Chapter 10 Europe, Africa, and the Middle East Answer Key

True / False Questions

1. (p. 276) Multinational market regions are those groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers. TRUE The purpose behind the creation of a multinational market region is a reduction in trade and tariff barriers which facilitate economic benefits for member countries.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 10-01 The reasons for economic union Topic: Might Free Trade Bring Peace to the Middle East?

2. (p. 277) An important objective of the member states of the United Nations is bringing about mutual economic development. TRUE Part of the efforts of the 192 member countries in the United Nations includes mutual economic development.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-01 The reasons for economic union Topic: Might Free Trade Bring Peace to the Middle East?

3. (p. 277) The WTO is wholly dedicated toward making trade among nations more efficient. TRUE the World Trade Organization, with its 153 members and 30 observers, is wholly dedicated to making trade among nations more efficient.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 10-01 The reasons for economic union Topic: Might Free Trade Bring Peace to the Middle East?

4. (p. 277) Nations with complementary economic bases are most likely to encounter frictions in the development and operation of a common market unit. FALSE Nations with complementary economic bases are least likely to encounter frictions in the development and operation of a common market unit.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-01 The reasons for economic union Topic: Might Free Trade Bring Peace to the Middle East?

5. (p. 279) The most basic level of economic integration and cooperation is geographical local federation (GLF). FALSE The most basic level of economic integration and cooperation is the regional cooperation for development (RCD).

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-02 Patterns of international cooperation Topic: Patterns of Multinational Cooperation

6. (p. 279) The WTO represents the most important and comprehensive trade agreement in history. TRUE At the most general level, the World Trade Organization represents the most important comprehensive trade agreement in history.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-02 Patterns of international cooperation Topic: Patterns of Multinational Cooperation

7. (p. 279) Essentially, a free trade area (FTA) provides its members with a mass market without barriers to impede the flow of goods and services. TRUE A free trade area provides its members with a mass market without barriers to impede the flow of goods and services.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 10-02 Patterns of international cooperation Topic: Patterns of Multinational Cooperation

8. (p. 279) The European Union is a good example of a free trade area. FALSE The European Union is a common market that is on the road to a political union.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-02 Patterns of international cooperation Topic: Patterns of Multinational Cooperation

9. (p. 279) The political union is the most fully integrated form of regional cooperation. TRUE Political union is the most fully integrated form of regional cooperation. It involves complete political and economic integration, either voluntary or enforced.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 10-02 Patterns of international cooperation Topic: Patterns of Multinational Cooperation

10. (p. 279) The blueprint for the European Union began with the Treaty of Rome in 1957. TRUE The Treaty of Rome established the European Economic Community. The European Union is an extension of the EEC.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-02 Patterns of international cooperation Topic: Patterns of Multinational Cooperation

11. (p. 280) A commonwealth of nations is a mandatory organization providing for the strongest possible economic integration relationship. FALSE A commonwealth of nations is a voluntary organization providing for the loosest possible relationship that can be classified as economic integration.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 10-02 Patterns of international cooperation Topic: Patterns of Multinational Cooperation

12. (p. 280) The European Union was created when the 12 nations of the European Community ratified the Maastricht Treaty. TRUE The EU was created upon ratification of the Maastricht Treaty by 12 nations of the European Community.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-02 Patterns of international cooperation Topic: Patterns of Multinational Cooperation

13. (p. 280) The Commonwealth of Independent States (CIS) was formed by Britain because it did not want to join the European Economic Community (EEC). FALSE The Commonwealth of Independent States (CIS) was formed by the republics of the former Soviet Union, and the European Union (EU).

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-02 Patterns of international cooperation Topic: Patterns of Multinational Cooperation

14. (p. 280) One of the chief features of Maastricht Treaty (1992) was that 12 members of the European community agreed to an economic but not political union. FALSE Twelve members of the European Community ratified the Maastricht Treaty and committed themselves to economic and political integration.

AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 10-02 Patterns of international cooperation Topic: Patterns of Multinational Cooperation

and Turkey. 286) In the Treaty of Amsterdam (1977). have renamed their regional group the Economic Cooperation Organization. the European Union agreed to accommodate the changes brought about by the monetary union and the admission of new members.15. 286) Ten new countries joined the EU in 2004 followed by Bulgaria and Romania in 2007. (p. 288) Iran. (p. (p. TRUE The Amsterdam Treaty increases the authority of the institutions of the EU and is designed to accommodate the changes brought about by the monetary union and the admission of new members. TRUE Iran. Bulgaria and Romania entered in 2007 AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-03 The evolution of the European Union Topic: Global Markets and Multinational Market Groups 16. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-03 The evolution of the European Union Topic: Global Markets and Multinational Market Groups 17. formerly the Regional Cooperation for Development (RCD). TRUE Ten new countries were added to the EU in 2004. Pakistan and Turkey were called RCD but were later renamed ECO. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-04 Evolving patterns of trade as eastern Europe and the former Soviet states embrace free-market systems Topic: Eastern Europe and the Baltic States . Pakistan.

(p. (p. FALSE The Baltic states shared a legacy of inefficient industry and Soviet-style command economies. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-04 Evolving patterns of trade as eastern Europe and the former Soviet states embrace free-market systems Topic: Eastern Europe and the Baltic States .18. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-04 Evolving patterns of trade as eastern Europe and the former Soviet states embrace free-market systems Topic: Eastern Europe and the Baltic States 19. (p. 288) The Baltic States had a history of a free trade regime. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-04 Evolving patterns of trade as eastern Europe and the former Soviet states embrace free-market systems Topic: Eastern Europe and the Baltic States 20. 289) The CIS is a loose economic and political alliance with open borders but no central government. 289) Europe and Asia had a trade group that emerged and persisted since the dissolution of the Soviet Union called the Newly Independent States. FALSE Europe and Asia had a trade group that has emerged and persisted since the dissolution of the Soviet Union: the Commonwealth of Independent States (CIS). TRUE The CIS is a loose economic and political alliance with open borders but no central government.

and Morocco have worked out an agreement on an Arab Free Trade Area. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-04 Evolving patterns of trade as eastern Europe and the former Soviet states embrace free-market systems Topic: Eastern Europe and the Baltic States 22. (p. 294) The Arab Gulf states. FALSE GAFTA stands for Greater Arab Free Trade Area.21. Egypt. sometimes called the Gulf Arabian Free Trade Area (GAFTA). TRUE The Southern African Development Community is the most advanced and viable of Africa's regional organizations. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-04 Evolving patterns of trade as eastern Europe and the former Soviet states embrace free-market systems Topic: Eastern Europe and the Baltic States . (p. (p. FALSE The Middle East has been less aggressive in the formation of successfully functioning multinational market groups. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-04 Evolving patterns of trade as eastern Europe and the former Soviet states embrace free-market systems Topic: Eastern Europe and the Baltic States 23. 294) The Middle East has been very aggressive in forming multinational market groups. 291) The most advanced and viable of Africa's regional organizations is called the Southern African Development Community.

(p. TRUE The initial aim of a multinational market is to protect businesses that operate within its borders. 297) An expressed goal of a multinational market is to give an advantage to the companies within the market in their dealings with other countries of the market group. 297) The initial aim of a multinational market is to protect businesses that operate within its borders. TRUE In a multinational market. (p.24. an expressed goal is to give an advantage to the companies within the market in their dealings with other countries of the market group. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-05 Strategic implications for marketing in the region Topic: Implications of Market Integration Multiple Choice Questions . AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-05 Strategic implications for marketing in the region Topic: Implications of Market Integration 25.

political and cultural associations. B. (p. 277) Regional economic cooperative agreements have been around since: A. (p. 276) Groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers are called: A. Multinational market regions are those groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers. Regional economic cooperative agreements have been around since the end of World War II. trade associations. C. D. C. the end of World War I.26. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 10-01 The reasons for economic union Topic: Might Free Trade Bring Peace to the Middle East? 27. the American Revolution. multilateral economic associations. D. E. the discovery of the New World. the end of World War II. E. multinational market regions. the American Civil War. cartels. B. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 10-01 The reasons for economic union Topic: Might Free Trade Bring Peace to the Middle East? .

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-01 The reasons for economic union Topic: Might Free Trade Bring Peace to the Middle East? . The European Economic Community C. free and open national borders D. Japan. 277) The World Trade Organization is wholly dedicated to ____. The European Community Following the success of the European Steel and Coal Community. 277) It was not until this single market was established that the United States.It was not until this single market was established that the United States. is wholly dedicated to making trade among nations more efficient. Japan. and other countries gave serious thought to creating other alliances. the elimination of language barriers in trade C. The European Steel and Coal Community D. with its 153 members and 30 observers. A. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-01 The reasons for economic union Topic: Might Free Trade Bring Peace to the Middle East? 29. (p. the expansion of capitalism B. a global economic revolution began in 1958 when the European Economic Community was ratified and Europe took the step that would ultimately lead to the present-day European Union (EU). making trade among nations more efficient The World Trade Organization. the enforcement of international anti-bribery laws E. Which single market is being talked about? A.28. The European Union E. (p. and other countries gave serious thought to creating other alliances. European Commission B.

Formulation of cartels D. common tariff barriers against outsiders. rigid D.30. Preferential tariff treatment for participating members B. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 10-01 The reasons for economic union Topic: La Raison d'Etre 31. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 10-01 The reasons for economic union Topic: La Raison d'Etre . 277) Every type of economic union shares the development and enlargement of market opportunities as a basic orientation. Movement towards a common language as a means to overcoming economic hurdles Markets are enlarged through preferential tariff treatment for participating members. Seeking economic dominance through boycotts of rivals E. (p. profitable E. divergent C. or both. Which of the following best describes the primary way market opportunities are enlarged by economic unions? A. (p. parallel B. A. complementary Nations with complementary economic bases are least likely to encounter frictions in the development and operation of a common market unit. 277) Nations with _____ economic bases are least likely to encounter frictions in the development and operation of a common market unit. A common economic defense force with costs shared by all members C.

CETA B. all aspects of doing business within North America. 277) With respect to political factors. and in most cases improves. 277) _____ is a comprehensive trade agreement that addresses. which of the following is one of the most cherished possessions of any nation? A. MERCOSUR E. A two party system B. a country should be clear about the advantages of the economic union. (p. Moreover. A high voting rate D. It is therefore implied that state sovereignty is a cherished possession of any nation. the benefits must greatly outweigh the disadvantages before nations forgo any part of their sovereignty. NATO D. A three party system C. A benevolent upper class Before entering into an economic union.32. (p. A. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 10-01 The reasons for economic union Topic: La Raison d'Etre 33. LAFTA NAFTA is an acronym for North American Free Trade Agreement. State sovereignty E. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 10-01 The reasons for economic union Topic: La Raison d'Etre . NAFTA C.

(p. Which of the following critical factors for ensuring an effective economic union is Mr. a long-established Christian heritage C. a democratic background and heritage Cultural similarity eases the shock of economic cooperation with other countries. Geographic proximity E. 278) As George Platt examines markets that might match his company's investment requirements. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-01 The reasons for economic union Topic: La Raison d'Etre . because members understand the outlook and viewpoints of their colleagues. Economic factors Geographical closeness does facilitate the functioning of a common market. a common language B. Cultural factors B. Trade factors C. A.34. key members share a long-established Christian heritage and are commonly aware of being European. a tradition of monarchy and feudalism E. Political factors D. key members share _____ and are commonly aware of being European. a dislike for foreigners D. (p. Although there is great cultural diversity in the European Union. The more similar the culture. 278) Similarity of cultures can make or break an economic union. This network seems to draw all the member nations closer together. he is particularly struck by the fact that the European Community has an extensive transportation network. Platt examining when he reviews transportation networks? A. AACSB: Reflective thinking Bloom's: Application Difficulty Level: Hard Learning Objective: 10-01 The reasons for economic union Topic: La Raison d'Etre 35. the more likely an agreement is to succeed. It is seen that transportation networks are likely to be interrelated and well developed when countries are close together. Although there is great cultural diversity in the European Union.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-01 The reasons for economic union Topic: La Raison d'Etre 37. (p. 279) At the most general level. MERCOSUR D. 278) One of the first factors that gave the EU an edge over others in the process of becoming a common market was/were: A. a well developed transportation network. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-02 Patterns of international cooperation Topic: Patterns of Multinational Cooperation . (p. Amsterdam Treaty C. D. NAFTA B. the opening of the tunnel between England and France further bound this common market. the _____ represents the most important and comprehensive trade agreement in history. E.36. B. C. similarity in agriculture and monetary policy. ASEAN The World Trade Organization represents the most important and comprehensive trade agreement in history. political factors. a common currency One of the first major strengths of the European Union was its transportation network. A. similarities in language. WTO E.

The most basic economic integration and cooperation is the regional cooperation for development (RCD). political union. common market C. an agreement is made between two or more countries to reduce or eliminate customs duties and nontariff trade barriers among partner countries while members maintain individual tariff schedules for external countries. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-02 Patterns of international cooperation Topic: Patterns of Multinational Cooperation . customs union E. regional cooperation for development (RCD). 279) A _____ is an agreement between two or more countries to reduce or eliminate customs duties and nontariff trade barriers among partner countries while members maintain individual tariff schedules for external countries. (p. E. (p. 279) The most basic economic integration and cooperation is the: A. free trade area (FTA). A. D. B. political union B. customs union. common market.38. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 10-02 Patterns of international cooperation Topic: Patterns of Multinational Cooperation 39. In the RCD arrangement. free trade area (FTA) In a free trade area. C. governments agree to participate jointly to develop basic industries beneficial to each economy. regional cooperation for development (RCD) D.

40. a political union. customs unionization. a regional cooperation for social development. D. 279) Essentially. customs union E. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 10-02 Patterns of international cooperation Topic: Patterns of Multinational Cooperation 41. free trade area (FTA) A customs union enjoys the free trade area's reduced or eliminated internal tariffs and adds a common external tariff on products imported from countries outside the union. (p. a mass market without barriers. B. C. political union B. 279) The _____ has reduced or eliminated internal tariffs and adds a common external tariff on products imported from countries outside the group. A free trade area provides its members with a mass market without barriers to impede the flow of goods and services. border crossing without passports. (p. A. a free trade area (FTA) provides its members with: A. E. common market C. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 10-02 Patterns of international cooperation Topic: Patterns of Multinational Cooperation . regional cooperation for development (RCD) D.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-02 Patterns of international cooperation Topic: Patterns of Multinational Cooperation . regional cooperation group E. the European Union was a ____. regional cooperation for development (RCD) D. free trade area B. political union D. customs union C. 279) Before becoming a common market. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 10-02 Patterns of international cooperation Topic: Patterns of Multinational Cooperation 43. A. 279) A _____ is the intermediate step between a free trade area and a common market. A. customs union E. free trade area (FTA) The customs union is a logical stage of cooperation in the transition from an FTA to a common market. common market C. political union B. economic union The European Union was a customs union before becoming a common market.42. (p. (p.

and removes all restrictions on the free flow of capital and labor among member nations. 279) Which of these levels of economic integration lacks only political unity to become a political union? A. customs union E. Customs union E. adopts a set of common external tariffs. political union B. Free trade area C. free trade area (FTA) A common market agreement eliminates all tariffs and other restrictions on internal trade. A. and removes all restrictions on the free flow of capital and labor among member nations. Trade friendly zone A common market is a unified economy and lacks only political unity to become a political union. Regional cooperation group D. (p. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 10-02 Patterns of international cooperation Topic: Patterns of Multinational Cooperation . (p. adopts a set of common external tariffs. regional cooperation for development (RCD) D. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 10-02 Patterns of international cooperation Topic: Patterns of Multinational Cooperation 45.44. common market C. Common market B. 279) A _____ agreement eliminates all tariffs and other restrictions on internal trade.

Hamburg The Treaty of Rome. and other trade barriers. regional cooperation for development (RCD). (p. A Political union is the most fully integrated form of regional cooperation. which established the European Economic Community (EEC) in 1957. quotas. Paris C. and other trade barriers. free trade area (FTA). D. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 10-02 Patterns of international cooperation Topic: Patterns of Multinational Cooperation 47. A. common market. (p. political union. Kent B.46. called for common external tariffs and the gradual elimination of intra-market tariffs. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 10-02 Patterns of international cooperation Topic: Patterns of Multinational Cooperation . 279) The most fully integrated form of regional cooperation is called a: A. E. Rome D. 279) The Treaty of _____ established the European Economic Community (EEC) in 1957 and called for common external tariffs and the gradual elimination of intra-market tariffs. B. C. Cannes E. quotas. customs union.

It involves complete political and economic integration. which of the following was considered to be the most notable enforced political union of the last forty years? A. A. 279) A _____ involves complete political and economic integration. (p. NATO B. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-02 Patterns of international cooperation Topic: Patterns of Multinational Cooperation . either voluntary or enforced. either voluntary or enforced. a centrally controlled group of countries organized by the Soviet Union. LAFTA The most notable enforced political union was the Council for Mutual Economic Assistance (COMECON).48. free trade area (FTA) Political union is the most fully integrated form of regional cooperation. 279) Though now disbanded. MERCOSUR D. (p. COMECON E. political union B. NAFTA C. customs union E. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-02 Patterns of international cooperation Topic: Patterns of Multinational Cooperation 49. common market C. regional cooperation for development (RCD) D.

commonwealth D. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 10-02 Patterns of international cooperation Topic: Patterns of Multinational Cooperation . Cannes E.50. (p. Rome D. A. trade association A commonwealth of nations is a voluntary organization providing for the loosest possible relationship that can be classified as economic integration. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-02 Patterns of international cooperation Topic: Patterns of Multinational Cooperation 51. A. Paris C. Maastricht The European Union was created when the 12 nations of the European Community ratified the Maastricht Treaty. cartel B. 280) A _____ of nations is a voluntary organization providing for the loosest possible relationship that can be classified as economic integration. proprietary colony E. community C. (p. Kent B. 280) The European Union was created when the 12 nations of the European Community ratified the _____ Treaty.

geographical C. none has been more secure in its cooperation or more important economically than the: A. However. their skepticism proved wrong and today they marvel at how far the European Union has come. religious E. and social differences in Europe could ever be overcome and how a unified Europe could ever emerge. cultural. technological Skeptics were apprehensive about how cultural. European Union. E. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-03 The evolution of the European Union Topic: Global Markets and Multinational Market Groups 53. energy. B. 280) Of all the multinational market groups. NATO accords. the European Union is the most secure in its cooperation and the most important economically. D. coastal. language. time zone. marketing. Of all the multinational market groups. social D. management. legal. promotional B. ____. 282) Many international trade experts have marveled at how members of the European Union have overcome ____. legal. (p. educational. Trans-Pacific Union. A.52. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-03 The evolution of the European Union Topic: Global Markets and Multinational Market Groups . United Nations. political. NAFTA accords. C. (p. and _____ differences.

He would market his products in: A. and Italy C. Norway. federal D. United Kingdom. EFTA. Austria. 282) Warren wants to market his products in the three largest European Union countries.54. Sweden. bilateral B. Spain. and Italy D. and judicial branches. Ireland.The European Economic Area: EU. Spain. and Germany Refer Exhibit 10. A. Germany.2 . (p. and Finland E. and Associates AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Hard Learning Objective: 10-03 The evolution of the European Union Topic: Global Markets and Multinational Market Groups 55. (p. and the United Kingdom B. unitary C. autonomous The European Union's institutions form a federal pattern with executive. parliamentary. 284) The institutions of the European Union form a _____ pattern. provincial E. France. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-03 The evolution of the European Union Topic: Global Markets and Multinational Market Groups . France.

the European Parliament. European Union The European Union's institutions form a federal pattern with executive. the Council of Ministers. and it proposes and supervises execution of laws and policies. and the Court of Justice respectively. Commonwealth Delineation E. the European Parliament. 284) The European Commission.56. European Economic Area D. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 10-03 The evolution of the European Union Topic: Global Markets and Multinational Market Groups 57. COMECON B. parliamentary. United Nations B. and the Court of Justice are institutions of the ____. the Council of Ministers. and it proposes and supervises execution of laws and policies. Council of Ministers The European Commission initiates policy and supervises its observance by member states. World Trade Organization C. A. European Commission D. 284) The _____ initiates policy and supervises its observance by member states. European Free Trade Area C. (p. A. and judicial branches: the European Commission. (p. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-03 The evolution of the European Union Topic: Global Markets and Multinational Market Groups .

(p. Codes D. United Nations B. (p. World Trade Organization C. European Commission D. 284) The _____ is the decision-making body of the EU and can enact into law all proposals by majority vote except for changes in tax rates on products and services. A. Commonwealth Delineation E. it is the Council's responsibility to debate and decide which proposals of the Single European Act to accept as binding on EU members.58. Decisions C. Council of Ministers The Council of Ministers is the decision-making body of the EU. Specifications Directives are a kind of legal instrument that is used by the EU. The Council can enact into law all proposals by majority vote except for changes in tax rates on products and services. They are binding on the member states but allow them to choose the means of execution. which require unanimous vote. Which of the following has the effect of binding member states but allowing them to choose the means of execution? A. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-03 The evolution of the European Union Topic: Global Markets and Multinational Market Groups 59. which require unanimous vote. Regulations B. Directives E. 284) The European Community uses several forms of legal instruments. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 10-03 The evolution of the European Union Topic: Global Markets and Multinational Market Groups .

