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IMS > Test 2 > Flashcards

Test 2 Flashcards

1
Q

A modified version of environmental scanning in which the firm identifies desirable markets by eliminating the less desirable ones

A

Market screening

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2
Q

A procedure in which the firm scans the world for changes in the environmental forces that might affect it

A

Environmental scanning

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3
Q

A screening that uses countries as the basis for market selection

A

Country screening

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4
Q

A screening that uses market segments, a within-country analysis of groups of consumers, as the basis for market selection

A

Segment screening

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5
Q

Economic data used to measure relative market strength of countries or geographic areas

A

Market indicators

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6
Q

Economic data that correlate highly with market demand for a product

A

Market factors

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7
Q

Statistical technique used to estimate future values by successive observations of a variable at regular time intervals that suggest patterns

A

Trend analysis

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8
Q

Statistical technique that divides objects into groups based on similarity

A

Cluster analysis

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9
Q

Barriers to entry- import/export barriers
Limits on foreign ownership
Limits on repatriation of earnings
Stable government policies (different from government stability)

A

Political and Legal Forces

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10
Q

Difficult because culture is subjective and interpretive

Data are difficult to assemble, particularly from a distance

A

Cultural Forces

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11
Q

Segments must be:

A

definable—so they can be measured
large—worth the effort
accessible
actionable—able to implement the 4 Ps
capturable—we need to be able to compete

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12
Q

A market visit by business people and/or government officials (state or federal) in search of business opportunities

A

Trade mission

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13
Q

Trade fair

A

A large exhibition at which companies promote the sale of their products

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14
Q

The respondent’s desire to please that leads to answers designed to please the interviewer rather than reflect the respondent’s true beliefs or feelings

A

Social desirability bias

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15
Q

An export of technology, management expertise, and possibly capital equipment where a contractor agrees to design and erect a plant, supply the process technology, provide the production inputs, train the operating personnel, and, after a trial run, turn the facility over to the purchaser

A

Turnkey project
(Non Equity)

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16
Q

A contractual arrangement in which one firm grants access to its patents, trade secrets, or technology to another for a fee

A

Licensing

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17
Q

A form of licensing in which one firm contracts with another to operate a business under an established name according to specific rules

A

Franchising

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18
Q

An arrangement by which one firm provides management to another firm

A

Management contract

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19
Q

Contracted manufacturing

A

An arrangement in which one firm contracts with another to produce products to its specifications

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20
Q

Joint venture

A

A cooperative effort among two or more organizations that share a common interest in a business undertaking

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21
Q

Strategic alliance

A

Collaboration with competitors, customers, and/or suppliers that may take nonequity or equity form

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22
Q

are the same, but country-level environmental forces (uncontrollable) vary widely (sociocultural, resource and environmental, economic, socioeconomic)

A

Marketing functions

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23
Q

also vary across markets—distribution channels, taste and aesthetic preferences, pricing structure of markets

A

Controllable forces

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24
Q

A set of strategy decisions made about the product and its promotion, pricing, and distribution in order to satisfy the needs and desires of customers in a target market

A

Marketing mix

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25
Q

is less costly, and allows for longer production runs (economies of scale and learning).

A

Standardization

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26
Q

often required.
Marketing principle centers on needs of buyer, not seller. Localization often practiced.

A

Adaptation

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27
Q

New mix

A

might be required for significant local penetration

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28
Q

A firm’s name, logo, slogan, graphics, color, and typeface that help identify the firm to consumers and other interested constituents

A

Corporate visual identity (CVI)

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29
Q

What the customer buys, including the physical product, brand name, accessories, after-sales service, warranty, instructions for use, company image, and package

A

Total product

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30
Q

Sociocultural forces

A

reflect consumer preferences

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31
Q

affect pricing, packaging, production

A

Economic forces

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32
Q

such as climate and terrain often require adjustment in product and production

A

Physical forces

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33
Q

Any form of communication between a firm and its publics , including advertising, public relations, sales promotions such as rebates and “buy one get one,” and events and experiences, such as sponsoring events to both yield purchases in the short term and confidence in the firm in the long run

A

Promotion

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34
Q

Programmed-management approach

A

A middle-ground advertising strategy between globally standardized and entirely local programs

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35
Q

Any of the various activities, such as preparation of point-of-purchase displays, contests, premiums, trade show exhibits, celebrity-embraced promotion, money-off offers, and coupons
Faces cultural constraints

A

Sales promotion

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36
Q

Various methods of communicating with the firm’s publics to secure a favorable impression, rather than immediate sales
Overlooked tool in many international markets
May help during periods of public criticism in international markets

