Fact 64. The term that best describes the process of wherein governments and multinational corporations agree that wise resource management and equitable distribution of benefits from the process of economic development is in everyone's best interest is called: A) parallel development.63. B) current population. Answer: A Page: 71 Difficulty: Moderate Type: Fact 69. E) None of the above. B) toxic wastes as a by-product of economic and technological growth. E) age levels. Exhibit 3.2 billion C) 6 billion D) 7.3 billion E) 9 billion Answer: E Page: 72 Difficulty: Hard Type: Fact 70. All of the following help to determine today's demand for various categories of goods EXCEPT: A) infant deaths.67. Crossing Borders 3. Most population experts predict that the world population will continue to grow. C) the global community is not a neighborhood. Answer: B Page: 69. D) Manifest Destiny.5 billion B) 4. What is the expected population of the world by the year 2050? A) 3. Consumers in which of the following continents or geographical areas consume the least part of total world energy consumption? A) Africa B) Middle East C) South America D) Eastern Europe E) Developing Asia Answer: A Page: 71. D) rates of growth. C) rural/urban population shifts. The saga of the Khian Sea illustrates the problem of: A) survival of the fittest.6 Difficulty: Hard Type: Fact 68.3 Difficulty: Moderate Type: Fact . basic agricultural products. health care. B) cultural adaptations. E) the concept of machismo. E) All of the above. the part of the world with the largest portion of people over 65 will also be the part with the fewest people under age 15. D) all of the above are true. Answer: B Page: 72 Difficulty: Moderate Type: Fact and Comprehension 72. B) cultural attitudes about the importance of large families. This means there will be: A) fewer workers to support future retirees.71. there are: A) higher infant mortality rates. Perhaps the most important deterrent to population control is: A) ignorance. B) more aging people today than ever before. C) population control. Demographic projections suggest that. and harmonization. At the same time that population growth is declining in the industrialized world. D) education. B) taxes will be lowered on future workers to pay for benefits for the elderly. Answer: B Page: 74 Difficulty: Moderate Type: Fact 74. Migration from rural to urban areas is largely a result of the desire for greater access to sources of: A) energy. Answer: A Page: 75 Difficulty: Hard Type: Fact . C) income level. D) a means to secure birth control. E) none of the above is true. and international security. and improved job opportunities. religion. Answer: D Page: 73 Difficulty: Hard Type: Fact 73. C) increasing pressures to have larger families. C) more under 65 workers will retire early D) there will be pressure to prevent migration E) all of the above. in the future. When marketers first introduced the PDA to the American consumer they performed the role of being a(n) _____________ because the cultural impact of the product became widespread.The marketer's efforts are judged in ______________ for acceptance. customs. C) solicit economic and social ideas to maintain the existing culture. The sum total of knowledge. A) Sociology B) Psychology C) Culture D) Reference groups E) Cohort groups Answer: C Page: 94 Difficulty: Moderate Type: Definition 28. A) a social class context B) a cultural context C) a global context D) a public relations context E) none of the above Answer: B Page: 94 Difficulty: Moderate Type: Comprehension 27. Trade routes represent attempts of countries to: A) influence the course of world history through international marketing.75. morals. E) All of the above. A) gatekeeper B) role player C) supply creator D) agent of change E) none of the above Answer: D Page: 94 Difficulty: Moderate Type: Application and Definition . beliefs. Answer: D Page: 78 Difficulty: Hard Type: Comprehension 26. resistance. art. law. _____________ is the human-made part of human environment. or rejection. 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 Answer: C Page: 94 Difficulty: Moderate Type: Definition 29. D) overcome economic and social imbalances created in part by geography. B) prevent the United States from dominating the world. . B) history.” B) “the difference between life and death. Answer: B Page: 98 Difficulty: Moderate Type: Fact 33.30. All of the following are considered to part of the origins of culture EXCEPT: A) geography. C) bias that is used to justify racial inequality.” E) “art's triumph over banality. C) technology and political economy. Exhibit 4. D) mathematical models E) social institutions. D) a tool that is of little value. B) problem-solving tool. Exhibit 4.2 Difficulty: Hard Type: Application and Fact 31. culture is seen as: A) “software of the mind. With respect to a cultural fact. Answer: D Page: 99. According to Dutch management professor Geert Hofstede.” C) “the conflict of civilization versus the masses. E) none of the above is attributed to Hofstede. which of the following countries has the highest rate of consumption of chocolate? A) France B) Germany C) United States D) Italy E) United Kingdom Answer: E Page: 96. According to Dutch management professor Geert Hofstede.” Answer: A Page: 98 Difficulty: Hard Type: Comprehension 32.4 Difficulty: Moderate Type: Comprehension .” D) “tool of the elite. culture is seen as a: A) weapon that is often used on the poor. This learning is called: A) acculturation. and thought processes that are learned. church. E) adaptation. A) social class B) psychology C) anthropology D) demography E) culture Answer: E Page: 98 Difficulty: Moderate Type: Definition 36. beliefs. C) naturalization. and transmitted from generation to generation.4 Difficulty: Moderate Type: Comprehension 35. mass media. Mervin is excited about his new home in the Philippines. D) emancipation. A traditional definition of ____________ centers around the notion that it is the sum of the values. Even though he was born in Los Angeles. rituals. shared by a group of people. and capitalize on opportunities than were not available in his previous home or workplace. Mervin will go through what is called a ______________ as he adjusts to living in Manila. As Mike Jones has grown up he has learned a great about his culture from his schools. Exhibit 4. Answer: B Page: 98 Difficulty: Hard Type: Application and Definition 37. B) socialization. form new friends. symbols.34. Which of the following would be considered to among the elements of culture according to a model presented in the text? A) family B) religion C) media D) rituals E) none of the above is elements of culture Answer: D Page: 99. A) acculturation B) socialization C) naturalization D) emancipation E) standardization Answer: A Page: 98 Difficulty: Moderate Type: Application . Mervin has been given the opportunity to learn about a new culture. and family. families. mosque. B) cultural icons. D) control a great deal of our lives. Answer: C Page: 104 Difficulty: Hard Type: Comprehension 40. E) government agency. B) day care centers. D) external variables. E) corporations. Answer: D Page: 105 Difficulty: Moderate Type: Comprehension 41. C) internal variables. school. B) school. D) shopping mall. C) government agencies. E) basically ignore people. C) religious institution (church. and the media during childhood. schools. Answer: C Page: 105 Difficulty: Hard Type: Comprehension and Application . religion. the media. religion. In most cultures the first social institution infants are exposed to outside the home takes the form of a: A) day care center. B) hold a moderate position. governments: A) hold a very strong position. shrine. government. C) hold relatively little sway. The family. D) the media. or temple). E) demographic variables. and corporations are all illustrations of what are called: A) social institutions.38. Answer: A Page: 103 Difficulty: Moderate Type: Definition 39. The four social institutions that most strongly influence values and culture are schools. churches (religious institutions). Compared with the early (during childhood) and direct influences of family. and: A) shopping malls. Exhibit 4. B) German. Which of the following languages is the most distant from English? A) French. A) Individualism/Collectivism B) Power Distance C) Uncertainty Avoidance D) Ritual E) Language Answer: A Page: 107 Difficulty: Moderate Type: Fact and Definition 45. E) Taiwanese (Taiwan). Exhibit 4. Answer: C Page: 106 Difficulty: Hard Type: Fact 43. Which of the following countries scores highest on the Individualism/Collectivism Index meaning that this country values and rewards individual initiative more that the others cited? A) Brazil B) Greece C) France D) Germany E) United States Answer: E Page: 106. Many languages are very different from other languages. The ________________ Index refers to the preference for behavior that promotes one's self-interest. D) Ayn Rand. B) George Gallup.5 Difficulty: Hard Type: Fact 44. C) Geert Hofstede. C) Spanish. D) Arabic. Answer: E Page: 111 &112. E) Milton Friedman. The most useful information on how cultural values influence various types of business and market behavior comes from work done by: A) Sigmund Freud.42.5 Difficulty: Easy Type: Fact and Application . Exhibit 4. A) social equality and inequality B) self-interest and collective interest C) uncertainty and ambiguity D) primary and secondary language tolerance E) ritual and dislocation Answer: C Page: 107 Difficulty: Moderate Type: Comprehension 48. Her data indicates (based on reviews of Individualism/Collectivism studies) that all but one of the following countries would probably favor electronic communication. Which country would most likely favor face-to-face contact with a Smith Barney broker? A) United States B) Australia C) Canada D) Japan E) Great Britain Answer: D Page: 106. Her task is to determine whether Smith Barney should use face-to-face contacts to encourage sales or the more impersonal electronic communications that have become so popular today.5 Difficulty: Moderate Type: Application and Fact . Emma Smith has just been hired as a consultant for the Smith Barney stock brokerage firm. The Uncertainty Avoidance Index measure the tolerance of ___________ and __________among members of a society.46. Exhibit 4. 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 D) France E) Japan Answer: E Page: 106.5 Difficulty: Easy Type: Fact and Application 47. C) communication. Answer: C Page: 109 Difficulty: Moderate Type: Fact 52. B) what something costs. D) strongly linked to physiology. with the exception of collective ceremonial gifts at banquets or after speeches. Answer: A Page: 108-109 Difficulty: Moderate Type: Comprehension 51. E) standard throughout the world. Which of the following countries best exemplifies the above statement? A) Australia B) United States C) France D) Mexico E) Switzerland Answer: C Page: 109 Difficulty: Moderate Type: Fact and Application . Crossing Borders 4. A) Arab World B) United States C) Japan D) Latin America E) China Answer: E Page: 108. Hall tells us that culture is: A) all-encompassing. Giving a gift in another country requires careful attention if it is to be done properly. C) how the government operates. D) the impact of language. Anthropologist Edward T. which country most likely matches with this form of gift giving? Characteristics: never make an issue of a gift presentation--publicly or privately. According to the characteristics of gift giving that follows.1 Difficulty: Moderate Type: Application and Fact 50. In many parts of the world language is itself thought of as a social institution (often with political importance). E) All of the above. Rituals let people know: A) what to expect. B) relatively minor in the scheme of life. gifts should be presented privately.49. Answer: C Page: 112 Difficulty: Easy Type: Comprehension . folklore. D) biological heredity. and dance? A) controllable environmental variables B) uncontrollable environmental variables C) aesthetics D) cultural mandates E) cultural icons Answer: C Page: 111 Difficulty: Moderate Type: Definition 55. B) the Internet. drama. is proving useful to marketing researchers in market segmentation and strategic entry decisions. The relationship between language and international marketing is an important factor that cannot be overestimated. Much of what we learn to believe comes from: A) the media. A) linguistic traps B) linguistic distance C) language parallels D) language roots E) none of the above Answer: B Page: 110 Difficulty: Moderate Type: Comprehension and Definition 54. music.53. __________. E) physiological need states. Recent studies indicate that a new concept. Which of the following general terms would most closely be associated with the arts. C) religious training. How people think and view the world is important to any cultural study of the international environment.” D) see the world (surprisingly) in a similar way to everyone else. prefers an entrance that faces southwest. C) focus on small details in the foreground but cannot often see the “big picture. A) Factual B) Interpretative C) Virtual D) Historical E) Superstitious Answer: A Page: 113 Difficulty: Moderate Type: Definition . B) see the whole picture and can report details about background and foreground. May we please see another house from your list. B) She dislikes the color of the house but is afraid to say so because it would be rude. Asians tend to: A) prefer home cooking to fast food. Answer: E Page: 112 Difficulty: Moderate Type: Application 57. ____________ knowledge about a culture is usually obvious and must be learned.56. I am sorry but the front entrance faces northwest. The first home shown to the couple is a lovely ranch-style house. According to a book written by Richard Nisbett.” Her husband concurs. Answer: B Page: 113 Difficulty: Hard Type: Application and Comprehension 58. E) She respects traditional feng shui beliefs. D) She is from southern China and. therefore. Gin and Oki Chen are about to purchase a new home in San Francisco. No one would ever visit us. Which of the following would explain why Gin Chen's statement was so strong and why she would rather look at another home? A) She is afraid of earthquakes in the San Francisco area. The Geography of