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-03 The evolution of the European Union Topic: Global Markets and Multinational Market Groups . market exchanges. C. European Court of Justice C. political dialogue. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 10-03 The evolution of the European Union Topic: Global Markets and Multinational Market Groups 61. 285) The _____ is the European Union's Supreme Court. Creation of a common currency among member states made trade between them easier. at the request of a national court. D. (p. 285) The introduction of euro banknotes and coins facilitated: A. industrial production. international corruption. It is responsible for challenging any measures incompatible with the Treaty of Rome and for passing judgment. international promotion. Brussels Judicial Council E. (p. on the interpretation or validity of points of EU law. International Court of Justice B. International Criminal Court D. B.60. A. E. Security Council The European Court of Justice (ECJ) is the European Union's Supreme Court.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 10-03 The evolution of the European Union Topic: Global Markets and Multinational Market Groups . (p.62. (p. 285) The European Court of Justice is the European Union's ____. criminal court B. E$ E. EUR C. regional civil court C. war crimes court D. A. EU The official abbreviation for the euro is EUR. Supreme Court E. judicial court The European Court of Justice (ECJ) is called the European Union's Supreme Court because its decisions are final and cannot be appealed in national courts. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 10-03 The evolution of the European Union Topic: Global Markets and Multinational Market Groups 63. at the request of a national court. Euro D. It is responsible for challenging any measures incompatible with the Treaty of Rome and for passing judgment. on the interpretation or validity of points of EU law. E B. 286) The official European Union abbreviation for the euro is ____. A.

and cooperation between police and other authorities on crime. European Parliament C. services.64. Berlin C. Council of Ministers D. However. a common currency. persons. A. terrorism. Legislative Commission The European Parliament originally had only a consultative role that passed on most European Union legislation. European Commission E. Court of Justice B. (p. Rome B. and immigration issues. 280) The final step in the European Community's march to union was ratification of the _____ Treaty (1992). it can now amend and adopt legislation. Athens The Maastricht treaty allows for the free movement of goods. (p. A. including defense. Barcelona E. and capital throughout the member states of the European community. 284) The _____ originally had only a consultative role that passed on most European Union legislation but now has the power to amend and adopt legislation. Maastricht D. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 10-02 Patterns of international cooperation Topic: Patterns of Multinational Cooperation 65. common foreign and security policies. a common justice system. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-04 Evolving patterns of trade as eastern Europe and the former Soviet states embrace free-market systems Topic: Eastern Europe and the Baltic States .

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-03 The evolution of the European Union Topic: Global Markets and Multinational Market Groups . Single European Act C.66. Economy of Europe D. Maastricht Treaty D. 286) The _____ increases the authority of the institutions of the EU and is designed to accommodate the changes brought about by the monetary union and the admission of new members. Monetary Union E. Treaty of Rome B. (p. the euro. Optimal currency area eurozone C. Economic policy agency B. (p. Amsterdam Treaty The Amsterdam Treaty increases the authority of the institutions of the EU and is designed to accommodate the changes brought about by the monetary union and the admission of new members. NAFTA E. established the parameters of the creation of a common currency for the EU. Economic and Monetary Union The EMU. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 10-03 The evolution of the European Union Topic: Global Markets and Multinational Market Groups 67. A. 285) Which agency established the parameters for the creation of the common currency for the EU? A. a provision of the Maastricht Treaty.

The economic instability of prospective members A broader preoccupation for the EU is the prospect of illegal immigrants from former Soviet states surging across poorly guarded borders of the newer and/or candidate states and making their way farther west within the EU. The prospect of illegal immigrants from the former Soviet Union E. Monaco Treaty E. Paris Treaty The Amsterdam Treaty increases the authority of the institutions of the EU and is designed to accommodate the changes brought about by the monetary union and the admission of new members. Amsterdam Treaty D. there have been problems. The EU is demanding that borders be sealed. The threat of nuclear war B. but the new and candidate states are reluctant to jeopardize relations with neighboring communities.68. Versailles Treaty B. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-03 The evolution of the European Union Topic: Global Markets and Multinational Market Groups 69. 286) Which of the following treaties followed the Maastricht Treaty (1992) and established procedures for expansion to Central and Eastern Europe? A. however. (p. Which of the following problems has been deemed to be the most significant regarding new member admission? A. 287) The European Union is anxious to admit new members. London Treaty C. The problem of multiple currencies C. (p. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 10-03 The evolution of the European Union Topic: Global Markets and Multinational Market Groups . The rise of Asia in the world arena D.

E. retaliation against members by the Soviet Union.70. B. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 10-03 The evolution of the European Union Topic: Global Markets and Multinational Market Groups . (p. human rights D. border issues. new political leaders will overwhelm the existing leadership. Moreover. agriculture and monetary policy E. 287) With the expansion of the European Union. D. 286-287) Most of the problems faced by EU relates to: A. EU fears a flood of cheap labor even if the borders are closed. language C. OPEC will cut off supplies to countries supporting expansion of the EU. existing members fear: A. currency B. C. It is significant that most of the problems encountered by the EU have arisen over agriculture and monetary policy. (p. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 10-03 The evolution of the European Union Topic: Global Markets and Multinational Market Groups 71. a flood of cheap labor into their countries. dilution of the Euro. The EU is apprehensive about the infiltration of illegal immigrants from former Soviet states surging across poorly guarded borders of the newer and/or candidate states and making their way farther west within the EU.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-03 The evolution of the European Union Topic: The evolution of the EU . 287) Improving economic performance. LAIA The long-term challenges facing the Union in the next 50 years appear to fall into three categories: (1) improving the Union's economic performance. A. transitioning to a common language The long-term challenges facing the European Union in the next 50 years appear to fall into three categories: (1) improving the Union's economic performance. and (3) deciding about further enlargement. (2) deciding how to limit the political aspects of union. European Union D. avoiding isolation from the United Nations D. NAFTA C.72. (p. 287) One of the challenges facing the European Union in the next 50 years is ____. APEC B. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-03 The evolution of the European Union Topic: Global Markets and Multinational Market Groups 73. and (3) deciding about further enlargement. (2) deciding how to limit the political aspects of union. deciding how to limit the political aspects of union B. deciding how to limit political aspects and deciding about further enlargement are all the long term challenges faced by the ____. (p. A. ASEAN E. managing and preserving the value of the euro C. the aging European population E.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-04 Evolving patterns of trade as eastern Europe and the former Soviet states embrace free-market systems Topic: Eastern Europe and the Baltic States 75. and Poland have become members of the ____. and Poland have become members of the OECD. capitalism B. EU E. WTO D. APEC The Czech Republic. 288) The Czech Republic. federalism D. socialism C. UNDP B. (p. (p. have moved steadily toward adopting aspects of ____. A. the Slovak Republic. Hungary. A.74. OECD C. satellite nations of the former Soviet Union. democracy E. the Slovak Republic. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-04 Evolving patterns of trade as eastern Europe and the former Soviet states embrace free-market systems Topic: Eastern Europe and the Baltic States . a customs union Eastern Europe and the Baltic states are moving from the restrictions of a Marxist-socialist system to some version of free markets and capitalism. Hungary. 288) Eastern Europe and the Baltic states.

(p. corruption. A. establishing free market pricing systems. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 10-04 Evolving patterns of trade as eastern Europe and the former Soviet states embrace free-market systems Topic: Eastern Europe and the Baltic States . relaxing import controls. former soviet union E. C. Latin America B. and organized crime are common problems found in the countries of the former Soviet Union. corruption and organized crime are common problems found in ____. E. 288) Government bureaucracy. China D. (p.76. making import controls stringent. D. Most eastern European countries are privatizing state-owned enterprises. Japan Government bureaucracy. switching over to a socialist economy. B. United States C. 288) Most eastern European countries are privatizing state-owned enterprises. permitting greater government control/intervention. increasing trade barriers. relaxing import controls. establishing free market pricing systems and: A. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-04 Evolving patterns of trade as eastern Europe and the former Soviet states embrace free-market systems Topic: Eastern Europe and the Baltic States 77.

command D. high inflation D.78. 289) Europe and some of the Baltic states have switched over to a(n) _____ economy. protected B. Estonia switched over to a liberalized economy. (p. class war C. A. 288) Yugoslavia has been facing internal strife due to: A. traditional E. mixed To overcome issues such as inefficient industry and a soviet style command economy. open market C. ethnic strife Yugoslavia has been plagued with internal strife over ethnic divisions. land issues B. (p. economic recession E. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-04 Evolving patterns of trade as eastern Europe and the former Soviet states embrace free-market systems Topic: Eastern Europe and the Baltic States . AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-04 Evolving patterns of trade as eastern Europe and the former Soviet states embrace free-market systems Topic: Eastern Europe and the Baltic States 79.

D. 289) The Commonwealth of Independent States is: A. C.80. a political alliance with a central government. a supranational organization similar to the old European community. B. an economic and political alliance with open borders and no central government. The Commonwealth of Independent States C. an economic and political alliance with closed borders and a federal government. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Hard Learning Objective: 10-04 Evolving patterns of trade as eastern Europe and the former Soviet states embrace free-market systems Topic: Eastern Europe and the Baltic States . The CIS is a loose economic and political alliance with open borders but no central government. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-04 Evolving patterns of trade as eastern Europe and the former Soviet states embrace free-market systems Topic: Eastern Europe and the Baltic States 81. The European Union East B. (p. The European Free Trade Association E. The Eastern Bloc Economic Area D. 289) Which is the trade group that is part of Europe and Asia that has emerged and persisted since the dissolution of the Soviet Union? A. a federation of many states. The Euro-Soviet Union Europe (and Asia) has one other trade group that has emerged and persisted since the dissolution of the Soviet Union: the Commonwealth of Independent States (CIS). E. (p.

A. The Eurasian Alliance E. The Russian Confederation E.82. The Eurasian Alliance D. The Post-Soviet Bloc After the dissolution of the Soviet Union. 289) When the Soviet Union dissolved. Commonwealth of Independent States C. 289) The ties that bind members of the _____ stem mainly from their former Soviet membership. European Trade Pact B. The Post-Soviet Bloc A trade group that emerged and persisted since the dissolution of the Soviet Union is the Commonwealth of Independent States (CIS). it was replaced by the _____ that had 12 members that agreed to a loose economic and political alliance with open borders but no central government. Commonwealth of Independent States C. The remaining 12 republics of the former USSR. regrouped into the Commonwealth of Independent States. Central European Free Trade Area D. A. (p. AACSB: Reflective thinking Bloom's: Application Difficulty Level: Medium Learning Objective: 10-04 Evolving patterns of trade as eastern Europe and the former Soviet states embrace free-market systems Topic: Eastern Europe and the Baltic States . (p. the first Soviet republics to declare independence were the Baltic states. European Trade Pact B. which quickly gained recognition by several Western nations. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-04 Evolving patterns of trade as eastern Europe and the former Soviet states embrace free-market systems Topic: Eastern Europe and the Baltic States 83. collectively known as the Newly Independent States (NIS).

84. A. increased significantly C. SADC. (p. Europe E. been overshadowed by it B. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-04 Evolving patterns of trade as eastern Europe and the former Soviet states embrace free-market systems Topic: Eastern Europe and the Baltic States 85. 291) Now that Apartheid is over. North America B. 291) ECOWAS. and the East African Community (EAC) are the three most active regional cooperative groups in Africa. (p. A. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-04 Evolving patterns of trade as eastern Europe and the former Soviet states embrace free-market systems Topic: Eastern Europe and the Baltic States . and EAC are active regional cooperative groups in ____. increased a little but still looks shaky South Africa's economic growth has increased significantly now that apartheid is officially over. Australia C. South Africa's economic growth has ____. the Southern African Development Community (SADC). remained unchanged E. Asia The Economic Community of West African States (ECOWAS). Africa D. decreased D.

(p. the majority of the population of this country is desperately poor. 293) In spite of possessing land that is rich. Australia D. (p. 291) Which of these is the most advanced and viable of Africa's regional organizations? A. Asia One of the paradoxes of Africa is that its people are for the most part desperately poor. Japan B. Economic Community of West African States B.86. Austria C. while its land is extraordinarily rich. African Development Bank C. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-04 Evolving patterns of trade as eastern Europe and the former Soviet states embrace free-market systems Topic: Eastern Europe and the Baltic States 87. Africa E. Southern African Development Community D. Organization of African Unity E. Economic Community of Central African States The Southern African Development Community is the most advanced and viable of Africa's regional organizations. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-04 Evolving patterns of trade as eastern Europe and the former Soviet states embrace free-market systems Topic: Eastern Europe and the Baltic States . A.

an increase in border controls. but its development will depend on government action and external investment by other governments and multinational firms. 293) _____ has the potential to become the newest big emerging market (BEM). B. an increased regulation of business activities. South America C. each group now has management and administrative bodies specifically concerned with business.88. but its development will depend on government action and external investment by other governments and multinational firms. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 10-04 Evolving patterns of trade as eastern Europe and the former Soviet states embrace free-market systems Topic: Eastern Europe and the Baltic States 89. West Asia E. an increase in tariffs. business activities losing management control. (p. trade becoming more difficult. East Asia D. E. C. D. A. South Africa B. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 10-05 Strategic implications for marketing in the region Topic: Implications of Market Integration . 296) The formation of multinational market groups has resulted in: A. (p. Regulation of business activities has been intensified throughout multinational market groups. South Asia South Africa has the potential to become the newest big emerging market (BEM).

Large markets are particularly important to businesses not accustomed to mass production. They are an important global trend today. Large markets do not lead to marketing efficiencies. (p. 297) Which of the following is true regarding multinational markets? A. D. the economic benefits from free trade can be enormous. C. B. (p. Multinational market regions are those groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers. explain the concept of a multinational market region. E. Large markets cannot achieve economies of scale. Despite the problems that are sure to occur because of integration. the universal goals of multinational cooperation are economic benefits for the participants and the associated peace between and within countries. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 10-05 Strategic implications for marketing in the region Topic: Implications of Market Integration Essay Questions 91. the economic benefits from free trade can be enormous. Although organizational form varies widely among market regions. Economic integration creates smaller markets. Despite the problems that are sure to occur because of integration.90. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 10-01 The reasons for economic union Topic: La Raison d'Etre . 276) Briefly.

for an economic union to survive. 277-278) Successful economic union requires that four factors be in the positive range for success to occur. the more likely an agreement is to succeed. it must have agreements and mechanisms in place to settle economic disputes. such closeness does facilitate the functioning of a common market. Participating countries must have comparable aspirations and general compatibility before entering into an agreement. Cultural factors: The more similar the culture. because members understand the outlook and viewpoints of their colleagues. Transportation networks (basic to any marketing system) are likely to be interrelated and well developed when countries are close together. Briefly describe the four factors. Geographic and Temporal proximity: Although geographic and temporal proximity are not absolutely imperative for cooperating members of a customs union. . However. The factors that facilitate the formation of a successful economic union are: Economic factors: Nations with complementary economic bases are least likely to encounter frictions in the development and operation of a common market unit.92. Political factors: Political amenability among countries is another basic requisite for the development of a supranational market arrangement. (p.

FALSE Two major events that occurred in 2000 are having a profound effect on China's economy: admission to the World Trade Organization and the United States' granting normal trade relations (NTR) to China on a permanent basis (PNTR). (p. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 11-01 The dynamic growth in the region Topic: The Greater China .Chapter 11 The Asia Pacific Region Answer Key True / False Questions 1. (p. 305) The two major events that had a profound impact on China's economy were: the global recession that started in 2008 and the 2008 Olympics Games that were held there. 304) The term "The Greater China" refers to the People's Republic of China (PRC). FALSE The term "The Greater China" refers to both the People's Republic of China (PRC) and the Republic of China (ROC) or Taiwan. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 11-01 The dynamic growth in the region Topic: The Greater China 2.

it can be more conveniently thought of as a group of regions rather than a single country. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-01 The dynamic growth in the region Topic: The Greater China .3. 305) A major issue that China has to address in its path to economic growth is human rights. (p. 305) China is now the biggest market for personal computers. (p. 305) It is more convenient to think of China as a group of regions rather than a single country. TRUE Because of China's size. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-01 The dynamic growth in the region Topic: The Greater China 5. and political organization. (p. diversity. FALSE China is now the second biggest market for personal computers. TRUE China has two important steps to take if the road to economic growth is to be smooth: improving human rights and reforming the legal system. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-01 The dynamic growth in the region Topic: The Greater China 4. following only the United States.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-01 The dynamic growth in the region Topic: The Greater China 8. two systems" agreement that guarantees Hong Kong a high degree of autonomy. gold. and foreign exchange.6. (p. (p. FALSE The Basic Law of the Hong Kong special administrative region (SAR) forms the legal basis for China's "one country. TRUE The Hong Kong dollar continues to be freely convertible. and securities markets continue to operate as before. 306) Hong Kong's colonial past guarantees that it has a high degree of autonomy. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-01 The dynamic growth in the region Topic: The Greater China 7. FALSE The peculiar feature of Japan's 1990's version was its decade-long persistence. 308) The peculiar feature of the recession that affected Japan in the 90s was the extraordinarily high inflation it gave rise to. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 11-02 The importance and slow growth of Japan Topic: Japan . 307) The Hong Kong dollar is fully convertible. (p.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-02 The importance and slow growth of Japan Topic: Japan 10. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 11-02 The importance and slow growth of Japan Topic: Japan ." FALSE In a new appraisal of Japan." an ailment brought on by a 40-year hardening of political arteries. 308) The sector that was hit the hardest during the Japanese recession was the real estate sector. #2: The hidebound Japanese bureaucracy. Frank Gibney has written that Japan became the victim of "oneparty sickness. world-class banks. (p. TRUE Analysts found two major political villains that led to Japan's crisis: AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-02 The importance and slow growth of Japan Topic: Japan 11. (p. Japan's long entrenched Liberal Democratic Political party was one of the reasons for the Japanese crisis. especially its huge. 309) According to analysts.9. 309) According to Frank Gibney. no sector was hit harder than Japan's lending institutions. (p. Japan has become victim to the political vice of "neighborhood sickness. FALSE During the Japanese recession. #1: The country's long entrenched Liberal Democratic Political Party.

310) One of Japan's advantages over other countries is its language. Not only did its three alphabet systems hinder software innovations appropriate for world markets. They seem inspired by common striving toward a common goal. FALSE Japan has serious disadvantage in the information age: its complex language.12. but the fundamental indirectness of the Japanese linguistic system hinders electronic information flows in general. the syntax of the Japanese language is similar to that of certain programming languages. lack of a common goal can be a problem. (p. (p. TRUE Perhaps more than any other society. 310) In Japan. the Japanese have an affinity for united effort. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 11-02 The importance and slow growth of Japan Topic: Japan . AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 11-02 The importance and slow growth of Japan Topic: Japan 13. Lack of one can present a problem.

and none say they are leaving. FALSE Widespread corruption and a deeply ingrained system of bribery in India make every transaction complicated and expensive. 313) The U. South Korea.S. and Taiwan.S. India. Nevertheless. (p. 313) The Four Asian Tigers are: China. manufacturers shows that 95 percent of respondents with Indian operations plan on expanding. (p. and Vietnam. a survey of U.14. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-02 The importance and slow growth of Japan Topic: Vietnam . Singapore. Thailand. FALSE The most rapidly growing economies in Asia during the 1980s and 1990s were the group sometimes referred to as the Four Asian Tigers (or Four Dragons): Hong Kong. most of the foreign investors in India are leaving for other countries or pulling the money back to their home country. They are hooked on the country's cheap. qualified labor and the potential of a massive market. (p. has granted NTR (normal trade relations) to Vietnam. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 11-02 The importance and slow growth of Japan Topic: The Four "Asian Tigers" 16. 312) Owing to the deeply corrupt system. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-02 The importance and slow growth of Japan Topic: India 15. TRUE A bilateral trade agreement between the United States and Vietnam led to NTR status for Vietnam and will lower tariffs on Vietnamese exports to the United States from an average of 40 percent to less than 3 percent.

FALSE C. Prahalad and his associates introduced a new concept into the discussion of developing countries and markets— bottom-of-the-pyramid markets (BOPMs)—consisting of the 4 billion people across the globe with annual incomes of less than $1. TRUE One result of the Asian financial crisis of 1997 to 1998 was the creation of ASEAN+3 (ASEAN plus China. FALSE The primary multinational trade group in Asia is ASEAN. Prahalad. 318) The primary multinational trade group in Asia is APEC. Japan. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-03 The importance of the Bottom-of-the-Pyramid Markets Topic: Bottom-of-the-Pyramid Markets (BOPMs) 18.200 is termed subsistence market. the global market consisting of the 4 billion people across the globe with annual incomes of less than $1. (p. (p. 320) The Asian financial crisis led to the creation of the ASEAN+3. K. K. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 11-05 The interrelationships among countries in the region Topic: Association of Southeast Asian Nations (ASEAN) and ASEAN+3 . and South Korea) to deal with trade and monetary issues facing Asia. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-05 The interrelationships among countries in the region Topic: Association of Southeast Asian Nations (ASEAN) and ASEAN+3 19.17. (p. 314) According to C.200.

327) Negotiators from the Beijing area are known for their unusual bureaucratic sloth and imperialist perspective. (p. TRUE Negotiators from the Beijing area are known for their unusual (within China) bureaucratic sloth and imperialist perspective. and hospitals. 326) The central government spends almost 50 percent of its budget for the rural poor who amount to almost three-fourths of the Chinese population. water. Shenzhen. thinking outside the box. was designated as China's first Special Economic Zone. TRUE In 1980. FALSE The Chinese rural people usually receive about 10 percent of the central government budget. That amounts to less than $100 a head for rural roads. a boomtown bordering Hong Kong and a fishing village just 20 years ago. power supplies.20. (p. schools. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-06 The diversity within China Topic: Pearl River Delta 21. both yielding a relatively uncommon lack of creativity. that is. 325) The region of Shenzhen was designated as China's first Special Economic Zone. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-06 The diversity within China Topic: Differences in Business Negotiation Styles Within The Greater China . (p. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 11-06 The diversity within China Topic: The Other Billion 22.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-06 The diversity within China Topic: Differences in Business Negotiation Styles Within The Greater China 24. (p. businesspeople in the Northeast of China are forthright. to be the most conservative. FALSE Both the behavior and the language of the people of Taiwan are considered. by other Chinese. (p. 327) According to their southern neighbors.23. 328) Negotiators in Taiwan are known for their efforts to impress you in ways and to extents you won't see anywhere else in China. (p. TRUE Forthrightness is the stereotype of businesspeople in the Northeast. negotiators in Taiwan are considered to be the most liberal. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-06 The diversity within China Topic: Differences in Business Negotiation Styles Within The Greater China 25. mostly held by their southern neighbors. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 11-06 The diversity within China Topic: Differences in Business Negotiation Styles Within The Greater China . They are outgoing. They try to impress you in ways and to extents you won't see anywhere else in China. FALSE Negotiators from the Shanghai area are renowned in China for their shrewdness. big talkers and big spenders. 328) As they were the closest to foreign influences.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 11-01 The dynamic growth in the region Topic: The Greater China 27. (p. U.N. negotiations B. Integrated China B. Greater China The term "The Greater China" refers to both the People's Republic of China (PRC) and the Republic of China (ROC) or Taiwan. American military involvement in peacekeeping E. Inclusion of both countries in the Security Council C. easing much of the historical tension in all of East Asia. The Yellow Route C.Multiple Choice Questions 26. Neo China D. But in the 21st century. 304) Which of the following was instrumental in decreasing the historical tension between People's Republic of China (PRC) and the Republic of China (ROC)? A. ASEAN dictates overruling former hostilities between member nations Over the years the relationship between People's Republic of China (PRC) and the Republic of China (ROC) has been both politically difficult and militarily dangerous. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-01 The dynamic growth in the region Topic: The Greater China . direct trade between the formerly hostile neighbors has increased dramatically. Mainland China E. 304) Which of the following is the term used to refer to both the People's Republic of China (PRC) and the Republic of China (ROC) or Taiwan? A. Increase in direct trade D. (p.

