Midterm Flashcards
Which of the following best defines international marketing?
It is the process of planning and conducting economic forecasting in developing countries.
It is the process of creating a subsidiary in a neighboring country.
It consists of the activity, institutions, and processes across national borders that create, communicate, deliver, and exchange offerings that have value for stakeholders and society.
It is the process of hiring employees from other countries to assist with advertising messages, public communication, and the building of overall awareness.
It consists of the activity, institutions, and processes across national borders that create, communicate, deliver, and exchange offerings that have value for stakeholders and society.
Export-import trade, licensing, joint ventures, wholly owned subsidiaries, turnkey operations, and management contracts are examples of:
international marketing.
Which of the following is true of international marketing?
The international marketer is faced with often inconsistent legal systems when it comes to monitoring environmental pollution.
International marketing does not retain the basic marketing tenets of value and exchange.
International marketing does not focus on stakeholders and society whose present positions are to be improved.
The international marketer is subject to the same set of macroenvironmental factors as a domestic marketer.
The international marketer is faced with often inconsistent legal systems when it comes to monitoring environmental pollution.
Which of the following new technologies has allowed consumers to supply and receive products from across the world for personal use?
Question options:
Travelogues on cable television
The Internet
Automated pensions and individual retirement accounts
Newly created niche markets
The Internet
Which of the following is true about the importance of world trade?
Question options:
World trade has deeply affected domestic policymaking and has often resulted in the emergence of totally new threats to firms and individuals.
The growth of domestic economies has typically outperformed global growth of trade in the past few decades.
When firms invest on a global scale, it is difficult for entire industries to shift their locations.
Due to the severe recession that affected much of the world’s economy in 2008 and 2009, world trade could not rebound in 2010.
World trade has deeply affected domestic policymaking and has often resulted in the emergence of totally new threats to firms and individuals.
The trading bloc NAFTA is located in _____.
Question options:
Asia
Europe
South America
North America
North America
Which of the following is true regarding technological innovation?
Question options:
Technological innovation has complicated the production process.
Technological innovation has increased demand, therefore products are distributed at a higher cost.
Technological innovation allows for customization in order to meet diverse clients’ needs.
Technological innovation enables greater access to raw materials around the world which in turn increases production costs.
Technological innovation allows for customization in order to meet diverse clients’ needs.
The International Monetary Fund (IMF) was founded to:
Question options:
manage monetary policies around the world.
help restructure impoverished economies.
provide infrastructural and medical aid to developing countries.
provide financial assistance to developing countries for development programs.
help restructure impoverished economies.
By erecting barriers, designing quotas, and implementing other import regulations, governments have attempted to:
Question options:
prevent illegal trade across borders.
restrict the impact of global trade and financial flows.
increase the income of the government.
capitalize on technology and enforce worldwide standards.
restrict the impact of global trade and financial flows.
Which act raised duties to reduce the volume of imports into the United States, in the hopes that this would restore domestic employment?
Question options:
The Export Trading Company Act
The Gramm-Leach-Bliley Act
The Sarbanes-Oxley Act
The Smoot-Hawley Act
The Smoot-Hawley Act
The Soviet Union, as the leader of the Eastern bloc, developed the _____, which focused on developing strong linkages among the members of the Soviet bloc and discouraged relations with the West.
Question options:
Gulf Cooperation Council
Transatlantic Business Dialogue
MERCOSUR
Council for Mutual Economic Assistance
Council for Mutual Economic Assistance
Which of the following began in 1947 as a set of rules for nondiscrimination, transparent procedures, and settlement of disputes in international trade?
Question options:
The Free Trade Area of the Americas
The General Agreement on Tariffs and Trade
The North American Free Trade Agreement
The General Agreement on Trade in Services
The General Agreement on Tariffs and Trade
Which of the following statements about the WTO is true?
Question options:
Provisions are made at the WTO for decisions to be made by majority vote if a consensus cannot be achieved.
A successful WTO may well endorse the sovereignty of nations.
The original goal of the WTO was to provide for fixed exchange rates between countries.
Outside groups such as nongovernmental organizations believe the WTO will assist their causes.
Provisions are made at the WTO for decisions to be made by majority vote if a consensus cannot be achieved.
What is the core mission of the WTO?
Question options:
To provide for general difficulties in the market entry of foreign products
To provide preferential treatment to domestic bidders over foreign bidders
To facilitate international trade and investment
To deal with social causes and issues such as labor laws and competition
To facilitate international trade and investment
The International Bank for Reconstruction and Development is also known as the _____.
Question options:
Export-Import Bank
UNDP
World Bank
IMF
World Bank
What is the term used for a firm founded with a global scope in mind from the very beginning?
Question options:
Global
Economic bloc
Multinational
Born global
Born global
_____ are special because they can affect currency values and the fiscal and monetary policies of governments, shape public perception of competitiveness, and determine the level of imports a country can afford.
Question options:
Protectionistic laws
Mixed aid credits
Exports
Nontariffs
Exports
Which of the following statements is true about foreign direct investment?