Thought. As Gin looks at the home she comments to the real estate broker. E) see only what they want to see as they are very biased on their outlook on life. “This will never do. C) She never has liked houses that face shaded areas. Which of the following would be the best illustration of this importance? A) The Catholic religion is widespread throughout the world. Answer: C Page: 114 Difficulty: Hard Type: Comprehension and Application 61. _____________ knowledge about a culture is an ability to understand and to appreciate fully the nuances of different cultural traits and patterns. D) Great Britain is made up of England. Factual knowledge is very important to understanding a culture. ______________ is being attuned to the nuances of culture so that a new culture can be viewed objectively. A) Cultural ombudsmanship B) Being a cultural icon C) Being a cultural maven D) Cultural sensitivity E) Cultural borrowing Answer: E Page: 116 Difficulty: Moderate Type: Definition . and Wales. Scotland. and appreciated.59. C) 98 percent of Mexico is Roman Catholic. A) Cultural ombudsmanship B) Being a cultural icon C) Being a cultural maven D) Cultural sensitivity E) Cultural borrowing Answer: D Page: 115 Difficulty: Moderate Type: Definition 62. B) The United States is located in the Northern Hemisphere of what was called the New World. ________________ is a responsible effort to learn from other's cultural ways in the quest for better solutions to a society's particular problems. Ireland. A) Factual B) Interpretative C) Virtual D) Historical E) Superstitious Answer: B Page: 113 Difficulty: Moderate Type: Definition 60. E) All of the above would be very important to understanding culture in a factual sense. evaluated. C) what color the item is. B) how much the item costs. Some studies have shown that one of the most important factors in determining what kind and how much of an innovation will be accepted is the: A) degree of interest in the field. B) Working five days a week. Answer: A Page: 117 Difficulty: Hard Type: Comprehension . Which of the following best illustrates the concept of cultural borrowing in the United States? A) Eating three meals a day. D) The popularity of SUVs in suburban neighborhoods. Modern medicine in the United States has been impacted by application of herbal remedies from South America and acupuncture from the Orient. This would be an example of which of the following? A) Cultural ombudsmanship B) Being a cultural icon C) Being a cultural maven D) Cultural sensitivity E) Cultural borrowing Answer: E Page: 116 Difficulty: Moderate Type: Definition and Application 64. E) The popularity of basketball among urban youth.63. D) how the item is packaged. E) knowledge of the brand name. C) Eating salsa on just about everything. According to Hofstede's data. acceptance of innovations varies across cultures. Answer: C Page: 116 Difficulty: Easy Type: Application 65. D) all of the above are correct E) none of the above is correct Answer: D Page: 117 Difficulty: Moderate Type: Comprehension and Application 66. In the Hofstede studies it was shown that innovation was associated with all of the following EXCEPT: A) higher individualism (IDV) B) lower power distance (PDI) C) uncertainty avoidance (UAI). Turkey Steaks will resemble beefsteak in taste but will be made from turkey meat. One of the ways to introduce change into a market is to do it in slow gradual steps by making the new products as similar to the old ones as possible. Morton Foods has decided to introduce a new line of turkey products to the American consumer. Answer: E Page: 118 Difficulty: Hard Type: Application and Comprehension 68. E) None of the above would be an acceptable option. D) cultural congruence. Morton Foods is concerned that the product will not be accepted. This would be called a strategy of: A) unplanned change. B) religion and rituals spark acceptance of cultural change. cultural resistance to change disappears as: A) government mandates force consumers to change. B) cultural adiaphoria. they are more likely to success with the introduction of the new product. they can cause change. What is the other option? A) They can wait.67. D) superstition overcomes science. Marketers have two options when introducing an innovation to a culture. E) none of the above Answer: D Page: 118 Difficulty: Moderate Type: Comprehension 70. A) unplanned change B) cultural adiaphoria C) cultural syncopation D) cultural congruence E) none of the above Answer: D Page: 118-119 Difficulty: Hard Type: Application and Comprehension . D) They can plea for governmental assistance and support. However. C) change agents provide correct change. If Morton Foods follows a strategy of ______________. First. E) ideas initially too complex for consumers become less so. B) They re-package the innovation to cause confusion. C) cultural syncopation. Answer: A Page: 118 Difficulty: Moderate Type: Comprehension 69. C) They mandate adoption by withdrawing all alternatives. Often. The Turkey Steaks will be leaner and healthier for a variety of reasons. a process of social change may also occur. power sources. their information documents their deliberate attempt to change the way we do things with respect to energy sources.71. The company has demonstrations to show how solar power could be used in all major petroleum-based products--automobiles. Nexar Energy is advocating the use solar power to replace all petroleum-based energy sources. The marketer seeking _____________ and adoption may inadvertently bring about change that affects the very fabric of a social system. Since Nexar Energy is advocating _____________. This would be an illustration of which of the following forms of change? A) unplanned change B) planned change C) parallel change D) syncopated change E) synergistic change Answer: A Page: 119 Difficulty: Moderate Type: Application and Definition 73. A) product replacement B) product abandonment C) product innovation D) product diffusion E) none of the above Answer: D Page: 119-120 Difficulty: Hard Type: Comprehension . and heating and cooling. A) product replacement B) product abandonment C) product innovation D) product diffusion E) none of the above Answer: D Page: 119 Difficulty: Hard Type: Comprehension 74. When ____________ (acceptance) occurs. A) unplanned change B) planned change C) parallel change D) syncopated change E) synergistic change Answer: B Page: 118 Difficulty: Moderate Type: Application and Definition 72. The Westernized diet has caused many Japanese to become overweight. A) management style B) management trends C) management missions D) management personalities E) management theories Answer: A Page: 124 Difficulty: Moderate Type: Definition 28. management values. Knowledge of _______________ consists of understanding the business culture. A) Profit perception B) Adaptation C) Standardization D) Correlation E) Individualization Answer: B Page: 124 Difficulty: Moderate Type: Definition and Comprehension . B) The Japanese are consensus oriented. D) All Russians are communists. A) functional B) dysfunctional C) symmetrical D) parallel E) dynamic Answer: B Page: 120 Difficulty: Moderate Type: Definition 26. ___________ is a key concept in international marketing because it is required on small matters as well as large ones. and business methods and behaviors. then the innovation can be said to have had a(n) ____________ impact on the society. E) None of the above is an accurate generalization.75. Answer: D Page: 124 Difficulty: Easy Type: Comprehension 27. Which of the following statements would be an improper characterization of business behavior and practices around the world? A) North Americans are individualists. If the consequences of diffusion on an innovation on a society are undesirable.Culture affects management style around the world. C) The central and southern Europeans are elitists and rank conscious. D) non-traditional. D) profit motive. Answer: D Page: 125 Difficulty: Hard Type: Comprehension 30. A liking for others.29. D) non-traditional. E) standardized. but not necessary are called: A) imperatives. open to tolerance. E) all of the above. Answer: A Page: 125 Difficulty: Moderate Type: Definition 32. As a guide to adaptation. C) exclusives. customs that must be recognized and accommodated are called: A) imperatives. E) standardized. B) flexibility. A) profit perception B) adaptation C) standardization D) correlation E) individualization Answer: B Page: 125 Difficulty: Moderate Type: Comprehension 31. B) electives. customs to which adaptation is helpful. B) electives. and ability to adjust to varying tempos would all be criteria for achieving ___________ in international marketing. all of the following criteria would be appropriate EXCEPT: A) open to tolerance. With respect to business customs. Answer: B Page: 125 Difficulty: Easy Type: Definition . C) humility. With respect to business customs. flexibility. C) exclusives. Though he invites all of the guests to drink sake from lacquered trays. he abstains because of a severe stomach ulcer. E) standardized. A) imperative B) elective C) exclusive D) non-tradition E) standard Answer: B Page: 126-127 Difficulty: Moderate Type: Application . Answer: C Page: 125 Difficulty: Moderate Type: Definition 34. C) exclusives. Which of the following would most likely be characterized as being an imperative business custom? A) establishing friendships B) speaking the language C) understanding the native religions D) drinking the local drinks E) having a knowledge of trading law Answer: A Page: 125-126 Difficulty: Hard Type: Application and Comprehension 35. He perceives his abstention to be permissible in Japanese society because drinking sake would be considered to be a cultural ___________ for foreign guests. Simon Peters is very conscious of his behavior as he greets prospective Japanese clients at a local Tokyo restaurant. B) electives. customs in which the outsider must not participate are called: A) imperatives.33. With respect to business customs. D) non-traditional. S. B) elective.36. Ms. cultural concepts are based. C) wide sharing in decision-making. Betty should have known that political ridicule by a foreigner is rarely accepted. and wide sharing of decision making would characterize which of the following country's cultural concepts in business? A) Germany B) France C) Japan D) China E) United States Answer: E Page: 127-128 Difficulty: Moderate Type: Comprehension and Application . “master of destiny” viewpoint. Answer: D Page: 127 (127-130) Difficulty: Moderate Type: Comprehension 38. E) competition yields efficiency. D) the collective good outweighs the individual gain. Answer: C Page: 127 Difficulty: Moderate Type: Application 37. There are many different views regarding the most important ideas on which normative U. C) exclusive. All of the following are generally accepted as acceptable ideas with this respect EXCEPT: A) “Master of destiny” viewpoint. Roberts has violated what is known as a cultural: A) imperative. E) standard. B) independent enterprise as the instrument of social action. Competition yielding efficiency. Betty Roberts became an embarrassment to her company when she joked about the ruling monarchy in England before a group of visiting English businessmen and women. D) landmark. E) None of the above explains the concept.” Which of the following notions is most closely associated with this view as stated by Adam Smith? A) Master of destiny B) Caveat emptor C) Greed is good D) The invisible hand E) Survival of the fittest Answer: D Page: 129 Difficulty: Hard Type: Application and Fact . There is a very strong belief in the United States that business decisions (and the managers that make these decisions) should be based on a scientific approach and made from a non-emotional posture.39. Which of the following would be the best description of the “master of destiny” philosophy that is fundamental to U. Answer: C Page: 127-128 Difficulty: Moderate Type: Definition and Comprehension 40. management thought? A) A skill that must be mastered is foretelling one's destiny. B) A manager must control all employees' destinies if profit is to be made. Adam Smith in his Wealth of Nations stated. C) People can substantially influence the future--they are in control of their own future. D) The “state” is the master of its citizens' destiny. Which of the following terms best describes this approach? A) Master of destiny B) Independent enterprise C) Objective analysis D) Wide sharing in decision-making E) Never-ending quest for improvement Answer: C Page: 128 Difficulty: Moderate Type: Comprehension 41. “By pursuing his own interest he frequently promotes that of the society more effectually than when he really intended to promote it.S. In which of the following countries would you find that the majority of companies would follow the employment model you have described? A) France B) United States C) Canada D) England E) India Answer: A Page: 132 Difficulty: Hard Type: Application 45. Which of the following forms of business decision-making characterizes most Asian countries? A) independent B) contractual C) dual D) consensus E) dictatorial Answer: D Page: 131 Difficulty: Moderate Type: Comprehension 44. Assume that you wanted to work for a company that had a strong paternalistic orientation and would probably employ you for your entire life. For international marketers operating in authoritative and delegated societies.42. but in low. C) coming to consensus with the group dynamic. E) all of the above Answer: B Page: 132 Difficulty: Hard Type: Fact and Application . the chief problem is: A) paying sufficient bribes to the right people. A) religious values B) Position Distance Indexes (PDIs) C) decision-making models D) wealth quotients E) mobility tendencies Answer: B Page: 130 Difficulty: Moderate Type: Comprehension and Application 43. Personal security and job mobility relate directly to basic human motivation. B) identifying the individual with authority.___________ countries they often do. D) convincing each member of the decision-making group._____________. In countries with high. subordinates would be unlikely to contradict bosses. Mr. ________________ takes priority over profit.2 Difficulty: Hard Type: Fact and Application . security. “I work for Mitsubishi!” Even though he is a crane operator. 