(p. which of the following are the two important steps China has to take if the road to economic growth is to be smooth? A. (p. Inclusion in the board of the World Bank B. Which of the following is the other one? A. Investing in more developing countries and changing the education system D. Evolving into a democracy and inviting more foreign capital C. Membership in more regional trade blocs and lowering of entry barriers E. The handover of Honk Kong from the British to China E. One of these is the United States' granting normal trade relations (NTR) to China on a permanent basis (PNTR). AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 11-01 The dynamic growth in the region Topic: The Greater China . Admission to the World Trade Organization C.28. Inclusion of Hong Kong as a special administrative region (SAR) of China Two major events that occurred in 2000 are having a profound effect on China's economy: admission to the World Trade Organization and the United States' granting normal trade relations (NTR) to China on a permanent basis (PNTR). Signing of the new ASEAN pact D. 305) Two major events that occurred in 2000 are having a profound effect on China's economy. Improving human rights and reforming the legal system China has two important steps to take if the road to economic growth is to be smooth: improving human rights and reforming the legal system. Increasing export barriers and promoting indigenous technology B. 305) According to the text. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 11-01 The dynamic growth in the region Topic: The Greater China 29.

30. Gender divide and narcissism In the long run. 306) IBM entered into a venture with the Railways Ministry that allowed IBM to set up a national network of IBM service centers in railway stations that has enabled IBM to ship computer parts via the railroad around the country within 24 hours. particularly if consumers there can overcome the cultural hurdles of thrift and xenophobia. the overcoming of which can transform China into a vast market in the long run? A. This venture was dubbed the ____." AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-01 The dynamic growth in the region Topic: The Greater China 31. Language barrier and stereotyping D. China Blue D. (p. 306) What are the particular cultural hurdles. China Connect After nearly a decade of frustration in trying to effectively market and service its products in China. A. Ritualism and ethnocentrism E. China Express C. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-01 The dynamic growth in the region Topic: The Greater China . IBM took a bold step and entered a venture with the Railways Ministry that allowed IBM to set up IBM service centers dubbed the "Blue Express. Rigid hierarchy and male chauvinism B. (p. the economic strength of China will not be as an exporting machine but as a vast market. Blue Express E. Thrift and xenophobia C. Blue Connect B.

306) Which of the following is the biggest threat for the fast pace of growth China is experiencing? A. C. Economic volatility that accompanies fast growth China is a relatively poor nation going through a painfully awkward transformation from a socialist market system to a hybrid socialist-free market system. two systems" agreement. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 11-01 The dynamic growth in the region Topic: The Greater China . B. D. the central government in Beijing is responsible only for foreign affairs and defense of the SAR.32. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 11-01 The dynamic growth in the region Topic: The Greater China 33. Hong Kong reverted to China in 1997 when it became a special administrative region (SAR) of the People's Republic of China.S. D. Losing the permanent normal trade relations (PNTR) status conferred by the U. 306) All of the following are true regarding Hong Kong EXCEPT that: A. not yet complete and with the rules of the game still being written. India and other Asian countries doubling their development efforts E. the Basic Law of the Hong Kong SAR forms the legal basis for China's "one country. After 155 years of British rule. E. Trade isolation by other ASEAN countries C. The biggest threat for China is the economic volatility that seems to accompany fast growth. Increased opening of the market to foreign investments B. the Hong Kong government negotiates bilateral agreements and makes major economic decisions on its own. Hong Kong became a special administrative region (SAR) of the People's Republic of China in 1944. the Basic Law of the Hong Kong SAR guarantees Hong Kong a high degree of autonomy. (p. (p.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-01 The dynamic growth in the region Topic: The Greater China 35. Sovereignty of the provinces C. (p. Culture. language.34. trade. 307) Which of the following represent the "three direct links" leading to the establishment of One China? A. 307) What is the tenet that China follows to ensure that Hong Kong's exuberant capitalism is retained despite the communist leanings of mainland China? A. Federal bodies. Technology. two systems Many thought the territory's laissez-faire ways. and religion C. One country. education. Transportation. But except for changes in tone and emphasis. History. and trade E. and gung-ho spirit would prove unbearable for Beijing's heavy-handed communist leaders. two systems" arrangement. Unity in diversity E. trade. language. and the rules insist that members communicate about trade disputes and other issues. and transportation D. exuberant capitalism. (p. such as establishing the "three direct links"—transportation. and communications B. Free Trade Area of the country B. and communications. and people It is best to wrap future talks on the One China debate inside a bundle of more concrete issues. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-01 The dynamic growth in the region Topic: The Greater China . The three direct links issue must be faced because each country has joined the WTO. even opponents of communist rule concede that Beijing is honoring the "one country. natural resources. Federalism D.

Cultural inhibitions Four explanatory themes have emerged for the persistence stagnation in Japan in the 1990s. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 11-02 The importance and slow growth of Japan Topic: Japan 37. (p. (p. each with a basis in observable fact. The splintering of most of Japan's right-wing political parties Views of economists on Japan's crisis have not been the only ones heard. (2) inept political apparatus. 308) Which of the following is NOT one of the theories explaining the persistence of stagnation in Japan in the 1990s? A.36. Aggressive competition. and (4) cultural inhibitions.S. One of them was the powerful Japanese bureaucracy. They found two major villains: Villain #1: The Country's Long Entrenched Liberal Democratic Political Party. 309) Political explanations of Japan's crisis during the 1990s identified two villains. Japan's trade policies with the U. The long entrenched Liberal Democratic Political Party E. B. especially from East Asian economies D. Disadvantages due to global circumstances E. Inept political apparatus C. Faulty economic policies B. Japan's (1) faulty economic policies. (3) disadvantages due to global circumstances. Japan's refusal to join Asian trade blocs C. Political pundits also rose to the challenge. Which of the following is the other one? A. The powerful influence of the royalty in political issues D. namely. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 11-02 The importance and slow growth of Japan Topic: Japan . Villain #2: The Hidebound Japanese Bureaucracy.

B. The rise in global oil prices C. The growing fiscal deficit E. He called it The Fragile Superpower. The burgeoning population Japan has serious disadvantage in the information age: its complex language. which was confirmed with the crisis of the 1990s. neighborhood sickness. herd behavior. C. Gibney writes that Japan has become the victim of: A. Not only did its three alphabet systems hinder software innovations appropriate for world markets. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-02 The importance and slow growth of Japan Topic: Japan 39. being penny-wise and pound-foolish. The deeply-rooted bureaucratic structure B. Frank Gibney had called Japan The Fragile Superpower." an ailment brought on by a 40-year hardening of political arteries. one-party sickness. In his new appraisal. 310) Which of the following out-of-control factor explains Japan's end-of-the-century economic problems? A. political correctness. The complex Japanese language D. (p. (p. 309) In the 1970s. E. His insight into the possible future of Japan's then surging economy was confirmed when the 1990s brought on crisis conditions. D. Back in the 1970s.38. but the fundamental indirectness of the Japanese linguistic system hinders electronic information flows in general. In a new appraisal. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 11-02 The importance and slow growth of Japan Topic: Japan . Frank Gibney had written a seminal book on Japan. Gibney has written that Japan became the victim of "one-party sickness.

So the question for them became. The Hybridity theory E. The Third Way theory D.40. The Cultural Capital theory The Cultural Causation theory went something as follows: Immediately after World War II. The Power Shift theory C. what's next?" This theory tries to explain the Japanese crisis of the 90's. decade after decade. what's next?" AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Hard Learning Objective: 11-02 The importance and slow growth of Japan Topic: Japan . Then during the late 1980s. 310) Immediately after World War II. It was easy to conclude they had reached their coveted goal. "all right. "all right. That consensual goal provided the incentive for its spectacular progress. decade after decade. That consensual goal provided the incentive for its spectacular progress. Which of the following theory are we talking about? A. Then during the late 1980s. the Japanese people stepped back and looked around at their manifest achievement. a shattered Japanese nation arrived at a consensus goal for national recovery. The Cultural Causation theory B. It was easy to conclude they had reached their coveted goal. a shattered Japanese nation arrived at a consensus goal for national recovery. So the question for them became. (p. the Japanese people stepped back and looked around at their manifest achievement.

Hong Kong B. C. structured. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-02 The importance and slow growth of Japan Topic: India 42. (p. Government machinery is one of the most efficient in the world. systematic. and the market potential is massive.S. Thailand C. Qualified labor is cheap. One noted authority on India declared that corrupt practices are not the quaint custom of baksheesh but pervasive. South Korea. and degraded corruption running from the bottom to the top of the political order. 312) Which of the following explains why most of the companies with Indian operations are saying that they are not leaving. E. B. qualified labor and the potential of a massive market. a survey of U. and Taiwan. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-02 The importance and slow growth of Japan Topic: The Four "Asian Tigers" . manufacturers shows that 95 percent of respondents with Indian operations plan on expanding. Singapore. D.41. but planning on expanding their Indian operations? A. They are hooked on the country's cheap. Proximity to China makes sourcing of parts easier. (p. Living standards for expatriates are comparable to the world's best. 313) Which of the following is NOT one of the Four Asian Tigers? A. and none say they are leaving. Singapore E. Paying bribes simplifies otherwise complex procedural hurdles. Nevertheless. Taiwan The most rapidly growing economies in this region during the 1980s and 1990s were the group sometimes referred to as the Four Asian Tigers (or Four Dragons): Hong Kong. South Korea D.

A. Horses E. Bhutan B. Elephants C. after ____. Lions B. Kuwait The Four Asian Tigers were the first countries in Asia. to move from a status of developing countries to newly industrialized countries. 313) The Four Asian Tigers were the first countries in Asia. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 11-02 The importance and slow growth of Japan Topic: The Four "Asian Tigers" 44. to move from a status of developing countries to newly industrialized countries. India D. Singapore. South Korea. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-02 The importance and slow growth of Japan Topic: The Four "Asian Tigers" . 313) The most rapidly growing economies in the Asian region during the 1980s and 1990s were sometimes referred to as the Four Asian Tigers or the Four ____. Swans The most rapidly growing economies in the Asian region during the 1980s and 1990s were sometimes referred to as the Four Asian Tigers or Four Dragons. (p. A. (p. Japan C. Indonesia E. after Japan.43. and Taiwan. Dragons D. These countries are Hong Kong.

K.N. Prahalad. Most BOPMs are geographically isolated and thus difficult to access. B. K. classification scheme. Protective policies make BOPMs difficult to penetrate.45. (p. underdeveloped D. concentrated in the LDCs and LLDCs. E.200. 314) According to C. Prahalad's basic point is that these consumers have been relatively ignored by international marketers because of misconceptions about their lack of resources (both money and technology) and the lack of appropriateness of products and services usually developed for more affluent consumers. concentrated in the LDCs and LLDCs. Most products will not be appropriate for BOPMs. D. Prahalad and his associates introduced a new concept into the discussion of developing countries and markets— bottom-of-the-pyramid markets (BOPMs) —consisting of the 4 billion people across the globe with annual incomes of less than $1. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 11-03 The importance of the Bottom-of-the-Pyramid Markets Topic: Bottom-of-the-Pyramid Markets (BOPMs) 46. of course. 314) C. are referred to as _____ markets. which of the following represents the misconception that leads international markets to ignore the bottom-of-the-pyramid markets? A. peripheral C.200. particularly in South Asia and sub-Sahara Africa. A. K. Language and cultural barriers make BOPMs unattractive and sometimes hostile. third-world C. bottom-of-the-pyramid E. These consumers. as defined in the aforementioned U. Exchange-rate fluctuations make BOPMs very volatile. not necessarily defined by national borders but rather by the pockets of poverty across countries. Prahalad and associates introduced the concept of a global market. and consisting of 4 billion people across the globe with annual incomes of less than $1. C. These markets are not necessarily defined by national borders but rather by the pockets of poverty across countries. These 4 billion consumers are. (p. subsistence B. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 11-03 The importance of the Bottom-of-the-Pyramid Markets Topic: Bottom-of-the-Pyramid Markets (BOPMs) .

B. $3700 E. D.47. (p. Prahalad and his associates introduced a new concept into the discussion of developing countries and markets— bottom-of-the-pyramid markets (BOPMs) 23 —consisting of the 4 billion people across the globe with annual incomes of less than $1. K.200. buying habits. Prahalad. 314) According to C. $1. C. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-03 The importance of the Bottom-of-the-Pyramid Markets Topic: Bottom-of-the-Pyramid Markets (BOPMs) . K. $2500 D. expectations from the product. $4200 C.200 C. $400 B. K. 314) C. (p. willingness to buy international products. Prahalad's basic point is that these consumers have been relatively ignored by international marketers because of misconceptions about their lack of resources (both money and technology) and the lack of appropriateness of products and services usually developed for more affluent consumers. E. traditions and culture. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 11-03 The importance of the Bottom-of-the-Pyramid Markets Topic: Bottom-of-the-Pyramid Markets (BOPMs) 48. A. lack of resources. Prahalad and his associates introduced a new concept into the discussion of developing countries and markets— bottom-of-the-pyramid markets (BOPMs) 23 —consisting of the 4 billion people across the globe with annual incomes of less than ____. consumers in the bottom-of-the-pyramid markets have been relatively ignored by international marketers because of misconceptions about their: A.

315) Grameen Bank is a private commercial enterprise in ____. Sri Lanka E. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-03 The importance of the Bottom-of-the-Pyramid Markets Topic: Bottom-of-the-Pyramid Markets (BOPMs) . Providing free medical services to poor people D. Japan D. South Korea Grameen Bank is a private commercial enterprise in Bangladesh. China C. (p. Stabilizing the currency exchange rates C. Bangladesh B. Improving literacy rates B. (p. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Hard Learning Objective: 11-03 The importance of the Bottom-of-the-Pyramid Markets Topic: Bottom-of-the-Pyramid Markets (BOPMs) 50. which of the following is perhaps the best way to stimulate economic development and growth from within developing countries? A. A.49. Encouraging entrepreneurial activities Entrepreneurial activities that are networked appear to be perhaps the best way to stimulate economic development and growth from within developing countries. Reducing inflation levels E. 315) According to the text.

the United States B. NAFTA B.51. CEFTA D. (p. Russia D. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-05 The interrelationships among countries in the region Topic: Association of Southeast Asian Nations (ASEAN) and ASEAN+3 52. South Korea C. Australia E. 318) The primary multinational trade group in Asia is _____. New Zealand ASEAN+3 is a forum for ASEAN ministers plus ministers from China. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-05 The interrelationships among countries in the region Topic: Association of Southeast Asian Nations (ASEAN) and ASEAN+3 . SADC E. ASEAN The primary multinational trade group in Asia is ASEAN. Japan. A. 318) ASEAN+3 is a forum for ASEAN ministers plus ministers from China. A. COMESA C. and South Korea. and ____. (p. Japan.

A. 320) One result of the Asian financial crisis of 1997 to 1998 was the creation of ____. A. Japan. CEFTA E. COMESA One result of the Asian financial crisis of 1997 to 1998 was the creation of ASEAN+3 (ASEAN plus China. improve the multilateral trade C. and South Korea) to deal with trade and monetary issues facing Asia. 320) The first meeting of the members of the ASEAN+3 was devoted to devising a system whereby the member countries could ____. SADC B. defend their currencies against future attack B. improve agricultural production The first meeting of ASEAN+3 was devoted to devising a system whereby the member countries shared foreign exchange reserves to defend their currencies against future attack. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 11-05 The interrelationships among countries in the region Topic: Association of Southeast Asian Nations (ASEAN) and ASEAN+3 .53. keep the inflation under check D. (p. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-05 The interrelationships among countries in the region Topic: Association of Southeast Asian Nations (ASEAN) and ASEAN+3 54. ASEAN+3 D. acquire the nuclear technology E. (p. NAFTA C.

Guangzhou. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-06 The diversity within China Topic: A Focus on Diversity Within China . and Shenzhen and it is considered as the world's manufacturing base for the IT industry. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 11-06 The diversity within China Topic: A Focus on Diversity Within China 56. (p. Beijing-Tianjin C. Northeast China B. Macau. The Yangtze River Delta D. and Shenzhen and it is considered as the world's manufacturing base for the IT industry. The Pearl River Delta E. Guangzhou. A. The Pearl River Delta E. 321) _____ contains Hong Kong. The Yellow River Delta C. Fujian The Beijing-Tianjin region is considered as the information technology (IT) corridor in north China. Macau. The Yangtze River Delta D. (p. 320) Which of the following regions is most likely to be considered as the information technology (IT) corridor in north China? A. Southwest China The Pearl River Delta contains Hong Kong. The coastal Dalian city B.55.

322) According to the text. which of the following can cause some problems for television and radio advertisers in the country that print media can usually avoid? A. (p. Mandarin The national language of China is standard Mandarin but more than 56 dialects and other languages are spoken across the country. A. Min C. in China. Xiang E. (p. Hakka D. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-06 The diversity within China Topic: A Focus on Diversity Within China .57. High cost of advertising on television and radio In China. lack of common language causes some problems for television and radio advertisers in the country that print media can usually avoid. Cultural diversity C. Stringent laws governing the television and radio advertisements E. 322) The national language of China is standard _____ but more than 56 dialects and other languages are spoken across the country. Low levels of television and radio penetration B. Wu B. Lack of common language D. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 11-06 The diversity within China Topic: A Focus on Diversity Within China 58.

The three are referred to as dongbei. Gansu B. Sichuan The three contiguous provinces in Northeast China—Liaoning (43. 323) _____ is now Japan's most important trading partner. Jilin. (p. Bangladesh D.4 million). AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-06 The diversity within China Topic: Northeast China: Longtime Industrial Heartland 60. instead of identifying each province individually. A. or dong sansheng. These three provinces are referred to as dongbei. and Heilongjiang (38.3 million)—have long represented a cohesive unit in terms of culture and the political economy. 323) ____.59. China China is now Japan's most important trading partner. even ahead of the United States. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-06 The diversity within China Topic: Northeast China: Longtime Industrial Heartland . Malaysia B. Jilin (27. (p. The United States C. and Heilongjiang have long represented a cohesive unit in terms of culture and the political economy.2 million persons). Liaoning E. A. meaning Northeast. meaning Northeastern Three Provinces. Bahrain E. Henan D. Shanxi C.

000 international IT companies. 324) _____ is the capital of China. 324) This region in China is the political and R&D center of China. Beijing C. Identify the region in discussion. Perhaps the key to this region is the quality of its higher education. Kunming Beijing is the capital of China. The Pearl River Delta C. among them Lenovo.000 Chinese high-tech companies. The Yangtze River Delta D. Taipei D. Beijing-Tianjin E. Changchun E. A. Fujian The Beijing-Tianjin region is the political and R&D center of China. The coastal Dalian city B. The 75-mile corridor between Beijing and its coastal cousin Tianjin hosts some 5. (p. A.000 international IT companies. The 75-mile corridor in this region hosts some 5. and more than 1. Chongqing B. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 11-06 The diversity within China Topic: Beijing-Tianjin 62. and more than 1.61. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-06 The diversity within China Topic: Beijing-Tianjin . (p.000 Chinese high-tech companies.

but it is also the fastest growing one. Zhongguancun C. 324) _____ is China's third largest industrial city after Shanghai and Beijing. Heilongjiang Zhongguancun is known as China's Silicon Valley. Jilin D. Tianjin E. A. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-06 The diversity within China Topic: Beijing-Tianjin . Liaoning B. but it is also the fastest growing one.63. Kaohsiung Tianjin is China's third largest industrial city after Shanghai and Beijing. Qingdao D. (p. 324) _____ is known as China's Silicon Valley. (p. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 11-06 The diversity within China Topic: Beijing-Tianjin 64. Chengdu C. Wuhan B. A. Guangzhou E.

such as Macau. trade. and a number of cities that each contain approximately half a million inhabitants. such as banking. such as Macau. Shipping E. Software Half the Shanghai's GDP derives from financial services industries. and Shenzhen). Zhongshan. and Dongguan). Zhongshan. Mainland China The Greater Pearl River area includes three cities of over 5 million inhabitants (Hong Kong. Foshan. Huizhou. finance. and a number of cities that each contain approximately half a million inhabitants. Identify the region. retailing. Northeast China C. (p. The Greater Pearl River area E. Financial services B. Guangzhou. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-06 The diversity within China Topic: Shanghai and the Yangtze River Delta 66. and Shenzhen). and Dongguan). five cities with more than 1 million inhabitants (Zhuhai. 325) This region in China includes three cities of over 5 million inhabitants (Hong Kong. 325) Half of Shanghai's GDP is derived from which of the following industries? A. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-06 The diversity within China Topic: Pearl River Delta . five cities with more than 1 million inhabitants (Zhuhai. A.65. Shanghai B. insurance. Huizhou. Foshan. (p. Electronic products D. and real estate development. Yangtze River Delta D. Guangzhou. Steel C.

usually receives about _____ percent of the central government budget. 45 E. power supplies. That amounts to less than $100 a head for rural roads. Honk Kong C. 325) Which of the following was designated China's first Special Economic Zone? A. which accounts for almost three-fourths of the Chinese population. Taiwan D. A. and hospitals. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-06 The diversity within China Topic: Pearl River Delta 68. 25 C. Shenzhen was designated as China's first Special Economic Zone. schools. Beijing E. 10 B. water. (p. 326) The rural population. (p. Shanghai B. Shenzen In 1980. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-06 The diversity within China Topic: The Other Billion . 55 These one billion people usually receive about 10 percent of the central government budget.67. 30 D.