Question options:
Foreign investments may result in growing concern among policymakers about dependency on foreign owners.
The United States is the sole foreign direct investor in the world.
Foreign affiliates are not participants of trade.
Foreign direct investment tends to be distributed equally across all industries.
Foreign investments may result in growing concern among policymakers about dependency on foreign owners.
“Voluntary” import restraints have been used mainly in areas such as textiles, automobiles, and steel, and are intended to _____.
Question options:
help domestic companies regain their trade prominence of years past
show good political citizenship by members
penalize exporters of raw materials
situate the imports as a political component as opposed to a trade embargo
help domestic companies regain their trade prominence of years past
Where is MERCOSUR located?
South America
What is the Mercosur stand for?
Southern Common Market
Which of the following is true about culture?
Question options:
It pertains only to the group being analyzed and does not translate to another group.
It has been shown that newborns have an understanding of their culture from birth and therefore it is hereditary.
It is inherently conservative, resisting change and fostering continuity.
It is difficult to articulate because culture has no distinguishing characteristics.
It is inherently conservative, resisting change and fostering continuity.
The process of adjusting and adapting to a specific culture other than one’s own is termed as _____.
Question options:
cultural imperialism
ethnocentrism
acculturation
back-translation
acculturation
Marketers who bring about cultural change through dramatic campaigns without the adaptation to culture-specific elements can be accused of cultural _____.
Question options:
relativism
diffusion
revolution
imperialism
imperialism
The manifestations of the total way of life of any group of people are referred to as cultural _____.
Question options:
universals
imperialism
convergences
relativism
universals
Which of the following is true about values and attitudes?
Question options:
In tradition-bound societies, attitude toward change is viewed with great suspicion.
Attitude toward change is basically negative in industrialized countries.
Values are the evaluation of alternatives based on attitudes.
Cultural attitudes are typically a deterrent to foreign business practices.
In tradition-bound societies, attitude toward change is viewed with great suspicion.
Which of the following determines the roles of managers and subordinates and the way they relate to one another?
Question options:
Inequality
Ethnocentrism
Cultural assimilation
Social organization
Social organization
Which of the following United States authorities, in addition to the normal business literature and its anecdotal information, publish specific country studies?
Question options:
The Immigration and Naturalization Service
The Department of Commerce
The Office of Foreign Assets Control
The Internal Revenue Service
The Department of Commerce
The unconscious allusion to one’s own cultural values is known as _____ criterion.
Question options:
high-context
collectivist
ethnocentric
self-reference
self-reference
_____ are companies that traditionally provide low-priced goods for the bottom-of-the-pyramid consumers in their home markets.
Question options:
Multinational incumbents
Local upstarts
Global aspirants
Domestic giants
Local upstarts
Age distribution and _____ correlate heavily with the level of development of the market.
Question options:
life expectancy
gender
nationality
lifestyle
life expectancy
Purchasing power is a function of income, prices, savings, and _____.
Question options:
population
education
credit availability
natural resources
credit availability
Apart from population, which of the following is most indicative of the market potential for most consumer and industrial products and services?
Question options:
Political stability
Education levels
Life span
Income
Income
Which of the following laws states that as a family’s income increases, the percentage spent on food will decrease?
Question options:
Pareto’s law
Engel’s law
The law of diminishing returns
Gresham’s law
Engel’s law
Market information on the percentage of households that own a particular product is known as:
Question options:
product categorization.
product diffusion.
market potential.
market penetration.
product diffusion.
The availability and quality of _____ is critically important in evaluating marketing operations abroad.
Question options:
urban population
infrastructure
market diffusion
education
infrastructure
A country’s use of computers, telephones, broadcast media, and print media is an indicator of:
Question options:
passive consumers.
communication.
distribution channel.
transportation.
communication.
The three components of the Physical Quality of Life Index are infant mortality, adult literacy and _____.
Question options:
social responsibility
growth stability
adolescent sustainability
life expectancy
life expectancy
When products and goods enter a market in ways not desired by their manufacturers, this is known as _____ market activities.
Question options:
black
white
green
gray
gray
_____ refer to governmental actions that distort the free flow of trade in goods, services, or ideas for decidedly adversarial and political, rather than strictly economic, purposes.
Question options:
Gray market activities
Tariffs and barriers
Trade sanctions and embargoes
Expropriation and confiscation
Trade sanctions and embargoes
_____ are designed to deny or at least delay the acquisition of strategically important goods by adversaries.
Question options:
Antidumping laws
Export control systems
Voluntary restraint agreements
Domestication activities
Export control systems
Which of the following is an example of a dual-use item?
Question options:
Handbags
Life jackets
Compact cars
Artillery
Life jackets
When firms refuse to do business with someone, often for political reasons, this is known as _____.
Question options:
image tarnishing
expropriation
boycotting
confiscation
boycotting
Which of the following strongly influences a consumer’s ability to purchase goods and services?
Question options:
Legal factors
Political environment
Income level
Sociocultural factors
Income level
A(n) _____ is an internal force that orients a person’s activities toward satisfying a need or achieving a goal.
