MidTerm Flashcards
1
Q
The successful manager constructs a ________ designed for optimal adjustment to the uncertainty of the business climate.
A
marketing program
2
Q
In a marketing program, The ___________ can be altered in the long run and, usually, in the short run to adjust to changing market conditions, consumer tastes, or corporate objectives.
A
controllable elements
3
Q
Positive effects occur when changes in ________ offer countries favored treatment.
A
foreign policy
4
Q
Abolition of apartheid in South Africa is an example of a ______ in an international marketing scenario.
A
positive uncontrollable element
5
Q
Political and legal issues a business faces abroad are often ________ by the “alien status” of the company, which increases the difficulty of properly assessing and forecasting the dynamic international business climate.
A
amplified
6
Q
In dealing with unfamiliar markets, marketers must be aware of the _________ they are using in making their decisions or evaluating the potential of a market, because judgments are derived from experience that is the result of acculturation in the home country.
A
frames of reference
7
Q
To avoid errors in business decisions, the knowledgeable marketer will conduct a cross-cultural analysis that _______ the SRC influences and maintain vigilance regarding _______.
A
isolates
ethnocentrism
8
Q
(1) Companies
with either high-technology and/or marketing-based resources appear to be better equipped to internationalize than more traditional manufacturing kinds of companies; (2) smaller home markets and larger production capacities appear to favor internationalization; and (3) firms with key managers well networked internationally are able to accelerate the ___________.
A
internationalization process
9
Q
At the global marketing stage of international marketing involvement, companies treat the world, including their home market, as ______.
A
one market
10
Q
(1) the rapid growth of the World Trade Organization and regional free trade areas such as the North American Free Trade Area and the European Union; (2) the trend toward the acceptance of the free market system among developing countries in Latin America, Asia, and eastern Europe; (3) the burgeoning impact of the Internet, mobile phones, and other global media on the dissolution of national borders; and (4) the mandate to manage the resources and global environment properly for the generations to come are examples of
A
four major trends affecting current global business strategies
11
Q
__________ of all sizes and in all industries outperformed their strictly domestic U.S. counterparts. Furthermore, U.S. multinationals reduced their manufacturing employment, both at home and abroad, more than domestic companies.
A
Multinationals
12
Q
For firms venturing into international marketing for the first time and for those already experienced, the requirement is generally the same:
A
a thorough and complete commitment to foreign markets and, for many, new ways of operating.
13
Q
The __________ elements include product, price, promotion, distribution, and research activities.
A
controllable
14
Q
Competitive forces, political/legal forces, and economic climate are the three ________ uncontrollable elements in marketing.
A
domestic
15
Q
positive effects occur when changes in foreign policy offer countries favored treatment. ______and ______ encourage companies to invest in international markets. example is ______ imposing low tariffs and tax rates for manufacturing industries.
A
Low tariffs
lower interest rates
Paraguay
16
Q
Which of the following is a possible outcome of the “alien status” of a company?
A
An increase in protectionist federal policies.
17
Q
_______ is a controllable element in both domestic and international marketing.
A
Price
18
Q
The _____ issues faced by a company are often amplified by the “alien status” of the company, which increases the difficulty of properly assessing and forecasting the dynamic international business climate.
A
political/legal
19
Q
The alien status of a foreign business has two dimensions: It is alien in that _______ and in that the culture of the host country is ________. The alien status of a business means that, when viewed as an outsider, it can be seen as an exploiter and receive prejudiced or unfair treatment at the hands of politicians, legal authorities, or both.
A
foreigners control the business
alien to management
Ex: A company being forced by the local government to share its core competencies in order to continue doing business.
20
Q
The most effective way to control the influence of ethnocentrism and the SRC is to _______.
A
recognize their effects on our behavior.
21
Q
Which of the following characterizes a globally aware manager?
A
allowing others to be different and equal.
22
Q
_______ is understanding cultural differences and accepting and working with others whose behaviors may be different from yours. You do not have to accept as your own the cultural ways of another, but you must allow others to be different and equal.
A
tolerance
23
Q
Which of the following firms has a better chance of accelerating the internationalization process?
OJO - better chance of accelerating
A
nternational regulatory bodies set export/import limits.
24
Q
Though presented in a linear fashion, it cannot be inferred that a firm progresses from one stage to another; quite to the contrary, a firm may begin its international involvement at any one stage or be in _______.
A
more than one stage simultaneously
25
A company in this stage does not actively cultivate customers outside national boundaries; however, this company’s products may reach foreign markets. Sales may be made to trading companies as well as foreign customers who directly contact the firm.
no direct foreign marketing
26
Temporary surpluses caused by variations in production levels or demand may result in ______.
infrequent marketing overseas
27
Companies in the ________stage are fully committed to and involved in international marketing activities. Such companies seek markets all over the world and sell products that are a result of planned production for markets in various countries.
international marketing
28
At the ______ stage, companies treat the world, including their home market, as one market. Market segmentation decisions are no longer focused on national borders.
global marketing
29
Companies in the __________ marketing stage are fully committed to and involved in international marketing activities. Such companies seek markets all over the world and sell products that are a result of planned production for markets in various countries.
multidomestic/international
country by country basis
30
At the level of regular foreign marketing, firms have a permanent productive capacity devoted to the production of goods and services to be marketed in foreign markets. The primary focus of operations and production is to service _______.
domestic market needs
31
The first two stages of international marketing involvement are more _________ in nature and often do not represent _______ about international expansion.
reactive
careful strategic thinking
32
Companies in the international marketing stage are fully committed to and involved in international marketing activities. Such companies seek markets all over the world and sell products that are a result of planned production for markets in various countries. This planning generally entails not only the marketing but also the _______.
production of goods outside the home market
33
For a company at the _____ stage of internationalization, market segments are defined by income levels, usage patterns, or other factors that frequently span countries and regions.
global marketing
34
The international marketer’s task is more complicated than that of the domestic marketer because the international marketer must deal with at least _______ of uncontrollable uncertainty instead of one.
Uncertainty is created by the uncontrollable elements of all business environments, but each foreign country in which a company operates adds its own ______ of uncontrollable factors.
two levels
unique set
35
The following is: _____ Assuming the necessary overall corporate resources, structures, and competencies that can limit or promote strategic choice, the marketing manager blends price, product, promotion, channels-of- distribution, and research activities to capitalize on anticipated demand. These controllable elements can be altered in the long run and, usually, in the short run to adjust to changing market conditions, consumer tastes, or corporate objectives.
marketing program design for optimal adjustment of business climate
36
List the domestic environment uncontrollables that influence an international marketer
The aspects of the domestic environment uncontrollables include home-country elements that can have a direct effect on the success of a foreign venture: political and legal forces, economic climate, and competition. A political decision involving foreign policy can have a direct effect on a firm’s international marketing success. The domestic economic climate is another important home-based uncontrollable variable with far-reaching effects on a company’s competitive position in foreign markets. The capacity to invest in plants and facilities, either in domestic or foreign markets, is to a large extent a function of domestic economic vitality. Competition within the home country can also have a profound effect on the international marketer’s task.
