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Home
—›
International Marketing
International Marketing MCQs
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For companies today, becoming international is a luxury only some can afford.
TRUE
FALSE
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Companies from the Netherlands are the leading group of investors in the United States.
TRUE
FALSE
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International marketing involves selling of a company's goods and services to consumers or users in more than one nation for a profit.
TRUE
FALSE
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The difference between domestic and international marketing lies in the different concepts of marketing.
TRUE
FALSE
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An international marketer must deal with at least two levels of uncontrollable uncertainty.
TRUE
FALSE
?
The geography and infrastructure of a country are uncontrollable factors that influence the business decisions of a company in an international market...
TRUE
FALSE
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The uncontrollable factors affecting international marketing are limited to political forces, economic climate, and competitive structure.
TRUE
FALSE
?
The level of technology in a country is an uncontrollable element for international marketers.
TRUE
FALSE
?
The uncontrollable factors a company has to deal with decreases with the number of foreign markets in which it operates.
TRUE
FALSE
?
The controllable elements can be altered in the long run and, usually, in the short run to adjust to changing market conditions, consumer tastes, or c...
TRUE
FALSE
?
Political and legal forces, economic climate, and competition are some of the domestic environment's controllable factors.
TRUE
FALSE
?
The foreign policies of a country have a direct effect on a firm's international marketing success.
TRUE
FALSE
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Abolition of apartheid in South Africa is an example of a positive effect on foreign policy, an uncontrollable element, in an international marketing ...
TRUE
FALSE
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The business activities of international marketers are not affected by competition in their domestic market.
TRUE
FALSE
?
The process of evaluating the uncontrollable elements in an international marketing program involves substantial doses of cultural, political, and eco...
TRUE
FALSE
?
Level of technology remains unchanged across countries making it a fairly controllable factor in international marketing
TRUE
FALSE
?
Political and legal issues a company may face abroad are mitigated by the "alien status" of the company.
TRUE
FALSE
?
The political details and the ramifications of political and legal events are often more transparent in a domestic situation than they are in a foreig...
TRUE
FALSE
?
The political and legal environment is a controllable element for international marketers because of their potent ability to lobby and influence legis...
TRUE
FALSE
?
In a broad sense, the uncontrollable elements of the foreign business environment constitute the culture.
TRUE
FALSE
?
In dealing with unfamiliar markets, marketers must be aware of the frames of reference they are using in making their decisions.
TRUE
FALSE
?
John refuses to buy Japanese products because he sees this as a way of selling out to a nation known for its aggressive behavior. John uses a self-ref...
TRUE
FALSE
?
The self-reference criterion is closely related to ethnocentrism.
TRUE
FALSE
?
Sam just ate cookies and, therefore, feels justified in refusing food offered by his Middle Eastern host. In this instance, Sam's self-reference ...
TRUE
FALSE
?
To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that emphasizes the need for ethnocentrism.
TRUE
FALSE
?
Understanding one's own culture normally requires no additional study.
TRUE
FALSE
?
The most effective approach to build global awareness into an organization is to increase the diversity mix of the employee profile for entry-level jo...
TRUE
FALSE
?
Research has revealed that smaller home markets and larger production capacities appear to favor internationalization.
TRUE
FALSE
?
A company in the "no direct foreign marketing" stage of international marketing involvement does not actively cultivate customers outside national bou...
TRUE
FALSE
?
The global marketing concept views the marketplace as consisting of one primary domestic market that is complimented by several smaller regional marke...
TRUE
FALSE
?
Which of the following is the most dynamic trend that is affecting current global business strategies?
The trend toward buying American cars in Europe
The trend toward the acceptance of the free market system among developing countries
The trend toward using English as the global language
The trend toward establishing a world currency
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Companies from _____ lead in foreign investment in the United States.
Kingdom of Saudi Arabia
Japan
the Netherlands
the United Kingdom
?
Which of the following is true regarding the impact of globalization on domestic markets in the United States?
Multinational companies are making more profits from their domestic operations compared to their earnings from the foreign markets.
Only multinational companies with large production facilities have outperformed their strictly domestic U.S. counterparts.
The domestic companies have reduced their manufacturing employment more than U.S. multinationals.
Multinational manufacturing companies in all industries and sizes have outperformed their domestic counterparts.
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Which of the following is an essential requirement for already experienced as well as new firms to succeed in international markets?