Question options:
norm
virtue
motive
intuition
motive
According to Maslow’s hierarchy of needs, which needs have to be fulfilled before a consumer can attempt to fulfill his safety needs?
Question options:
Love and belonging needs
Physiological needs
Esteem needs
Self-actualization needs
Physiological needs
Which of the following represents the highest level in Maslow’s hierarchy of needs?
Question options:
Esteem needs
Physiological needs
Self-actualization needs
Safety needs
Self-actualization needs
_____ are accepted behaviors within a society or group.
Question options:
Norms
Virtues
Anomies
Motives
Norms
_____ is the tendency to view domestically produced goods as superior to those produced in other countries.
Question options:
Conspicuous consumption
Consumer ethnocentrism
Narrowcasting
World mindedness
Consumer ethnocentrism
_____ refers to a consumer’s interest in, and openness to, acquiring goods from other countries.
Question options:
World mindedness
Conspicuous consumption
Narrowcasting
Consumer ethnocentrism
World mindedness
_____ refers to demand for raw materials, parts, and other inputs that depends on demand for some other good.
Question options:
Derived demand
Latent demand
Effective demand
Marginal demand
Derived demand
Which of the following are two of the most powerful globalization drivers?
Question options:
Concentrating investments in national markets and focusing on economies of scale
Restricting entry to geographically close markets and pushing standardized solutions on customers
Centralizing all operations of R&D and providing additional funds for research
Avoiding cost inefficiencies and duplication of effort
Avoiding cost inefficiencies and duplication of effort
Which of the following is true about government barriers to international marketing?
Question options:
Global companies support governmental decisions to implement barriers on domestic marketing.
Government barriers have been implemented to discourage international marketing and concentrate only on domestic marketing.
Physical, fiscal, and technical barriers are the same globally and apply to all companies.
Barriers have fallen dramatically in the last years to further facilitate the globalization of markets.
Barriers have fallen dramatically in the last years to further facilitate the globalization of markets.
_____ refers to the capability of attracting and influencing all stakeholders, whether through energetic brands, heroic missions, distinctive talent development, or an inspirational corporate culture.
Question options:
Cross-subsidization
Brand awareness
Soft power
Segmentation
Soft power
Which of the following is NOT one of the three choices of competitive strategies that the marketing manager has at his/her disposal?
Question options:
Target positioning
Cost leadership
Differentiation
Focus
Target positioning
Which of the following is true of a focus strategy?
Question options:
It is oriented toward either low cost or differentiation.
It is either industry-wide or focused on a single segment.
It offers an identical product at a lower cost than the competition.
It has a broad target scope.
It is oriented toward either low cost or differentiation.
_____ takes advantage of the marketer’s real or perceived uniqueness in elements such as design or after-sales services.
Question options:
Standardization
Cross-subsidization
Diversification
Differentiation
Differentiation
_____ refers to a marketer’s decision to focus its resources on a smaller number of markets as opposed to a broad number of markets.
Question options:
Concentration
Differentiation
Diversification
Cross-subsidization
Concentration
_____ refers to a company’s decision to expand its portfolio by developing a strategy characterized by growth in a relatively large number of markets.
Question options:
Concentration
Differentiation
Cross-subsidization
Diversification
Diversification
The recognition that groups within markets differ sufficiently enough to warrant individual marketing mixes is known as _____.
Question options:
targeting
positioning
diversification
segmentation
segmentation
What are the two basic forms of research gathering methods?
Question options:
Generic and specific
Presentation and demonstration
Primary and secondary
Limited and scope-oriented
Primary and secondary
Firms are increasingly recognizing that ____ variables, such as lifestyles, attitudes, or personality, can play a major role in identifying similar consumer groups in different countries.
Question options:
discrete
segmentation
purchase-related
economic
segmentation
Which of the following approaches uses an intermediary such as an outside research agency to bring headquarters and country operations together?
Question options:
Coordinated research approach
Top-down approach
Decentralized approach
Centralized approach
Coordinated research approach
Outside research is appropriate:
Question options:
for small-scale international marketing research.
for small-scale domestic marketing research.
when generalized research skills are required.
when specialized research skills are required.
when specialized research skills are required.
What are dual-use items?
Dual-use items are goods, software and technology that can be used for both civilian and military applications
What was the purpose of GATT and what year was it created?
The General Agreement on Tariffs and Trade (GATT) was signed by 23 countries in October 1947, after World War II. The purpose of the GATT was to make international trade easier.
What was the GATT and what organization replaced with in 1995?
In 1995, the GATT was absorbed into the World Trade Organization (WTO), which extended it.
What do we mean by high and low context cultures?
The high and low context cultures in this concept refers to how important contextual cues are in interpreting a message. High context cultures have a communication style based on body language, tone, and overall context; while low context cultures are more straightforward and explicit in communication.
What is a cultural change agent?
An agent of cultural change within an organization is a person who is trained and empowered to facilitate change.