9 B. They are restricted to settlement zones where marketing is prohibited. In China.3 billion potential consumers are not accessible? A. 327) The true consumer market in China is probably limited to no more than _____ percent of those who live in the more affluent cities. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-06 The diversity within China Topic: The Other Billion 70. most of the 1.3 billion potential consumers are not accessible because of a poor or nonexistent distribution network. They are unfamiliar with the English language. C. 25 D. 33 E. Most of them are in Mainland China where entry is prohibited. 48 The true consumer market in China is probably limited to no more than 25 percent of those who live in the more affluent cities.69. 15 C. 327) Which of the following is the reason why most of the 1. The distribution network is poor or is absent. These are mostly Communist party members who are prohibited from dealing with MNC brands. (p. D. A. E. (p. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-06 The diversity within China Topic: The Other Billion . B.

Simplicity E. both yielding a relatively uncommon lack of creativity. thinking outside the box. that is. Forthrightness Forthrightness is the stereotype of businesspeople in the Northeast. (p. Cold and businesslike C. Forthrightness D.71. Bureaucratic sloth C. Traditional thought pattern B. mostly held by their southern neighbors. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-06 The diversity within China Topic: Differences in Business Negotiation Styles Within The Greater China . Shrewdness E. Aggression D. Loud and argumentative B. 327) Which of the following is the stereotype of businesspeople in the Northeast? A. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 11-06 The diversity within China Topic: Differences in Business Negotiation Styles Within The Greater China 72. 327) Which of the following characterizes negotiators from the Beijing area? A. Entrepreneurship Negotiators from the Beijing area are known for their unusual (within China) bureaucratic sloth and imperialist perspective. (p.

Entrepreneurship D. which has yielded their special forms of entrepreneurship and spontaneity. (p. Forthrightness C. A. Bureaucratic sloth Negotiators from the Shanghai area are renowned in China for their shrewdness. Shrewdness B. Identify the region. Mainland China C. Shanghai E. 328) As they have been the closest to foreign influences. (p. 328) What are negotiators from the Shanghai area famous for? A. Beijing D.73. Taiwan B. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-06 The diversity within China Topic: Differences in Business Negotiation Styles Within The Greater China . big talkers and big spenders. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-06 The diversity within China Topic: Differences in Business Negotiation Styles Within The Greater China 74. They try to impress you in ways and to extents you won't see anywhere else in China. The Pearl River Delta Chinese in the south (The Pearl River Delta) have always been the closest to foreign influences. negotiators from this part of China are famous for their special forms of entrepreneurship and spontaneity. Out-of-the-box thinking E. They are outgoing.

Hong Kong B. But they are excellent traders and particularly interested in making short-term gains. They are less calculating than folks in Shanghai. Shanghai E. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-06 The diversity within China Topic: Differences in Business Negotiation Styles Within The Greater China . 328) Almost all the Chinese you deal with in _____ will be bilingual and speak at least English fluently. The Pearl River Delta C. Mainland China C. (p. Beijing D. Taiwan B. Taiwan Almost all the Chinese you deal with in Hong Kong will be bilingual and speak at least English fluently. Mainland China Negotiators from the Pearl River Delta are reputed to be relatively honest and forthright. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-06 The diversity within China Topic: Differences in Business Negotiation Styles Within The Greater China 76. But they are excellent traders and particularly interested in making short-term gains. A. These negotiators belong to: A. 328) The Chinese in this area are less calculating than folks in Shanghai. Beijing D. Shanghai E. (p.75.

328) Which part of China is considered conservative in both behavior and language? A.77. Hong Kong B. to be the most conservative. Beijing D. by other Chinese. Managers are simultaneously down-to-earth and practical but on occasion daring. Taiwan D. Beijing Companies in Taiwan tend to be managed directly from the top. Shanghai E. (p. Hong Kong B. Mainland China C. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-06 The diversity within China Topic: Differences in Business Negotiation Styles Within The Greater China 78. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 11-06 The diversity within China Topic: Differences in Business Negotiation Styles Within The Greater China . Mainland China C. and the decision-making style is autocratic. 328) Managers in this part of China are known to be simultaneously down-to-earth and practical but on occasion daring. Taiwan Both the behavior and the language of the people of Taiwan are considered. A. (p. Shanghai E.

Rich municipalities like Beijing and Shanghai are quite comparable to Paris." E. the same lines of cosmetics or shampoos are sold nationwide. New York.S." C. D.S. luxury cars sell better on the coast. Some municipalities are large and rich enough to be thought of as "more-developed countries. or Tokyo. in China you cannot sell the same lines of cosmetics or shampoos nationwide.. Just like in the U. 328) Which of the following is NOT true of the marketing opportunities in Greater China? A. As in the United States. . and trucks sell better in rural areas of the west. Some of the rural areas might be labeled "least-developed countries.79. (p. B.. Unlike in the U.

Chapter 13 Products and Services for Consumers Answer Key True / False Questions 1. (p. quality to the consumer is more than compliance. FALSE Since the consumer expects performance quality to be a given. (p. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-02 The importance of quality and how quality is defi ned Topic: Quality Defined 2. TRUE Quality can be defined on two dimensions: market-perceived quality and performance quality. 361) Though quality is always important in the consumer's mind. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-02 The importance of quality and how quality is defi ned Topic: Quality Defined . 361) Quality can be defined on two dimensions: market-perceived quality and performance quality. do not expect it to be a given. in general. they.

the factory is still the place where most products are damaged in global marketing. AACSB: Medium Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-03 Physical. (p. but frequently a product that leaves the factory with performance quality is damaged as it passes through the distribution chain. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-02 The importance of quality and how quality is defi ned Topic: Maintaining Quality 4. the term product homologation is used to describe the changes mandated by local product and service standards. TRUE An important first step in adapting a product to a foreign market is to determine the degree of newness as perceived by the intended market. mandatory. mandatory. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-03 Physical. 363) An important first step in adapting a product to a foreign market is to determine the degree of newness as perceived by the intended market. and cultural requirements to product adaptation .3. and cultural requirements for product adaptation Topic: Physical or Mandatory Requirements and Adaptation 5. (p. 363) In many countries the term product homologation is used to describe the changes mandated by local product and service standards. 362) Even though most companies claim high performance quality when a product leaves the factory. mandatory. and cultural requirements for product adaptation Topic: Physical. (p. FALSE Maintaining performance quality is critical. TRUE In many countries.

FALSE A product is more than a physical item: it is a bundle of satisfactions (or utilities) that the buyer receives. mandatory. and cultural requirements for product adaptation Topic: Physical or Mandatory Requirements and Adaptation 8. (p.S. TRUE Under the guidelines of the European Union. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-03 Physical. 364) The European Commission (EC) mandate requires a product to be evaluated from manufacturing to disposal. from manufacturing to disposal. and cultural requirements for product adaptation Topic: Products and Culture . AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-03 Physical.6. and cultural requirements for product adaptation Topic: Physical or Mandatory Requirements and Adaptation 7. dollars as the standard for international exchange. a product is a physical item. FALSE Green marketing is a term used to identify concern with the environmental consequences of a variety of marketing activities. mandatory. 366) Strictly speaking from a marketing point of view as well as from a definitional view. 364) Green marketing is the term frequently used to identify a marketer's efforts to reduce its dependency on U. a product is evaluated on all significant environmental effects throughout its life cycle. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-03 Physical. mandatory. (p. (p.

and the method used to communicate the idea. diffusion of innovations) from other types of communication research. (p. TRUE It is the element of time that differentiates diffusion from other types of communications research. any idea perceived as new by a group of people is an innovation. 370) One of the three variables.9. any idea perceived as new by a group of people is an innovation.e. TRUE From a sociological viewpoint. is the product's degree of perceived newness. mandatory. (p. which affect the rate of diffusion of a product.. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-03 Physical. and cultural requirements for product adaptation Topic: Diffusion of Innovations . 369) The element of time is what differentiates diffusion (i. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-03 Physical. TRUE At least three extraneous variables affect the rate of diffusion of an object: the degree of perceived newness. mandatory. and cultural requirements for product adaptation Topic: Physical. 368) From a sociological viewpoint. and cultural requirements to product adaptation 10. mandatory. (p. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-03 Physical. the perceived attributes of the innovation. mandatory. and cultural requirements for product adaptation Topic: Diffusion of Innovations 11.

(p. mandatory.12. the perceived attributes of the innovation. TRUE At least three extraneous variables affect the rate of diffusion of an object: the degree of perceived newness. and cultural requirements for product adaptation Topic: Diffusion of Innovations . mandatory. TRUE At least three extraneous variables affect the rate of diffusion of an object: the degree of perceived newness. and cultural requirements for product adaptation Topic: Diffusion of Innovations 13. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-03 Physical. 370) The perceived attributes of the innovation is a variable which affect the rate of diffusion of a product. and the method used to communicate the idea. the perceived attributes of the innovation. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-03 Physical. 370) The method used to communicate the idea is one of the three variables which affect the rate of diffusion of a product. and the method used to communicate the idea. (p.

14. (p. 371) If a new product has the trait of relative advantage, it has guaranteed success in the marketplace. FALSE Analyzing the five characteristics of an innovation can assist in determining the rate of acceptance or resistance of the market to a product. A product's (1) relative advantage (the perceived marginal value of the new product relative to the old), (2) compatibility (its compatibility with acceptable behavior, norms, values, and so forth), (3) complexity (the degree of complexity associated with product use), (4) trialability (the degree of economic and/or social risk associated with product use), and (5) observability (the ease with which the product benefits can be communicated) affect the degree of its acceptance or resistance.

AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 13-03 Physical; mandatory; and cultural requirements for product adaptation Topic: Diffusion of Innovations-The topic is present in the question

15. (p. 372) The newness of a product or brand introduced can be an important competitive advantage. TRUE The newness of the product or brand introduced can be an important competitive advantage.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-03 Physical; mandatory; and cultural requirements for product adaptation Topic: Diffusion of Innovations

16. (p. 372) Most of the new ideas associated with the Internet are being produced in Europe because of the number of Internet users on the continent. FALSE Most of the new ideas associated with the Internet are being produced in the United States.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-03 Physical; mandatory; and cultural requirements for product adaptation Topic: Production of Innovation

17. (p. 373) The packaging component of the product component model contains the physical product and all its design and functional features. FALSE The core component consists of the physical product—the platform that contains the essential technology—and all its design and functional features.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-04 The need to view all attributes of a product to overcome resistance to acceptance Topic: Analyzing Product Components for Adaptation

18. (p. 373) One of the core components in the product component model is the product platform. TRUE The core component of the product component model comprises the product platform.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-04 The need to view all attributes of a product to overcome resistance to acceptance Topic: Analyzing Product Components for Adaptation

19. (p. 374) If you were looking for information and strategies on a product's brand name, you would find it under the packaging component of the product component model. TRUE The packaging component includes style features, packaging, labeling, trademarks, brand name, quality, price, and all other aspects of a product's package.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-04 The need to view all attributes of a product to overcome resistance to acceptance Topic: Analyzing Product Components for Adaptation

20. (p. 374) A well-known baby-food producer that introduced small jars of baby food in Africa complete with labels featuring a picture of a baby experienced the classic example of misinterpreted symbols--consumers thought it was ground-up babies in a jar. This would be an example of a problem with the packaging component in the product component model. TRUE Care must be taken to ensure that corporate trademarks and other parts of the packaging component do not have unacceptable symbolic meanings. Particular attention should be given to translations of brand names and colors used in packaging.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-04 The need to view all attributes of a product to overcome resistance to acceptance Topic: Analyzing Product Components for Adaptation

21. (p. 375) Literacy rates and educational levels in our increasingly technological world have reached a point where manufacturers of international products can generally put out standardized product instructions. FALSE In low-literacy countries, pictures and symbols are taken literally as instructions and information. Hence, manufacturers of international products cannot put out standardized product instructions.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-04 The need to view all attributes of a product to overcome resistance to acceptance Topic: Analyzing Product Components for Adaptation

22. (p. 376) One of the consistencies that marketers can look forward to when marketing products abroad is that (in general) almost all labeling laws worldwide are essentially the same. FALSE Labeling laws vary from country to country and do not seem to follow any predictable pattern.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-04 The need to view all attributes of a product to overcome resistance to acceptance Topic: Analyzing Product Components for Adaptation

23. (p. 376) The support services component of the product component model contains such items as repair and maintenance and warranties. TRUE The support services component includes repair and maintenance, instructions, installation, warranties, deliveries, and the availability of spare parts.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-04 The need to view all attributes of a product to overcome resistance to acceptance Topic: Analyzing Product Components for Adaptation

24. (p. 377) Increasingly complementary products must be considered in the marketing of a variety of high-tech products. TRUE Complementary products must be considered increasingly in the marketing of a variety of hightech products.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-04 The need to view all attributes of a product to overcome resistance to acceptance Topic: Support Services Component

25. (p. 377) Consumer services are distinguished by four unique characteristics--intangibility, inseparability, homogeneity, and longevity. FALSE Consumer services are distinguished by four unique characteristics—intangibility, inseparability, heterogeneity, and perishability.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-04 The need to view all attributes of a product to overcome resistance to acceptance Topic: Marketing Consumer Services Globally

26. (p. 380) The vast majority of services enter foreign markets by licensing, franchising, or direct investment. TRUE The vast majority of services (some 85 percent) enter foreign markets by licensing, franchising, or direct investment.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-04 The need to view all attributes of a product to overcome resistance to acceptance Topic: Barriers to Entering Global Markets for Consumer Services

27. (p. 384) Brand image is at the very core of business identity and strategy. TRUE Brand image is at the very core of business identity and strategy.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-04 The need to view all attributes of a product to overcome resistance to acceptance Topic: Brands in International Markets

(p. (p. with their more analytical thinking patterns. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-04 The need to view all attributes of a product to overcome resistance to acceptance Topic: Global Brands Multiple Choice Questions 29. From a producers' to a sellers' market B. and the latter have more choices because more companies are competing for their attention. From a sellers' to a customers' market C. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 13-01 The importance of offering a product suitable for the intended market Topic: Quality . From a buyers' to a users' market D. TRUE Consumers in "Eastern" cultures may be more likely to understand and appreciate brand extensions because of their more holistic thinking than consumers in "Western" cultures. From a producers' market to a third-party vendors' market The power in the marketplace is shifting from a sellers' to a customers' market. 360) Which of the following represents the shift of power in the marketplace? A. 386) According to the text it has been reported that consumers in "Eastern" cultures are more likely to understand and appreciate brand extensions because of their more holistic thinking than consumers in "Western" cultures with their more analytical thinking patterns.28. From a producers' to a outsourcers' market E.

30. (p. 360) More and more companies are offering a mix of products and services to their customers. This leads to a blurring of the distinction between products and services leading to new terms like: A. market applications. B. market solutions. C. product portfolio. D. market offerings. E. product basket. The lack of distinction between products and services has led to the invention of new terms encompassing both products and services, such as market offerings and business-to-consumer (B2C) marketing.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 13-01 The importance of offering a product suitable for the intended market Topic: Quality

31. (p. 360) Global competition is placing new emphasis on some basic tenets of business. All of the following represent the major trends EXCEPT: A. longer product life cycles. B. importance of quality. C. competitive prices. D. innovative products. E. shift of power from sellers' to customers' market. Global competition is placing new emphasis on some basic tenets of business. It is shortening product life cycles and focusing on the importance of quality, competitive prices, and innovative products. The power in the marketplace is shifting from a sellers' to a customers' market, and the latter have more choices because more companies are competing for their attention.

AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 13-01 The importance of offering a product suitable for the intended market Topic: Quality

32. (p. 361) Which are the two dimensions of quality? A. Product quality and process quality B. Market-perceived quality and performance quality C. Product quality and service quality D. Actual quality and assumed quality E. Absolute quality and relative quality Quality can be defined on two dimensions: market-perceived quality and performance quality.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 13-02 The importance of quality and how quality is defi ned Topic: Quality Defined

33. (p. 362) Apart from market-perceived quality and performance quality, which is other form of quality testing is popular? A. Quality perceived by internal panels B. Quality measured by objective third parties C. Quality assurance from internal vendors D. Quality measured by NGO activist groups E. Quality certified by quality circles Quality is also measured in many industries by objective third parties. In the United States, J.D. Power and Associates has expanded its auto quality ratings, which are based on consumer surveys, to other areas, such as computers.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-02 The importance of quality and how quality is defi ned Topic: Quality Defined

34. (p. 363) In many countries, the term used to describe the changes mandated by local product and service standards is product ____. A. localization B. blending C. standardization D. dilution E. homologation A product may have to change in a number of ways to meet the physical or mandatory requirements of a new market, ranging from simple package changes to total redesign of the physical core product. The term used to describe the changes mandated by local product and service standards is product homologation.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 13-03 Physical; mandatory; and cultural requirements for product adaptation Topic: Physical or Mandatory Requirements and Adaptation

35. (p. 363) Vital Health Products found out that they had to reduce the length of the tread in their treadmills sold in China owing to the shorter legs of the average Chinese person. By doing this Vital has achieved product ____. A. homologation B. standardization C. dilution D. flexibility E. repositioning A product may have to change in a number of ways to meet the physical or mandatory requirements of a new market, ranging from simple package changes to total redesign of the physical core product. The term used to describe the changes mandated by local product and service standards is product homologation.

AACSB: Reflective thinking Bloom's: Application Difficulty Level: Medium Learning Objective: 13-03 Physical; mandatory; and cultural requirements for product adaptation Topic: Physical or Mandatory Requirements and Adaptation

36. (p. 364) _____ is a term used to identify concern with the environmental consequences of a variety of marketing activities. A. Green marketing B. Hybrid business C. Greenfield business D. Greenhouse business E. Alternative marketing Green marketing is a term used to identify concern with the environmental consequences of a variety of marketing activities.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 13-03 Physical; mandatory; and cultural requirements for product adaptation Topic: Green Marketing and Product Development

37. (p. 364) Which of the following has been at the forefront of the "green movement?" A. The United States B. Japan C. Europe D. OPEC countries E. NAFTA countries Europe has/have been at the forefront of the "green movement," with strong public opinion and specific legislation favoring environmentally friendly marketing and products.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-03 Physical; mandatory; and cultural requirements for product adaptation Topic: Green Marketing and Product Development

38. (p. 364) McDonald's has just required that all of its paper packages that are used to contain its food products be biodegradable, contain no harmful inks, and be recyclable whenever possible. This would be an example of which of the following marketing strategies? A. Envo-marketing B. Planet marketing C. Socialist marketing D. Green marketing E. Political marketing Green marketing is a term used to identify concern with the environmental consequences of a variety of marketing activities.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 13-03 Physical; mandatory; and cultural requirements for product adaptation Topic: Green Marketing and Product Development

39. (p. 364) As part of the "green marketing" movement, the European Commission has passed legislation to control all kinds of packaging waste throughout the European Union. Two critical issues that affect product development are the control of the packaging component of solid waste and ____. A. variations in standards across different member countries B. consumer demand for environmentally friendly products C. government subsidies for greener technologies D. availability of alternative energy resources for production E. management of existing inventory of conventional energy products The European Commission has passed legislation to control all kinds of packaging waste throughout the European Union. Two critical issues that affect product development are the control of the packaging component of solid waste and consumer demand for environmentally friendly products.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 13-03 Physical; mandatory; and cultural requirements for product adaptation Topic: Green Marketing and Product Development

The adoption of some products by consumers can be affected as much by how the product concept conforms with their norms. D. many financial services in Muslim countries. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 13-03 Physical. mandatory. B. body jewelry in Japan. or behavior patterns of the culture EXCEPT: A. values. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 13-03 Physical. C. NAFTA D. 366) All of the following illustrate how products (product concepts) have been rejected by cultures because they did not meet the norms. (p. mandatory. 364) Which of the following countries or organizations requires that packaging material through all levels of distribution. The European Commission (EC) C. The United States B. and behavior patterns as by its physical or mechanical attributes. from manufacturer to consumer. E. be recycled or reused? A. and cultural requirements for product adaptation Topic: Products and Culture . whiskey and beer in Ireland. WTO The European Commission has passed legislation to control all kinds of packaging waste throughout the European Union. values. Australia/New Zealand E. pork and pork products in Scotland. filter cigarettes in Asia. (p.40. and cultural requirements for product adaptation Topic: Green Marketing and Product Development 41.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 13-03 Physical. any idea perceived as new by a group of people is an innovation. innovation From a sociological viewpoint. Filtering C. Diffusion B. Dissolution D. and cultural requirements for product adaptation Topic: Innovative Products and Adaptation 43. adaptation C. mandatory. 368) From a sociological viewpoint. Trickle-down E.42. A. Cascading Diffusion is the process by which innovation spreads and knowledge of this is helpful in developing a successful product strategy. any idea perceived as new by a group of people is a(n) ____. A. (p. creation B. and cultural requirements for product adaptation Topic: Innovative Products and Adaptation . ideation D. (p. 368) _____ is the process by which innovation spreads. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 13-03 Physical. homologation E. mandatory.