A

Public relations

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37
Q

Foreign national pricing

A

Policy that sets local pricing based on market forces in another country

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38
Q

International pricing

A

Policy that sets prices of goods produced in one country and sold in another

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39
Q

The unraveling of traditional distribution structures, popularly called “cutting out the middlemen”

A

Disintermediation

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40
Q

Labor mobility

A

The movement of people from country to country or area to area seeking jobs

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41
Q

Brain drain

A

loss by a country of its most intelligent and best-educated people
Serious problem for developing countries

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42
Q

Reverse brain drain

A

the return home of highly skilled immigrants who have made a contribution in their adopted country

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43
Q

Ethnocentric policy

A

A policy of hiring and promoting based on the parent company’s home-country frame of reference

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44
Q

Polycentric policy

A

A policy of hiring and promoting based on the specific local context in which the subsidiary operates

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45
Q

Regiocentric policy

A

A policy of hiring and promoting based on the specific regional context in which the subsidiary operates

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46
Q

Geocentric policy

A

A policy of hiring and promoting based on ability and experience without considering race or citizenship

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47
Q

Parent-country national (PCN)

A

Employee who is a citizen of the nation in which the parent company is headquartered; also called home-country national

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48
Q

Host-country national (HCN)

A

Employee who is a citizen of the nation in which the subsidiary is operating, which is different from the parent company’s home nation

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49
Q

Third-country national (TCN)

A

Employee who is a citizen of neither the parent company nation nor the host country

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50
Q

Culture shock

A

The anxiety people often experience when they move from a culture that they are familiar with to one that is entirely different

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51
Q

Allowances

A

Employee compensation payments added to base salaries of expatriates because of higher expenses encountered when living abroad

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52
Q

Bonuses

A

Expatriate employee compensation payments in addition to base salaries and allowances because of hardship, inconvenience, or danger

53
Q

Compensation packages

A

For expatriate employees, packages that can incorporate many types of payments or reimbursements and must take into consideration exchange rates and inflation

54
Q

International status

A

Entitles the expatriate employee to all the allowances and bonuses applicable to the place of residence and employment

55
Q
  1. An actionable segment is one that
    A. allows the marketing mix to operate.
    B. has resources to purchase the product.
    C. perceives that the product line is useful.
    D. can be moved through advertising.
A

A. allows the marketing mix to operate.

56
Q
  1. Immigrants from developing countries:
    A. lead to unemployment in skilled sectors of the U.S. economy.
    B. have become essential contributors to the U.S. economy’s health.
    C. dilute the skill levels of the U.S. workforce.
    D. are primarily college educated.
    E. usually take highly paid 3-D jobs.
A

B. have become essential contributors to the U.S. economy’s health.

57
Q
  1. IMF quotas are determined by the relative size of a nation in the global economy and…
    A. are the nation’s “dues” to the IMF.
    B. limit trade among IMF members.
    C. are payable in SDRs.
    D. may run in arrears for five years.
A

A. are the nation’s “dues” to the IMF.

58
Q
  1. The international Fisher effect says that interest rate differentials

A. predict exchange rate movement.
B. can be used to determine purchasing power parity.
C. are an example of the law of one price.
D. illustrate Pareto optimality.

A

A. predict exchange rate movement

59
Q
  1. Channels of distribution are included in

A. the fifth screening.
B. both controllable and uncontrollable variables.
C. the controllable variables category.
D. joint ventures.

A

A. The fifth screening

60
Q
  1. _____________ uses market data to estimate future values.

A. Trend analysis
B. A least developed organization
C. A license
D. Market segmentation

A

A. Trend analysis

61
Q
  1. To avoid translation errors, the experienced advertising manager will use

A. a common language such as English, Mandarin, or French.
B. local translators.
C. back translation.
D. both local and home-country translators in teams.

A

C. Back translation

62
Q
  1. The basic assumption of standardization
    A. can be seen to contradict the basic marketing principle.
    B. is that markets like consumer goods.
    C. addresses the tension between need and desire.
    D. operationalizes the primacy of the consumer.
A

A. can be seen to contradict the basic marketing principle

63
Q
  1. A policy of hiring and promoting based on ability and experience without considering race or citizenship is

A. an ethnocentric policy.
B. a polycentric policy.
C. a regiocentric policy.
D. a geocentric policy.

A

D. a geocentric policy

64
Q
  1. In a free trade area, members drop their tariffs with one another

A. but each retains external tariffs.
B. and they also combine their tariffs with other nations.
C. but their duties with one another remain in force.
D. and labor can move freely among the members.

A

A. but each retains external tariffs

65
Q
  1. Disintermediation is

A. the unraveling of traditional distribution structures.
B. a way to avoid higher taxes through transfer pricing.
C. separating markets, sometimes based on segmentation.
D. allowing orders to be placed via the Internet but delivered traditionally.