37
domestic competition example
kodak vs fuji film
38
The aspects of the domestic environment uncontrollables include home-country elements that can have a direct effect on the success of a foreign venture: political and legal forces, economic climate, and competition. A political decision involving foreign policy can have a direct effect on a firm’s international marketing success. The domestic economic climate is another important home-based uncontrollable variable with far-reaching effects on a company’s competitive position in foreign markets. The capacity to invest in plants and facilities, either in domestic or foreign markets, is to a large extent a function of domestic economic vitality. Competition within the home country can also have a profound effect on the international marketer’s task.
Political and legal issues a business faces 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 alien status of a foreign business has two dimensions: It is alien in that foreigners control the business and in that the culture of the host country is alien to management. The alien status of a business means that, when viewed as an outsider, it can be seen as an exploiter and receive prejudiced or unfair treatment at the hands of politicians, legal authorities, or both. Political activists can rally support by advocating the expulsion of the “foreign exploiters,” often with the open or tacit approval of authorities.
39
what are the primary obstacle to success in international marketing?
SRC and an associated ethnocentrism.
40
List the four steps that make up the framework for such a cross cultural analysis.
The steps are: (1) define the business problem or goal in home-country cultural traits, habits, or norms; (2) define the business problem or goal in foreign-country cultural traits, habits, or norms through consultation with natives of the target country—make no value judgments; (3) isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem; and, (4) redefine the problem without the SRC influence and solve for the optimum business goal situation.
41
With the ratification of the Uruguay Round agreements, the ________ became part of the World Trade Organization (WTO) in 1995, and its 117 original members moved into a new era of free trade.
GATT
42
As part of the worldwide economic growth and rebuilding after World War II, countries once classified as less developed were reclassified as ______.
newly industrialized countries (NICs)
43
Between _____ and ______ , the United States sold more to other countries than it bought from them; that is, the United States had a favorable balance of trade. By 1971, however, the United States had a trade deficit of $2 billion that grew steadily until it peaked at $160 billion in 1987.
1888
1971
44
he Organization for Economic Cooperation and Development (OECD) estimates that the economies of member countries will expand an average of_________ for the next 25 years, the same the economies of the developing world will grow at faster rates—from an annual rate of 4 percent in the past quarter century to a rate of 6 percent for the next 25 years.
3% annually
45
A nation’s balance-of-payments statement records all financial transactions between its ______ and those of the _______ during a given period of time—usually one year.
residents
rest of the world
46
The ________ is a record of direct investment, portfolio investment, and short-term capital movements to and from countries.
capital account
47
As the U.S. trade deficit has grown, pressures have begun to push the value of the dollar to _____- levels.
lower
48
A case might be made for temporary protection of markets with excess _______ capacity or excess _______ when such protection could facilitate an orderly transition. Unfortunately such protection often becomes long term and contributes to industrial inefficiency while detracting from a nation’s realistic adjustment to its world situation.
productive
labor
49
In general, tariffs ______ inflationary pressures, special interests’ privileges, government control and political considerations in economic matters, and the number of tariffs (they beget other tariffs via reciprocity).
increase
50
Tariffs are often used as _______ against protectionist moves of trading partners.
reprisals
51
A VER is called voluntary because the exporting country sets the limits; however, it is generally imposed under the ______ of stiffer quotas and tariffs being set by the importing country if a VER is not established.
threat
52
A government boycott is an ______ restriction against the purchase and importation of certain goods and/or services from other countries. This restriction can even include travel bans, like the one currently in place for Chinese tourists; the Beijing government refuses to designate Canada as an approved tourism destination.
absolute
53
Importers who want to buy a foreign good must apply for an _______, that is, permission to exchange an amount of local currency for foreign currency.
exchange permit
54
The United States and other countries require some products (automobiles in particular) to contain a percentage of “local content” to gain admission to their markets. This is an example of how countries use ______ to protect domestic industry.
standards
55
Antidumping laws were designed to prevent foreign producers from _______ a practice whereby a foreign producer intentionally sells its products in the United States for less than the cost of production to undermine the competition and take control of the market.
“predatory pricing,”
56
Export controls, the Foreign Corrupt Practices Act (FCPA), and export promotion were specifically addressed in the export expansion section of the Omnibus Trade and Competitiveness Act. Export licenses could be obtained more _____ and more ______ for products on the export control list.
easily
quickly
57
GATT member nations seek to resolve their trade disputes ______; if that fails, special GATT panels are set up to recommend action. The panels are only advisory and have no _____ powers.
bilaterally
enforcement
58
The World Trade Organization sets many rules governing trade among its 157 members, provides a panel of experts to hear and rule on trade disputes among members, and, unlike GATT, issues _______.
binding decisions
59
The International Monetary Fund (IMF) was formed to overcome inadequate ______ and _______ currencies which were particularly vexing problems in global trade.
monetary reserves
unstable
60
Since both gold and the U.S. dollar have lost their utility as the basic medium of financial exchange, most monetary statistics relate to ______ rather than dollars. The _____ is in effect “paper gold”
and represents an average base of value derived from the value of a group of major currencies.
SDR
61
The _______ was developed after World War II, as a means to dampen the spread of communism, the United States set out to infuse the ideal of capitalism throughout as much of the world as possible.
Marshall Plan
62
The _____ to assist in rebuilding Europe, financial and industrial development assistance to rebuild Japan, and funds channeled through the Agency for International Development and other groups designed to foster economic growth in the underdeveloped world were used to help create a strong world economy.
Marshall Plan
63
Reciprocal impact of foreign economic assistance by US.
For every dollar the United States invested in the economic development and rebuilding of other countries after World War II, hundreds of dollars more returned in the form of purchases of U.S. _______
agricultural products, manufactured goods, and services.
64
The overseas demand created by the Marshall Plan and other programs was important to the U.S. economy because the vast manufacturing base built to supply World War II and the ________.
swelling labor supply of returning military created a production capacity well beyond domestic needs
65
Which of the following was the most significant move of the 1980s that contributed toward international cooperation among trading nations?
Negotiation of GATT
66
With the ratification of the Uruguay Round agreements, the GATT became part of the ______in 1995, and its 117 original members moved into a new era of free trade.