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 Answer: B Page: 135. Exhibit 5. Hall wrote a book entitled The Silent Language of Overseas Business. Mitsubishi is his life. how it is said. In a high context implicit communication environment who says something. Which of the following phrases or terms would most likely be covered in his book? A) how deaf people are treated in Japan B) feng shui C) the symbolic importance (lack of importance) of time D) gender bias E) quiet attempts to use English Answer: C Page: 134 Difficulty: Moderate Type: Comprehension and Application 49. In fact.46. A) religious freedom B) education C) social status D) a good personal and/or family life E) personal possessions Answer: D Page: 132 Difficulty: Moderate Type: Comprehension 47. Which of the following terms most accurately describes the work identification present in Gen Akoi's life? A) feudalism B) dictatorship C) complete servitude D) group E) hopelessness Answer: D Page: 132 Difficulty: Moderate Type: Application 48. Edward T. or any other goal. Akio most closely identifies with his employer. and when it is said is very important. When asked what he does for a living he immediately responds. Gen Akoi has worked for Mitsubishi for all of his adult life. For many individuals. C) having country-specific Web sites. One of the communications issues associated with Web sites in international marketing is: A) paying for Internet access in each country. Answer: D Page: 136 Difficulty: Hard Type: Fact 53. Exhibit 5. Answer: C Page: 136 Difficulty: Easy Type: Fact 52. icons. Many international marketing companies address the Internet language problem by: A) using only English on their Web sites. E) all of the above. B) soliciting sales tax versus value added tax correctly. C) always using the correct English translation.50. For example. Which of the following countries has been described as being low context explicit with respect to communication practices? A) Switzerland B) Japan C) Saudi Arabia D) England E) Italy Answer: A Page: 135. D) examining sites for symbols. Time is viewed differently around the world. B) using language translation software whenever possible. In which country would we expect to hear the description of time as being “time is money”? A) France B) Japan C) Hong Kong D) England E) United States Answer: E Page: 138. and other nonverbal impressions that could be misinterpreted by foreign consumers. E) all of the above. in Spain “those who rush arrive first at the grave” is a description of feelings toward time.2 Difficulty: Hard Type: Fact and Application 51. D) using foreign language blocking software to screen international communications. Crossing Borders 5. In a low-context explicit communication culture one would expect to find that verbal exactness in communication dominates other communication variables.4 Difficulty: Easy Type: Fact and Application . 54. being involved with people and being sensitive to relationships is just as important (if not more important) than sticking to a schedule. Chen could be characterized following which of the following time models? A) P-time--polychronic time. C) D-time--dual time. D) M-time-monochronic time. D) M-time-monochronic time.” which of the following time models will Mr. Answer: D Page: 138-140 Difficulty: Hard Type: Definition and Application . E) None of the above would be correct. In the United States. B) B-time--bimodal time. Garcia need to understand and follow if he is to be successful during his stay in America? A) P-time--polychronic time. C) D-time--dual time. Answer: D Page: 138-140 Difficulty: Moderate Type: Definition and Application 55. Ms. Germany. C) D-time--dual time. After all. Answer: D Page: 138-140 Difficulty: Hard Type: Definition and Application 56. B) B-time--bimodal time. Ramon Garcia is excited about his first visit to the United States. As a representative of a Mexican vegetable producer. E) None of the above would be correct. D) M-time-monochronic time. As Luci Chen sits in her office in Shanghai she is looking at her daily appointment calendar. E) None of the above would be correct. she knows that she will spend quality time with each person. Even though she has many appointments. This would be called: A) P-time--polychronic time. Ramon knows that he will have to forget “Mexican time” and be aware of “American time. and Norway one thing at a time receives attention with respect to time. Switzerland. B) B-time--bimodal time.” As he shifts to “American time. Even though speed is relative in a cultural context.3 Difficulty: Moderate Type: Application 59. accomplishing tasks.57. Exhibit 5. which of the following markets would most likely be a good one for Mr. He knows that countries that are addicted to speed with respect to time would make better markets than those that are not.3 Difficulty: Moderate Type: Application 58. According to rankings of speed (with respect to time) appreciation. he has reservations about market potential in some countries. and accuracy of time pieces) that this country ranks number one in the world? A) Switzerland B) Japan C) Germany D) Brazil E) United States Answer: A Page: 139. Answer: D Page: 140 Difficulty: Hard Type: Fact . Hall to pursue first with his company's new product? A) China B) Mexico C) Germany D) Canada E) Indonesia Answer: C Page: 139. As Mark Hall examines markets for his company's new digital watch product. we would expect workers from which of the following countries to be so obsessed with speed (walking. The basic elements of an international business negotiation include all of the following EXCEPT: A) price and terms B) services C) product D) politics E) friendship between vendor and customers. Exhibit 5. 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. When a U. D) intellectual property laws.60. According to information presented in the text. which of the following would be considered to be corruption (or a corrupt practice) in India? A) profits B) individualism C) rampant consumerism D) intellectual property laws E) currency speculators Answer: C Page: 142 Difficulty: Moderate Type: Comprehension and Application .S. B) individualism. According to various views around the world. 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 Answer: E Page: 140-141 Difficulty: Moderate Type: Comprehension and Application 61. In addition to training. C) rampant consumerism. E) all are viewed as being corruption in parts of the world Answer: E Page: 142 Difficulty: Moderate Type: Comprehension and Application 62. all of the following have been defined or viewed as being corruption EXCEPT: A) profits. Because of this fact.S. many nations have now signed an accord by the member nations of the ________________________ to force their companies to follow anti-bribery rules similar to those followed in the U. AIDS is rampant in many sub-Saharan African nations. which of the following would most likely be viewed as a corrupt practice (or corruption) by African nations and their leaders? A) capitalism B) individualism C) rampant consumerism D) intellectual property laws E) currency speculators Answer: D Page: 142 Difficulty: Hard Type: Comprehension and Application 64. policies. Which of the following organizations is dedicated to “curbing corruption through international and national coalitions encouraging governments to establish and implement effective laws.S.63. A) United Nations B) Organization of American States C) NAFTA D) NATO E) Organization for Economic Cooperation and Development (OECD) Answer: E Page: 144 Difficulty: Moderate Type: Comprehension 65. The decision to pay a bribe can be seen as creating a major conflict between what is ethical and proper and what is profitable and sometimes necessary for business. and anticorruption programs”? A) Organization of American States B) United Nations C) The Hague D) Transparency International (TI) E) none of the above Answer: D Page: 145 Difficulty: Moderate Type: Fact . Led by the U. Transparency International (TI) scores countries with respect to their prevalence for bribe taking. Exhibit 5. Voluntarily offered payment by someone seeking unlawful advantage is called: A) extortion.6 Difficulty: Moderate Type: Fact 69. Transparency International (TI) scores countries with respect to their prevalence for bribe taking. B) subordination. Exhibit 5. E) bribery. D) agent's fees.5 Difficulty: Hard Type: Fact 67. C) lubrication. Bribery is least tolerated in which of the following countries? A) United States B) Japan C) Germany D) Israel E) Finland Answer: E Page: 145-146. Exhibit 5. Answer: E Page: 147 Difficulty: Easy Type: Definition . In which of the following countries would companies be least likely to pay a bribe to obtain business or gain favor? A) United States B) Australia C) Russia D) Taiwan E) Japan Answer: B Page: 145. Bribery is most tolerated in which of the following countries? A) United States B) Japan C) Germany D) Austria E) Nigeria Answer: E Page: 145.66. If it often said that it takes two to bribe--one to receive and one to pay.5 Difficulty: Easy Type: Fact 68. A) Extortion B) Subordination C) Lubrication D) Agent's fees E) Bribery. B) subordination. C) lubrication. Perhaps the best guide to good business ethics is to follow all of the guidelines (principles) shown below EXCEPT: A) utilitarian ethics. lawful performance of a duty by an official. a gift. ___________ involves a relatively small sum of cash. Answer: A Page: 147 Difficulty: Easy Type: Definition 72. D) fairness. A) individualistic B) communistic C) communitarian D) universal E) docile Answer: C Page: 149-150 Difficulty: Moderate Type: Definition and Application .70. Answer: C Page: 149 Difficulty: Moderate Type: Comprehension 73. and labor. or service that is intended to facilitate or expedite the normal. E) bribery. a _____________ form of capitalism is practiced in Japan and Germany where there is cooperation among government. E) justice. A finance minister in a third-world country demands a heavy payment be made to him or he will stall or veto a multi-million dollar contract that is on his desk. management. This practice would be called: A) extortion. According to Lester Thurow. B) rights of the parties. Answer: C Page: 148 Difficulty: Moderate Type: Definition 71. D) agent's fees. C) profit. E) The WTO ruled in favor of the United States and the matter was ended. Global Perspective Difficulty: Hard Type: Comprehension and Application .74. Exhibit 5. Exhibit 5. B) The matter was declared a draw. the EU ignored the ruling. Global Perspective Difficulty: Moderate Type: Comprehension and Application 27. C) Both sides in the matter were instructed to cease and desist. high power distance.7 Difficulty: Hard Type: Definition and Comprehension 75. D) The WTO ruled in favor of the United States. has individualism. where do both sides go to settle the matter? A) The United Nations B) The World Court C) The Organization of American States D) The World Trade Organization E) none of the above Answer: D Page: 157.” what was the outcome? A) The European Union won and received payments from the United States. however. When the World Trade Organization attempted to settle what was called a “banana war. Answer: D Page: 157. and uses polychronic time? A) Information-oriented (IO) B) Relationship-oriented (RO) C) Government-oriented (GO) D) Worker-oriented (WO) E) Capitalist-oriented (CO) Answer: B Page: 151. Which of the following orientations (synthesis) of culture would be described by a culture that is high-context.7 Difficulty: Hard Type: Definition and Comprehension 26. has collectivism. Which of the following orientations (synthesis) of culture would be described by a culture that is low-context. and uses monochromic time? A) Information-oriented (IO) B) Relationship-oriented (RO) C) Government-oriented (GO) D) Worker-oriented (WO) E) Capitalist-oriented (CO) Answer: A Page: 151. low power distance.When the United States and the European Union get into trade disputes. In the context of international law. a _____________ state is independent and free from all external control. has all of the following characteristics EXCEPT: A) is obligated to be a member of the United Nations. A) bounded B) sovereign C) legal D) free-born E) none of the above Answer: B Page: 158 Difficulty: Easy Type: Definition 29. C) enjoys full legal equality with other states. B) is independent and free from all external control. D) governs its own territory. A sovereign state. E) all of the above are true.28. Answer: A Page: 158 Difficulty: Moderate Type: Comprehension . in the context of international law. At the top of the list of political issues concerning foreign businesses is the: A) ruling party of a country. D) the court system of a country. E) an authoritarian government that can be dealt with through non-legal channels. The five main causes of instability in international markets include trade disputes and all of the following EXCEPT: A) some forms of government seem to be inherently unstable B) changes in political parties C) nationalism D) U.30.S. Answer: E Page: 159 Difficulty: Moderate Type: Comprehension 33. A) Sovereignty B) Government C) A cartel D) An international partnership E) A trade pact Answer: A Page: 158 Difficulty: Moderate Type: Definition 31. domestic political policies E) animosity targeted toward specific countries Answer: D Page: 159-160 Difficulty: Moderate Type: Fact . C) the voting process of a country. D) a government where absolute power is a reality. friendly government. The ideal political climate for a multinational firm is: A) a country where there are no laws. __________ refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members. B) the political history of a country. B) a country where favors can be purchased cheaply. C) a stable. E) the stability or instability of prevailing government policies. Answer: C Page: 159 Difficulty: Moderate Type: Comprehension 32. C) global warming. D) cultural adjustment to global expectations. For most countries around the world it is important for international marketers to know the philosophies of all the major political parties. since one them might become dominant and affect: A) the status of WTO control. B) the overall business climate. government into giving PepsiCo an exclusive contract with Russia. B) peaceful political change. E) to merge with KFC and Taco Bell. C) exchange Pepsi syrup for Russian vodka. C) U.S. Countertrade is often used by international marketers to gain entry into a country. interference in international politics. B) to package its Russian products in red rather than blue packages. D) pressures the U.34. PepsiCo used this strategy when it agreed to: A) offer a more lucrative contract than rival Coca-Cola.S. Answer: B Page: 162 Difficulty: Hard Type: Application and Fact . Which of the following is NOT one of the common forms of government? A) democracy B) aristocracy C) oligopoly D) monarchy E) dictatorship Answer: C Page: 161 Difficulty: Hard Type: Fact 35. D) international support for the United Nations. E) none of the above Answer: B Page: 162 Difficulty: Moderate Type: Fact 36. The election of Vicente Fox as President of Mexico was an example of: A) overthrowing a corrupt regime. E) all of the above. Answer: C Page: 161 Difficulty: Hard Type: Application and Comprehension 37. 