According to Everett Rogers. B. government support. the time that a product is made and the time that retailers place the product in inventory. (p. B.44. the goals of the diffusion researcher and the marketer are to shorten the time lag between introduction of an idea or product and its widespread adoption. C. mandatory. the goal of the diffusion researcher and the marketer are to shorten the time lag between: A. introduction of an idea or product and when revisions can be made. mandatory. and cultural requirements for product adaptation Topic: Diffusion of Innovations . (3) over time. innovation. D. E. and cultural requirements for product adaptation Topic: Diffusion of Innovations 45. C. 369) Everett Rogers notes that crucial elements in the diffusion of new ideas are all of the following EXCEPT: A. Everett Rogers noted that "crucial elements in the diffusion of new ideas are (1) an innovation. D. E. (p. introduction of an idea or product and its widespread adoption. (2) which is communicated through certain channels. members of a social system." AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-03 Physical. 369) According to Everett Rogers. communication channels. the time that an investment is made and the time that a profit is turned. the time that a budget is constructed and the time needed funds reach communication channels. (4) among the members of a social system. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 13-03 Physical. time.

color televisions were available in 1949 but not widely accepted in the market until 1985. Color televisions. mandatory.46. 369) Innovative product ideas reach markets with varying rates of diffusion based on the time variable. The goals of the diffusion researcher and the marketer are to shorten the time lag between introduction of an idea or product and its widespread adoption. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-03 Physical. microwave ovens took 20 years to catch on in the United States. Everett Rogers and others give ample evidence of the fact that product innovations have varying rates of acceptance. and cultural requirements for product adaptation Topic: Diffusion of Innovations . Time D. (p. and cultural requirements for product adaptation Topic: Diffusion of Innovations 47. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-03 Physical. the contraceptive pill took only a few years to be accepted in the United States. B. All of the following are actual examples of this phenomenon EXCEPT: A. modern math took only about five years to be diffused through the U. (p. Some diffuse from introduction to widespread use in a few years. 369) According to Everett Rogers. C.S. introduced in the early 50s started selling in large numbers by the 1960s. E. others take decades. which is the element that differentiates diffusion from other types of communications research? A. the idea of kindergartens took nearly 50 years to gain total acceptance in the United States. Breakthrough innovation B. mandatory. school systems. Social system E. Government support Everett Rogers states that it is the element of time that differentiates diffusion from other types of communications research. Communications channels C. D. All the others are examples provided in the text.

the perceived attributes of the innovation. D. the degree of newness as perceived by the intended market. 370) An important first step in adapting a product to a foreign market is to determine: A. the perceived attributes of the innovation. The age appearance of the innovation C. mandatory. 370) Which of the following is considered to be one of the extraneous variables that affects the rate of diffusion of an object? A. the ability of a sales force to sell the product. At least three extraneous variables affect the rate of diffusion of an object: the degree of perceived newness. B. The number of marketing personnel dedicated to diffusion D. the advertising parallels with the domestic market. (p. and the method used to communicate the idea. and cultural requirements for product adaptation Topic: Diffusion of Innovations 49. The method used to communicate the idea E. and cultural requirements for product adaptation Topic: Diffusion of Innovations .48. mandatory. and the method used to communicate the idea. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 13-03 Physical. the match to religious doctrine(s) in the foreign country. The shelf live of the diffusion object At least three extraneous variables affect the rate of diffusion of an object: the degree of perceived newness. E. (p. the cost of the adapted product in the foreign market. The use of the Internet in the diffusion process B. C. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-03 Physical.

compatibility C. A product's (1) relative advantage (the perceived marginal value of the new product relative to the old)." AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-03 Physical. mandatory. observability Analyzing the five characteristics of an innovation can assist in determining the rate of acceptance or resistance of the market to a product. New ideas are communicated over time D.50. norms. An innovation B. (4) among the members of a social system. and so forth). values. (3) complexity (the degree of complexity associated with product use). (4) trialability (the degree of economic and/or social risk associated with product use). and cultural requirements for product adaptation Topic: Diffusion of Innovations . norms. and values in Asian markets. and cultural requirements for product adaptation Topic: Diffusion of Innovations 51. New ideas are sent to members of a social system E. and (5) observability (the ease with which the product benefits can be communicated) affect the degree of its acceptance or resistance. A. 369) Which of the following is not one of the Everett Rogers crucial elements in the diffusion of new ideas? A. (3) over time. (2) compatibility (its compatibility with acceptable behavior. (p. mandatory. 371) Carolyn is interested in marketing her company's diet products in Asia. Communication through certain channels C. relative advantage B. Carolyn is studying ____. trialability E. She is studying what acceptable behavior. (p. (2) which is communicated through certain channels. complexity D. AACSB: Reflective thinking Bloom's: Application Difficulty Level: Hard Learning Objective: 13-03 Physical. New ideas are automatically placed in an incubation zone Everett Rogers noted that "crucial elements in the diffusion of new ideas are (1) an innovation.

A product's (1) relative advantage (the perceived marginal value of the new product relative to the old). complexity D. trialability E. observability Analyzing the five characteristics of an innovation can assist in determining the rate of acceptance or resistance of the market to a product. Ingrid is trying to enhance the _____ of her products. (4) trialability (the degree of economic and/or social risk associated with product use). (3) complexity (the degree of complexity associated with product use). and (5) observability (the ease with which the product benefits can be communicated) affect the degree of its acceptance or resistance. compatibility C. relative advantage B. and so forth). mandatory. and cultural requirements for product adaptation Topic: Diffusion of Innovations . (p. norms. AACSB: Reflective thinking Bloom's: Application Difficulty Level: Hard Learning Objective: 13-03 Physical.52. 371) Ingrid is developing promotional materials and product demonstrations to easily communicate the benefits of her cleaning products. values. A. (2) compatibility (its compatibility with acceptable behavior.

(3) complexity (the degree of complexity associated with product use). A product's (1) relative advantage (the perceived marginal value of the new product relative to the old). complexity D. observability Analyzing the five characteristics of an innovation can assist in determining the rate of acceptance or resistance of the market to a product.53. Fiona is trying to reduce the degree of economic and/or social risk. trialability E. relative advantage B. 371) Fiona asked her product manager for samples to give to potential consumers in Madrid. A. norms. and cultural requirements for product adaptation Topic: Diffusion of Innovations . her new European market. (4) trialability (the degree of economic and/or social risk associated with product use). or _____ associated with product use. (p. compatibility C. and so forth). (2) compatibility (its compatibility with acceptable behavior. and (5) observability (the ease with which the product benefits can be communicated) affect the degree of its acceptance or resistance. AACSB: Reflective thinking Bloom's: Application Difficulty Level: Hard Learning Objective: 13-03 Physical. mandatory. values.

and cultural requirements for product adaptation Topic: Diffusion of Innovations . A. the rate of diffusion can be postulated as negatively related to ____. Relative advantage B. A product's (1) relative advantage (the perceived marginal value of the new product relative to the old). AACSB: Reflective thinking Bloom's: Application Difficulty Level: Hard Learning Objective: 13-03 Physical. (4) trialability (the degree of economic and/or social risk associated with product use). trialability D.54. values. 371) Mark Harmon has found that using his new digital camera is a snap. and (5) observability (the ease with which the product benefits can be communicated) affect the degree of its acceptance or resistance. Complexity D. the rate of diffusion can be postulated as positively related to relative advantage. norms. Observability Analyzing the five characteristics of an innovation can assist in determining the rate of acceptance or resistance of the market to a product. trialability. He did not even have to read the instruction manual to determine how to turn the camera on. Which of the following characteristics of Mark's "new product" made it easy for him to begin his digital experience? A. observability In general. (p. mandatory. and observability but negatively related to complexity. and cultural requirements for product adaptation Topic: Diffusion of Innovations 55. compatibility. relative advantage B. and export the picture to his computer. The signs (symbols) on the camera body made it very clear what he was to do to achieve digital photography success. and so forth). snap a digital picture. mandatory. complexity E. (p. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Hard Learning Objective: 13-03 Physical. (2) compatibility (its compatibility with acceptable behavior. Trialability E. compatibility C. (3) complexity (the degree of complexity associated with product use). 371) In general. Compatibility C.

Poor product knowledge B. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 13-03 Physical. mandatory.56. focus on a few important innovations. Noise in the communication channel C. mass customization Conversion-ability is the success firms have when they take inventions to market. product penetration C. 372) Which of the following factors is mainly responsible for a perceptual bias when interpreting the characteristics of a product? A. conversion ability B. Market analyst's intelligence quotient A market analyst's self-reference criterion (SRC) may cause a perceptual bias when interpreting the characteristics of a product. marketization E. 372) The success of a firm taking inventions to market is referred to as ____. Multitude of competing products E. instead of evaluating product characteristics from the foreign user's frame of reference. Thus. (p. Market analyst's self-reference criteria D. and experience. the marketer might analyze them from his or her frame of reference. A. diffusion D. and cultural requirements for product adaptation Topic: Diffusion of Innovations 57. and cultural requirements for product adaptation Topic: Production of Innovations . Three main factors seem to favor conversion: patience. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-03 Physical. mandatory. (p. leading to a misinterpretation of the product's cultural importance.

mandatory.Product Component Model AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-03 Physical. 373) The product platform. Support services component C. design features. Core component B. mandatory.Product Component Model AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-03 Physical. Global component The core component consists of the physical product—the platform that contains the essential technology—and all its design and functional features.1. Functional component E. and cultural requirements for product adaptation Topic: Core Component .1. Packaging component D. repair and maintenance. (p. Packaging component D. (p. 373) Installation.58. and cultural requirements for product adaptation Topic: Core Component 59. and functional features are all found in which of the following components of the product component model used in the text? A. Functional component E. Core component B. Also refer Exhibit 13. deliveries. and warranties are all found in which of the following components of the product component model used in the text? A. It is on the product platform that product variations can be added or deleted to satisfy local differences. Support services component C. Global component Refer Exhibit 13.

373) Simone Francis is a specialist in product design. Support services component C. Packaging component D. packaging component D. With respect to the product component model shown in the text. (p. It is on the product platform that product variations can be added or deleted to satisfy local differences. Core component B. global component The core component consists of the physical product—the platform that contains the essential technology—and all its design and functional features. core component B. (p.1. Also refer Exhibit 13. support services component C.Product Component Model AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 13-03 Physical. Global component The core component consists of the physical product—the platform that contains the essential technology—and all its design and functional features.60. mandatory. She is responsible for a product's aesthetic as well as functional appearance. in which of the following component categories would Simone's talents most likely be used? A. It is on the product platform that product variations can be added or deleted to satisfy local differences. 373) If a company wished to alter a product's platform so that the product could be manufactured in a variety of forms to meet local differences in five different foreign markets. Also refer Exhibit 13. and cultural requirements for product adaptation Topic: Core Component . A. the _____ of the product component model would be component that would be in consideration. mandatory. Functional component E.1.Product Component Model AACSB: Reflective thinking Bloom's: Application Difficulty Level: Hard Learning Objective: 13-03 Physical. functional component E. and cultural requirements for product adaptation Topic: Core Component 61.

Functional component E. brand name. Though this would probably be no big deal in the U. mandatory.1.S. Also refer Exhibit 13.62. and cultural requirements for product adaptation Topic: Core Component . price. trademarks. Apple needed to concentrate on which of the following components of the product component model? A. Packaging component D. To fix the problem.. 373-374) Apple Computer had difficulties when it first entered the Japanese market with its Macintosh computers. quality. labeling. packaging.Product Component Model AACSB: Reflective thinking Bloom's: Application Difficulty Level: Medium Learning Objective: 13-03 Physical. (p. it was certainly a cause for concern in quality-conscious Japan. Support services component C. Core component B. Some of the computers were returned unused after customers found the wrapping on the instruction manual damaged. and all other aspects of a product's package. Global component The packaging component includes style features.

repeatability. Support services component C. and cultural requirements for product adaptation Topic: Marketing Consumer Services Globally . Since the consumer is automatically angry with the manufacturer when something goes wrong with the car. 376) In some countries maintenance of automobiles is not the norm. mandatory. inseparability. (p. mandatory. instructions.63. C. (p. repair and maintenance has become a concern of the various automobile manufacturers in this market. Functional component E. Cars are not repaired until they break down. and the availability of spare parts. installation. heterogeneity. Also refer Exhibit 13. heterogeneity. Global component The support services component includes repair and maintenance. deliveries. B. and perishability—and thus require special consideration. 378) Services are distinguished by all of the following unique characteristics EXCEPT: A.Product Component Model AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 13-03 Physical. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-03 Physical. Packaging component D. E. Core component B. and cultural requirements for product adaptation Topic: Support Services Component 64.1. In which of the following components of the product component model would management need to make improvement if problems such as the one above are going to be solved? A. Services are distinguished by four unique characteristics—intangibility. perishability. warranties. D. inseparability. intangibility.

Which of the following characteristics of services best matches to the above? A.65. in contrast. (p. profitability D. perishability A service is heterogeneous in that it is individually produced and is thus unique. Insurance. are intangible and have intrinsic value resulting from a process. and cultural requirements for product adaptation Topic: Marketing Consumer Services Globally 66. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 13-03 Physical. Inseparability C. heterogeneity E. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Hard Learning Objective: 13-03 Physical. Profitability D. Heterogeneity E. 378) Because a service is individually produced and is virtually unique. and airline passenger or freight service. or an occurrence that only exists while it is being created. Intangibility B. inseparability C. dry cleaning. hotel accommodations. mandatory. dry cleaning. 378) Insurance. Perishability Services are intangible. (p. and hotel accommodations have intrinsic value resulting from a process. and cultural requirements for product adaptation Topic: Marketing Consumer Services Globally . mandatory. a performance. or an occurrence that exists only while it is being created. the service is said to have: A. intangibility B. a performance.

(p. the snows in Denver were so bad that not one single patient was able to come for appointments with Dr. mandatory. Townes. Research and development E. International tourism C. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-03 Physical. Profitability D. Inseparability C. 378) Which of the following is the largest services export of the United States? A. Healthcare D. Intangibility B.67. mandatory. Perishability A service is perishable in that once created it cannot be stored but must be consumed simultaneously with its creation. Since all of the appointments were missed. and cultural requirements for product adaptation Topic: Marketing Consumer Services Globally 68. 378) Mark Townes is a dentist in Denver. Heterogeneity E. Which of the following best explains the particular difficulty Mark is facing? A. Education services International tourism is by far the largest services export of the United States. AACSB: Reflective thinking Bloom's: Application Difficulty Level: Medium Learning Objective: 13-03 Physical. Media and entertainment B. ranking behind only capital goods and industrial supplies when all exports are counted. During a four-day stretch in March. he made absolutely no money for the four days even though all of his normal expenses were still there. and cultural requirements for product adaptation Topic: Services Opportunities in Global Markets . (p.

Protectionism B. Language translation barriers Four kinds of barriers face consumer services marketers in this growing sector of the global marketplace: protectionism. 381) Four kinds of barriers face consumer services marketers in the global marketplace. Through agent intermediaries The vast majority of services (some 85 percent) enter foreign markets by licensing. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-03 Physical. Protection of intellectual property D. Controls on transborder data flows C. controls on transborder data flows. Exporting B. franchising. and cultural requirements for product adaptation Topic: Barriers to Entering Global Markets for Consumer Services . Importing C. or direct investment. Cultural requirements for adaptation E. Through brokers E. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 13-03 Physical. mandatory.69. (p. or direct investment D. and cultural requirements for product adaptation Topic: Barriers to Entering Global Markets for Consumer Services 70. mandatory. (p. franchising. protection of intellectual property. 380) How do the vast majority of services enter a foreign market? A. and cultural requirements for adaptation. Licensing. Which of the following of these barriers is in force when a foreign market requires that services (such as banking or insurance) originate within the foreign market itself and not from outside sources? A.

Since a great portion of a typical wait-staff person's compensation comes in the form of tips.71. symbol. term. and cultural requirements for product adaptation Topic: Brands in International Markets . copymark. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-03 Physical. Language translation barriers Because trade in services frequently involves people-to-people contact. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 13-03 Physical. (p. sign. mandatory. and cultural requirements for product adaptation Topic: Barriers to Entering Global Markets for Consumer Services 72. sign. 382) The worldwide use of a name. A global brand is defined as the worldwide use of a name. C. E. mandatory. the union would like to know how employees would be compensated for this loss. (p. term. symbol (visual and/or auditory). Controls on transborder data flows C. culture plays a much bigger role in services than in merchandise trade. service providers would find it to be in bad taste to allow employees to collect tips for service. design. the restaurant chain's labor union has already pointed out a potential problem with this expansion. or combination thereof intended to identify goods or services of one seller and to differentiate them from those of competitors is called a/an: A. The above example illustrates which of the following barriers a consumer services marketer faces in a foreign market? A. or combination thereof intended to identify goods or services of one seller and to differentiate them from those of competitors. global brand. brand's equity position. owner's mark. In China. B. design. However. D. Cultural requirements for adaptation E. trademark. Protection of intellectual property D. 381) Red Lobster seafood restaurant is considering opening branch operations in China. Protectionism B.

E. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-05 Country-of-origin effects on product image Topic: Country-of-Origin Effect and Global Brands ." Which of the following would not fit in the "best" stereotype scheme? A. transfer effect. Japanese electronics. polar effect. assembly. (p. Jamaican rum Consumers have broad but somewhat vague stereotypes about specific countries and specific product categories that they judge "best": English tea. B. 387) Any influence that the company of manufacture. alteration effect. American chocolate is not one of them. English tea B. or design has on a consumer's positive or negative perception of a product is called the: A. Jamaican rum. Italian leather. C. (p. D. Chinese silk. plus or minus effect. American chocolate C. French perfume D. or design has on a consumer's positive or negative perception of a product. Chinese silk E. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-05 Country-of-origin effects on product image Topic: Country-of-Origin Effect and Global Brands 74. 388) Consumers have broad but somewhat vague stereotypes about specific countries and specific product categories that they judge "best. assembly. country-of-origin effect. French perfume.73. and so on. Country-of-origin effect (COE) can be defined as any influence that the country of manufacture.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-02 The importance of quality and how quality is defi ned Topic: Quality Defined . one dimension deals with how consumers believe the company. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 13-05 Country-of-origin effects on product image Topic: Country-of-Origin Effect and Global Brands Essay Questions 76. product. company. for example—can influence attitudes toward foreign products. The two dimensions of quality are market-perceived quality and performance quality. or service matches to expectations of quality.75. structural marketing orientation Ethnocentrism can also have country-of-origin effects. communist mentality E. cultural revisionism B. (p. which can be measured. conversion to capitalism D. deals with how the product. feelings of national pride—the "buy local" effect. Simply. or service actually performs. (p. ethnocentrism C. 361) Discuss the two dimensions of quality. homegrown food products but imported clothing and manufactured items. Russians prefer fresh." This is an example of: A. The other dimension. 388) In Russia products are placed into two categories—“ours” and "imported.

packaging. A product may have to change in a number of ways to meet the physical or mandatory requirements of a new market." Rogers continued with the statement that it is the element of time that differentiates diffusion from other types of communications research. mandatory. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-03 Physical. and cultural requirements for product adaptation Topic: Physical or Mandatory Requirements and Adaptation 78. 373) Draw and correctly label the product component model shown in the text. and cultural requirements for product adaptation Topic: Marketing Consumer Services Globally 79. (2) which is communicated through certain channels. mandatory.77. Students should include the core. (p. Product homologation is used to describe the changes mandated by local product and service standards. (p. (3) over time. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-04 The need to view all attributes of a product to overcome resistance to acceptance Topic: Analyzing Product Components for Adaptation . (4) among the members of a social system. The model is shown on page 350 (see Exhibit 12. (p. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-03 Physical. What are those elements? Everett Rogers noted that "crucial elements in the diffusion of new ideas are (1) an innovation.1). 363) Describe the process called product homologation. 369) Everett Rogers notes that four crucial elements impact the diffusion of new ideas. and support services components and the sub-parts of each for full credit.

(p. (p. even in the nonprofit sector. or combination thereof intended to identify goods or services of one seller and to differentiate them from those of competitors. (b) controls on transborder data flows. 382) Define a global brand. (c) heterogeneous--it is individually produced and is thus virtually unique. the importance of a brand name. List and characterize each of these four unique characteristics. What are these barriers? The barriers to consumer services are (a) protectionism. Much like the experience with global products. sign. the question of whether or not to establish global brands has no single answer. and (d) perishability--once created it cannot be stored but must be consumed simultaneously with its creation. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-04 The need to view all attributes of a product to overcome resistance to acceptance Topic: Barriers to Entering Global Markets for Consumer Services 82. symbol (visual and/or auditory). (b) inseparability--the service cannot be separated from its consumption. (p.80. (c) protection of intellectual property. term. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-04 The need to view all attributes of a product to overcome resistance to acceptance Topic: Brands in International Markets . How important are global brands? A global brand is defined as the worldwide use of a name. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-04 The need to view all attributes of a product to overcome resistance to acceptance Topic: Marketing Consumer Services Globally 81. However. 380) Consumer services face four kinds of barriers as these services are presented to the global market. and (d) cultural requirements for adaptation. design. is unquestionable. The characteristics are (a) intangibility--services cannot be touched. 378) Consumer services are distinguished by four unique characteristics.

(p. AACSB: Reflective thinking Bloom's: Application Difficulty Level: Medium Learning Objective: 13-05 Country-of-origin effects on product image Topic: Country-of-Origin Effect and Global Brands . Students could discuss stereotypes in the example. It cannot be treated only as a refreshment drink because over the years it has built a reputation for itself among consumers. imbuing them with personalities and images. The country-of-origin effect can be defined as any influence that the country of manufacture. Coca Cola is one of the oldest brands in the refreshment industry. body and spirit. 387) Assuming that you were a new marketing manager for Nike and that your first task was to launch a renewed effort to gain market share in Europe. (p. To cite an example. Comment on why this is true and create an example to illustrate. or design has on a consumer's positive or negative perception of a product.S. as an instructor. Western researchers have personified brands.83. goodwill. Today. assembly. the Coca Cola brand stands for refreshment of the mind. the consumer-brand interaction becomes much like an interpersonal interaction. quality evaluations. has had with France. The brand name encompasses the years of advertising. or how a home-based rival such as Adidas might react to Nike. Nike's publicity as a sweatshop broker. Brand image is at the very core of business identity and strategy. 384) A successful brand is the most valuable resource a company has. and other beneficial attributes the market associates with the product. product experience. If you. In a sense. mention the difficulties that the U. A successful brand is the most valuable resource a company has. please do so before the exam. would like to set additional parameters for this question. an Adidas stronghold. the general opinion of American-made products. wherein cultural differences hold heavy sway. Describe the impact that the country-of-origin effect might have on your chances of success. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 13-04 The need to view all attributes of a product to overcome resistance to acceptance Topic: Brands in International Markets 84.

(p. country stereotyping or "nation equity" can be overcome with good marketing. 389) Discuss how can company stereotyping be overcome? Once the market gains experience with a product. Moreover. The image of Korean electronics and autos improved substantially in the United States once the market gained positive experience with Korean brands. .85. negative stereotypes can be overcome.

Chapter 14 Products and Services for Businesses Answer Key True / False Questions 1. understanding the concept of derived demand is absolutely fundamental to their success. (p. (p. FALSE Firms producing products and services for industrial markets have a crucial reason for venturing abroad: dampening the natural volatility of industrial markets. 396-397) For firms producing products and services for industrial markets. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Easy Learning Objective: 14-01 The importance of derived demand in industrial markets Topic: The Volatility of Industrial Demand . TRUE For managers selling capital equipment and big-ticket industrial services. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 14-01 The importance of derived demand in industrial markets Topic: The Volatility of Industrial Demand 2. 398) For managers selling capital equipment and big-ticket industrial services. a chief reason for venturing abroad is the prospect of high profits with little risk. understanding the concept of derived demand is absolutely fundamental to their success.