World Trade Organization (WTO)
67
The rapid growth of war-torn economies and previously underdeveloped countries, coupled with large-scale economic cooperation and assistance, led to new _______.
global marketing opportunities
68
At the close of the 1960s, U.S. ________ were facing major challenges on two fronts: resistance to direct investment and increasing competition in export markets.
multinational corporations (MNCs)
69
The post World War II era witnessed worldwide economic growth and countries once classified as less developed were reclassified as _______. such as Brazil, Mexico, South Korea, Taiwan, Singapore, and Hong Kong experienced rapid industrialization.
newly industrialized countries (NICs)
70
1950s- As a result of the expansionary trade measures led by the United States, ______ and ______ became more evenly distributed among countries than was the case when Servan-Schreiber warned Europe about U.S. multinational domination.
economic power
potential
71
Servan-Schreiber’s prediction did not come true for many reasons, but one of the more important was that American MNCs confronted a _______ of competition from all over the world.
resurgence
72
By the late ______, the United States was once again holding its own in capital goods, particularly with trade surpluses in the high-tech category.
1990s
73
By the year 1971, the United States was witnessing:
a huge trade deficit of 2B
74
In the late 1990s, most of the countries of the world saw a slow down in the unprecedented and precipitous growth of their economies. However, _____ remained unaffected by this trend.
china
75
The World Bank estimates that five countries—________ whose share of world trade is barely one third that of the European Union will, by 2020, have a 50 percent higher share than that of the European Union.
Brazil, China, India, Indonesia, and Russia—
76
As the balance-of-payments record is maintained on a double-entry bookkeeping system, it must always be in ______.
balance
77
A balance of payments is a record of condition, not a _______ of condition.
determinant
78
On the _____ side of the U.S. balance of payments are merchandise export sales; money spent by foreign tourists; payments to the United States for insurance, transportation, and similar services; payments of dividends and interest on investments abroad; return on capital invested abroad; new foreign investments in the United States; and foreign government payments to the United States.
plus
79
On the ___ side are the costs of goods imported, spending by American tourists overseas, new overseas investments, and the cost of foreign military and economic aid. A deficit results when international payments are greater than receipts.
minus
80
The _____ account is a record of all merchandise exports, imports, and services plus unilateral transfers of funds.
current
81
The ______ account is a record of direct investment, portfolio investment, and short-term capital movements to and from countries.
capital
82
The ______ account is a record of exports and imports of gold, increases or decreases in foreign exchange, and increases or decreases in liabilities to foreign central banks.
reserves
83
Economists in general recognize as valid only the arguments regarding (3):
infant industry, national defense, and industrialization of underdeveloped countries.
84
A _______ is a tax imposed by a government on goods entering at its borders. ______ may be used as revenue-generating taxes or to discourage the importation of goods, or for both reasons.
Tariffs
85
In general, tariffs ______ balance-of-payments positions, supply-and-demand patterns, and international relations (they can start trade wars).
weaken
86
In general, tariffs _____ inflationary pressures, special interests’ privileges, government control and political considerations in economic matters, and the number of tariffs.
increase
87
In general, tariffs ______ manufacturers’ supply sources, choices available to consumers, and competition.
restrict
88
Administrative fees, valuation systems, antidumping practices, tariff classifications, and documentation requirements are collectively classified as customs and administrative entry procedures which represent a sub-type of ________.
non-tariff barrier
89
Quotas, embargoes, import licensing requirements, minimum import price limits, and proportional restrictions of foreign to domestic goods are the non-tariff trade barriers that are classified under ______ on trade.
specific limitations
90
ontariff barriers, antidumping practices fall under the category of
customs and administrative entry procedures.
91
The fundamental difference between quotas and import licenses as a means of controlling imports is the greater _____ of import licenses over quotas.
flexibility
92
Exporting countries primarily agree to voluntary export restraints (VERs) to:
avoid the chances of stiffer quotas and tariffs.
93
hich of the following is a defining characteristic of VERs
The exporting country sets the limits on the quantity it will export.
94
The marketing manager for Grand Products wants to export the company’s range of beer products to a Gulf country. However, he discovers that there is a complete restriction on the import of any form of liquor into that country. This is an accurate example of _____.
A. OMAs
boycott
95
An _______ is a refusal to sell to a specific country. example is IRAN.
embargo
96
_______ is accomplished by refusing to allow an importer to exchange its national currency for the sellers’ currency. In effect, it cuts off all importing or all importing above a certain level.
Blockage
97
_____ to secure foreign exchange is often used by countries experiencing severe shortages of foreign exchange.
Government approval
98
Government approval requires that importers who want to buy a foreign good must apply for an _______, that is, permission to exchange an amount of local currency for foreign currency.
exchange permit
99
The ________can stipulate that the amount to be exchanged must be deposited in a local bank for a set period prior to the transfer of goods.
*the number of times one party can avail of exchange permits.
exchange permit
100
Nontariff barriers of this category include ______ to protect health, safety, and product quality.
standards
101
The _______ are sometimes used in an unduly stringent or discriminating way to restrict trade.
standards
102
________ were designed to prevent foreign producers from “predatory pricing.” Violators are assessed “antidumping” duties for selling below cost and/or “countervailing duties” to prevent the use of foreign government subsidies to undermine American industry. Many countries have similar laws, and they are allowed under WTO rules.
Antidumping laws
103
Which of the following trading partners of the U.S. became its topmost “trade problem” at the beginning of the 21st century?
china
104
Under the Omnibus Trade and Competitiveness Act of 1988, the issue of the openness of markets for U.S. goods is addressed as _______.
market access
105
Export controls, the Foreign Corrupt Practices Act (FCPA), and export promotion were specifically addressed in the _____ section of the Omnibus Trade and Competitiveness act.
export expansion
106
Recognizing that foreign penetration of U.S. markets can cause serious competitive pressure, loss of market share, and, occasionally, severe financial harm, the _______ of the Omnibus Trade and Competitiveness Act provides a menu of remedies for U.S. businesses adversely affected by imports.
import relief section
107
It created an agency to serve as watchdog over world trade.
GATT
108
As an outcome of the Uruguay Round of intergovernmental tariff negotiations on the GATT platform, the first multilateral, legally enforceable agreement covering trade and investment in the services sector was formulated, termed the _____.
General Agreement on Trade in Services (GATS)
109
Which of the following agreements makes it possible for firms to challenge the restrictions in Indonesia that prohibit foreign firms from opening their own wholesale or retail distribution?
TRIMS-
As a result of TRIMs, restrictions in Indonesia that prohibit foreign firms from opening their own wholesale or retail distribution channels can be challenged.
110
Perhaps the most notable achievement of the Uruguay Round was the creation of a new institution as a successor to the GATT—_______
the World Trade Organization.
111
________:
In general, the agreement covers these basic elements: (1) trade shall be conducted on a nondiscriminatory basis; (2) protection shall be afforded domestic industries through customs tariffs, not through such commercial measures as import quotas; and (3) consultation shall be the primary method used to solve global trade problems.