38. D) nationalism. B) communism. No nation-state will tolerate penetration by a foreign company into its market if it perceives a(n) ______________ its well-being. An intense feeling of national pride and unity. A) sympathy for B) synergistic relationship to C) economic boost D) threat to E) profitable outcome Answer: D Page: 1 64-165 Difficulty: Easy Type: Definition 41. The phrase “Buy American” would most closely be associated with which of the following? A) Socialism B) Jingoism C) Nationalism D) Mercantilism E) Polarism Answer: C Page: 163 Difficulty: Moderate Type: Definition and Application 40. which of the following presents the most severe political risk? A) confiscation B) expropriation C) domestication D) exchange controls E) local-content laws Answer: A Page: 166 Difficulty: Moderate Type: Definition and Application . Answer: D Page: 163 Difficulty: Easy Type: Definition 39. With respect to political risk that can be faced by a company seeking to invest abroad. C) fascism. an awakening of a nation's people to pride in their country is called: A) socialism. E) polarism. 42. E) local-content laws. B) expropriation. Often an expropriated investment becomes ____________ (i. Answer: B Page: 166 Difficulty: Moderate Type: Definition 44. The seizing of a company's assets without payment is called: A) confiscation. C) domestication. D) exchange controls.. Answer: A Page: 166 Difficulty: Moderate Type: Definition and Application 43. the government is following a process called: A) confiscation.e. D) exchange controls. E) local-content laws. A) democratized B) domesticated C) nationalized D) prioritized E) none of the above Answer: C Page: 166 Difficulty: Easy Type: Definition and Application 45. it becomes a government-run entity). A) Confiscation B) Expropriation C) Domestication D) Exchange controls E) Local-content laws Answer: C Page: 166 Difficulty: Moderate Type: Definition . _____________ occurs when host countries gradually cause the transfer of foreign investment to national control and ownership through a series of government decrees by mandating ownership and greater national involvement in a company's management. B) expropriation. C) domestication. When a government seizes an investment of a foreign investor but some reimbursement for the assets is made. Additionally. the country is likely to implement which of the following to control the situation? A) exchange controls B) local-content laws C) import restrictions D) tax controls E) price controls Answer: A Page: 167 Difficulty: Moderate Type: Comprehension and Definition . Answer: A Page: 166-167 Difficulty: Moderate Type: Fact and Definition 48. If there is a substantial amount of capital leaving the country. starting next year fifty percent of the board of directors of the Chilean operation must be Chileans. Answer: E Page: 167-168 Difficulty: Moderate Type: Comprehension 49. The Mexican telephone company is part of the government. C) import restrictions. this meant that the Mexican government sold its operation to _________________. All of the following are considered to be economic risks that can be faced by international companies EXCEPT: A) exchange controls. E) all of the above are economic risks. E) None of the above. A) investors B) regional state regulatory groups. C) democrats D) outsourcers. The national telephone company in Mexico was privatized. Travis facing in Chile? A) Confiscation B) Expropriation C) Domestication D) Nationalism E) Dictatorship Answer: C Page: 166 Difficulty: Moderate Type: Application and Definition 47. Which of the following political risk actions is Mr. The government in Chile recently informed Clint Travis' company that his retail grocery chain in Chile would have to be gradually turned over to the people of Chile by the year 2050. B) local-content laws.46. D) tax controls. This form of economic risk is associated with which of the following? A) exchange controls B) local-content laws C) import restrictions D) tax controls E) price controls Answer: D Page: 168 Difficulty: Moderate Type: Application and Definition . The United States wanted to promote it “Buy American” policy. When Toyota Motor Company built automobile manufacturing plants in Tennessee and Ohio. E) price controls. This occurred because the United States required that 50 percent of all parts used in an automobile constructed in the United States must contain parts that were manufactured in the United States. In Thailand. A) exchange controls.50. The Nigerian government has found that this is the handiest and quickest means of finding operating funds. Since the government of Nigeria is strapped for cash. Answer: C Page: 167-168 Difficulty: Hard Type: Application and Definition 52. B) local-content laws. C) import restrictions. This would be an illustration of which of the following economic risks faced by international producers of milk? A) exchange controls B) local-content laws C) import restrictions D) tax controls E) price controls Answer: B Page: 167 Difficulty: Easy Type: Application and Definition 51. it has decided to tax all foreign investments (such as oil production equipment) by up to forty percent of appraised value. D) tax controls. it is required that any milk sold in the country must contain at least 50 percent milk from Thai dairy farmers. it faced economic risks associated with _____________. C) The U.S. needs to increase its embargo against Myanmar. Answer: B Page: 169 Difficulty: Easy Type: Definition 55. Crossing Borders 6. Answer: D Page: 170 Difficulty: Hard Type: Fact . D) democratization. B) boycotting. B) Boycotts are generally not very successful. these policies normally control and rectify situations that caused the boycotts. B) The U. D) The United Nations encourages boycotts as a means of settling a dispute as opposed to armed conflict. D) Coercion does not work. In North Korea there is little foreign investment. One of the reasons is the severe application of ________________. Stopping or refusing to trade with another nation for political reasons is called: A) activism. E) expropriation.S. E) All of the above. exchange does. C) Boycotts are illegal. C) confiscation. was able to get the Soviet Union out of Afghanistan by boycotting the Moscow Olympics. Which of the following statements most accurately describes the impact of boycotts? A) In general. Any foreign investor or producer is required to sell its products at prices stated by the North Korean government rather than letting market value and demand determine prices. Answer: B Page: 169 Difficulty: Moderate Type: Comprehension and Application 56. A) exchange controls B) local-content laws C) import restrictions D) tax controls E) price controls Answer: E Page: 168 Difficulty: Easy Type: Application and Definition 54. Only as a Carrot” suggests: A) Thomas Jefferson understood how to get the French and English to stop fighting. E) None of the above is appropriate with respect to boycotts.53.2 “Trade Does Not Work as a Stick. Why do terrorism experts predict multinational businesses will be targeted by terrorists more frequently? A) They are rich and they are powerful. B) nuclear warfare. Terrorism experts predict multinational businesses are less likely to be targeted. D) None of the above. E) All of the above. E) extortion.57. B) They are capitalists and what they sell. Which of the following is NOT a common goal of terrorists? A) Use victims as pawns in political or social disputes. Answer: C Page: 172-173 Difficulty: Easy Type: Comprehension . B) Develop military management capability. C) Inflict fear within a country. Which of the following would be the best illustration of a NGO (nongovernmental organization) group? A) Red Crescent B) Red Cross C) Amnesty D) Oxfam E) All of the above Answer: E Page: 171-172 Difficulty: Easy Type: Comprehension 58. The newest form of terrorism directed toward a peaceful world is: A) germ warfare. C) cyberterrorism. Answer: C Page: 172 Difficulty: Moderate Type: Fact 60. D) hate crimes. D) To generate funds E) To embarrass a government. Answer: B Page: 172 Difficulty: Easy Type: Comprehension 59. C) They less well defended and what they symbolize. Brian is engaged in: A) political risk assessment. Answer: A Page: 174 Difficulty: Moderate Type: Definition . Which of the following would likely be LEAST the politically sensitive? A) the environment. C) democratization. B) exchange rates. Although some products are more vulnerable than others with regard to political sensitivity in foreign markets. B) political security. D) risk abatement. Brian is attempting to forecast political instability and help management identify and evaluate political events and their potential influence on current and future international business decisions. A) grocery chains B) Wal-Mart stores C) fast-food restaurants D) clothing stores E) travel agencies Answer: C Page: 173-174 Difficulty: Hard Type: Fact and Comprehension 63. E) new video games espousing Internet crime. C) national and economic security. and “goner worm” are all examples of: A) viruses damaging the Internet B) politically sensitive products C) third-world diseases. Slammer. Melissa. Answer: A Page: 172-173 Difficulty: Moderate Type: Fact 62. D) hackers intent on attacking multinational businesses.61. ______________ have often been the lightning rods for groups opposed to foreign companies. Answer: D Page: 173-174 Difficulty: Easy Type: Comprehension 64. E) quantification of risk. E) publicly visible assets. D) space travel. Some products and issues are more politically sensitive in international trade than others. Relations between governments and multinational corporations are generally positive if investments: A) are tied to national security. Answer: E Page: 176 Difficulty: Hard Type: Comprehension and Application 68. Answer: D Page: 176 Difficulty: Moderate Type: Comprehension and Application 67. B) are only oriented toward the consumer sector. D) create jobs. or skills. D) products can be purchased via the Internet. E) is tied to national security. E) the investment makes tax contributions. Relations between governments and multinational corporations are generally positive if: A) products impact national security. D) uses locally produced resources. A) importing B) sole-proprietorships C) multinational corporations D) joint ventures E) all of the above are equal with respect to political harassment Answer: D Page: 177 Difficulty: Easy Type: Comprehension . Juliet is concerned with the potential for political harassment when her company enters a new international market. Answer: E Page: 176 Difficulty: Moderate Type: Comprehension and Application 66. To reduce the risk of political harassment she will consider using _______________ to enter the market.65. Relations between governments and multinational corporations are generally positive if investments do all of the following EXCEPT: A) transfers capital. B) products are only directed toward the consumer sector. B) creates jobs. C) makes tax contributions. C) products are only directed toward the business sector. C) are under $1 million. E) do not involve extensive Internet business. technology. Which of the following strategies minimizes political risks for the multinational corporation that wishes to expand into overseas markets? A) joint ventures B) licensing C) expanding the investment base D) planned domestication E) none of the above eliminates almost all political risks Answer: B Page: 177 Difficulty: Moderate Type: Comprehension 71. E) licensing.69. C) expanding the investment base. D) planned domestication. All of the following would be considered to be strategies that multinational corporations can use to minimize vulnerability and risk EXCEPT: A) joint ventures. All of the following strategies can be effective in forestalling or minimizing the effect of a total takeover of a multinational corporation's holdings by a foreign government EXCEPT: A) joint ventures. C) expanding the investment base. E) planned domestication. E) political payoffs. Answer: D Page: 176-178 Difficulty: Moderate Type: Comprehension 72. C) expanding the investment base. The most effective solution to a situation where a foreign government is demanding local participation in a multinational corporation's business activities in the host country is: A) joint ventures. B) licensing. Answer: D Page: 177-178 Difficulty: Moderate Type: Comprehension . B) sole-proprietorship. B) licensing. Answer: B Page: 176-178 Difficulty: Moderate Type: Comprehension 70. D) planned domestication. D) advertising. Answer: C Page: 178 Difficulty: Easy Type: Fact 26.S. C) Department of Commerce.S. Which of the following forms of law was derived from English law? A) code law B) common law C) religious law D) civil law E) universal law . and adjudicated. The principle U. 