3. (p. 398) Derived demand can be defined as demand that comes from the psychological aspects of market forces. FALSE Derived demand can be defined as demand dependent on another source.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 14-01 The importance of derived demand in industrial markets Topic: The Volatility of Industrial Demand

4. (p. 398) One of the ways that an industrial firm can manage against the inherent volatility of the industrial sector is to maintain broad product lines. TRUE Industrial firms can take several measures to manage inherent volatility, such as maintaining broad product lines and broad market coverage, raising prices faster and reducing advertising expenditures during booms, ignoring market share as a strategic goal, eschewing layoffs, and focusing on stability.

AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Easy Learning Objective: 14-01 The importance of derived demand in industrial markets Topic: The Volatility of Industrial Demand

5. (p. 399) Perhaps the most significant environmental factor affecting the international market for industrial goods and services is the degree of industrialization. TRUE Perhaps the most significant environmental factor affecting the international market for industrial goods and services is the degree of industrialization.

AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Easy Learning Objective: 14-01 The importance of derived demand in industrial markets Topic: Stages of Economic Development

6. (p. 399) With respect to Rostow's five-stage model of economic development, in Stage 1 (the traditional society), the most important industrial demand is associated with labor. FALSE With respect to Rostow's five-stage model of economic development, in Stage 1 (the traditional society), the most important industrial demand will be associated with natural resources extraction.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 14-01 The importance of derived demand in industrial markets Topic: Stages of Economic Development

7. (p. 399) With respect to Rostow's five-stage model of economic development, countries in Stage 5 (the age of mass consumption) are mostly service economies. TRUE With respect to Rostow's five-stage model of economic development, countries in Stage 5 (the age of mass consumption) are countries where design activities are going on and manufacturing techniques are being developed, and they are mostly service economies.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 14-01 The importance of derived demand in industrial markets Topic: Stages of Economic Development

8. (p. 399) A country is able to leap several stages of economic development by using technology as economic leverage. TRUE An important approach to grouping countries is on the basis of their ability to benefit from and use technology, particularly now that countries are using technology as economic leverage to leap several stages of economic development in a very short time.

AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Easy Learning Objective: 14-02 How demand is affected by technology levels Topic: Technology and Market Demand

9. (p. 400) One of the trends that have spurred the demand for technologically advanced products is the disintegration of the Soviet empire. TRUE Three interrelated trends spur demand for technologically advanced products: (1) expanding economic and industrial growth in Asia, particularly China and India; (2) the disintegration of the Soviet empire; and (3) the privatization of government-owned industries worldwide.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 14-02 How demand is affected by technology levels Topic: Technology and Market Demand

10. (p. 400) An important trend that has spurred the demand for technologically advanced products is worldwide popularity of the Xbox video game system. FALSE Three interrelated trends spur demand for technologically advanced products: (1) expanding economic and industrial growth in Asia, particularly China and India; (2) the disintegration of the Soviet empire; and (3) the privatization of government-owned industries worldwide.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 14-02 How demand is affected by technology levels Topic: Technology and Market Demand

11. (p. 401) The perception of quality rests solely with the quality inspector. FALSE The perception of quality rests solely with the customer.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 14-02 How demand is affected by technology levels Topic: Quality and Global Standards

12. (p. 401) Recent studies have demonstrated that perceptions of industrial product quality can vary across per capital income levels. FALSE Recent studies have demonstrated that perceptions of industrial product quality can vary across cultural groups even in the most technologically developed countries.

AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Easy Learning Objective: 14-02 How demand is affected by technology levels Topic: Quality and Global Standards

13. (p. 401) Good quality, as perceived by highly industrialized and less-industrialized countries, is basically the same. FALSE Good quality as interpreted by a highly industrialized market is not the same as that interpreted by standards of a less industrialized nation.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 14-02 How demand is affected by technology levels Topic: Quality and Global Standards

14. (p. 402) George Howard's company has just invented a product that will reduce the time it takes to construct a new home by one-third. However, his company's product is not doing well in third world countries. The reason is probably that labor-saving features are of little importance when time has limited value and labor is plentiful. TRUE Standard quality requirements of industrial products sold in the U.S. market that command commensurately higher prices may be completely out of line for the needs of the less developed markets of the world. Labor-saving features are of little importance when time has limited value and labor is plentiful.

AACSB: Analytic Bloom's: Application Difficulty Level: Medium Learning Objective: 14-03 Characteristics of an industrial product Topic: Quality Is Defined by the Buyer

15. (p. 402) Extreme variations in climate create problems in designing equipment that is universally operable. TRUE Extreme variations in climate create problems in designing equipment that is universally operable.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 14-03 Characteristics of an industrial product Topic: Quality Is Defined by the Buyer

16. (p. 402) At present, there are generally accepted universal standards for industrial products around the world. FALSE A lack of universal standards is a problem in international sales of industrial products.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 14-03 Characteristics of an industrial product Topic: Quality Is Defined by the Buyer

(p. TRUE To spur U. 404) The U.S. recreation craft. with the European Union to mutually recognize each other's standards in six sectors. all U. Department of Commerce does not mandate the use of the metric system unless your company wants to sell something to the U. 403) There is agreement between the U.S. and the European Union to mutually accept one another's standards in sectors such as telecommunications. recreation craft. medical devices. government purchases are to be conducted exclusively in metric. electrical safety. industry into action.S. (p.S. government. 405) ISO 9000 standards apply to specific products. electromagnetic compatibility. (p. medical devices. the Department of Commerce indicated that accepting the metric system will not be mandatory unless you want to sell something to the U. and pharmaceuticals. electromagnetic compatibility. TRUE Recently a key agreement was signed by the U. FALSE ISO 9000 standards do not apply to specific products.17. all sellers to this market must use metric.S. government. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 14-04 The importance of ISO 9000 certifi cation Topic: ISO 9000 Certification: An International Standard of Quality . and pharmaceuticals. electrical safety. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 14-03 Characteristics of an industrial product Topic: Quality Is Defined by the Buyer 18.S. The agreements will eliminate the need for double testing and address inspection or certification in telecommunications.S. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 14-03 Characteristics of an industrial product Topic: Quality Is Defined by the Buyer 19.

many of these client followers expand their client base to include local companies as well. healthcare services providers have been following firms abroad—Blue Cross is now selling HMO services to American companies operating in Mexico. quick delivery of replacement parts was of major importance in purchasing construction equipment. (p. 407) According to a recent study of international users of heavy construction equipment. next to the manufacturer's country of origin. (p. Once established. TRUE Most recently. quick delivery of replacement parts was of major importance in purchasing construction equipment.20. Blue Cross is referred to as a client follower. In this case. 408) Blue Cross is now selling HMO services to American companies operating in Mexico. TRUE For many industrial products. the revenues from associated services exceed the revenues from the products. FALSE A recent study of international users of heavy construction equipment revealed that. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Easy Learning Objective: 14-04 The importance of ISO 9000 certifi cation Topic: Business Services 21. the revenue from associated services exceeds the revenue from the products themselves. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Easy Learning Objective: 14-05 The growth of business services and nuances of their marketing Topic: Other Business Services . next to the manufacturer's reputation. (p. 406) For many industrial products. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 14-04 The importance of ISO 9000 certifi cation Topic: After-Sale Services 22.

Web sites. (p. FALSE Although important in the United States. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 14-07 The importance of relationship marketing for industrial products and services Topic: Relationship Marketing in Business-to-Business Contexts . 412) The first and foremost characteristic of industrial goods markets is the motive of the buyer: to make a profit. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 14-06 The importance of trade shows in promoting industrial goods Topic: Trade Shows: A Crucial Part of Business-to-Business Marketing 24. 410) Although important in most countries. and marketing in most countries. trade shows serve a much more important role in other countries. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 14-06 The importance of trade shows in promoting industrial goods Topic: Trade Shows: A Crucial Part of Business-to-Business Marketing 25. FALSE In addition to advertising in print media and reaching industrial customers through catalogs. reaching prospective customers. (p. (p. and direct mail. TRUE The first and foremost characteristic of industrial goods markets is the motive of the buyer: to make a profit. the trade show or trade fair has become the primary vehicle for doing business in many foreign countries. trade shows serve a much more important role in the United States. 409) A company Web site is the most important vehicle for selling products.23.

E. B.Multiple Choice Questions 26. (p. standardization D. A. (p. The exact same situation occurs in marketing industrial goods as in marketing consumer goods. C. She will learn that the inherent nature of industrial goods and the sameness in motive and behavior among business customers create a market where product and marketing mix _____ are commonplace. The industrial goods market demands adaptation. simplification E. localization C. AACSB: Analytic Bloom's: Application Difficulty Level: Medium Learning Objective: 14-01 The importance of derived demand in industrial markets Topic: Global Perspective 27. regulations The inherent nature of industrial goods and the sameness in motives and behavior among businesses as customers create a market where product and marketing mix standardization are commonplace. D. The industrial goods market varies across cultural groups. The issues of standardization versus adaptation have less relevance to marketing industrial goods than consumer goods because there are more similarities in marketing products and services to businesses across country markets than there are differences. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 14-01 The importance of derived demand in industrial markets Topic: Global Perspective . 394) Which of the following statements regarding standardization versus adaptation in the industrial market is most correct? A. There is more adaptation in industrial goods than in consumer goods. There is more standardization in industrial goods. 394) Mary is a new international sales rep for an industrial supply company. customization B.

the most rapidly growing sector of U. D. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 14-01 The importance of derived demand in industrial markets Topic: Global Perspective .S. consulting. (p. The other factor accounting for the similarity among industrial goods customers is: A. hotels. the perishability of the product. computer products. First is the inherent nature of the product. B.S. C. the customer is seeking satisfaction. Second. One factor is the motive or intent of industrial customers is the same. advertising. consumer products. banking. E. transportation. C. 395) Two basic factors account for the market similarities among industrial goods customers.28. (p. and travel sold by U. E. Two basic factors account for greater market similarities among industrial goods customers than among consumer goods customers. international trade today consists of: A. construction. firms in global markets. international trade today consists of business services—accounting. the inherent nature of the product. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 14-01 The importance of derived demand in industrial markets Topic: Global Perspective 29. 395) Along with industrial goods. the most rapidly growing sector of U. governmental services. law. the government influence over design specifications. the tie to services. insurance. industrial products. Along with industrial goods. the motive or intent of the users differs. business services. B. D.S.

AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 14-01 The importance of derived demand in industrial markets Topic: Global Perspective 31. Second. the level of technology of products and services makes their sale more appropriate in some countries than others. there is one important additional reason for marketing industrial goods abroad that does not apply to the consumer market. Third. demand is more volatile in the industrial market. First. (p. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Hard Learning Objective: 14-01 The importance of derived demand in industrial markets Topic: The Volatility of Industrial Demand . D. B. C. stages in economic development affect demand for industrial products. Three factors seem to affect the demand in international industrial markets differently than in consumer markets. Avoiding inflationary pressures domestically B. 396-397) Many reasons for marketing consumer products and services abroad match with those for marketing industrial goods abroad. stages of industrial and economic development affect demand for industrial products.30. Meeting foreign competitors in their home markets E. E. industrial products are always more expensive than consumer products. Setting up situations where strategic alliance opportunities might be realized Firms producing products and services for industrial markets have an additional crucial reason for venturing abroad: dampening the natural volatility of industrial markets. demand in industrial markets is by nature more volatile. All of the following are factors that differentiate the industrial market from the consumer market EXCEPT: A. Making as much profit as possible C. Dampening the natural volatility of industrial markets D. What is that reason? A. (p. 396) Demand in industrial markets is different from that in consumer markets. However. stages in industrial development affect demand for industrial products. the level of technology of products and services makes their sale more appropriate for some countries than others.

(p.32. multiple D. and derived demand accelerates changes in markets. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 14-01 The importance of derived demand in industrial markets Topic: The Volatility of Industrial Demand 33. 398) For managers selling capital equipment and big-ticket industrial services. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 14-01 The importance of derived demand in industrial markets Topic: The Volatility of Industrial Demand . derived E. In industrial markets. understanding the concept of _____ demand is absolutely fundamental to their success. Professional buyers tend to act in concert. two factors come into play that exacerbate both the ups and downs in demand: Professional buyers tend to act in concert. sliding C. understanding the concept of derived demand is absolutely fundamental to their success. postponed For managers selling capital equipment and big-ticket industrial services. Experienced purchasers tend to act independently. Derived demand decelerates changes in markets. Inelastic demand accelerates changes in markets. 397) Which of the following is a factor that exacerbates the volatility in demand in industrial markets? A. D. A. There are small. (p. E. noncyclical swings in demand inherent in industrial markets. B. kinked B. C.

398) Ryan Teed knows that domestic industrial demand is very volatile. C. dependent on another source. avoid layoffs. (p. 398) Derived demand can be defined as demand: A. and focus on stability E. ignoring market share as a strategic goal. (p. that is matched to consumer wants and needs. Derived demand can be defined as demand dependent on another source. and focusing on stability. Which of the following would NOT be a measure put forward as a solution to combat volatile demand in the industrial goods sector? A. Reduce advertising expenditures during booms D. D. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 14-01 The importance of derived demand in industrial markets Topic: The Volatility of Industrial Demand 35. Maintain a broad product line B. E. Ignore market share as a strategic goal. for a basic good wanted for its own sake. He decided to hire a consultant to give him advice on what to do about this unacceptable situation.34. eschewing layoffs. AACSB: Analytic Bloom's: Application Difficulty Level: Medium Learning Objective: 14-01 The importance of derived demand in industrial markets Topic: The Volatility of Industrial Demand . Raise prices faster C. raising prices faster and reducing advertising expenditures during booms. that is derived from supply. that is volatile. such as maintaining broad product lines and broad market coverage. Invest in foreign high-yield financial instruments Industrial firms can take several measures to manage the inherent volatility in domestic industrial demand. B.

D. Inflation Perhaps the most significant environmental factor affecting the international market for industrial goods and services is the degree of industrialization. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 14-01 The importance of derived demand in industrial markets Topic: The Volatility of Industrial Demand 37. perhaps. Foreign exchange B. They consider market share as a strategic goal.36. They maintain limited product lines. They value employees and stability very highly. where corporate cultures emphasize beating competitors. The degree of industrialization D. They reduce prices faster and raise advertising expenditures during booms. ignoring market share as a strategic goal. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 14-01 The importance of derived demand in industrial markets Topic: Stages of Economic Development . and focusing on stability are usually given only lip service. eschewing layoffs. The level of competition E. such stabilizing measures as maintaining broad product lines and broad market coverage. 398) Why are German and Japanese firms generally better at managing market volatility than American firms? A. C. B. 399) Which of the following is. Their emphasis is on beating competitors. Political conditions C. raising prices faster and reducing advertising expenditures during booms. German and Japanese firms value employees and stability more highly and are generally better at managing volatility in markets. (p. Conversely. E. the most significant environmental factor affecting the international market for industrial goods and services? A. (p. For most American firms.

AACSB: Reflective Thinking Bloom's: Application Difficulty Level: Hard Learning Objective: 14-01 The importance of derived demand in industrial markets Topic: Stages of Economic Development . Czech Republic E. In Stage 1 (the traditional society). A service economy is on the horizon. South Korea D. the most important industrial demand will be associated with natural resources extraction. manufacturing is beginning and primary needs are related to infrastructure development. Which of the following countries would be characterized as being in this stage of economic development? A. B. 399) In Stage 2 of Rostow's five-stage model of economic growth. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 14-01 The importance of derived demand in industrial markets Topic: Stages of Economic Development 39. (p. Russia B. construction. The important industrial demand is associated with natural resources extraction. (p. D. C. Manufacturing of both semidurable and nondurable consumer goods begins. E.38. telecommunications. Primary needs will be related to infrastructure development—for example. manufacturing is beginning. Primary needs are related to infrastructure development. and power generation equipment and expertise. Eastern European countries C. Vietnam would fit this category. Vietnam In Stage 2 (preconditions for takeoff). The focus in on low-cost manufacturing of a variety of consumer and some industrial goods. 399) With respect to industrial demand. which of the following best characterizes the "traditional society" described in Stage 1 of Rostow's five-stage model of economic development? A.

Russian and Eastern European countries fit this category. Takeoff E. Preconditions for takeoff D. (p. 399) Russia and Eastern European countries have been characterized as being in which of the following stages of Rostow's five-stage model of economic growth? A. Goods demanded relate to equipment and supplies to support manufacturing. The age of mass consumption In Stage 3 (takeoff). The age of mass consumption E. 399) If a country has reached an economic development level where there is a focus on manufacturing of both semidurable and nondurable consumer goods and goods demanded relate to equipment and supplies to support manufacturing. manufacturing of both semidurable and nondurable consumer goods has begun. Preconditions for takeoff D. Russian and Eastern European countries fit this category. Takeoff In Stage 3 (takeoff). The traditional society B. Drive to maturity C. The traditional society B. AACSB: Analytic Bloom's: Application Difficulty Level: Medium Learning Objective: 14-01 The importance of derived demand in industrial markets Topic: Stages of Economic Development 41. Goods demanded relate to equipment and supplies to support manufacturing. which of the following stages of Rostow's five-stage model of economic growth is the country in? A. manufacturing of both semidurable and nondurable consumer goods has begun. (p.40. Drive to maturity C. AACSB: Reflective Thinking Bloom's: Application Difficulty Level: Hard Learning Objective: 14-01 The importance of derived demand in industrial markets Topic: Stages of Economic Development .

they buy from all categories of industrial products and services. Their focus is more on low-cost manufacturing of a variety of consumer and some industrial goods. Takeoff C. an industrialized economy's focus is more on low-cost manufacturing of a variety of consumer and some industrial products. traditional society B. AACSB: Analytic Bloom's: Application Difficulty Level: Medium Learning Objective: 14-01 The importance of derived demand in industrial markets Topic: Stages of Economic Development . (p. takeoff Stage 4 (drive to maturity): These are industrialized economies such as Korea and the Czech Republic. Drive to maturity E. Age of mass consumption Stage 4 (drive to maturity): These are industrialized economies such as Korea and the Czech Republic. Traditional society D. Preconditions to takeoff B. (p. age of mass consumption E. AACSB: Analytic Bloom's: Application Difficulty Level: Medium Learning Objective: 14-01 The importance of derived demand in industrial markets Topic: Stages of Economic Development 43. Their focus is more on low-cost manufacturing of a variety of consumer and some industrial goods. They buy from all categories of industrial products and services. A. drive to maturity C. They buy from all categories of industrial products and services. preconditions to takeoff D. 399) In the _____ stage of Rostow's five-stage model of economic development.42. 399) Industrialized economies such as Korea and the Czech Republic have been characterized as being in which stage of Rostow's five-stage model of economic growth? A.

From itself-it never needs anyone else E. Japan and Germany are obvious examples of countries that purchase the highest-technology products and services. mostly from other Stage 5 suppliers and consumer products from Stage 3 and 4 countries. Age of mass consumption Stage 5 (the age of mass consumption): These are countries where design activities are going on and manufacturing techniques are being developed. From other Stage 5 suppliers D. 399) If a country is in Stage 5 (the age of mass consumption) of Rostow's five-stage model of economic development. From Stage 4 suppliers B.44. From Stage 3 and 4 suppliers together Stage 5 (the age of mass consumption): These are countries where design activities are going on and manufacturing techniques are being developed. Takeoff D. and they are mostly service economies. where does the country purchase most of its highest-technology products and services? A. AACSB: Analytic Bloom's: Application Difficulty Level: Medium Learning Objective: 14-01 The importance of derived demand in industrial markets Topic: Stages of Economic Development . and they are mostly service economies. 399) Countries such as Japan and Germany are characterized as being in which stage of Rostow's five-stage model of economic growth? A. Drive to maturity E. AACSB: Analytic Bloom's: Application Difficulty Level: Medium Learning Objective: 14-01 The importance of derived demand in industrial markets Topic: Stages of Economic Development 45. Preconditions to takeoff C. mostly from other Stage 5 suppliers and consumer products from Stage 3 and 4 countries. (p. Japan and Germany are obvious examples of countries that purchase the highest-technology products and services. From Stage 3 suppliers C. Traditional society B. (p.

(2) the disintegration of the Soviet empire. and (3) the privatization of government-owned industries worldwide. particularly China and India. The disintegration of the Soviet empire D. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Easy Learning Objective: 14-02 How demand is affected by technology levels Topic: Technology and Market Demand . Perhaps the best indicator of this dimension of development is the quality of the educational system. Expanding economic growth in Asia C. The opening of the Trans-Arctic route Three interrelated trends spur demand for technologically advanced products: (1) expanding economic and industrial growth in Asia. Expanding industrial growth in Asia B. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 14-02 How demand is affected by technology levels Topic: Technology and Market Demand 47.46. Market size and growth E. 399) Which of the following is. Government regulations An important approach to grouping countries is on the basis of their ability to benefit from and use technology. particularly now that countries are using technology as economic leverage to leap several stages of economic development in a very short time. (p. The educational system B. the best indicator of the "countries' abilities to benefit from and use technology as economic leverage" dimension of development? A. perhaps. The privatization of government-owned industries worldwide E. The general economic environment D. (p. The degree of industrialization C. 400) Which of the following is NOT an interrelated trend that spurs demand for technologically advanced products? A.