General Agreement on Tariffs and Trade (GATT)
112
Frustrated with the slow progress of the most recent round of WTO trade negotiations, several countries are negotiating ______ agreements. For example, the United States has signed free- trade agreements with Peru, Colombia, Panama, and South Korea.
bilateral trade
113
The _______ and _______ are two global institutions created to assist nations in becoming and remaining economically viable.
International Monetary Fund (IMF) and the World Bank Group
114
To overcome the problems of inadequate monetary reserves and unstable currencies that plagued international trading before World War II, the _____ was formed.
A. European Union
IMF
115
Developed by the IMF to cope with universally floating exchange rates, _______ represents an average base of value derived from the value of a group of major currencies.
special drawing rights (SDRs)
116
The SDR is in effect ______ and represents an average base of value derived from the value of a group of major currencies.
“paper gold”
117
The basic complaint against the WTO, IMF, and others is the amalgam of unintended consequences of globalization: ______.
environmental concerns, worker exploitation and domestic job losses, cultural extinction, higher oil prices, and diminished sovereignty of nations.
118
Which of the following is an adverse consequence of globalization?
Worker exploitation and domestic job losses.
119
The protest groups, some of them with responsible intent, have affected policy. For
example, _______ campaigns, mostly in America and mostly student-led, have had effects beyond college campuses.
“antisweatshop”
120
_______, in its broadest interpretation, meant that Americans were a chosen people ordained by God to create a model society.
Manifest Destiny
121
The idea of ______ was used to justify the U.S. annexation of Texas, Oregon, New Mexico, and California and, later, U.S. involvement in Cuba, Alaska, Hawaii, and the Philippines.
Manifest Destiny
122
In the context of U.S. foreign policies, the_______ dictated the abstention of the United States from European political affairs.
Monroe Doctrine
123
The _______ stated that not only would the United States prohibit non- American intervention in Latin American affairs, but it would also police the area and guarantee that Latin American nations met their international obligations.
corollary
124
The ______ stated that not only would the United States prohibit non-American intervention in Latin American affairs, but it would also police the area and guarantee that Latin American nations met their international obligations.
Roosevelt Corollary
125
Once seen as natural protection from potentially hostile neighbors, ________ that exist within Europe are now seen as impediments to efficient trade in an integrated economic union.
physical barriers
126
possibly the world’s most efficient user of energy
japan
127
some economists believe that a ______ in the fertility rate is a function of economic prosperity and will come only with economic development.
decline
128
While the developing world faces a rapidly growing population, the industrialized world’s population is in _______ and rapidly ________. Population growth in many countries has dropped below the rate necessary to maintain present levels. Not one major country has sufficient internal population growth to maintain itself, and this trend is expected to continue for the next 50 years.
Worker to retiree ratio: ____
decline
aging
Europe
129
_____ can be defined as a society’s accepted basis for responding to external and internal events. To interpret behavior and attitudes in a particular culture or country, a marketer must have some idea of a country’s history and geography.
Culture
130
The opium wars resulted in a loss of confidence in the Chinese government. Which of the following events was caused by the resulting disorder?
Taiping Rebellion
131
Which of the following events caused the Chinese to cede Hong Kong to the British?
Opium war
132
The ________, which overthrew the dictator Díaz and launched the modern Mexican state, is particularly remembered for the expulsion of foreigners—most notably North American businessmen who were the most visible of the wealthy and influential entrepreneurs in Mexico
Mexican Revolution
133
Mexicans see the United States as a _____ to their political, economic, and cultural independence.
threat
134
In 1531, ______ is the first exchange to move into its own building, signifying its importance in financing commercial enterprises throughout Europe and the rising importance of private trade and commerce; Antwerp emerges as a trading capital.
Antwerp stock exchange
135
The Mexican War (1846–1848) resulted in Mexico ceding _______ and a large part of the West to the United States.
California
136
_______ and ________ were accepted as the basis for U.S. foreign policy during much of the 19th and 20th centuries.
Manifest Destiny
the Monroe Doctrine
137
________, it referred to the territorial expansion of the United States from the Atlantic to the Pacific.
Manifest Destiny
138
The Roosevelt Corollary was used in the formation of a provisional government in ______ in 1906.
Cuba
139
Which of the following U.S. foreign policies was applied in 1905 when the Dominican Republic was forced to accept the appointment of an American economic adviser?
Roosevelt Corollary
140
The manner in which the United States acquired land for the Panama Canal Zone typifies a U.S. foreign policy, _____, —whatever is good for the United States is justifiable.
Roosevelt Corollary
141
_______ is much more than memorizing countries, capitals, and rivers. It also includes an understanding of how a society’s culture and economy are affected as a nation struggles to supply its people’s needs within the limits imposed by its physical makeup.
Geography
142
The very process of controlling industrial wastes leads to another and perhaps equally critical issue: the __________, a byproduct of pollution controls.
disposal of hazardous waste
143
Which of the following treaties was revised to include a total ban on the export of hazardous wastes by developed nations?
Basel convention
144
_____ development is a joint approach among those who seek economic growth with “wise resource management, equitable distribution of benefits and reduction of negative effects on people and the environment from the process of economic growth.”
sustainable
145
preponderance of energy in underdeveloped world
human labor
146
source that dominates the world's energy usage, easy to store and transport
petroleum
147
Which of the following is true with respect to the dynamics of global population trends?
The existence of sheer numbers of people is significant in appraising potential consumer markets.
148
Family planning and all that it entails is by far the most universal means governments use to control birthrates, but some economists believe that a _________ is a function of economic prosperity and will come only with economic development.
decline in the fertility rate
149
The part of the world with the largest portion of people over 65 years is also the part of the world with the fewest number of people under age 15 years. This disparity means that there will be fewer workers to support future retirees, resulting in an intolerable_________ more of the over- 65 group remaining in the labor force, or pressure to change existing laws to allow mass migration to stabilize the worker-to-retiree ratio.
tax burden on future workers
150
The free flow of _______ will help ameliorate the dual problems of explosive population expansion in less developed countries and worker shortage in industrialized regions.
immigration
151
Perhaps the most important deterrent to population control is ____________. In many cultures, the prestige of a man, whether alive or dead, depends on the number of his progeny, and a family’s only wealth is its children.
cultural attitudes about the importance of large families
152
to keep the population from _______, a nation needs a fertility rate of about 2.1 children per woman.
falling
153
Early trade routes were over _______; later came sea routes, air routes, and, finally, some might say, the Internet to connect countries.
land
154
For a marketer, a crucial element in understanding any nation’s business and political culture is the ________ of its history.
subjective perception
155
As countries move from agricultural to industrial to services economies, birthrates _______. Immediate causes may be government policies and birth control technologies, but a global change in values is also occurring.
decline
156
According to James Day Hodgson, former U.S. ambassador to Japan, culture is like a “_____” that is tough to get through, but effort and patience often lead to success.
thicket
157
Dutch management professor Geert Hofstede refers to culture as the “software of the mind” and argues that it provides a _____ for humans on how to think and behave; it is a problem-solving tool.
guide
158
Humans make adaptations to changing environments through innovation. Individuals learn culture from social institutions through socialization (growing up) and _________ (adjusting to a new culture).
acculturation
159
Much of American trade policy has depended on the happenstance of ______ (i.e., the technology of a new cash crop) being the original source of the Virginia colony’s economic survival in the 1600s.
tobacco
160
T OR F:
| For most of the 20th century, the predominant approach to governance in the world was colonialism.