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. E) Department of Defense. C) accelerate the development of the Internet. E) The issue revolves around the customs of the country and each issue is decided separately. business abroad is the: A) State Department. agency that supports U. D) stall the effects of communism and socialism.73. citizen to pay a bribe--period. The most important reason to encourage foreign investment is to: A) accelerate world peace. B) accelerate the development of an economy. B) Better Business Bureau. Which of the following best describes the U. Answer: B Page: 178 Difficulty: Hard Type: Comprehension 75. B) A bribe is justified is if is the documented traditional practice in a country. Answer: D Page: 178 Difficulty: Moderate Type: Comprehension and Application 74. A) foundation B) legality C) cost D) religious ties E) none of the above Answer: A Page: 182 Difficulty: Easy Type: Comprehension 27.The _________ of a legal system profoundly affects how the law is written. E) make profits. C) A bribe may be paid in a foreign country if there is a tie to national security.S. interpreted. D) It is illegal for a U.S. D) Department of Foreign Relations. Which of the following types of law is primarily found in the United States. England. and other countries once under English influence? A) code law B) common law C) religious law D) civil law E) universal law Answer: B Page: 183-184 Difficulty: Moderate Type: Fact 29.Answer: B Page: 183-184 Difficulty: Moderate Type: Fact 28. Another term for code law is: A) business law B) common law C) religious law D) civil law E) universal law Answer: D Page: 183-184 Difficulty: Moderate Type: Fact . Canada. legal legislation. If law is founded on tradition. and legal precedents set by the courts through interpretations of statutes. The basis for which of the following is tradition. Which of the following countries would have its patent laws best represented by the following three facts--operates under “first to invent rule. legal precedents set by the courts through interpretations of statutes. and past rulings? A) common law B) code law C) Islamic law D) Marxist-socialist tenets E) all of the above Answer: A Page: 183 Difficulty: Moderate Type: Definition 33. past practices. and patent applications are secret? A) Japan B) Brazil C) Saudi Arabia D) France E) United States Answer: E Page: 183. Civil or code law was derived from which of the following? A) English law B) economic law C) Greek law D) Persian law E) Roman law Answer: E Page: 182 Difficulty: Moderate Type: Fact 31.30. Crossing Borders 7.” protects individual inventors. and past rulings. past practices.1 Difficulty: Hard Type: Fact and Application 32. it is called: A) common law B) code law C) Islamic law D) Marxist-socialist tenets E) all of the above Answer: A Page: 183 Difficulty: Moderate Type: Definition . legal legislation. Which of the following is based on an all-inclusive system of written rules of law that is generally divided into commercial. A) common law B) code law C) Islamic law D) Marxist-socialist tenets E) all of the above Answer: C Page: 185 Difficulty: Easy Type: Definition . and criminal sections? A) common law B) code law C) Islamic law D) Marxist-socialist tenets E) all of the above Answer: B Page: 183-184 Difficulty: Hard Type: Definition 35. The overriding objective of ___________ is social justice. The basis of ___________ is the Koran. ___________ is considered complete as a result of catchall provisions found in most of this type of law's system.34. A) common law B) code law C) Islamic law D) Marxist-socialist tenets E) all of the above Answer: C Page: 185-186 Difficulty: Hard Type: Definition 37. A) Common law B) Code law C) Islamic law D) Marxist-socialist tenets E) none of the above Answer: B Page: 183-184 Difficulty: Moderate Type: Definition 36. civil. C) interest.38. A) common law B) code law C) Islamic law D) Marxist-socialist tenets E) all of the above Answer: D Page: 186 Difficulty: Moderate Type: Definition 40.S. Under _____________. E) accounting fees. Which of the following supranational system of laws governs world commerce today? A) U. law B) English law C) traditional Roman law D) code law as explained by French courts E) there is no supranational system of laws that governs behavior Answer: E Page: 186 Difficulty: Hard Type: Comprehension and Application . D) equity. the legal system is subordinate to prevailing economic conditions. which of the following countries has had to build from scratch an entire commercial legal system? A) France B) Germany C) Taiwan D) Russia E) Saudi Arabia Answer: D Page: 186 Difficulty: Moderate Type: Comprehension and Application 41. Among the unique aspects of Islamic law is the prohibition against the payment of: A) taxes. Because of political changes in the late twentieth century. Answer: C Page: 185 Difficulty: Hard Type: Fact 39. B) profits. 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) the World Court does not adjudicate in any of the above matters Answer: A Page: 187 Difficulty: Moderate Type: Comprehension 43. which of the following methods accounts for the majority of settlements? A) conciliation B) informal settlement C) arbitration D) litigation E) none of the methods accounts for a majority of settlements Answer: B Page: 187 Difficulty: Hard Type: Comprehension 45. C) arbitration. B) on the basis of jurisdiction clauses included in contracts. jurisdiction is generally determined in any of the following ways EXCEPT: A) on the basis of the money involved in a contract (who gains the most). C) on the basis of where a contract was entered into. D) litigation.42. B) informal settlement. Another name for conciliation as a means for settling a dispute in international commerce is: A) mediation. In settling international commercial transaction disputes. E) all of the above are ways that jurisdiction is determined. Answer: A Page: 187 Difficulty: Moderate Type: Definition . E) bartering. D) on the basis of where the provisions of the contract were performed. In international commercial disputes. Answer: A Page: 187 Difficulty: Hard Type: Comprehension 44. parties select a disinterested and informed party or parties to sever as a referee to determine the merits of the case and make a judgment that both parties agree to honor. A) conciliation B) informal settlement C) arbitration D) litigation E) none of the above Answer: C Page: 189 Difficulty: Moderate Type: Definition 49. In the usual ______________ procedure. Ralph Richards has been attempting to solve a problem that his company has with a contract default by the Dutch government. Answer: A Page: 189 Difficulty: Moderate Type: Comprehension . B) informal settlement. A nonbonding agreement between parties to resolve disputes by asking a third party to mediate differences is called: A) conciliation. C) arbitration. D) litigation. The first step that most arbitrators try to resolve a dispute between two parties is to attempt: A) conciliation. B) informal settlement. C) fault finding or wrong doing. Answer: A Page: 187 Difficulty: Moderate Type: Definition 47.46. He has tried conciliation but the two parties could never find any common ground on which to begin a fruitful negotiation for settlement. Which of the following will most likely be the course of action that both of the two parties will try next? A) mediation B) informal settlement C) arbitration D) litigation E) none of the above as there is another step not mentioned Answer: C Page: 189 Difficulty: Moderate Type: Application 48. E) none of the above. E) coercion. D) litigation. D) willingness of both parties to accept the arbitrator's rulings. the final step is: A) conciliation. C) the language of the arbitration. C) to find fault or wrong doing as a public relations device. Which of the following is usually NOT placed in the arbitration clause that is becoming standard in many international contracts? A) the number of arbitrators to be involved. Which of the following is one of those accounts? A) The complainants agree on who is right and who is wrong. B) to encourage one's government to force the other party to comply. Answer: D Page: 190 Difficulty: Moderate Type: Comprehension . D) litigation. Answer: D Page: 189-190 Difficulty: Hard Type: Comprehension 51. When all else fails in an international commercial dispute. E) all of the above should be part of the contract with respect to arbitration. D) the age of the arbitrators. Most arbitration is successful. C) nationalities of the complainants.50. E) The complainants agree to hear the case before the World Court if the arbitration fails. C) The complainants agree to abide by the awards resulting from the arbitration. Answer: D Page: 189-190 Difficulty: Moderate Type: Comprehension 52. but success depends on the: A) amount of the judgment. D) The complainants agree to not hire legal counsel. E) coercion. B) The complainants agree on litigation issues. Answer: C Page: 189-190 Difficulty: Easy Type: Comprehension and Application 53. B) the place of the arbitration (city and/or country). B) personalities of the complainants. Arbitration clauses require agreement on two counts. E) amount of money involved in the dispute. D) consistency with generic products. Answer: E Page: 191 Difficulty: Hard Type: Fact and Application . Answer: D Page: 191 Difficulty: Hard Type: Fact and Application 57. D) collusion between contract manufacturers and illegitimate sellers. E) loss of confidentiality. E) all of the above. 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 Answer: D Page: 190 Difficulty: Easy Type: Comprehension 56. B) the theft of products by pirates during shipping. B) fear of unfair treatment in a foreign court. All of the following are considered to be deterrents to litigation EXCEPT: A) fear of creating a poor image and damaging public relations. C) difficulty in collecting a judgment that may otherwise have been collected in a mutually agreed settlement through arbitration. One authority suggests that settlement of every dispute should follow four steps. D) the relatively low cost and time required when bringing legal action. E) quality. One counterfeiting problem for international marketers is: A) the ease with which consumers can tell the difference between real and counterfeit products. Answer: D Page: 190-191 Difficulty: Moderate Type: Comprehension 55. marketing power. Companies spend millions of dollars establishing brand names and trademarks primarily to symbolize: A) U.54. C) government regulations legitimizing counterfeiting. C) local content.S. B) environmentally-friendly production processes. C) are protected in the European Union under the Geneva Convention but not in Japan. D) need to be registered with the World Court. McDonald's learned that trademarks registered in the United States: A) must be ratified by the United Nations trademark protection agency. C) design proof.58. B) registration versus prior use.” E) the “golden rule of property. Answer: E Page: 194 Difficulty: Hard Type: Application and Comprehension 60. McDonald's eventually got the trademark back after a lengthy court battle and a monetary award to the Japanese company. E) are not protected in other countries. A famous case occurred in Japan where a Japanese business registered McDonald's world famous trademark before the McDonald's did and was given permission to use the trademark. In a common-law country. ownership of intellectual property rights is established by: A) prior use versus registration. Which of the following commonly counterfeited products has the potential for doing the greatest harm to the consuming public? A) toys B) CDs C) pharmaceuticals D) software E) clothing Answer: C Page: 193 Difficulty: Easy Type: Fact 59. B) are worthless. D) the “common sense mandate.” Answer: A Page: 194 Difficulty: Moderate Type: Fact . In a common-law country. Which of the following conventions is responsible for the promotion of the protection of intellectual property rights? A) the Paris Convention B) the Madrid Agreement C) the Tokyo Agreement D) the Eurasian Convention E) The United Nation's WIPO Answer: E Page: 196 Difficulty: Hard Type: Fact 64. B) One must pay for the right to own a trademark. D) Ownership of a trademark can only be established in a court of law. C) Whoever can establish first use of a trademark is typically considered the rightful owner. Answer: C Page: 194-195 Difficulty: Moderate Type: Definition and Application 62.61. Which of the following international conventions was established to recognize intellectual property rights? A) the Paris Convention B) the Madrid Agreement C) the Tokyo Convention D) the Eurasian Convention E) all of the above Answer: A Page: 196 Difficulty: Hard Type: Fact 63. E) Ownership of a trademark is global and is established by the United Nations.” What does the phrase “prior use versus registration” mean? A) One must register a trademark to gain rightful ownership of it. All countries have laws regulating which of the following marketing activities? A) promotion B) product development C) labeling D) channels of distribution E) all countries have laws regulating all of the above Answer: E Page: 198 Difficulty: Easy Type: Fact . ownership of intellectual property rights is established by “prior use versus registration. 