A

A. the unraveling of traditional distribution structures

66
Q
  1. When FTA members add shared external tariffs to their agreement, they have formed a

A. customs union.
B. free trade association, such as NAFTA.
C. duties agreement.
D. trade conglomerate

A

A. customs union

67
Q

The arithmetic average of the current exchange rate and the exchange rates in the two preceding years, adjusted by the ratio of domestic inflation to the combined inflation rates of the euro zone, Japan, the United Kingdom, and the United States

A

Atlas conversion factor

68
Q

The part of a nation’s income that, because of un-reporting or underreporting, is not measured by official statistics

includes undeclared production of legal and illegal goods and services, their corresponding activities (e.g., money laundering), and concealed income in kind (barter)

A

Underground economy

69
Q

Higher income tax levels and increased government red tape tend to create a bigger ___ ___.

A

underground economy

70
Q

Bretton Woods system

A

The international monetary system in place from 1945 to 1971, with par value based on gold and the U.S. dollar

71
Q

Fixed exchange rate

A

Exchange rate regime in which the currency’s value is tied to the value of another currency or gold

72
Q

A problem in which a national currency that is also a reserve currency will eventually run a deficit, leading to lack of confidence in the reserve currency and a financial crisis

A

Triffin paradox

73
Q

An international reserve asset established by the IMF; the unit of account for the IMF and other international organizations

A

Special drawing rights (SDR)

74
Q

Floating exchange rates

A

Exchange rates determined by supply and demand that allow currency values to float against one another

75
Q

Jamaica Agreement

A

The 1976 IMF agreement establishing flexible exchange rates among IMF members

76
Q

Exchange arrangement with no separate legal tender
Currency board arrangement
Conventional fixed-peg arrangement
Stabilized arrangement: Pegged exchange rate within a horizontal band

A

Current Currency Arrangements

77
Q

In FX, using the dollar as the base currency, a currency that is quoted as dollars per unit of currency instead of in units of currency per dollar

A

Reciprocal currency

78
Q

The exchange rate between two currencies for delivery within two business days

A

Spot rate

79
Q

planning process that begins at the lowest level in the organization and continues upward

A

bottom-up planning

80
Q

an itemized projection of revenues and expenses for a future time period

A

budget

81
Q

the ability of a company to achieve and maintain a unique and valuable competitive position both within a nation and globally, generating higher rates of profit than its competitors

A

competitive advantage

82
Q

action plans to enable organizations to reach their objectives

A

competitive strategies

83
Q

plans for the best or worst case scenarios or for critical events that could have a severe impact on the firm

A

contingency plans

84
Q

knowledge that is easy to communicate to others via words, pictures, formulas, or other means

A

explicit knowledge

85
Q

a plan that guides the way firms make choices about developing and deploying scarce resources to achieve their international objectives

A

international strategy

86
Q

repetition of the bottom-up or top-down planning process until all differences have been reconciled

A

iterative planning

87
Q

the practices that organizations and their managers use for identifying, creating, acquiring, developing, dispersing, and exploiting competitively valuable knowledge

A

knowledge management

88
Q

broad guidelines issued by upper management to assist lower-level managers in handling recurring issues or problems

A

policies

89
Q

guides that specify ways of carrying out a particular task or activity

A

procedures

90
Q

a prediction of future sales performance

A

sales forecast

91
Q

an assessment conducted on the chain of interlinked activities of an organization or set of interconnected organizations, intended to determine where and to what extent value is added to the final product or service

A

value chain analysis

92
Q

a clear, concise description of the fundamental values, beliefs, and priorities expected of the organization’s members, reflecting how they are to behave with each other and with the company’s customers, suppliers, and other members of the global community

A

values statements

93
Q

Influenced by climate, geography, natural resources
Some needs easy to assess (industrial goods); others more difficult, especially when they are desires (chocolate)
Data include imports, local production

A

Basic Needs Potential (First)

94
Q

Trends in inflation
currency exchange
interest rates
credit availability
paying habits
rates of return on similar investments

A

Second Screening: Financial and Economic Forces

95
Q

Barriers to entry- import/export barriers
Limits on foreign ownership
Limits on repatriation of earnings
Stable government policies (different from government stability)

A

Third Screening: Political and Legal Forces

96
Q

Difficult because culture is subjective and interpretive

Data are difficult to assemble, particularly from a distance

A

Fourth Screening: Cultural Forces

97
Q

The number, size, and financial strength of the competitors.
Their market shares.
Their marketing strategies.
The apparent effectiveness of their promotional programs.
The quality levels of their product lines.
The source of their products—imported or locally produced.
Their pricing policies.