F -four approaches to governance competed for world dominance: colonialism, fascism, communism, and democracy/free enterprise.
161
According to the World Bank, no country has been successful economically with less than ______ percent literacy, but when countries have invested in education, the economic rewards have been substantial. Literacy has a profound effect on marketing.
50
162
The _________ dimension of culture identified by Geert Hofstede has proven the most useful of the four dimensions, justifying entire books on the subject.
Individualism/Collectivism
163
Cultures that score high in Individualism/Collectivism Index (IDV) reflect an “I” mentality and tend to reward and accept individual initiative, whereas those low in individualism reflect a “we” mentality and generally subjugate the individual to the group. This distinction does not mean that individuals fail to identify with groups when a culture scores ______ on IDV but rather that personal initiative and independence are accepted and endorsed.
high
164
People from cultures with high PDI (Power Distance Index) scores are more likely to have a general ______- of others (not those in their groups) because power is seen to rest with individuals and is coercive rather than legitimate.
distrust
165
Cultures with _______ Uncertainty Avoidance Index scores are highly intolerant of ambiguity and as a result tend to be distrustful of new ideas or behaviors. They tend to have a _____ level of anxiety and stress and a concern with security and rule following.
high
high
166
Those cultures ______ in Uncertainty Avoidance Index take a more empirical approach to understanding and knowledge, whereas those ______ in Uncertainty Avoidance Index seek absolute truth.
low
high
167
When marketers first introduced the personal digital assistant (PDA) to the American consumer, they performed the role of being _____ because the cultural impact of the product became widespread.
agents of change
168
Mervin is excited about his new home in the Philippines. Though native of Los Angeles, he has been given the opportunity to learn about a new culture, form new friendships, and capitalize on opportunities that were not available in his previous home or workplace. He will go through what is known as _____ as he adjusts to living in the Philippines.
acculturation
169
Mike grew up learning a great deal about his culture from his school, the church, the mass media, and his family. This kind of learning of culture is called:
socialization
170
Which of the following is true with respect to Professor Jared Diamond’s ideas regarding the influence of geography on history and cultural values?
Historically, innovations spread faster east to west than north to south
171
Which of the following thinkers is famous for his statement on the deep influence of geography on history, economics, and consumer behavior?
```
A. Jared Diamond
B. Philip Parker
C. Desmond Morris
D. Noam Chomsky
E. Jacques Derrida
```
B. Philip Parker
172
New cola alternatives (Mecca Cola, Muslim Up, Arab Cola, and ColaTurka) sprang up after the military conflicts in the Middle East in 2003. This is an example that shows how:
specific events in history can influence consumer behavior.
173
Which of the following is an unfavorable outcome of the usage of birth control pills?
A. Educational institutions are finding it tougher to fill in seats.
B. Midwifery, as a profession, is soon becoming extinct.
C. More men and women are opting for a “one-child family.”
D. Women are increasingly taking up job roles traditionally reserved for men. E. Schools are forced to address issues like abstinence and condom distribution.
E. Schools are forced to address issues like abstinence and condom distribution.
174
```
One of the advantages of the emergence of gender equality is the _____ gap between the sexes being narrowed in many places around the world.
A. intelligence
B. biological
C. identity
D. education
E. language
```
D. education
175
Numerous studies indicate a direct link between the literacy rate of a country and its: A. ability to conduct foreign trade.
B. capability for rapid economic growth.
C. ability to eradicate social prejudices.
D. capability to promote secular political values. E. potential to support gender equality
B. capability for rapid economic growth.`
176
```
Which of the following social institutions is considered to have had a detrimental effect on American culture?
A. School
B. Government C. Religion
D. Family
E. Media
```
media
177
```
Which of the following social institutions that influence culture has comparatively the least impact on culture?
A. Media
B. School
C. Government D. Family
E. Religion
```
governement
178
Governments influence thinking and behavior through the:
A. enforcement of a variety of laws affecting consumption and marketing behaviors.
B. increasing of the literacy rate of the country.
C. adopting of a secular government with separation of the church and state.
D. supporting of a selected number of religious sects within the society.
E. promotion of egalitarian principles.
A. enforcement of a variety of laws affecting consumption and marketing behaviors.
179
. Which of the following is the main reason for corporations being the forerunners of innovations in society?
A. The use of propaganda to form “favorable” public opinions.
B. The access they have to ideas from around the world.
C. The understanding that they have of foreign markets.
D. The religious tolerance that they possess as a requisite for foreign trade. E. The fact that all merchants and traders are required to be literate.
B. The access they have to ideas from around the world.
180
```
The most useful information on how cultural values influence various types of business and market behavior comes from work done by:
A. Sigmund Freud.
B. George Gallup.
C. Geert Hofstede.
D. Ayn Rand.
E. Milton Friedman.
```
C. Geert Hofstede.
181
64. The Uncertainty Avoidance Index measures the tolerance of uncertainty and _____ among members of a society.
A. inequality B. subjugation C. ambiguity D. oppression E. hierarchy
C. ambiguity
182
```
On the basis of Hofstede’s four dimensions, cultures with high Power Distance Index (PDI) scores tend to be:
A. secular.
B. hierarchical.
C. flat in organization. D. fragmented.
E. Mexico
```
B. hierarchical.
183
For a culture, a low score in the _____ reflects more egalitarian views.
A. Power Distance Index
B. Individualism/Collectivism Index C. Distance from English Index
D. Uncertainty Avoidance Index
E. Masculinity/Femininity Index
A. Power Distance Index
184
Cultures which are low in Uncertainty Avoidance index: A. seek absolute truth.
B. accord a high level of importance to rules as a means of avoiding risk. C. tend to be distrustful of new ideas or behaviors.
D. dogmatically stick to historically tested patterns of behavior.
E. take a more empirical approach to understanding and knowledge.
E. take a more empirical approach to understanding and knowledge.
185
Based on the Individualism/Collectivism Index, in which of the following cultures will the “virtual social” activity of online chatting be most acceptable?