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 Answer: C Page: 201 Difficulty: Hard Type: Fact and Comprehension 67. Which of the following acts developed by the European Union erases legal and trade differences that have existed for decades between the member nations? A) European Sanctity Act B) European Antitrust Act C) European Unification Act D) Single European Market Act E) none of the above Answer: D Page: 198 Difficulty: Hard Type: Fact and Comprehension 66.65. B) the legal transfer of power. Answer: D Page: 203 Difficulty: Hard Type: Application and Fact .S. E) the McNeil Principle of International Law. Which of the following is NOT one of the areas of antitrust enforcement in the European Union and elsewhere? A) full-line forcing B) price discrimination C) supply restrictions D) competitiveness councils E) antimonopoly Answer: D Page: 202 Difficulty: Easy Type: Fact and Comprehension 68. The question of jurisdiction of U. D) the objective theory of jurisdiction. law over acts committed outside the territorial limits of the country has been settled by the courts through application of a long-established principle of international law called the: A) the right of imminent domain. C) the rights of foreign powers and citizens. Which of the following accurately describes one of those purposes? A) Protection of American consumers by ensuring that they benefit from products and ideas produced by foreign competitors as well as by domestic competitors. C) Protection of the U.S. Answer: E Page: 204 Difficulty: Easy Type: Fact and Application 71.S. D) the overall balance of payments of the United States. E) the national security of the United States. A) Constitution B) Bill of Rights C) Foreign Corrupt Practices Act D) Best Practices Act E) International Codes of Law Answer: C Page: 203 (see also Chapter 5) Difficulty: Moderate Type: Fact 70. D) Protection of the right to compete abroad. B) the competitive balance of free competition inside the U.S. Which of the following U. Answer: A Page: 205 Difficulty: Moderate Type: Comprehension 72.69. C) relationship with the world community. B) Protection of the trade balance of the United States. or political parties. The ________________ of the United States makes it illegal for companies to pay bribes to foreign officials. E) All of the above are really purposes of antitrust enforcement.S. or foreign firms that are licensees of U. candidates. technology cannot sell a product to a country in which the sale is considered by the U.S. government agencies oversees antitrust enforcement in international commerce? A) Department of State B) Department of Justice C) Department of Commerce D) Department of Defense E) Department of Home Land Security Answer: B Page: 205 Difficulty: Hard Type: Fact and Application . their foreign subsidiaries. firms. Antitrust enforcement has two purposes in international commerce.S. government to affect: A) the competitive balance of world trade. dollar abroad. U. Which of the following best describes the most realistic of these threats as interpreted by foreign governments? A) the threat to annex a foreign country.S.S. D) The boycott of Iraq by the United States. Even though each nation is considered to be sovereign. _____________ buy and register descriptive nouns. by the U.R. B) The boycott of South Africa by the world community. D) the threat of influencing a foreign government through American government policy on their economies through U. C) The boycott of Israel by the Arab League. (the wheat embargo). ___________ is traditionally defined as the systematic gathering. multinationals E) the threat of germ warfare Answer: D Page: 206 Difficulty: Moderate Type: Application and Fact 75.S. ___________ is the key component in developing successful marketing strategies and avoiding major marketing blunders in the international marketing environment. A) cyberterrorists B) cybersquatters C) cyberpirates D) cybermarkers E) cyberghosts Answer: B Page: 207 Difficulty: Moderate Type: Definition 26. According to the text. Under the Antiboycott Law.S.S. many nations consider the extraterritoriality of U.S. Which of the following situations brought about the Antiboycott Law in the U. and . ethnic groups. laws to be a threat.According to the text.? A) The boycott of Cuba by the U.S. pharmaceutical substances and other similar descriptors and hold them until they can be sold at an inflated price.73.S. Answer: C Page: 205-206 Difficulty: Hard Type: Fact and Application 74. E) The boycott of the U. companies are forbidden to participate in any unauthorized foreign boycott. A) public relations B) information C) advertising D) government support E) “deep pockets” Answer: B Page: 214 Difficulty: Easy Type: Comprehension 27. U. geographic names. B) the threat to boycott a foreign country. C) the threat to go to war with a foreign country. recording. analyzing of data to provide information useful in marketing decision making. A) Market segmentation B) Marketing information systems C) Marketing research D) Database management E) Marketing intelligence Answer: C Page: 214 Difficulty: Easy Type: Definition . Answer: D Page: 214 Difficulty: Hard Type: Comprehension 30. Which of the following would be one of those complications? A) International marketing research is always more expensive than domestic research.28. E) None of the above applies to the situation mentioned in the question. Answer: D Page: 215 Difficulty: Hard Type: Comprehension . C) International marketing research is better with respect to cultural research because it involves more cultural information. Though definitions of marketing research and international marketing research are basically the same. The systematic gathering. Which of the following would be one of those complications? A) International marketing research is always more expensive than domestic research. C) International marketing research is better with respect to cultural research because it involves more cultural information. there are two distinct complications that impact international marketing research. Though definitions of marketing research and international marketing research are basically the same. D) Information must be communicated across cultural boundaries. E) All of the above are complications. there are two distinct complications that impact international marketing research. recording. D) The environments within which the research tools are applied are often different in foreign markets. B) International marketing research is very poor when it comes to promotional studies. and analyzing of data to provide information useful in marketing decision making is considered to be the traditional definition of which of the following terms? A) Market segmentation B) Marketing information systems C) Marketing research D) Database management E) Marketing intelligence Answer: C Page: 214 Difficulty: Easy Type: Definition 29. B) International marketing research is very poor when it comes to promotional studies. and industry need trends within specific markets or countries. Research can be divided into different types based on information needs. B) the security factor with respect to the researchers. Answer: D Page: 215 Difficulty: Moderate Type: Comprehension 33. and apparent strategies on an international scope? A) Economic B) Cultural. products. and political climate C) Overview of market conditions D) Summary of the technological environment E) Competitive situation Answer: E Page: 215 Difficulty: Moderate Type: Comprehension and Application . and/or market. distribution. sociological. E) all of the above are correct types of research as indicated by the text. According to a system for collecting and assessing information developed by Unisys Corporation. All of the areas below fit these different types EXCEPT: A) general information about the country. D) specific information necessary to attract investors from foreign countries or markets. and price decisions and to develop marketing plans. B) information necessary to forecast future marketing requirements by anticipating social. consumer. Answer: C Page: 215 Difficulty: Hard Type: Comprehension 32. E) the inability to get accurate pricing data from foreign markets.31. The basic difference between domestic and foreign market research is: A) the cost of foreign market research. C) the broader scope needed for foreign research necessitated by higher levels of uncertainty. area. C) specific market information used to make product. D) the response of governments when they discover that research is being conducted. promotion. economic. methods of market segmentation. which of the following steps would consist of reviewing competitors' sales revenues. political power. D) Consider the costs and benefits of the research effort. interpret. or both. and summarize the results. Many firms engaged in foreign marketing do not make decision with the benefit of all the information they would have for most domestic marketing decisions. Which of the following would not be considered to be a step in the traditional marketing research process? A) Define the research problem and establish research objectives. and ___________________are the three major reasons why these companies do not have all the information desired. and logistics Answer: B Page: 216 Difficulty: Moderate Type: Comprehension 35. Answer: A Page: 216 Difficulty: Moderate Type: Application and Comprehension 37. The ___________ process should begin with a definition of the research problem and the establishment of specific research objectives. C) Determine the sources of information to fulfill the research objectives. and supply-side economics E) corruption. product. serendipity. E) Pair the research results with all other recent research efforts to determine validity. D) Consider the costs and benefits of the research effort. Answer: E Page: 216 Difficulty: Hard Type: Comprehension 36. interpret. and management style D) sociology. Which of the following marketing research process steps would be the first step that Bert's company (and marketing researchers) should take as it embarks on the research effort? A) Define the research problem and establish research objectives. B) Analyze. A) price. Bert Wong has decided to pursue a marketing research effort to acquire information before his company makes a strategic relocation move to the West Coast. A) marketing B) promotion C) market segmentation D) research E) information systems Answer: D Page: 217 Difficulty: Easy Type: Comprehension . ________________. and promotion B) cost. and summarize the results.34. E) Gather relevant data from secondary or primary sources. politics. __________. B) Analyze. C) Determine the sources of information to fulfill the research objectives. and lack of appreciation for information C) culture. time. C) tertiary research. D) The data contains political statements about the current regime that foreigners would object to reading or hearing. C) The data is prone to being overly optimistic and unreliable in reporting relevant economic data about their countries. C) determine the sources of information to fulfill the research objectives. Answer: C Page: 219 Difficulty: Moderate Type: Comprehension and Application . E) none of the above. C) number of people needed to undertake the research effort. After the problem is adequately defined (in a marketing research effort) and research objectives established. the researcher must determine: A) the sample size. Answer: D Page: 218 Difficulty: Moderate Type: Comprehension 40. the next step to be undertaken to: A) effectively communicate the results to decision makers. Ben Grissom has decided to use information collected by the United States government in his upcoming research project on cultural trends. E) simplistic research. Since Ben is not collecting this information himself. Answer: B Page: 218 Difficulty: Easy Type: Application and Definition 41. E) None of the above is valid reasons with respect to the question asked. the information is described as being: A) primary research. E) none of the above. Answer: C Page: 216 Difficulty: Easy Type: Comprehension 39.38. B) the cost of the project. After an international marketing researcher has defined the research problem and established research objectives. B) secondary research. or both. B) The data will not be released to any foreign government or foreign corporation. B) analyze. and summarize the results. Which of the following reasons best describes why much of secondary research provided by foreign governments is suspect with respect to reliability? A) The data in foreign countries is usually written in a foreign language and there are translation difficulties that are often insurmountable. interpret. D) the availability of the information needed. D) parallel research. D) gather relevant data from secondary or primary sources. B) primary data. E) cohort data. Answer: B Page: 221 Difficulty: Easy Type: Definition .S. Which of the following is an effective and often-used way of judging validity of data from an international market or source? A) determining how much the data costs B) checking the consistency of one set of secondary data with other data of known validity C) examining government seals of approval or authenticity D) using only U. Which of the following is NOT a problem associated with secondary data obtained from many international markets and international data sources? A) comparability of data B) availability of data C) reliability of data D) necessity of data E) validity of data Answer: D Page: 218-220 Difficulty: Moderate Type: Comprehension 43. C) simplistic data. Which of the following questions should be asked by a marketing researcher that is seeking to establish the validity of secondary data sources in the international arena? A) How much does data cost? B) What language is used in the host country? C) How does the government view marketing research in the host country? D) Who collected the data? E) Was the data available on the Internet? Answer: D Page: 220 Difficulty: Hard Type: Comprehension 44. researchers to conduct any research E) none of the above Answer: B Page: 220 Difficulty: Moderate Type: Comprehension 45. If data is collected specifically for the particular research project at hand it is called: A) secondary data. D) bipolar data.42. A) secondary B) simplistic C) primary D) bipolar E) tertiary Answer: C Page: 221 Difficulty: Easy Type: Definition 47. In most ____________ data collection. the researcher questions respondents to determine what they think about some topic or how they might behave under certain conditions. In ___________ research. 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.46. What are these two types? A) primary and secondary B) quantitative and qualitative C) summary and conclusive D) written and electronic E) human and nonhuman Answer: B Page: 221-222 Difficulty: Moderate Type: Comprehension 48. Mary Hills would like to ask respondents a series of open-ended questions that will help to explain the respondents' feelings and thoughts on the subject of child labor. Marketing research methods can be grouped into two basic types. Which of the following research formats will Mary need to choose to best complete her research assignment? A) quantitative B) qualitative C) exploitive D) secondary E) subliminal Answer: B Page: 222 Difficulty: Moderate Type: Application and Definition . A) quantitative B) qualitative C) exploitive D) secondary E) secular Answer: A Page: 221 Difficulty: Moderate Type: Definition 49. 