Adhering strictly to their traditional methods of production and operations
Focusing primarily on their production to exclusively meet domestic demand
Venturing into multiple markets by investing in all of them at once
Committing themselves completely to foreign markets
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_____ is the performance of business activities designed to plan, price, promote, and direct the flow of a company's goods and services to consum...
Internal marketing
Importing
Performance appraisal
International marketing
?
Which of the following is the most critical difference between domestic marketing and international marketing?
The difference in marketing principles being followed
The different concepts of marketing
The difference in marketing theories being followed
The environment in which marketing plans must be implemented
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Which of the following elements in the marketing environment poses a challenge to both domestic and international marketers due to its dominantly unco...
Price
Promotion
Research activities
Political/legal forces
?
Which of the following is a controllable element for an international marketer?
Level of technology
Geography and infrastructure
Channels of distribution
Cultural forces
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Which of the following is an uncontrollable element for an international marketer?
Firm characteristics
Price
Research
Level of technology
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For an international marketer, the _____ can be altered in the long run and, usually, in the short run to adjust to changing market conditions, consum...
competitive structure
economic climate
structure of distribution
controllable elements
?
Which of the following is an uncontrollable factor for a marketer in a domestic environment?
Firm characteristics
Competitive structure
Channels of distribution
Price of the product
?
Which of the following political actions is most likely to favor international marketing?
Placing trade embargo on Cuba owing to widespread political instability in the country
The U.S. government placing a trade ban on Libya owing to rampant terrorism
Paraguay imposing low tariffs and tax rates on manufacturing industries
Tariff hike for imports established by China
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Which of the following reflects the relationship between international business and domestic business?
The domestic economic climate has no effect on a company's competitive position in foreign markets.
Domestic businesses must focus on capital mobility toward international businesses before capital generation.
Countries must not restrict foreign investment even if domestic economic conditions deteriorate.
The ability to invest abroad is to a large extent a function of domestic economic vitality.
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Which of the following is a possible unfavorable outcome of the "alien status" of a company?
Prejudiced treatment by the host country’s politicians and legal authorities
An inflated balance of trade
A sharp rise in domestic and international demand
Lower trade tariffs in the host country
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With respect to the environment in which a business operates, factors such as competition, political and legal forces, and economic climate would all ...
controllable elements.
uncontrollable elements.
tractable elements.
demographic elements.
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_____ is a controllable element in both domestic and international marketing environments.
Economic climate
Competition within the home country
Price of products
Political force
?
The marketing tasks of an international marketer differs from that of a domestic marketer as the:
international marketer has fewer uncontrollable elements to deal than a domestic marketer.
level of technology and cultural forces are controllable elements for the international marketer.
structure of distribution is an uncontrollable element for the international marketer.
competitive structure is one of the controllable factors for an international marketer.
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Robert Jonas is in charge of a new marketing effort directed toward Peru. In order for his company to effectively market and distribute to all of Peru...
Price
Product
Geography and infrastructure
Promotional strategies
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Compared to the foreign environment variables, which of the following uncontrollable variables is least likely to affect a domestic marketer?
Political forces
Competitive structure
Economic climate
Cultural forces
?
Amy Sims has been assigned the task of preparing a marketing plan for her company for the upcoming year's business activities. She knows that she...
level of technology
competition
economic climate
promotion
?
M&G Inc., a company producing musical instruments, had dominated its home market for several years before venturing into international markets. Th...
Level of technology
Structure of distribution
Competition in the domestic market
Cultural forces
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Ralph Waite, a marketing manager at a video game console manufacturing firm, is asked to review the marketing opportunities of his company in a foreig...
The pricing policies in the domestic market
The research methodologies used by his company
The promotional activities required to market the product
The level of technology in the targeted market
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The uncontrollable issue of _____ faced by a company abroad is often amplified by the "alien status" of the company, which increases the difficulty of...
research
channel of distribution
product specification
politics
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Which of the following best illustrates the political and legal issues faced by companies because of their "alien status" when they attempt to do busi...
A company doing moderate business in international markets because of violent history of its home country
A company being forced by the local government to share its core competencies in order to continue doing business
A product not being widely accepted in the foreign market because of its irrelevance to the customers
A company utilizing an identical promotional campaign it used in the domestic country
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Which of the following best defines adaptation on the part of an international marketer?