A. One in which individualism reigns supreme.
B. One in which collectivism is adopted.
C. One that has a high tolerance for ambiguity.
D. One which has a willingness to take risks.
E. One with no separation between the church and the state.
A. One in which individualism reigns supreme.
186
Hofstede’s data on cultural values suggest that:
A. countries that are high on individualism and low on uncertainty avoidance tend to be more
innovative.
B. diffusion of innovations will be slower in countries that are low on individualism and high on
uncertainty avoidance.
C. individuals from individualistic cultures tend to respond more favorably to other-focused appeals. D. self-focused appeals tend to attract people from collectivistic cultures.
E. collectivistic cultures tend to be more emotionally bent than individualistic cultures.
B. diffusion of innovations will be slower in countries that are low on individualism and high on
uncertainty avoidance.
187
```
In some parts of the world, language is itself thought of as a social institution, often with political importance. Which of the following countries best exemplifies the above statement?
A. Australia
B. United States
C. France
D. Mexico
E. Switzerland
```
France
188
```
In the context of the relationship between language and international marketing, recent studies indicate that a new concept, _____, is proving useful to marketing researchers in market segmentation and strategic entry decisions.
A. paralinguistics
B. linguistic distance
C. language parallels
D. language roots
E. linguistic accents
```
B. linguistic distance
189
Linguistic distance is an important factor that helps in determining differences in values across countries and the amount of trade between countries because:
A. the closer the languages the tougher the interactions.
B. crossing “wider” language differences increases transaction costs.
C. the more distant a language from the other, the more valuable the brand becomes in the new territory.
D. major languages have “syntactical superiority” over minor languages that help in brand positioning.
E. a ‘neutral’ language is required to address the differences arising out of linguistic distances.
B. crossing “wider” language differences increases transaction costs.
190
Based on Richard Nisbett’s metaphor involving Confucius’s worthy picture, what is his analysis regarding the thought process or perceptual process of Westerners?
A. Westerners can provide great details about central figures but see relatively little in the
background.
B. Westerners observe things sequentially, thus fail to comprehend the larger picture.
C. Westerners are good at observing details but fail to comprehend the central message.
D. Westerners prefer larger than life figures to convey messages.
E. Westerners tend to focus on the brighter colors in the image and fail to see the lines and finer
drawings.
A. Westerners can provide great details about central figures but see relatively little in the
background.
191
```
To the foreign marketer, the similar-but-different feature of cultures has important meaning in gaining cultural _____.
A. tolerance
B. acceptance
C. leverage
D. empathy
E. heritage
```
D. empathy
192
Which of the following is the most important factor in determining what kind and how much of an innovation will be accepted by a culture?
A. The time required for the change to occur.
B. The number of people that could be benefited.
C. The degree of interest in the particular subject.
D. The power or authority of the change agent.
E. The financial impact, immediate and long-term, of accepting the change.
C. The degree of interest in the particular subject.
193
With regard to resistance to change, observations indicate that those innovations most readily accepted are those that:
A. cater to the values of the predominant religion of the society.
B. propagate faith in a set of beliefs different from the existing beliefs.
C. are apathetic to the existing cultural beliefs.
D. hold the greatest interest within the society and those that are least disruptive.
E. offer some insight into the aesthetics of the existing culture.
D. hold the greatest interest within the society and those that are least disruptive.
194
```
Modern medicine has thrived in the United States together with the use of herbal remedies from South America. This is an example of:
A. cultural ombudsmanship.
B. cultural congruence.
C. cultural hegemony.
D. cultural sensitivity.
E. cultural borrowing.
```
E. cultural borrowing.
195
```
_____ refers to a strategy that involves marketing products similar to ones already on the market thereby minimizing resistance.
A. Flank attack
B. Cultural congruence
C. Guerilla marketing
D. Lateral marketing
E. Culture equalization
```
B. Cultural congruence
196
```
The strategy of _____ deliberately sets out to change those aspects of the culture offering resistance to predetermined marketing goals.
A. planned change
B. top-down change
C. guerilla marketing
D. differentiated marketing
E. disruptive marketing
```
A. planned change
197
Marketing strategy is judged culturally in terms of _____.
A. inclusion or exclusion
B. cultural intensity or cultural sublimity
C. acceptance, resistance, or rejection
D. sensitivity to the hidden aspects of culture in a society E. speed, intensity, and degree of change required
C. acceptance, resistance, or rejection
198
The first step in bringing about planned change in a society is to:
A. determine which cultural factors conflict with an innovation.
B. create a resistance to the cultural factor hindering acceptance.
C. wait for eventual cultural changes that prove their innovations of value to the culture. D. market the products similar to ones already on the market.
E. leave acceptance to a strategy of unplanned change.
A. determine which cultural factors conflict with an innovation.
199
Morton Foods has decided to introduce a new line of turkey products to the American consumer. Turkey steaks resemble beefsteak in taste but are made from turkey meat, and are leaner and healthier for a variety of reasons. However, the company is concerned that the product will not be accepted
in America. If Morton Foods follows a strategy of _____, they are more likely to have a successful introduction of the new product.
A. unplanned change
B. cultural adiaphora
C. cultural syncopation
D. cultural congruence
E. continuous change
D. cultural congruence
200
Nexar Energy is advocating the use of solar power to replace all petroleum-based energy sources.
The company holds demonstrations to show how solar power could be used in all major petroleum- based products—automobiles, power sources, and heating and cooling. Nexar Energy is employing a strategy of _____, a deliberate attempt to change the way we do things with respect to energy sources.
A. unplanned change
B. planned change
C. parallel change
D. syncopated change E. synergistic change
B. planned change
201
```
The Westernized diet has caused many Japanese to become overweight. This is an example of _____ change.
A. top-down
B. planned
C. central
D. unplanned
E. bottom-up
```
D. unplanned
202
As businesses grow and professional management develops, there is a shift toward _______ management decision making.
decentralized
203
Communication in a _______ culture depends heavily on the contextual (who says it, when it is said, how it is said) or nonverbal aspects of communication, whereas the low-context culture depends more on explicit, verbally expressed communications.
high-context
204
```
Which of the following is a criterion for adaptation when dealing with individuals, firms, or authorities in foreign countries?
A. Profit motive
B. Cultural apathy
C. Hypersensitivity
D. Flexibility
E. Time-consciousness
```
D. Flexibility
205
Which of the following is true of adaptation in international marketing?
A. Willingness to adapt is a crucial attitude in international marketing.
B. Adaptation requires business executives to forsake their ways and change to local customs. C. Mere tolerance of alien cultures is sufficient in international marketing.