50. Suki Nguyen is planning her Masters Thesis. Which of the following research formats is most suited to her initial research explorations? A) quantitative research B) qualitative research C) subliminal research D) secondary research E) exploitive research Answer: B Page: 222 Difficulty: Hard Type: Application and Definition 51. A) Fear of government reprisals B) Lack of incentives C) In ability to use the Internet D) Lack of interest E) Cultural differences Answer: E Page: 224 Difficulty: Hard Type: Comprehension . D) hire enough staff to complete the mission. Answer: C Page: 224 Difficulty: Hard Type: Comprehension 52. A) are poor B) reject new products C) offer too many opinions D) can't talk E) are married to international marketers Answer: D Page: 224 Difficulty: Easy Type: Comprehension and Application 53. making it difficult to communicate and gather marketing information from them. Her thesis will specifically focus on sociocultural factors and their impact on behavior patterns in Vietnamese commerce. B) speak the language of the country where the research is being conducted. Assuming the research problem is well defined and the objectives are properly formulated. the success of primary research in an international arena hinges on the ability of the researcher to: A) bribe the correct officials where the information is to be gathered. C) get correct and truthful information that addresses the research objectives. ____________ offer(s) the best explanation for the unwillingness or inability of many international consumers to respond to research surveys. One of her assignments will be to develop a series of research hypotheses that eventually can be tested. Gerber's primary consumers usually______________. E) use the Internet. C) strategic management overview. Answer: D Page: 226 Difficulty: Moderate Type: Fact and Application 56. In the international marketing research arena all of the following problems in drawing a simple random sample can occur EXCEPT: A) no eligible respondents possible. Answer: A Page: 225 Difficulty: Moderate Type: Comprehension 55. In many Asian cities. C) government intervention in the sampling process. A) product enhancement analysis. the greatest problem in sampling stems from: A) the lack of adequate demographic data and available lists from which to draw meaningful samples. D) an inability to speak foreign languages. Answer: A Page: 226 Difficulty: Easy Type: Comprehension . B) the lack of expertise in how to design samples. D) no accurate maps of population centers. E) none of the above. some streets are not identified. B) no other listings that can serve as sampling frames. D) sampling process. and some houses are not numbered making it difficult for market researchers attempting to conduct an accurate __________. The adequacy of sampling techniques is most affected by which of the following? A) lack of understanding of sampling methods by marketing researchers B) inability of the respondents to access the Internet C) lack of detailed social and economic information D) lack of funds to conduct the research effort E) lack of specific quantitative tools for devising a sample Answer: C Page: 226 Difficulty: Hard Type: Comprehension 57. E) no officially recognized census of population.54. With respect to the international arena. there are no street maps. E) exit interview. B) situational analysis. C) incomplete and out-of-date telephone directories. C) social barrier. B) religious barrier.58. the results are compared. In _________ translation. and then a second party translates it back into the original. In __________ translation. Answer: D Page: 226-229 Difficulty: Moderate Type: Comprehension 60. All of the following would be among those techniques EXCEPT: A) back translation. differences discussed. Marketers use several different techniques to ferret out translation errors ahead of time. Answer: E Page: 226 Difficulty: Hard Type: Fact 59. The most universal survey research problem in foreign countries is the: A) timing problem. B) parallel translation. D) literacy barrier. C) decentering. E) language barrier. E) all of the above are correct techniques. and the most appropriate translation selected. D) polar translation. A) back B) parallel C) decentering D) polar E) simultaneous Answer: A Page: 228 Difficulty: Moderate Type: Definition 61. more than two translators are used for the translation into the origination language. A) back B) parallel C) decentering D) polar E) simultaneous Answer: B Page: 228 Difficulty: Moderate Type: Definition . the questionnaire is translated from one language to another. In this process each time there are translations by a different translator.62. Bressler experiencing with his company's advertising? A) improper syntax B) improper colloquialisms or slang C) improper grammar D) improper local language E) none of the above Answer: B Page: 228 Difficulty: Hard Type: Application 64. economies. As a representative of Ford Motor Company he believes that it is entirely proper to use American campaigns in the Japanese market. social structures. Alex is engaged in research involving countries that have different languages. and attitude patterns." Which of the following problems is Mr. The process is repeated until all language difficulties or differences are resolved. Mark Bressler is having great difficulties with his company's advertising in Japan. He was very surprised to learn that a slogan "Body by Fisher" (the company that makes Ford undercarriages) translated in Japanese as "Corpse by Fisher. Alex is engaged in ____________ research. a successive process of translation and retranslation of a questionnaire occurs. A) back translation B) parallel translation C) decentering D) polar translation E) simultaneous translation Answer: B Page: 228 Difficulty: Moderate Type: Definition 63. behavior. A) Marketing B) Measurement C) Psychological D) Sociological E) Multicultural Answer: E Page: 229 Difficulty: Moderate Type: Definition . In a process know as ___________. behavior. she is well aware of the different languages. One of the ways the Internet is being used with respect to international research is that servers automatically track and time visitors' travel through websites. Which of the following uses for the Internet in international research most closely matches the above usage? A) online surveys and buyer panels B) online focus groups C) Web visitor tracking D) advertising measurement E) e-mail marketing lists Answer: C Page: 230 Difficulty: Easy Type: Comprehension and Application . As Margaret Smith begins her study of ten European nations as possible market centers for Xerox's new photocopying equipment line.65. which of the following terms most accurately describes the form of research that Ms. social structures. There are several different uses for the Internet in international research. economies. Smith will most likely pursue? A) Marketing research B) Measurement research C) Psychological research D) Sociological research E) Multicultural research Answer: E Page: 229 Difficulty: Moderate Type: Definition and Application 66. and attitude patterns that are present in the ten countries. To research these new markets. Which of the following WOULD NOT be among those uses? A) online surveys and buyer panels B) mall-intercept surveys C) Web visitor tracking D) advertising measurement E) online focus groups Answer: B Page: 230 Difficulty: Easy Type: Comprehension 67. Which of the following uses for the Internet in international research most closely matches what Mr. two methods of forecasting demand are particularly suitable for international marketers. A) polling B) analogy C) morphing D) modeling E) triangulation Answer: E Page: 232 Difficulty: Moderate Type: Comprehension .68. A) data corruption and collusion B) statistical barriers and social norms C) United Nations cultural restrictions and WTO data collection rulings D) greater uncertainties and data limitations E) All of the above. Forecasting demand in many foreign countries is more difficult because of ____________ and _______________. Which of the following most accurately describes these two methods? A) purchaser behavior and supplier behavior B) expert opinion and analogy C) modeling and morphing D) linear progression and linear regression E) plotting and profiling Answer: B Page: 232 Difficulty: Hard Type: Comprehension 70. Simmons would like to accomplish? A) online surveys and buyer panels B) online focus groups C) customer identification systems D) advertising measurement E) e-mail marketing lists Answer: C Page: 230 Difficulty: Moderate Type: Comprehension and Application 69. The key in using expert opinion to help in forecasting demand is ______________ that is. Given the greater uncertainty and data limitations associated with foreign markets. comparing estimates produced by different sources. Ray Simmons' company would like to construct a "virtual panel" on the Internet to review planned products for the upcoming year. Answer: D Page: 232-234 Difficulty: Easy Type: Comprehension 71. A) polling B) analogy C) morphing D) modeling E) triangulation Answer: B Page: 232 Difficulty: Moderate Type: Comprehension 73. the marketing researcher must possess all of the following traits EXCEPT: A) have a high degree of cultural understanding. C) have a creative talent for adapting research methods. To deal with problems in analyzing and interpreting research information in the international marketplace.72. Answer: C Page: 236 Difficulty: Moderate Type: Comprehension . C) local researchers in each country. D) have a skeptical attitude in handling both primary and secondary data. Answer: B Page: 235 Difficulty: Moderate Type: Comprehension 74. E) all of the above are traits of the international marketing researcher. The__________ method for estimating demand assumes that demand for a product develops in much the same way in all countries as comparable economic development occurs in each country. A Comprehension review of the different approaches to multicountry research suggests that the ideal approach is to have: A) all research done by the domestic research entity. B) have the ability to manage money. B) all research done by the local research entities. D) an international research department that is solely responsible for all research not matter where in might be needed. with close coordination between the client company and the local research companies. E) none of the above is really the correct answer. C) dictates the kind and degree of market potential that exists. D) constrains the ability to exchange currency.Which of the following is NOT one of the factors changing the way countries trade and prosper in the twenty-first century? A) The transition from socialist to market-driven economies. Answer: C Page: 247 Difficulty: Moderate Type: Comprehension . The text describes four kinds of company-agency-customer relationships that might be used to bridge the cultural barrier that is present in most international marketing research. E) The expansion of military interventions around the world.3 Difficulty: Hard Type: Comprehension and Application 26. Answer: E Page: 247 Difficulty: Hard Type: Fact 27. Which of the following is deemed to best suited for managing the cultural barrier across the chain of communication? A) Option A (company--agency--customers) B) Option B (company--agency--local agency--customers) C) Option C (Company--foreign agency--customers) D) Option D (Company--customers) E) none of the above is a correct option for a company to follow in the situation described Answer: B Page: 237. B) solidifies the mindset of the economic minister of any country to be traded with. D) The rapid development of regional market alliances. The current level of economic development within a country: A) determines the economic models to be used in countries' universities and colleges. The __________ level of a country is the single most important environmental element to which the foreign marketer must adjust the marketing task. E) none of the above. A) political stability B) entrepreneurial C) economic D) technology E) literacy Answer: C Page: 246 Difficulty: Moderate Type: Comprehension 28. B) Liberalization of trade and investment policies in developing countries.75. C) The transfer of public-sector enterprises to the private sector. Exhibit 8. A) Market B) Export C) Import D) Economic E) Supply Answer: D Page: 247 Difficulty: Moderate Type: Definition 30. tends to mean rapid economic growth and increases in consumer demand. _____________. Which of the following people is generally recognized as having developed the bestknown model for classifying countries by stage of economic development? A) Milton Friedman B) John Maynard Keynes C) Arthur Laffer D) Walt Rostow E) Yorham “Jerry” Wind Answer: D Page: 247 Difficulty: Hard Type: Fact 32. ___________ development is generally understood to mean an increase in national production that results in an increase in the average per capita gross domestic product (GDP). All of the following would be considered to be recognized stages of Rostow's five-stage model presented in the text for classifying countries with respect stage of economic development EXCEPT: A) The abandonment of socialistic structures B) The traditional society C) The preconditions for take-off D) The drive to maturity E) The age of high mass consumption Answer: A Page: 247 Difficulty: Hard Type: Comprehension .29. as commonly defined today. A) Economic development B) Market development C) Supply development D) Export development E) Import development Answer: A Page: 247 Difficulty: Moderate Type: Definition 31. 