It is a conscious effort to make themselves aware of the home cultural reference in their analyses and decision making.
It is a conscious effort to anticipate the influences of both the foreign and domestic uncontrollable factors on a marketing mix and then to adjust the marketing mix to minimize the effects.
It is the notion that people in one's own company or country know best how to do things.
It is the process of identifying the similarities that exists between the domestic and foreign markets.
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The primary obstacles to success in international marketing are a person's _____ and an associated ethnocentrism.
conscious regionalism
holism
self-reference criterion
moral relativism
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_____ is an unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions.
Xenocentrism
Holism
Self-reference criterion
Segregation
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When confronted with a set of facts, one reacts spontaneously on the basis of knowledge assimilated over a lifetime—knowledge that is a product...
self-reference criterion
space command criterion
integration criterion
segregation principle
?
Which of the following is closely related to the self-reference criterion?
Differentiation
Marketing myopia
Ethnocentrism
Multiculturalism
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_____ impedes the ability of a person to assess a foreign market in its true light.
Polycentrism
Pluralism
Xenocentrism
Ethnocentrism
?
Which of the following is true of ethnocentrism?
It enhances the ability of an organization to assess a foreign market in its true light.
It is a problem that arises when managers from affluent countries work with managers and markets in less affluent countries.
American managers have generally been uninfluenced by it, especially in the beginning of the 21st century.
It is the cornerstone of effective adaptation in the field of international marketing.
?
The most effective way to control the influence of ethnocentrism and the SRC is to:
reduce interaction with culturally diverse audience.
design products and services in a traditional manner.
recognize their effects on our behavior.
learn at least two foreign languages to understand the cultural differences.
?
To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that isolates the self-reference criterion influences. Whi...
Redefining the problem without the SRC influence
Solving the problem for the optimum business goal situation
Isolating the SRC influence in the problem
Defining the business problem or goal in home-country cultural traits, habits, or norms
?
Understanding one's own culture requires additional study:
to find out why cultural traits in one's own country does not affect market behavior.
as much of the cultural influence on market behavior is at the subconscious level.
without which understanding the cultural traits of one's own country is impossible.
because an average manager must have extensive cultural knowledge of all countries in the world.
?
Which of the following characterizes a globally aware manager?
Using one's home culture's values alone to market one's products in foreign countries
Accepting the cultural ways of another individual as his or her own
Tolerating cultural differences and allowing others to be different and equal
Discarding one's home culture's standards to adopt the global cultural standards
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Which of the following will best aid a manager in understanding the way people of different countries think and act?
Better political connections
An understanding of foreign investment opportunities
An understanding of macroeconomics
Knowledge of the foreign country’s history
?
Which of the following is the most effective way to achieve organizational global awareness?
Hiring entry-level employees based on the sole criterion of global awareness
Organizing frequent employee trips to foreign cultures to increase their sensitivity
Increasing the diversity mix of the front-level employee profile
Having a culturally diverse senior executive staff or board of directors
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Which of the following organizations seems better equipped for internationalization?
A firm that sells its products only to those foreign customers who directly contact the firm
A firm that has a production capacity that is much greater than home market demand
A firm that focuses its production activities on meeting the demands in the home market
A firm that has a culturally diverse employee profile but few competitive offerings at the global level
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Which of the following firms has a better chance of accelerating the internationalization process?
A firm with key managers well networked internationally
A firm with more traditional manufacturing practices
A firm that primarily focuses all its operations and production capacities to meet the domestic market needs
A firm that refrains from using the Internet as its major communication platform
?
Which of the following is true regarding the stages of international marketing involvement?
A firm essentially progresses through the stages in a linear order.
The international marketing stage is a direct result of temporary surpluses caused by variations in production levels or demand.
A larger home market with a smaller production base favors internationalization.
A firm may be in more than one stage simultaneously.
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In the context of stages of international marketing involvement, a company's products reaches a foreign market without any conscious effort on th...
infrequent foreign marketing stage
regular foreign marketing stage
no direct foreign marketing stage
international marketing stage
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Jefferson's, a firm that specializes in dog food and grooming products, has a very well-established domestic market. The company does not activel...
active foreign marketing
global marketing
regular foreign marketing
no direct foreign marketing
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James Bright's company seeks markets all over the world and attempts to sell products that are a result of planned production for markets in vari...