D. Open tolerance is considered to be an unnecessary concession to foreign cultures.
E. Empathy for foreign cultures may lead to cultural discord.
A. Willingness to adapt is a crucial attitude in international marketing.
206
```
Business customs in which an outsider must not participate are called _____.
A. imperatives
B. electives
C. exclusives
D. absolutes
E. statutes
```
C. exclusives
207
```
Which of the following would most likely be characterized as being an imperative business custom in many cultures?
A. Establishing friendships.
B. Speaking the local language.
C. Understanding the native religions.
D. Drinking the local drinks.
E. Having knowledge of the local sport.
```
A. Establishing friendships.
208
Which of the following could be the least acceptable behavior in a business setting, especially in a cross-cultural scenario?
A. Correcting someone in public.
B. Staying away from greeting another man with a kiss (a custom in some countries). C. Refusing to eat foods that disagree with your palate.
D. Refusing to drink alcoholic beverages.
E. Opting not to dance along with the crowd.
A. Correcting someone in public.
209
The most important ideas on which normative _____ cultural concepts are based are the following: 1) "Master of destiny" viewpoint, 2) Independent enterprise as the instrument of social action, 3) Personnel selection and reward based on merit, 4) Decisions based on objective analysis, 5) Wide sharing in decision making, 6) Never-ending quest for improvement, and 7) Competition producing efficiency.
U.S
210
Which philosophy of U.S. management recognizes that people influence the future to a large extent and that they control their own fates?
A. Independent enterprise as the instrument of social action.
B. Wide sharing in decision making.
C. “Master of destiny” viewpoint.
D. Never-ending quest for improvement. E. Competition produces efficiency.
C. “Master of destiny” viewpoint.
211
here is a very strong belief in the United States that business decisions must be supported and based on accurate and relevant information. Which of the following best describes this approach?
A. “Master of destiny” viewpoint
B. Independent enterprise as the instrument of social action
C. Objective analysis
D. Wide sharing in decision making
E. Never-ending quest for improvement
C. Objective analysis
212
Which of the following is consistent with the American view of the independent enterprise? A. A corporation should fall under the control of the state government.
B. A corporation is an entity that has rules and continuity of existence.
C. The largest proportion of a corporation’s profits must go to social causes.
D. A company should be equally owned by all employees and stakeholders. E. Corporations do not take precedence over family and social relationships.
B. A corporation is an entity that has rules and continuity of existence.
213
The recognition of U.S. corporations as entities that have rules and continuity of existence and are separate, vital social institutions can result in:
A. feelings of obligation among employees to serve the company.
B. scientific decision making by employees and managers.
C. superstitious beliefs playing a role in decision making. D. decision making being limited to upper management. E. a collectivist identity among employees.
A. feelings of obligation among employees to serve the company.
214
```
Adam Smith in his Wealth of Nations stated, “By pursuing his own interest he frequently promotes that of the society more effectually than when he really intended to promote it.” What behavior does this notion attempt to justify?
A. Collectivism
B. Loyalty
C. Greed
D. Competitiveness
E. Cooperation
```
D. Competitiveness
INVISIBLE HAND
215
```
The notion that _____ is crucial for efficiency, improvement, and regeneration is fundamental to Western management practices.
A. greed
B. collectivism
C. centralization
D. competition
E. hierarchy
```
D. competition
216
In _____ decision making, participation by middle management tends to be deemphasized.
A. democratic
B. decentralized
C. decentralized committee D. non-hierarchical
E. top-level management
E. top-level management
217
As businesses grow and professional management develops, there is a shift toward:
A. centralized group decision making.
B. decentralized management decision making.
C. centralized decision making.
D. top-level management decision making.
E. experimental decision making.
B. decentralized management decision making.
218
A characteristic of committee decision making is that it is:
A. found in small businesses.
B. done to please important family members.
C. based on rank and hierarchy.
D. rarely employed in Asian countries.
E. by group or consensus.
E. by group or consensus.
219
```
Which of the following forms of business decision making is predominant in most Asian countries?
A. Independent
B. Contractual
C. Democratic
D. Group
E. Dictatorial
```
D. Group
220
```
In _____ decision making, title or position generally takes precedence over the individual holding the job.
A. committee
B. decentralized
C. top-level management D. consensus
E. dictatorial
```
B. decentralized
221
Companies in _____ countries have a strong paternalistic orientation, and assume that individuals will work for one company for the majority of their lives.
A. more hierarchical
B. more egalitarian
C. high Power Distance Index
D. low Uncertainty Avoidance Index E. low in individualism
A. more hierarchical
222
In the context of management objectives and aspirations, which of the following is true of an employee’s personal life?
A. Max Weber discovered that some cultures emphasized profit over personal life.
B. The Japanese work ethic derives from the belief of feng shui.
C. Ancient Greek thought considered work to be a desirable factor in one’s life.
D. To the Japanese, personal life is company life.
E. McClelland opined that the standard of living enjoyed in the United States originated from the hard- working Protestant ethic.
D. To the Japanese, personal life is company life.
223
Research has shown that commitment of workers to their companies tended to be higher in countries:
A. higher in individualism and lower in power distance.
B. higher in collectivism and lower in individualism.
C. lower in individualism and higher in power distance.
D. higher in power distance and higher in individualism.
E. higher in collectivism and higher in power distance.
A. higher in individualism and lower in power distance.
224
According to Max Weber, at least part of the standard of living in the United States today can be attributed to the:
A. hard-working Protestant ethic.
B. artificially low price of gasoline.
C. almost complete penetration of the Internet.
D. status equalization by the business class.
E. slave-labor that formed the basis for early industry.
A. hard-working Protestant ethic.
225
Communication in a high-context culture depends heavily on the ______ (who says it, when it is said, how it is said) or nonverbal aspects of communication, whereas the low-context culture depends more on explicit, verbally expressed communications.
contextual
226
Which of the following aspects of communication is more important in a low-context culture?
A. Explicit communication
B. Nonverbal communication C. Contextual communication D. Face-to-face communication E. Implicit communication
A. Explicit communication
227
```
According to the high-context/low-context continuum identified by Edward T. Hall, communication in a low-context culture depends on:
A. the context.
B. who says it.
C. when it is said.
D. how it is said.
E. the verbal expression.
```
E. the verbal expression.
228
Fredrick Keeble, an American manager, took his Swiss client out for a traditional American dinner. The client did not seem to enjoy the food and left most of it untouched. After dinner, he asked his client if he had enjoyed the dinner. Which of the following responses would indicate that the client comes from a low-context culture?
A. No, I did not like the food.
B. Yes, but it was a little too oily.
C. No, I thought the food was good.
D. Yes, it was lovely, thanks.
E. Yes, unfortunately I was not very hungry.
A. No, I did not like the food.
229
```
Western cultures like most North Americans, Swiss, Germans, and Scandinavians tend to concentrate on one thing at a time and are typified by _____ time.