E. the long-term outlook for these countries remains excellent. B. The concept of quality encompasses many factors. 400) Which of the following has become the most advanced industrialized country in the Asian region? A. C. customer. and Taiwan have successfully moved from being cheap labor sources to becoming industrialized nations. Singapore E. Japan C. while South Korea. Singapore. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 14-02 How demand is affected by technology levels Topic: Quality and Global Standards . (p. (p. retailer. many Asian countries have been in a state of rapid economic growth over the last 30 years. and the perception of quality rests solely with the customer. Hong Kong D. South Korea B. Hong Kong. 401) The perception of quality rests solely with the: A. D. manufacturer. Taiwan Beginning with Japan. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 14-02 How demand is affected by technology levels Topic: Technology and Market Demand 49. quality inspector. Japan has become the most advanced industrialized country in the region. marketer. Although this growth has recently slowed.48.

particularly for industrial goods and business services. The French absolutely abhor the term "French fry. D. The creation of market economies C. the creation of market economies in eastern Europe and the republics of the former Soviet Union. The privatization of state-owned enterprises D. Arabic accountants often use the abacus rather than a calculator. The fast economic growth B.50. Government regulations The fast economic growth in Asia. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 14-02 How demand is affected by technology levels Topic: Technology and Market Demand 51. 401) Business-to-business marketers frequently misinterpret the concept of quality. Good quality as interpreted by a highly industrialized market is not the same as that interpreted by standards of a less industrialized nation.S." E. AACSB: Reflective Thinking Bloom's: Application Difficulty Level: Medium Learning Objective: 14-02 How demand is affected by technology levels Topic: Quality and Global Standards . and the privatization of state-owned enterprises in Latin America and elsewhere will create expanding demand. well into the 21st century. Business-to-business marketers frequently misinterpret the concept of quality. Employment creation E. 401) Which of the following will create expanding demand. (p. particularly for industrial goods and business services. suppliers because their packaging is faulty. Which of the following examples best illustrates this idea? A. B. in Latin America? A. The universal acceptance of ISO 9000 standards as a guarantee of the suitability of products in consumer applications. Farmers in third world countries often prefer less-efficient and lower quality but easier-tomaintain products to do work tasks. (p. The Japanese will no longer do business with many U. C.

its poor quality is readily apparent. conforms to manufacturer's specifications. However. C. 402) Quality is defined by the: A. C. D. government. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 14-03 Characteristics of an industrial product Topic: Quality Is Defined by the Buyer 53. B. trade publications. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 14-03 Characteristics of an industrial product Topic: Quality Is Defined by the Buyer . meets the specific needs of the buyer. buyer. matches up to applicable conditions.52. (p. it is less apparent but nonetheless true that a product that exceeds performance expectations can also be of poor quality. B. (p. alters the marketing landscape. exceeds competitors' products. manufacturer. E. When a product falls short of performance expectations. D. E. One important dimension of quality is how well a product meets the specific needs of the buyer. seller. One important dimension of quality is how well a product meets the specific needs of the buyer. Quality is defined by the buyer. 402) One important dimension of quality is how well the product: A.

the comptroller's office. followed in importance by price. the concept of total quality management (TQM) must be a part of all MNCs' management strategy. Product style D.54. This attitude was reflected in a study of purchasing behavior of Chinese import managers. 402) To be competitive in today's global markets. E. and TQM starts with talking to customers. This distinction means that developing markets require products designed to meet their specific needs. the initial designer. Timely delivery Features that a buyer does not want or cannot effectively use do not enhance a product's quality rating. ISO 9000. D. Quality B. (p. the concept of total quality management (TQM) must be part of all MNCs' management strategy. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 14-03 Characteristics of an industrial product Topic: Quality Is Defined by the Buyer 55. especially if the additional features result in higher prices. To be competitive in today's global markets. Price C. and TQM starts with: A. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 14-03 Characteristics of an industrial product Topic: Quality Is Defined by the Buyer . 402) To Chinese import managers. who ranked product quality first. talking with the customers. B. (p. Product features E. C. the corporate mission statement. not products designed for different uses and expectations. which of the following aspects of the purchasing process was ranked as the number one important aspect when buying a product or service from a foreign supplier? A.

S. Most governments now mandate universal standards. The International Electrotechnical Commission E. C. There are generally accepted universal standards for industrial products around the world. The U. 403) Which international organization is concerned with standard specifications for electrical equipment for machine tools? A. The International Telecommunication Union C. B. Department of Labor B. (p. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 14-03 Characteristics of an industrial product Topic: Quality Is Defined by the Buyer 57. D.56. 402) With respect to universal standards in the sales of international products. Universal standards have been present for a number of years. For example.S. The International Organization for Standardization D. The search has also been engaged for ways in which an international roaming umbrella can be established for wireless communications. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 14-03 Characteristics of an industrial product Topic: Quality Is Defined by the Buyer . There is a lack of universal standards. A lack of universal standards is a problem in international sales of industrial products. which of the following statements is most applicable? A. The movement toward universal standards is nearing completion. The U. E. (p. the International Electrotechnical Commission is concerned with standard specifications for electrical equipment for machine tools. Chamber of Commerce Efforts are being made through international organizations to create international standards.

Chamber of Commerce The U. championing an international weight-loss program. all U. 403) Which of the following is the international organization that is attempting to synchronize standards for several international industrial sectors? A. business to the metric system. government purchases are to be conducted exclusively in metric.S. government. this directive may be successful in converting U. To spur U. The U. only doing business in Great Britain. and highway construction funded by Washington uses metric units.S. (p. B. simulating rather than estimating production standards. The U. converting measures to the metric system. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 14-03 Characteristics of an industrial product Topic: Quality Is Defined by the Buyer . Because the U. the Department of Commerce indicated that accepting the metric system will not be mandatory unless you want to sell something to the U.S.S.58.S. The United Nations D. The Better Business Bureau E.S. standards and is active in the development of the Global Harmonization Task Force. government is the nation's largest customer. C. 404) "Making deals in pounds isn't easy when you're negotiating with someone who speaks in grams" is why many American firms are: A. D.S. Department of Commerce participates in programs to promote U. industry into action. The Global Harmonization Task Force C. an international effort to harmonize standards for several industry sectors. offering to change customers' calculations into standards acceptable to American manufacturers. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 14-03 Characteristics of an industrial product Topic: Quality Is Defined by the Buyer 59. All federal buildings are now being designed with metric specifications. (p.S. E. Department of Labor B.S.

E. D. all U. 404) To spur U. 404) The U.60. market competition from international firms already using the metric system. conversion to the metric system and acceptance of international standards have been slow. industry into action. consumer backlash and substitution of international products.S. workers would not understand the system. International Electrotechnical Commission C. all U. government. (p. International Organization for Standardization E. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Easy Learning Objective: 14-03 Characteristics of an industrial product Topic: Quality Is Defined by the Buyer 61. Congress and industry have dragged their feet for fear conversion would be too costly. government. the Department of Commerce indicated that accepting the metric system will not be mandatory unless you want to sell something to the U. government purchases are to be conducted exclusively in metric.S. (p. Department of Labor D.S.S.S. industry into action. C. government purchases are to be conducted exclusively in metric. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 14-03 Characteristics of an industrial product Topic: Quality Is Defined by the Buyer . it would be too costly. the _____ indicated that accepting the metric system will not be mandatory unless you want to sell something to the U. A. B. Office of the United States Trade Representative B.S. Congress and businesses have been resisting conversion to the metric system fearing: A. In the United States.S. Department of Commerce rules requiring wine to be sold in liters. Department of Commerce To spur U.

E. manufacturers are increasingly requiring ISO 9000 registration of their suppliers. 405) Many suppliers are adopting ISO 9000 standards because: A. Saudi Arabia D. B. they want to be perceived as eco-friendly. 404) Which of the following countries is not officially on the metric system? A. customer satisfaction surveys indicate retail customers prefer ISO certified suppliers. D. Mexico E. C.62. (p. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 14-03 Characteristics of an industrial product Topic: Quality Is Defined by the Buyer 63. (p. The United States B. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Hard Learning Objective: 14-04 The importance of ISO 9000 certifi cation Topic: ISO 9000 Certification: An International Standard of Quality . As the market demands quality and more and more companies adopt some form of TQM. the WTO expects international suppliers to conform to ISO standards. China The only two countries not officially on the metric system are Myanmar and the United States. it is the latest fad that adds value according to customer perception. Japan C. manufacturers are requiring them to do so. It is becoming increasingly evident that the United States must change or be left behind.

64. (p. 405) ISO 9000 concerns the: A. ability of a company to meet quality expectations of consumers. B. registration and certification of a manufacturer's quality system. C. profitability of a production line. D. ability of a company's computer system to adapt to SAP. E. assurance of product application. ISO 9000 concerns the registration and certification of a manufacturer's quality system.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 14-04 The importance of ISO 9000 certifi cation Topic: ISO 9000 Certification: An International Standard of Quality

65. (p. 405) Which of the following about ISO 9000 is true? A. ISO 9000 standards apply to specific products. B. It guarantees that a manufacturer produces a "quality" product or service. C. The series describes five quality system models. D. ISO 9000 standards relate to generic system standards that enable a company to provide assurance that it has a quality control system. E. ISO 9000s were originally designed by the International Organization for Standardization in Zurich. ISO 9000s were originally designed by the International Organization for Standardization in Geneva. ISO 9000 standards do not apply to specific products. It is a certification of the production process only and does not guarantee that a manufacturer produces a "quality" product or service. The series describes three quality system models.

AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 14-04 The importance of ISO 9000 certifi cation Topic: ISO 9000 Certification: An International Standard of Quality

66. (p. 405) A strong level of interest in ISO 9000 is being driven more by: A. government regulations. B. marketplace requirements. C. coercive action. D. collective action. E. internal perspectives. A strong level of interest in ISO 9000 is being driven more by marketplace requirements than by government regulations, and ISO 9000 is now an important competitive marketing tool in Europe and around the world.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 14-04 The importance of ISO 9000 certifi cation Topic: ISO 9000 Certification: An International Standard of Quality

67. (p. 405) Identify the correct statement about ISO 9000. A. To receive ISO 9000 certification, a company requests a certifying body to conduct an audit of the governance framework of a company. B. The object of the assessor asking questions about everything is to develop a transitory plan to ensure that minute details are not overlooked. C. A complete assessment for recertification is done every four years. D. Although ISO 9000 is generally involuntary, the EU Product Liability Directive puts pressure on all companies to become certified. E. The assessor helps employees create a quality manual, which will be made available to customers wishing to verify the organization's reliability. To receive ISO 9000 certification, a company requests a certifying body to conduct an audit of the key business processes of a company. The object is to develop a comprehensive plan to ensure that minute details are not overlooked. The assessor helps management create a quality manual, which will be made available to customers wishing to verify the organization's reliability. Although ISO 9000 is generally voluntary, except for certain regulated products, the EU Product Liability Directive puts pressure on all companies to become certified.

AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 14-04 The importance of ISO 9000 certifi cation Topic: ISO 9000 Certification: An International Standard of Quality

68. (p. 405) Which of the following is considered to be an important competitive tool in Europe? A. Adoption of ISO 9000 by a company. B. All packaging instructions are printed in English. C. All pricing is pegged to the dollar as the international standard. D. The ability to incorporate U.S. products into inventories. E. All product components are indigenously sourced. A strong level of interest in ISO 9000 is being driven more by marketplace requirements than by government regulations, and ISO 9000 is now an important competitive marketing tool in Europe and around the world.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 14-04 The importance of ISO 9000 certifi cation Topic: ISO 9000 Certification: An International Standard of Quality

69. (p. 406) The _____ measures customers' satisfaction and perceptions of quality of a representative sample of America's goods and services. A. ISO 9000 B. Loyalty business model C. Net Promoter Score (NPS) D. American Customer Satisfaction Index (ACSI) E. American Price Index (API) The American Customer Satisfaction Index (ACSI) measures customers' satisfaction and perceptions of quality of a representative sample of America's goods and services.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 14-04 The importance of ISO 9000 certifi cation Topic: ISO 9000 Certification: An International Standard of Quality

70. (p. 406) For many industrial products, the revenues from associated services exceed the revenues from the products. Which of the following examples best illustrates this statement? A. Paper produced in a paper mill B. A dental laboratory that prepares false teeth C. Cell phones D. A fax machine E. A heavy duty lathe machine For many industrial products, the revenues from associated services exceed the revenues from the products. Perhaps the most obvious case is cellular phones, in which the physical product is practically given away to gain the phone services contract.

AACSB: Analytic Bloom's: Application Difficulty Level: Medium Learning Objective: 14-04 The importance of ISO 9000 certifi cation Topic: Business Services

71. (p. 406) For many technical products, the willingness of the seller to provide _____ may be the deciding factor for the buyers accepting one company's product over another's. A. trade in kind B. barter arrangements C. installation and training D. a 90-day no pay period E. a no fault policy For many technical products, the willingness of the seller to provide installation and training may be the deciding factor for the buyers in accepting one company's product over another's.

AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 14-04 The importance of ISO 9000 certifi cation Topic: After-Sale Services

72. (p. 407) McDonald's Hamburger University is known for having one of the finest (and most famous) international customer training facilities in the world. This is part of McDonald's _____ when dealing with international customers. A. pricing promotion B. product innovation C. capacity utilization efficiency D. after-sales service E. warranty Customer training is rapidly becoming a major after-sales service when selling technical products in countries that demand the latest technology but do not always have trained personnel. While perhaps McDonald's Hamburger University is the most famous international customer training center, industrial sellers may soon catch up.

AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Easy Learning Objective: 14-04 The importance of ISO 9000 certifi cation Topic: After-Sale Services

73. (p. 407) The ready availability of parts and services provided by U.S. marketers can give them _____ in international markets. A. easy market entry B. increased liability C. performance problems D. reduced costs E. a competitive advantage The ready availability of parts and services provided by U.S. marketers can give them a competitive edge.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 14-04 The importance of ISO 9000 certifi cation Topic: After-Sale Services

perishability or inability to inventory. natural or planned differentiation of commodities. This tendency is so because of the: A. D. After-sales services are not only crucial in building strong customer loyalty and the all-important reputation that leads to sales at other companies. variability of inputs and outputs. C. These services cost almost nothing. E. D. Degree of outsourcing service support. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 14-05 The growth of business services and nuances of their marketing Topic: Other Business Services . 408) Research has shown that after-sales services are crucial in building customer loyalty and maintaining company reputation. What is another key reason that after-sales services should receive particular attention of top management? A. 408) The mode of entry for most consumer services firms is licensing.74. inseparability of creation and consumption. or direct. strategic alliances. These services are very difficult to duplicate. strategic alliances. This tendency is so because of the inseparability of the creation and consumption of the services. C. The mode of entry for most consumer services firms is licensing. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 14-04 The importance of ISO 9000 certifi cation Topic: After-Sale Services 75. These services can be very heavily advertised. (p. franchising. physical intangibility of services. These services are almost always more profitable than the actual sale of the primary good itself. but they are also almost always more profitable than the actual sale of the machinery or product. or direct. B. B. (p. E. franchising.

clients abroad B. Data processing and data analysis services are good examples. (p. To avoid government restrictions D. To service their U. Which of the following is an example of this? A. In-flight services related to air transportation C.S.S. To avoid governmental controls in the domestic market Most business services companies enter international markets to service their local clients abroad.76. To find and service new international customers E. Consultations of physicians Because some business services have intrinsic value that can be embodied in some tangible form. Data processing E. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 14-05 The growth of business services and nuances of their marketing Topic: Other Business Services 77. To make high profits C. business services companies enter the international market? A. 408) Because some business services have intrinsic value that can be embodied in some tangible form. Language schools B. they can be produced in one country and exported to another. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 14-05 The growth of business services and nuances of their marketing Topic: Other Business Services . they can be produced in one country and exported to another. (p. 408) What is the chief reason that most U. Operating an automatic teller machine D.

EU Until the GATT and NAFTA agreements. expand their client base to include local companies as well. A. few international rules of fair play governed trade in services. HMO. Most recently. many of these client followers. In order to accommodate Oracle. healthcare services providers have been following firms abroad. Bargain hunting D. (p. Once established.78. What would be the proper term to use to describe what B&F is doing with its own expansion into the above Asian markets? A. Oracle would particularly like B&F to come up with creative ideas for Oracle's recent expansion into the lower Asian markets of India and Indonesia. WTO. 408) B&F Advertising Agency has just acquired a significant piece of Oracle's multimilliondollar advertising business. FCPA. B&F has now opened offices in two Indian cities and one Indonesian city. RRP E. Risk avoidance Most business services companies enter international markets to service their local clients abroad. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 14-05 The growth of business services and nuances of their marketing Topic: Other Business Services . Client following C. 408) Until the _____ and _____ agreements. (p. GATT. AACSB: Analytic Bloom's: Application Difficulty Level: Easy Learning Objective: 14-05 The growth of business services and nuances of their marketing Topic: Other Business Services 79. Client baiting B. Padding their bet E. GDP. MERCOSUR B. ISO D. NAFTA C. as one researcher refers to them. there were few international rules of fair play governing trade in services.

Cathy can expect to face most of the same _____ merchandise traders. outsourcing objections by Business services firms face most of the same constraints and problems confronting merchandise traders.80. AACSB: Analytic Bloom's: Application Difficulty Level: Hard Learning Objective: 14-05 The growth of business services and nuances of their marketing Topic: Other Business Services . (p. (p. A. alternative distribution channels utilized by E. direct and indirect trade barriers have been imposed to restrict foreign companies from domestic markets. and researchers. Protectionism is the most serious threat to the continued expansion of international services trade. support from local governments promised to D. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 14-05 The growth of business services and nuances of their marketing Topic: Other Business Services 81. Capitalism C. 408) Cathy wants to provide accounting and financial services to her clients as they expand into international markets. 408) What is the most serious threat to the continued expansion of international services trade? A. As a result. Countervailing duties E. receptiveness experienced by C. The growth of international services has been so rapid during the last decade it has drawn the attention of local companies. governments. Free trade B. Protectionism Protectionism is the most serious threat to the continued expansion of international services trade. Trade bloc D. barriers confronting B.

Pharmaceutical industry D. Retailing industry Restrictions on cross-border data flows are potentially the most damaging to both the communications industry and other MNCs that rely on data transfers across borders to conduct business. In-office visits by sales teams C. and direct mail. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 14-05 The growth of business services and nuances of their marketing Topic: Other Business Services 83. Local radio advertising E. (p. Plastics industry C. the trade show or trade fair has become the primary vehicle for doing business in many foreign countries. Transit media In addition to advertising in print media and reaching industrial customers through catalogs. Trade shows B. Web sites. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 14-06 The importance of trade shows in promoting industrial goods Topic: Trade Shows: A Crucial Part of Business-to-Business Marketing .82. (p. Construction industry B. 409) Which of the following industries is most heavily damaged when restrictions are placed on cross-border data flows? A. TV advertising D. 409) Which of the following has become the primary vehicle for business-to-business promotion and selling in many foreign countries? A. Communications industry E.

contacting and evaluating potential agents and distributors. D. B. marketing. selling products. (p. 410) _____ provide(s) the facilities for a manufacturer to exhibit and demonstrate products to potential users and to view competitors' products.84. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 14-06 The importance of trade shows in promoting industrial goods Topic: Trade Shows: A Crucial Part of Business-to-Business Marketing . A. Specialty advertising venues Trade shows provide the facilities for a manufacturer to exhibit and demonstrate products to potential users and to view competitors' products. and marketing in most countries. Catalogs B. reaching prospective customers. (p. reaching prospective customers. dispute settlement. Trade shows serve as the most important vehicles for selling products. Direct mail C. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Easy Learning Objective: 14-06 The importance of trade shows in promoting industrial goods Topic: Trade Shows: A Crucial Part of Business-to-Business Marketing 85. Trade shows E. 410) All of the following are specific uses for trade shows in aiding the marketing effort in most countries EXCEPT: A. contacting and evaluating potential agents and distributors. Web sites D. C. E.

(p. Longer-term and more communication-rich relationships are keys to success in international industrial markets. 412) Relationship marketing is particularly important in international markets where _____ dictates strong ties between people and companies. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 14-07 The importance of relationship marketing for industrial products and services Topic: Relationship Marketing in Business-to-Business Contexts 87. long-term relationship B. demand B. service-only link E. distance relationship C. As part of relationship marketing. price C. government E. 412) Robert always lets his customers know when changes are being made and calls on his customers regularly. AACSB: Reflective Thinking Bloom's: Application Difficulty Level: Easy Learning Objective: 14-07 The importance of relationship marketing for industrial products and services Topic: Relationship Marketing in Business-to-Business Contexts .86. manufacturing Focusing on long-term relationship building will be especially important in most international markets where culture dictates stronger ties between people and companies. (p. A. Robert is building a(n) _____ with customers. culture D. standard call-contact frequency Constant and close communication with customers will be the single most important source of information about the development of new industrial products and services. A. Internet link D.

The key functions of global account managers revolve around the notions of intelligence gathering. 412) One of the key functions of global account managers revolves around the notion of: A. mergers and acquisitions. E. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 14-07 The importance of relationship marketing for industrial products and services Topic: Relationship Marketing in Business-to-Business Contexts . and reconfiguration. (p. corporate air travel. and reconfiguration. D. (p. B. C. The key functions of global account managers revolve around the notions of intelligence gathering. E. mass promotion and advertising. intelligence gathering. B. coordination with the customer's staff. coordination with the customer's staff. possibility thinking. data gathering and analysis. relationship building. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 14-07 The importance of relationship marketing for industrial products and services Topic: Relationship Marketing in Business-to-Business Contexts 89. customer relationship building. 412) One of the key functions of global account managers revolves around the notion of: A. C. coordination with customer's staff. D.88. mass advertising.

possibility thinking. . corporate air travel. 412) One of the key functions of global account managers revolve around the notion of: A. (p.90. coordination with the customer's staff. mass advertising. E. B. relationship building. reconfiguration. and reconfiguration. C. The key functions of global account managers revolve around the notions of intelligence gathering. D.