1 Difficulty: Hard Type: Comprehension . the country is in which of the following stages? A) The take-off B) The traditional society C) The preconditions for take-off D) The drive to maturity E) The age of high mass consumption Answer: B Page: 247 Difficulty: Moderate Type: Comprehension 34. The final stage of Rostow's five-stage model for classifying countries with respect to stage of economic development is one called: A) the take-off. Considering Rostow's five-stage model presented in the text for classifying countries with respect stage of economic development. Countries that are experiencing rapid economic expansion and industrialization and do not exactly fit as LDCs or MDCs are typically referred to as: A) LLDCs (least-developed countries) B) KDCs (kinetically-developing countries) C) PDCs (parallel-developed countries) D) NICs (newly industrialized countries) E) none of the above Answer: D Page: 248 & Exhibit 9. E) the age of high mass consumption. C) the preconditions for take-off. Answer: E Page: 247 Difficulty: Easy Type: Comprehension 36. D) the drive to maturity. Considering Rostow's five-stage model presented in the text for classifying countries with respect stage of economic development. if a country achieves a growth pattern that becomes a normal condition and has steady development in agriculture and industrial modernization. the country is in which of the following stages? A) The take-off B) The traditional society C) The preconditions for take-off D) The drive to maturity E) The age of high mass consumption Answer: A Page: 247 Difficulty: Hard Type: Comprehension 35.33. if a country lacks the capability of significantly increasing the level of productivity and has low levels of modern science and technology. B) the traditional society. A) only petroleum products B) significant C) little D) substantial E) service-oriented Answer: C Page: 248 Difficulty: Moderate Type: Definition 40. E) all of the above. Mexico. Countries classified LLDC (least-developed countries) would be industrially underdeveloped. D) joined the United Nations' economic development referral council. Which of the following countries would carry the label MDC (more-developed countries)? A) Canada B) England C) France D) Germany E) all of the above would carry the label Answer: E Page: 248 Difficulty: Easy Type: Fact and Definition 39. subsistence societies with rural populations. C) reduced population pressures through labor outsourcing. agrarian. Most newly industrialized countries (NICs) have moved away from restrictive trade practices and instituted significant free market reforms. and South Korea don't exactly fit as MDCs (more-developed countries) or LDCs (less-developed countries). and would have_____________ world trade involvement. According to information presented in the text. extremely low per capita income levels. B) overcome environmental damages caused by lack of development.37. A new category applies to these countries. Answer: A Page: 248 Difficulty: Hard Type: Comprehension 38. Brazil. Chile. Which of the following would be most appropriate? A) LLDCs (least-developed countries) B) KDCs (kinetically-developing countries) C) PDCs (parallel-developed countries) D) NICs (newly industrialized countries) E) none of the above Answer: D Page: 248 Difficulty: Moderate Type: Application and Definition . As a result these countries have: A) attracted both trade and foreign direct investment. B) decline in productivity throughout the private sector. Answer: C Page: 250 Difficulty: Moderate Type: Comprehension and Application . C) development of mass media advertising. Answer: C Page: 248 Difficulty: Moderate Type: Comprehension 43. E) all of the above. D) outward orientation. D) change in political leadership which often reduces social tension. it usually results in a: A) surge in domestic savings to spend. B) economic and legal reforms. All of the following factors are cited as being reasons that NICs (newly industrializing countries) have had such remarkable success EXCEPT: A) political stability. C) release of capital to invest elsewhere.41. E) entrepreneurship. If a NIC (newly industrializing country) had the characteristic of increasing the production for the domestic market and export markets with increases in efficiencies and continual differentiation of exports from competition as its focus. Which of the following countries WOULD NOT be classified as one of the “Four Tigers” of Southeast Asia? A) South Korea B) Taiwan C) the Philippines D) Hong Kong E) Singapore Answer: C Page: 249 Difficulty: Moderate Type: Fact and Comprehension 42. When countries sell off state-owned enterprises. the country would be using which of the following factors as a component for growth? A) economic and legal reforms B) privatization C) an outward orientation D) entrepreneurship E) factors of production Answer: C Page: 248 Difficulty: Moderate Type: Comprehension and Application 44. D) extrastructure. a fundamental underpinning for economic development. Paved roads. A) psychological dialogue B) anthropological change C) social cohesiveness D) political ideas E) education Answer: E Page: 252 Difficulty: Hard Type: Comprehension 47. and energy supplies are illustrations of a country's: A) supply system.45. railroads. Which of the following would be characterized as being the fundamental objective of most developing countries? A) Entrepreneurship B) Industrialization C) Conservation of resources D) Enabling a strong home land defense force E) Establishing a strong agricultural system Answer: B Page: 252 Difficulty: Moderate Type: Comprehension 48. The Internet facilitates ________________. C) infrastructure. A) political propaganda B) cell phones C) PDAs D) new technologies E) simulated consumption Answer: D Page: 251 Difficulty: Moderate Type: Comprehension 46. E) microenvironment. Answer: C Page: 253 Difficulty: Moderate Type: Definition and Application . The Internet accelerated the process of economic growth by speeding up the diffusion of ____________ to emerging economies. B) labor support system. 49. Countries begin to lose economic development ground when their ___________ cannot support an expanding population and economy. A) source remediation technology B) infrastructure C) cultural arts D) statistical discrepancy accounting E) currency conversion ratio Answer: B Page: 253 Difficulty: Hard Type: Fact 50. Economic planners are often more ___________ oriented than __________ oriented. A) production; marketing B) private; public C) profit; policy D) system; subject E) logistically; symbolically Answer: A Page: 254 Difficulty: Easy Type: Fact 51. According to a case made by the text, economic planners with a national goal of growth should be more concerned with the efficiency of __________ than with the other choices mentioned. A) production B) investment C) finance D) distribution E) advertising Answer: D Page: 254 Difficulty: Moderate Type: Fact and Application 52. __________ is an economy's arbitrator between productive capacity and consumer demand. A) Management B) Marketing C) Public relations D) Operations procedures E) Economics Answer: B Page: 255 Difficulty: Easy Type: Comprehension 53. The level of market development roughly parallels the stages of: A) the product life cycle. B) the adoption curve. C) a production cycle. D) marketing mix application. E) economic development. Answer: E Page: 256 Difficulty: Moderate Type: Comprehension 54. Estimating demand potential in less-developed countries involves myriad challenges. Most of the difficulty arises from economic: A) dualism. B) scarcity. C) boycotts. D) chaos. E) symbolism. Answer: A Page: 256 Difficulty: Moderate Type: Definition and Comprehension 55. Morris Mayer has found it difficult to accurately estimate market potential in Mexico. He has observed that while Mexico has had rapid technological growth and production that can certainly be classified as modern, it also has certain traditional sectors in the rural parts of the country that are at best primitive. This situation is best described as being one of economic: A) dualism. B) scarcity. C) fantasy. D) chaos. E) symbolism. Answer: A Page: 256 Difficulty: Easy Type: Application and Definition 56. With respect to the evolution of the marketing process, which of the following stages would be considered to be the most fundamental stage (first stage) of the process? A) marketing B) regionalism C) manufacturing D) agricultural and raw materials E) entrepreneurship Answer: D Page: 257, Exhibit 9.3 Difficulty: Easy Type: Comprehension 57. If a country was primarily dominated by nomadic or hunting tribes, which of the following stages of the marketing process would most likely be used to describe the country? A) marketing B) regionalism C) manufacturing D) agricultural and raw materials E) entrepreneurship Answer: D Page: 257, Exhibit 9.3 Difficulty: Moderate Type: Comprehension and Application 58. According to the evolution of the marketing process, mass production first came to the United States during which of the following time periods? A) 1885-1914 B) 1776-1785 C) 1805-1830 D) 1915-1929 E) 1950-present Answer: A Page: 257, Exhibit 9.3 Difficulty: Hard Type: Fact and Application 59. Which of the following best characterizes the United States today with respect to the evolution of the marketing process? A) mass production B) commercial--transition C) cottage industry D) surplus commodity product E) mass distribution Answer: E Page: 257, Exhibit 9.3 Difficulty: Moderate Type: Fact and Application 60. With respect to the evolution of the marketing process, the United States is best characterized today as to its primary orientation as being a nation whose focus is on: A) entrepreneurial/commercial. B) entrepreneurial/financial. C) production and finance. D) marketing. E) public relations and advertising. Answer: D Page: 257, Exhibit 9.3 Difficulty: Hard Type: Fact and Application B) the modern. TVs. and marketing. C) the modern sector will revert to the consumer practices of the traditional sector. In the language of international marketing. B) business units and economic models. middle income class may offer the greatest potential. as the transition from traditional to modern takes place: A) the traditional sector will continue to offer the most potential. D) bilingual economic microcosms. and personal computers per 1000 people are indicators of: A) internal supply coefficients B) external market demand C) interactive communication complications D) demand for consumer services E) market potential Answer: E Page: 259. Answer: B Page: 258 Difficulty: Hard Type: Fact 63. Exhibit 9. E) none of the above.4 Difficulty: Moderate Type: Fact 62. E) all of the above. C) big emerging markets. e-commerce. Answer: C Page: 261 Difficulty: Moderate Type: Definition . In a country with a dual economy. BEM stands for: A) business.61. Cars. A) when it is difficult and initially unprofitable B) after the process of growth has begun C) where there are many competitors D) at the request of the poorest citizens E) all of the above Answer: A Page: 260 Difficulty: Easy Type: Fact 64. D) the traditional sector will block entry of marketers to the modern sector. The companies that invest in developing markets _______________ will benefit in the future. B) they are all physically large. C) entrepreneurial market. Answer: E Page: 261 Difficulty: Moderate Type: Definition 67. B) India during the British Empire period. B) less developed market. What is happening in BEMs today is analogous to what happened in: A) Saudi Arabia in the 1800s. is a regional economic driver. Answer: A Page: 261 Difficulty: Hard Type: Fact and Comprehension 66. E) no where else in the world. D) Europe after World War II. Big emerging markets (BEMs) share a number of important traits. If a market is characterized as being physically large. It is unique in economic development history. has significant population. C) Russia after the fall of the czar.65. D) agrarian market. Which of the following Latin American countries would NOT be considered a BEM (big emerging country)? A) Argentina B) Brazil C) Guatemala D) Mexico E) Venezuela Answer: C Page: 261 Difficulty: Moderate Type: Fact 68. and has undertaken significant programs of economic reform. ever. the market is classified as a(n): A) cottage industry market. All of the following would be among those traits EXCEPT: A) they principally export labor and raw resources. E) big emerging market.” E) they are of major political importance within their regions. D) they are “regional economic drivers. C) they have significant populations. Answer: D Page: 263 Difficulty: Easy Type: Comprehension . The text describes China as having a dual economic system. capitalist D) aristocratic. Answer: D Page: 267 Difficulty: Easy Type: Comprehension 71. D) the Western model of economic behavior and performance E) the transition from capitalism to socialism. Answer: D Page: 267 Difficulty: Moderate Type: Fact 70. E) adopted a free trade policy. democratic E) internal. B) dropped the ruble as its currency. B) have experienced the fastest rates of economic growth in the region. According to information found in the text. unitarian C) socialist. Estonia has made the most of its split from the former Soviet Union and exceeds its neighbors in production and economic reform because Estonia did all of the following EXCEPT: A) established domestic export controls. Answer: A Page: 267 Difficulty: Hard Type: Comprehension 72. external Answer: C Page: 269 Difficulty: Easy Type: Fact . C) substituted domestic capital for foreign investment. C) privatized companies and land. Of the former Soviet bloc nations of Eastern Europe. supply-side driven B) egalitarian. E) all of the above. D) let struggling banks fail. This refers to China's_______________ and _______________ tenets. The former Soviet-controlled Eastern European countries that did not move to market economies: A) permitted Western experts to run their economies for them. A) market-driven. C) adapting to realigned Russian economic partnerships. of the Baltic States.69. D) permitted bureaucrats from communist days to delay and derail reforms. the Czech Republic seems to be doing the best in reshaping itself in terms of: A) returning to pre-occupation political and market structures. B) offering alternative economic development to Asian partners. ” E) “one country.” D) “communist wealth. E) Taiwan. culture. All of the following are part of the group of countries known as the Four Tigers EXCEPT: A) Hong Kong. and equity B) religion. education. and advertising D) sports.73. Answer: C Page: 268 Difficulty: Easy Type: Comprehension and Fact 74. emancipation. two systems. trade. energy. D) Singapore. Answer: E Page: 269 Difficulty: Moderate Type: Fact . C) Australia. The talks on One China include establishing “three direct links” referring to: A) education. and environmental E) transportation. Miles Daniels has heard that if his company is to succeed in Asia it must be willing to trade with one or more of the Four Tigers.” C) “trade will not supersede the people. The rule of governing law that most accurately describes the relationship between Hong Kong and China is: A) “let the buyer beware. and marketing C) systems. and communications.” B) “he who has the might makes the right.” Answer: E Page: 271 Difficulty: Moderate Type: Application 75. B) South Korea.