A. polychronic
B. bimodal
C. dual
D. monochronic
E. sequence
```
D. monochronic
230
```
_____ is more dominant in high-context cultures, where the completion of a human transaction is emphasized more than holding to schedules.
A. Polychronic time
B. Bimodal time
C. Dual time
D. Monochronic time E. Sequence time
```
A. Polychronic time
JAPAN
BRAZIL
231
hich of the following best explains the low percentage of women chosen for international assignments in the United States?
A. The traditional role of women as homemakers and caregivers does not allow for international
assignments.
B. Women managers from the United States have a poorer track record when compared to their male
counterparts.
C. Prejudice faced by American women executives in foreign, male-dominated societies is
exaggerated.
D There is a wide spread belief that roles of women in male-dominated societies precludes women
. from being successful in these societies.
E. Expenses involved in sending a women executive abroad are far higher than the expenses in
sending a man abroad.
D There is a wide spread belief that roles of women in male-dominated societies precludes women
232
Among its various activities, ____ conducts an international survey of businesspeople, political analysts, and the general public to determine their perceptions of corruption in 182 countries in the Corruption Perception Index (CPI).
D. Transparency International (TI).
233
Transparency International’s CPI is also proving useful in academic studies of the causes and consequences of bribery. ______ levels of bribery have been found in low-income nations and nations with a communist past, both aspects of the political economy.
Higher
234
Transparency International’s CPI is also proving useful in academic studies of the causes and consequences of bribery. ______ levels of bribery have been found in low-income nations and nations with a communist past, both aspects of the political economy.
Higher
235
Which of the following is true of the business community’s view about payoffs?
A. The decision to pay a bribe is ethical in the business world.
B. During the 1970s, the United States had strict laws against paying bribes in foreign countries.
C. The Securities and Exchange Commissions requires all types of corporations to report their
expenditures.
D. Payoffs are restricted to the multinational companies headquartered in the United States.
E. Many global competitors perceive payoffs as a necessary means to accomplish business goals.
E. Many global competitors perceive payoffs as a necessary means to accomplish business goals.
The decision to pay a bribe creates a major conflict between what is ethical and proper and what appears to be profitable and sometimes necessary for business. Many global competitors perceive payoffs as a necessary means to accomplish business goals.
236
Academic studies of the causes and consequences of bribery, conducted by Transparency International (TI), indicate corruption is greater in:
A. high income nations.
B. democratic rather than communist countries.
C. countries with high individualism.
D. countries with low Power Distance Index.
E. collectivistic nations.
E. collectivistic nations.
According to studies conducted by Transparency International, higher levels of bribery have been found in low-income nations and nations with a communist past, both aspects of the political economy. Additionally, higher levels of bribery have been found in collectivistic (IDV) and high power distance (PDI) countries.
237
Academic studies of the causes and consequences of bribery, conducted by Transparency International (TI), indicate corruption is greater in:
A. high income nations.
B. democratic rather than communist countries.
C. countries with high individualism.
D. countries with low Power Distance Index.
E. collectivistic nations.
E. collectivistic nations.
According to studies conducted by Transparency International, higher levels of bribery have been found in low-income nations and nations with a communist past, both aspects of the political economy. Additionally, higher levels of bribery have been found in collectivistic (IDV) and high power distance (PDI) countries.
238
```
Which aspect of Japanese culture, predicted by many to favor bribery, makes Japan's success in reducing corruption more remarkable?
A. Relationship-orientation
B. Mechanistic inclination
C. Patriarchal nature
D. Ritualistic nature
E. Consumerism
```
A. Relationship-orientation
239
```
_____ occurs when payments are extracted under duress by someone in authority from a person seeking only what he or she is lawfully entitled to.
A. Extortion
B. Subornation
C. Lubrication
D. Larceny
E. Bribery
```
A. Extortion
240
```
_____ involves a relatively small sum of cash, a gift, or a service that is intended to facilitate or expedite the normal, lawful performance of a duty by an official.
A. Extortion
B. Subornation
C. Lubrication
D. Malfeasance
E. Exaction
```
C. Lubrication
241
```
_____ generally involves giving large sums of money—frequently not properly accounted for— designed to entice an official to commit an illegal act on behalf of the one offering the bribe.
A. Agent charges
B. Lubrication
C. Extortion
D. Subornation
E. Ransom
```
D. Subornation
242
A manager hires an agent to obtain a license to build a warehouse in an industrial district. The agent was caught offering a bribe to a government official for issue of the license. Which of the following describes the manager’s liabilities?
A. The manager is not liable since the use of an agent absolves him of any responsibility.
B.The manager is liable since the agent used part of his fees for bribery, although the manager was unaware of the agent’s intentions.
C. The manager is not liable if the agent can prove that extortion, rather than bribery, took place.
D. The manager is liable if he was aware of the fact that part of the agent’s fee would be used as a
bribe.
E. The manager is liable only if the act of building the warehouse at the given location is illegal.
D. The manager is liable if he was aware of the fact that part of the agent’s fee would be used as a bribe.
The Foreign Corrupt Practices Act (FCPA) prohibits U.S. businesses from paying bribes openly or using intermediaries as conduits for a bribe when the U.S. manager knows that part of the intermediary’s payment will be used as a bribe.
243
Which of the following ethical principles tries to optimize the “common good” or benefits of all constituencies?
A. Secularism and philanthropy B. Rights of the parties
C. Justice or fairness
D. Utilitarian ethics
E. Self-reference frame
D. Utilitarian ethics
Three ethical principles provide a framework to help the marketer distinguish between right and wrong, determine what ought to be done, and properly justify his or her actions. Simply stated, they are as follows: • Utilitarian ethics: Does the action optimize the “common good” or benefits of all constituencies? And who are the pertinent constituencies? • Rights of the parties: Does the action respect the rights of the individuals involved? • Justice or fairness: Does the action respect the canons of justice or fairness to all parties involved?
244
```
According to Lester Thurow, a(n) _____ form of capitalism is practiced in Japan and Germany typified by cooperation among government, management, and labor.
A. agonistic
B. individualistic
C. communitarian
D. protectionist
E. adversarial
```
C. communitarian
adversarial in British/American
245
```
A culture that is low context, individualistic, low power distance, and uses monochromic time is _____.
A. information-oriented
B. relationship-oriented
C. hierarchy-oriented
D. labor-oriented
E. task-oriented
```
A. information-oriented
American.
246
```
A culture that is high context, has collectivism, high power distance, and uses polychronic time is _____.
A. information-oriented
B. relationship-oriented
C. hierarchy-oriented
D. power-oriented
E. task-oriented
```
B. relationship-oriented
Japanese