Infrequent foreign marketing
Domestic marketing
No direct foreign marketing
International marketing
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Maria Peron's company treats the world, including the home market in Spain, as one market. Market segmentation decisions no longer focus on natio...
Test marketing
No direct foreign marketing
Internal marketing
Global marketing
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Ajax Corporation decides to enter the international marketing arena by marketing its products to China, Japan, and South Korea, with separate marketin...
Domestic market extension
Multidomestic market
Mass marketing
Regional marketing
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Companies in the regular foreign marketing stage:
fail to actively seek customers in international markets.
do not, under any circumstance, adapt their products to meet the needs of individual foreign markets.
lack permanent productive capacity that is devoted for production of goods and services to be marketed in international markets.
primarily focus their operations and production to service domestic market needs.
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Which of the following is true of firms in the first two stages of international marketing involvement—no direct foreign marketing and infreque...
They do not begin internationalization at these stages.
They take a strategic approach to decision making regarding international expansion.
They are more reactive in nature and embark on internationalization without planning.
They intend to maintain a continuous market representation in foreign markets.
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In which of the following stages of international marketing involvement do companies primarily focus all their operations and production to service do...
No direct foreign marketing
Internal marketing
Regular foreign marketing
International marketing
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In the infrequent foreign marketing stage of international marketing involvement, firms:
no longer make market segmentation decisions on the basis of national borders.
have a global perspective and view the entire world as one market.
have more than half their sales revenues coming from international markets.
have no intention of maintaining continuous market representation in foreign markets.
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Which of the following is true of firms at the international marketing stage of marketing involvement?
The primary focus of operations and production is to service domestic market needs.
As domestic demand increases and absorbs surpluses, foreign sales activity is reduced or even withdrawn.
Profit expectations from foreign markets are seen primarily as a bonus in addition to regular domestic profits.
Planning generally entails both marketing and production of goods outside the home market.
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What is the most profound change for firms at the global marketing stage of internationalization?
More than half of the multinational firm's revenue is generated from domestic markets.
Sales to foreign markets are made as and when goods become available.
Temporary surpluses marketed in foreign markets is the only element of internationalization.
Companies treat the world, along with home market, as one market.
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Which of the following firms/products reflects a global marketing orientation?
A skin-lightening cream aimed at African American women
A company promoting Latino jazz musicals
A firm producing highly cost-effective and durable computers to attract middle-class consumers
A famous restaurant in Singapore that specializes in Oriental food
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For a company at the _____ stage of internationalization, market segments are defined by income levels, usage patterns, or other factors that frequent...
domestic market extension
no direct foreign marketing
global marketing
internal marketing
?
After World War II, the United States provided assistance to other countries to develop their markets and improve global trade though it gained no ret...
True
False
?
The GATT became part of the World Trade Organization in 1995 with the ratification of the Uruguay Round agreements.
True
False
?
As part of the worldwide economic growth and rebuilding after World War II, countries once classified as less developed were reclassified as underdeve...
True
False
?
By the year 1971, the United States was selling more to other countries than it bought from them; that is, the United States had a favorable balance o...
True
False
?
The Organization for Economic Cooperation and Development (OECD) estimates that the economies of the developed world will expand at much faster rates ...
True
False
?
A nation's balance-of-payments statement records all financial transactions between its residents and those of the rest of the world during a giv...
True
False
?
In a balance-of-payments record, if the credit and debit offset each other, it means that a nation is in particularly good financial condition.
True
False
?
The reserves account is a record of direct investment, portfolio investment, and short-term capital movements to and from countries.
True
False
?
When foreign currencies can be traded for more dollars, U.S. products and companies are more expensive for the foreign customer and exports decrease. ...
True
False
?
Protection of an infant industry is recognized by economists as a valid argument in favor of protectionism.
True
False
?
A case might be made for the temporary protection of markets with excess productive capacity or excess labor when such protection could facilitate an ...
True
False
?
Quotas, boycotts, monetary barriers, and market barriers are examples of tariff barriers.
True
False
?
In general, tariffs decrease inflationary pressures.
True
False
?
Quotas strictly permit importing on a case-by-case basis.
True
False
?
Quotas strictly permit importing on a case-by-case basis.
True
False
?
Quotas are more flexible than import licenses.
True
False
?
A voluntary export restraint (VER) is generally imposed under the threat of stiffer quotas and tariffs being set by the importing country if a VER is ...
True
False