A

Fifth Screening: Competitive Forces

98
Q

Universal trade terminologies developed by the International Chamber of Commerce
Describe which party does which tasks, which party covers the costs, and which party bears the risk

A

Incoterms

99
Q

Conditions of a sale that stipulate the point at which costs and risks are borne by the buyer

A

Terms of sale

100
Q

Cost, insurance and freight, included in the price, buyers will be obligated to pay (terms of such sale are more convenient for foreign buyers)

A

CIF

101
Q

Cost and Freight included in the price and a buyer buys insurance. The exclusion of insurance will depend on
Country risk
Product related risks
Transportation infrastructure quality

A

CFR

102
Q

Price includes inland transportation. That is up to the port of delivery – buyer is responsible for insurance and cost of freight

A

FOB

103
Q

For exporters, the most preferred pricing method is ___ ___; all responsibility is passed to the buyer.

A

factory door

104
Q

In the Terms of sale beyond pricing, Two areas require special attention:

A

responsibilities for patent and trademark registration
designation of country and state or province whose laws will govern any contractual dispute.

105
Q

Export payment may based be:

A

cash in advance
open account
consignment
Opening letters of credit
documentary drafts

106
Q

Seller assumes all risk so these terms must be offered only to reliable customers in economically stable countries.
Subsidiaries settling their import and export transactions can be based on open accounts

A

Open Account

107
Q

Document issued by buyer’s bank which promises to pay the seller a specified amount when the bank has received certain documents specified in the letter by a specified time.

A

Letter of credit

108
Q

Document issued by the buyer’s bank in which the bank promises to pay the seller a specified amount under specified conditions
The most popular in im-ex transactions.
However the following conditions should be fulfilled:

A

Letter of credit (L/C)

109
Q

Letter of credit should:

A

Be confirmed
State Irrevocable

110
Q

A bill of lading issued by an air carrier

A

Air waybill

111
Q

Exporter’s formal quotation, containing a description of the merchandise, price, delivery time, method of shipping, terms of sale, and points of exit and entry

A

Pro forma invoice

112
Q

An unconditional order drawn by the seller that instructs the buyer to pay the draft on presentation (sight draft) or at an agreed future date (time draft) and that must be paid before the buyer receives shipping documents

A

Export draft

113
Q

A time draft with a maturity of less than 270 days that has been accepted by the bank on which the draft was drawn, thus becoming the accepting bank’s obligation

A

Banker’s acceptance

114
Q

The sale of an exporter’s accounts receivable on ordinary goods, with the balance of the payment due upon delivery or soon after

A

Factoring

115
Q

The sale of an exporter’s accounts receivable on capital goods, commodities, and other high-value goods, with the payment due at least 180 days out

A

Forfaiting

116
Q

Government agency that provides loans, guarantees, and insurance programs to support American exporters

A

U.S. Export-Import Bank (Ex-Im Bank)

117
Q

A government corporation that offers U.S. investors in developing countries insurance against expropriation, currency inconvertibility, and damages from wars and revolutions

A

Overseas Private Investment Corporation (OPIC)

118
Q

the American version of a free trade zone.
Goods may be brought into an FTZ and stored, inspected, repackaged or combined with American components.
No import duties need be paid while goods are in the FTZ

A

Foreign Trade Zones (FTZ)

119
Q

rebates on customs duties that exported good may qualify for

A

Customs drawbacks

120
Q

Act as agents for exporters.
Prepare documents, book space with carriers and will supply marine insurance if asked.

A

Foreign Freight Forwarders

121
Q

U.S. Department of Commerce form used to control export shipments and record export statistics

A

Shipper’s export declaration (SED)

122
Q

Document issued by the carrier that is a contract for the shipment, a receipt for the goods shipped, and a certificate of ownership

A

Export bill of lading (B/L)

123
Q

Export bill of lading serves three purposes:

A

contract for carriage between shipper and carrier
receipt from the carrier for the goods shipped
certificate of ownership.

124
Q

Three kinds of marine insurance:

A

basis perils,
broad named perils, and
all risks.

125
Q

evidence that insurance coverage has been obtained to protect shipment from loss or damage while in transit.

A

Insurance certificate

126
Q

EU mark that indicates that merchandise conforms to European health, safety, and environmental requirements

A

Conformité Européene (CE) mark

127
Q

Independent businesses that handle import shipments for compensation
provide such services as arranging transportation for the goods after they leave Customs and advising clients as to import quotas.
can arrange to place goods in a bonded warehouse when necessary

A

Customhouse brokers

128
Q

important classification system used by all developed nations.

A firm that feels it is paying excessive import duties can take the matter to court if it cannot reach an agreement with customs officials.
Could be a source of corruption related to bribery and delay of release of products in developing countries

A

The Harmonized System

129
Q

An area authorized by customs authorities for storage of goods on which payment of import duties is deferred until their removal

A

Bonded warehouse

IMS (3 decks)

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