Final Exam

Question 1

Trade barriers V.E.R (Volontary Export Restraints)

Answer 1

Imposed by the EXPORTING country

Question 2

Requires the foreign company that enters the foreign market to assume 100% of cost and enjoy all the profits

Answer 2

direct investment

Question 3

counter purchase ( parallele, offset trade ) payment is received by the firm agree to purchase goods from the domestic market

Answer 3

counter trade

Question 4

The government takes ownership of the industry ( Venezuela)

Answer 4

nationalization

Question 5

Islamic law (charia( , focuses on social justice and its against gambling, and speculation

Answer 5

international legal system

Question 6

Global strategy that emplys standardization to achieve scale and scope economies

Answer 6

aggregation

Question 7

requires a local marketer to be locally responsive which is the opposite of the standardizer require

Answer 7

local market competition

Question 8

concerns new product or new consumptions patterns

Answer 8

Product innovation : Discontinuous innovation

Question 9

Discontinuous innovation

Answer 9

2 keys of negotiator characteristic Product innovation

Question 10

Intercultural skills includes

Answer 10

Empathy to others lack of understanding

Question 11

Differences between selling domestically and selling in a foreign market

Answer 11

cultural differences

Question 12

In collectivistic cultures trust is developed through social contacts

Answer 12

seller cultural awareness

Question 13

Created a common monetary and fiscal policy (goal and achievement of the treaty )

Answer 13

1992 European union

Question 14

What contribute to the success of regional economic integration

Answer 14

Economic objectives and sociocultural similarity are absolutely necessary

Question 15

two of the benefits of the economic integration are

Answer 15

more efficient use of the factor of production and stronger presence in the international affairs

Question 16

International trade (3 reasons)

Answer 16

1. stage of the economic development
2. availability of natural resources
3. unique skills or capabilities

Question 17

The sender encodes the message and the receiver decodes the messages
When encoding the foreign consumers motivation, attitude and interest should be considered

Answer 17

encoding vs. decoding communications

Question 18

The buying motives of the market and the company objectives ( if those are relatively similar to each other may standardize advertising communications)

Answer 18

What is the requirement for standardizing and advertising strategy

Question 19

In advertising is advisable because the foreign market culture is unique (Depends on the foreign market uniqueness or differences)

Answer 19

customization

Question 20

one challenge of cultural communications

Answer 20

The message has been received but not understood because of cultural differences

Question 21

before entering negotiations

Answer 21

Need to assess cross cultural similarity or disparity

Question 22

Two international sales management challenges

Answer 22

Composition of the sales force and cultural skills

Question 23

difficult to motivate for 2 reasons

Answer 23

foreign market philosophy and different cultures

Question 24

. Some of the negotiation sales tactics include

Answer 24

Maximize questions and minimize commitment.