421) Channels in a distribution network have fixed structures in the short run. the passage of ownership (title). fixed. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-01 The variety of distribution channels and how they affect cost and effi ciency in marketing Topic: Channel-of-Distribution Structures 2. in the short run. FALSE The distribution process includes the physical handling and distribution of goods. (p. (p. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-01 The variety of distribution channels and how they affect cost and effi ciency in marketing Topic: Channel-of-Distribution Structures . and—most important from the standpoint of marketing strategy—the buying and selling negotiations between producers and middlemen and between middlemen and customers.Chapter 15 International Marketing Channels Answer Key True / False Questions 1. 421) The distribution process includes promotion of goods and services by sellers and resellers. TRUE Each market contains a distribution network with many channel choices whose structures are unique and.

the customer seeks the supply from a limited number of middlemen. (p. (2) channel control by manufacturers.3. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-02 The Japanese distribution structure and what it means to Japanese customers and to competing importers of goods Topic: Japanese Distribution Structure . 421) An import-oriented distribution structure prevails in the United States and other industrialized nations. (p. FALSE The distribution philosophy of mass consumption prevails in the United States and other industrialized nations. FALSE The Japanese system has four distinguishing features: (1) a structure dominated by many small middlemen dealing with many small retailers. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 15-01 The variety of distribution channels and how they affect cost and effi ciency in marketing Topic: Channel-of-Distribution Structures 5. 421) In an import-oriented distribution structure. 422) One of the distinguishing characteristics of the Japanese channel system is that the channel system is controlled by a few small retailers found in the country. supply exceeds demand. AACSB: Analytic Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 15-01 The variety of distribution channels and how they affect cost and effi ciency in marketing Topic: Channel-of-Distribution Structures 4. market penetration and mass distribution are not necessary because demand exceeds supply. (3) a business philosophy and (4) laws that protect the foundation of the system—the small retailer. in most cases. FALSE In an import-oriented distribution structure. and in most cases. (p.

and a proclivity for loyalty to brands perceived to be of high quality. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 15-02 The Japanese distribution structure and what it means to Japanese customers and to competing importers of goods Topic: Trends: From Traditional to Modern Channel Structures . (p. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-02 The Japanese distribution structure and what it means to Japanese customers and to competing importers of goods Topic: Japanese Distribution Structure 7.6. the Mexican appliance and electronics giant Grupo Elektra has formed an alliance with Beijing Automobile Works Group to develop and build low-cost cars for Mexico and export markets. 425) As modern channel structures continue to evolve importers and retailers are even becoming involved in new product development. For example. favoring personal service over price. FALSE The Japanese consumer contributes to the continuation of the traditional nature of the distribution system through frequent buying trips. (p. TRUE As modern channel structures continue to evolve importers and retailers are even becoming involved in new product development. small purchases. (p. 423) The Japanese consumers favor price over personal service. FALSE The number of small stores is declining as they are being replaced by larger discount and specialty stores. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 15-02 The Japanese distribution structure and what it means to Japanese customers and to competing importers of goods Topic: Japanese Distribution Structure 8. 423) The number of small retail stores is increasing in Japan.

(p. 430) Agent middlemen take title to the goods and buy and sell on their own account. most retailers carry a more general line of merchandise. whereas in Finland. TRUE One of Wal-Mart's strengths in distribution is its internal Internet-based system which makes its transactions with suppliers more efficient and lowers its cost of production. (p. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Alternative Middleman Choices . in Italy and Morocco. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 15-02 The Japanese distribution structure and what it means to Japanese customers and to competing importers of goods Topic: Retail Patterns 11. TRUE Retailing shows even greater diversity in its structure than does wholesaling. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-02 The Japanese distribution structure and what it means to Japanese customers and to competing importers of goods Topic: Trends: From Traditional to Modern Channel Structures 10. FALSE Agent middlemen work on commission and arrange for sales in the foreign country but do not take title to the merchandise. For example. (p. 428) Retailing shows even greater diversity in its structure than does wholesaling. retailing is composed largely of specialty houses that carry narrow lines.9. 426) One of Wal-Mart's strengths in distribution is its internal Internet-based system.

FALSE The channel process includes all activities. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Alternative Middleman Choices 14. 430) Merchant middlemen take title to manufacturers' goods and assume the trading risks. (p. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Moderate Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Home-Country Middlemen . so they tend to be less controllable than agent middlemen. TRUE Merchant middlemen take title to manufacturers' goods and assume the trading risks. (p.12. FALSE Domestic middlemen offer many advantages for companies with small international sales volume. so they tend to be less controllable than agent middlemen. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Alternative Middleman Choices 13. 431) Domestic middlemen offer many advantages for companies with large international sales volume. beginning with the manufacturer and ending with the final consumer. 430) The channel process includes all activities. (p. beginning with the manufacturer and ending with the retailer.

independent marketing department with direct responsibility to the parent firm. FALSE The export management companies work under the names of the manufacturers. the EMC becomes an integral part of the marketing operations of its client companies. 432) Export management companies work under their own names. (p. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Home-Country Middlemen 17. TRUE Typically. the EMC functions as a low-cost. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Home-Country Middlemen . (p. 432) An export management company functions as a low-cost. FALSE The WTO in 2003 ruled foreign sales corporations to be in violation of international trade rules. The working relationship is so close that customers are often unaware they are not dealing directly with the export department of the company. independent marketing department with direct responsibility to the parent firm. Working under the names of the manufacturers. (p. An export management company functions as a low-cost. 432) The WTO in 2003 ruled export management companies (EMC)s to be in violation of international trade rules.15. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Home-Country Middlemen 16. independent marketing department with direct responsibility to the parent firm.

434) The Webb-Pomerene Act of 1918 allowed American business firms to join forces in export activities without being subject to the export trading companies Act.18. 433) The Export Trading Company (ETC) Act allows producers of similar products to form export trading companies in the U. FALSE The Webb-Pomerene Act of 1918 allowed American business firms to join forces in export activities without being subject to the Sherman Antitrust Act. 433) Another term for complementary marketing is piggybacking. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Home-Country Middlemen . TRUE Complementary marketing is commonly known as piggybacking.S. (p. (p. A major goal of the ETC Act was to increase U.S. exports by encouraging more efficient export trade services to producers and suppliers to improve the availability of trade finance and to remove antitrust disincentives to export activities. (p. TRUE The Export Trading Company (ETC) Act allows producers of similar products to form export trading companies. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Home-Country Middlemen 20. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Home-Country Middlemen 19.

FALSE Using foreign-country middlemen moves the manufacturer closer to the market and involves the company more closely with problems of language. physical distribution. physical distribution. 436) As channels grow longer. and type of outlets diminishes. the ability of a manufacturer to control price. FALSE As channels grow longer. volume. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Foreign-Country Middlemen 22. volume. the ability of a manufacturer to control price. (p. and financing. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Control . promotion. (p. communications.21. and type of outlets increases. 434) Using foreign-country middlemen moves the manufacturer away from the market and the company becomes less involved with problems of language. promotion. and financing. communications.

if you terminate an agent. multiplied by the number of years the agent served.S. FALSE In the United States. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-4 The functions Learning Objective: advantages Learning Objective: and disadvantages of various kinds of middlemen Topic: Terminating Middlemen 24. this termination is usually a simple action regardless of the type of middlemen. 441) An e-vendor in a foreign market can generally ignore culture as an important variable because the commerce is being done via the Internet that is culturally insensitive. in other parts of the world. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Hard Learning Objective: 15-05 The importance of selecting and maintaining middlemen Topic: The Internet . you are required to pay 10 percent of the agent's average annual compensation.23.. the middleman often has some legal protection that makes termination difficult. (p. (p. if you terminate an agent. However. multiplied by the number of years the agent served. 440) In the U. for example. FALSE The Web site and the product must be culturally neutral or adapted to fit the uniqueness of a market. as a final settlement. they are simply dismissed. you are required to pay 10 percent of the agent's average annual compensation. as a final settlement. In Colombia. because culture does matter.

a Web site should be translated into the languages of the target market. (p. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-05 The importance of selecting and maintaining middlemen Topic: The Internet Multiple Choice Questions 26. C. physical distribution of goods. B. ideally. a Web site should be translated into the languages of the target markets. This translation may not be financially feasible for some companies. (p. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-01 The variety of distribution channels and how they affect cost and effi ciency in marketing Topic: Channel-of-Distribution Structures . promotion of goods and services. 448) With respect to international marketing. TRUE Ideally.25. 421) The distribution process includes all of the following EXCEPT: A. The distribution process includes the physical handling and distribution of goods. passage of ownership (title). physical handling of goods. D. the passage of ownership (title). and—most important from the standpoint of marketing strategy—the buying and selling negotiations between producers and middlemen and between middlemen and customers. buying and selling negotiations. E. but at least the most important pages of the site should be translated.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-01 The variety of distribution channels and how they affect cost and effi ciency in marketing Topic: Import-Oriented Distribution Structure . customer-oriented In an import-oriented or traditional distribution structure. an importer controls a fixed supply of goods. Service-oriented E. Customer-oriented An import-oriented distribution structures is considered as a traditional distribution structure. (p. import-oriented C. 421) In a(n) _____ distribution structure. an importer controls a fixed supply of goods and the marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers. Export-oriented B.27. 421) Which of the following distribution structures is considered as a traditional distribution structure? A. A. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-01 The variety of distribution channels and how they affect cost and effi ciency in marketing Topic: Import-Oriented Distribution Structure 28. Manufacturer-oriented D. and the marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers. export-oriented B. manufacturer-oriented D. (p. service-oriented E. Import-oriented C.

manufacturer. The idea of a channel as a chain of intermediaries performing specific activities and each selling to a smaller unit beneath it until the chain reaches the ultimate consumer is common in an import-oriented system. An import-oriented distribution structure is considered as a traditional distribution structure. Several independent agencies providing functions such as advertising. D. (p. E. intermediary. Distribution systems are national in scope. An import-oriented distribution structure is considered as a traditional distribution structure. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 15-01 The variety of distribution channels and how they affect cost and effi ciency in marketing Topic: Import-Oriented Distribution Structure 30. financing are a part of this distribution structure. 421) Which of the following statements is true regarding an import-oriented distribution structure? A. The relationship between the importer and any middleman in the marketplace is similar to that found in a mass-marketing system. (p. and the relationship between the importer and any middleman in the marketplace is considerably different from that found in a mass-marketing system. B. E. warehousing and storage etc. middleman. The import-oriented distribution systems are local rather than national in scope. Since the importer-wholesaler traditionally performs most marketing functions. 422) The foundation of the Japanese distribution system is the: A. Small retailers are considered to be the foundation of the Japanese distribution system. small retailer. marketing research. D.29. B. C. wholesaler. are nonexistent or underdeveloped. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-02 The Japanese distribution structure and what it means to Japanese customers and to competing importers of goods Topic: Japanese Distribution Structure . C. marketing research. independent agencies that provide advertising.

Intense competition in Japan Distribution in Japan has long been considered the most effective nontariff barrier to the Japanese market. and quality. Cumbersome import and export procedures in Japan E. freshness. and other benefits combine to support the high number of small stores. AACSB: Analytic Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 15-02 The Japanese distribution structure and what it means to Japanese customers and to competing importers of goods Topic: Japanese Distribution Structure .31. Distribution in Japan C. Population density B. A tradition of frequent trips to the store C. Japanese culture D. Limited commercial real estate plots High population density. the tradition of frequent trips to the store. Population in Japan B. Emphasis on service D. (p. Freshness and quality expectations E. (p. frequent deliveries of small lots. and wholesalers who provide financial assistance. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 15-02 The Japanese distribution structure and what it means to Japanese customers and to competing importers of goods Topic: Japanese Distribution Structure 32. 422) _____ has long been considered the most effective nontariff barrier to the Japanese market. 423) Which of the following does NOT contribute to explaining why Japan has a high number of small stores? A. an emphasis on service. A.

Variety E. the Japanese distribution structure supports long-term dealer-supplier relationships. and friendship. manufacturers depend on wholesalers for a multitude of services to other members of the distribution network like financing. 423) All the following statements are true regarding a Japanese market EXCEPT: A. the Japanese market is characterized by the tradition of frequent trips to the store. C. harmony. (p. E. Fast delivery D. 423) Which of the following is an area of emphasis that characterizes Japanese distribution channels? A. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 15-02 The Japanese distribution structure and what it means to Japanese customers and to competing importers of goods Topic: Japanese Distribution Structure 34. Intense focus on price Japanese distribution channel follows a relationship-oriented business philosophy that emphasizes loyalty. D. physical distribution etc. and a proclivity for loyalty to brands perceived to be of high quality. Direct sales C. the costs of Japanese consumer goods are among the highest in the world. favoring personal service over price. Loyalty B.33. B. (p. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Hard Learning Objective: 15-02 The Japanese distribution structure and what it means to Japanese customers and to competing importers of goods Topic: Japanese Distribution Structure . The Japanese consumer contributes to the continuation of the traditional nature of the distribution system through frequent buying trips. small purchases. the Japanese consumers favor price over personal service.

Transport and Tourism B. International Trade and Industry D. Land. all proposals for new "large" stores were first judged by the Ministry of International Trade and Industry. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 15-02 The Japanese distribution structure and what it means to Japanese customers and to competing importers of goods Topic: Trends: From Traditional to Modern Channel Structures . Internal Affairs and Communications C. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-02 The Japanese distribution structure and what it means to Japanese customers and to competing importers of goods Topic: Japanese Distribution Structure 36. 426) In the international business arena. Ability to drive all other competitors out of a market D. which makes its transactions with suppliers highly efficient and lowers its cost of operations. Ability to influence foreign governments E. Outreach programs designed to placate small retailers One of Walmart's strengths is its internal Internet-based system. under the Large-Scale Retail Store Law. which of the following is considered to be one of Wal-Mart's strengths? A. Internal Internet-based system C. all proposals for new "large" stores were first judged by the Ministry of ____. Labor In Japan. (p. Squeaky-clean reputation in the international arena B. under the Large-Scale Retail Store Law. (p. 423) In Japan.35. A. Health and Welfare E. Infrastructure.

(p. Ito-Yokado D. Ford Motor Company D. Carrefour B. A. 426) General Motors.com). Honda Motor Company C. Roebuck and Carrefour of France have created GlobalNetXchange (www. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-02 The Japanese distribution structure and what it means to Japanese customers and to competing importers of goods Topic: Trends: From Traditional to Modern Channel Structures 38. and DaimlerChrysler have created a single online site called Covisint (www. (p. which is expected to save the companies millions of dollars. Tesco Sears.com) for purchasing automotive parts from suppliers.covisint. and DaimlerChrysler have created a single online site called Covisint (www. Ford Motor Company. Plus E. TATA motors General Motors. Nissan Motor Company E. which is expected to save the companies millions of dollars. ____.37.covisint. Toyota Motor Corporation B. a retail exchange that allows retailers and their suppliers to conduct transactions online. Roebuck and _____ of France have created GlobalNetXchange (www. 426) Sears. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-02 The Japanese distribution structure and what it means to Japanese customers and to competing importers of goods Topic: Trends: From Traditional to Modern Channel Structures .gnx. A. a retail exchange that allows retailers and their suppliers to conduct transactions online. 7-Eleven C.com).com) for purchasing automotive parts from suppliers.gnx.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 15-02 The Japanese distribution structure and what it means to Japanese customers and to competing importers of goods Topic: Direct Marketing 40. 429) Which of the following have proved to be a successful way to break the trade barrier imposed by the Japanese distribution system? A. In Japan. A. Direct selling B. Internet selling D. Big wholesale stores C. Internet shopping E. by telephone. Large wholesale stores C. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-02 The Japanese distribution structure and what it means to Japanese customers and to competing importers of goods Topic: Direct Marketing . (p. Street corner kiosks D. Television advertising Selling directly to the consumer through mail. Television advertising Direct sales through catalogs have proved to be a successful way to enter foreign markets. Direct catalog sales B. (p. 428) _____ is/are often the approach of choice in markets with insufficient or underdeveloped distribution systems. Discount houses E. or door-to-door is often the approach of choice in markets with insufficient or underdeveloped distribution systems. it has been an important way to break the trade barrier imposed by the Japanese distribution system.39.

South Africa E. (p. Among the countries mentioned in question. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Easy Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Alternative Middleman Choices 42. Merchant middlemen E. Argentina C. Global wholesalers B. Agent middlemen Merchant middlemen actually take title to manufacturers' goods and assume the trading risks. (p.2. so they tend to be less controllable than agent middlemen. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 15-02 The Japanese distribution structure and what it means to Japanese customers and to competing importers of goods Topic: Retail Patterns . they are frequently criticized for not representing the best interests of a manufacturer. Because merchant middlemen primarily are concerned with sales and profit margins on their merchandise. 428) According to the text. which of the following countries has the largest number of retailers? A.41. 430) Which of the following are frequently criticized for not representing the best interests of a manufacturer? A. Manufacturer's representatives D. China has the largest number of retailers. United States B. China D. Japan Refer exhibit 15. Trading companies C.

Agent middlemen Merchant middlemen actually take title to manufacturers' goods and assume the trading risks. rate of population growth D. rate of inflation in the country C. (p. A. stage and speed of economic development E.43. AACSB: Analytic Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 15-02 The Japanese distribution structure and what it means to Japanese customers and to competing importers of goods Topic: Retail Patterns 44. Merchant middlemen B. 428) Retailing around the world has been in a state of active ferment for several years and the rate of change appears to be directly related to the ____. Buying offices D. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Alternative Middleman Choices . 430) _____ take title to the goods and buy and sell on their own account. literacy rate in the country B. dollar exchange rate for the currency of the country Retailing around the world has been in a state of active ferment for several years and the rate of change appears to be directly related to the stage and speed of economic development. A. Export agent E. Brokers C. (p. so they tend to be less controllable than agent middlemen.

final consumer The channel process includes all activities. beginning with the manufacturer and ending with the ____. A. E. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Alternative Middleman Choices 46. B. C. They are frequently criticized for not representing the best interests of a manufacturer. (p. They work on commission and arrange for sales in the foreign country. merchant middlemen D. They are less controllable by manufacturers than merchant middlemen. the channel process includes all activities. agent middlemen C. They take title to the merchandise. 430) Which of the following statements is true regarding agent middlemen? A. AACSB: Analytic Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Alternative Middleman Choices . D.45. Agent middlemen work on commission and arrange for sales in the foreign country but do not take title to the merchandise. 430) With reference to a distribution channel. (p. beginning with the manufacturer and ending with the final consumer. retailer E. They assume trading risk. wholesaler B.

so they tend to be less controllable than agent middlemen. they are more controllable by manufacturers than agent middlemen. E. they are primarily concerned with sales and profit margins on their merchandise. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Home-Country Middlemen . 430) All of the following statements are true regarding merchant middlemen EXCEPT: A. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Hard Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Alternative Middleman Choices 48. the large amount of commission charged by the home-country middlemen. the limited control over the entire distribution process. B. D. 431) A major trade-off when using home-country middlemen is: A. B. (p. C. D. the limited number of retailers in the foreign country who can be reached through the homecountry middlemen. they take title to manufacturers' goods.47. (p. E. they are frequently criticized for not representing the best interests of a manufacturer. they assume trading risk. the large financial investment required. C. the large managerial investments required. A major trade-off when using home-country middlemen is limited control over the entire process. Merchant middlemen actually take title to manufacturers' goods and assume the trading risks.

Companies which want to sell abroad with minimum financial commitment Domestic middlemen offer many advantages for companies with small international sales volume. merchant D. (p. and those wanting to sell abroad with minimal financial and management commitment. regional Home-country middlemen are also known as domestic middlemen. uniform B. Companies which are willing make managerial investment in the distribution process E. agent C. those inexperienced with foreign markets. Companies which are experienced with the foreign markets C. 431) Which of the following types of companies will most likely use the services provided by a home-country middleman? A. A. domestic E. Companies which want to become involved with the complexities of international marketing D. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Hard Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Home-Country Middlemen 50. Companies with large international sales volume B. 431) Another term for home-country middlemen is _____ middlemen. (p. They are located in the producing firm's country and provide marketing services from a domestic base. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Home-Country Middlemen .49. those not wanting to become immediately involved with the complexities of international marketing.

A complimentary marketer The EMC functions as a low-cost. independent marketing department with direct responsibility to the parent firm. physical handling. AACSB: Reflective thinking Bloom's: Application Difficulty Level: Hard Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Home-Country Middlemen . AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Home-Country Middlemen 52. He is looking for a middleman who can take responsibility for promotion of the goods. credit arrangements. and licensing matters while working under the name of his company. A manufacturer's export agent B. 432) James Barker is the marketing manager of a firm which has small international sales volume. patent. market research. An export management company E. credit arrangements. patent. physical handling. market research. (p. global retailers E. and Sears Roebuck are examples of global retailers. A trade representative D. An export merchant C. The export management company may take full or partial responsibility for promotion of the goods. export management companies B.51. and licensing matters. Barker if he wants to meet his objectives? A. and provide information on financial. and information on financial. Costco. and Sears Roebuck are examples of ____. Which of the following would be the best choice for Mr. A. trading companies C. Costco. (p. complimentary marketers IKEA. export associations D. 431) IKEA.

(p. export associations D. A. global retailers E. complimentary marketers A major disadvantage of export management companies is that they seldom can afford to make the kind of market investment needed to establish deep distribution for products because they must have immediate sales payout to survive. 432) Which of the following statements is true regarding an export management company (EMC)? A. export management companies B. D. EMCs work under their own names. B. 432) A major disadvantage of _____ is that they seldom can afford to make the kind of market investment needed to establish deep distribution for products because they must have immediate sales payout to survive.53. EMCs have direct responsibility to the parent company. C. EMCs seldom can afford to make the kind of market investment needed to establish deep distribution for products. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Hard Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Home-Country Middlemen 54. The major disadvantage is that EMCs seldom can afford to make the kind of market investment needed to establish deep distribution for products because they must have immediate sales payout to survive. It acts as a middleman for companies willing to involve their own personnel in the international function. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Home-Country Middlemen . (p. trading companies C. It acts as a middleman for firms with relatively large international volume. E.

Through such joint ventures. spread risk. Webb-Pomerene export association B.55. export management company D. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Easy Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Home-Country Middlemen 56. U. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Home-Country Middlemen .S. Working under the names of the manufacturers. export agency E. the export management company becomes an integral part of the marketing operations of its client companies. Manufacturers' Retail Stores D. (p. firms can take advantage of economies of scale. trading company C.S. U. Complimentary marketers The ETC Act created a more favorable environment for the formation of joint export ventures. independent marketing department with direct responsibility to the parent firm. 432) Specialization of this type of middleman in a given field often enables it to offer a level of service that could not be attained by the manufacturer without years of groundwork. and pool their expertise. spread risk. Manufacturers' export agents B. Identify the middleman in the discussion. This middleman acts under the name of the manufacturer as an independent marketing department.S. trading companies C. A. Export management companies E. and pool their expertise? A. firms can take advantage of economies of scale. (p. the EMC functions as a low-cost. foreign sales corporation Typically. 433) Which of the following represents a joint export ventures through which U.

they provide the best means for intensive coverage of the market. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Home-Country Middlemen . AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Easy Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Home-Country Middlemen 58. the Japanese trading company offers one of the easiest routes to success. Price skimming B. _____ offer one of the easiest routes to success because they virtually control distribution through all levels of channels in Japan. Using services of a trading company C. export management companies E. brokers D. trade representatives B. trading companies C. (p. Complimentary marketing Most complementary marketing arrangements are undertaken when a firm wants to fill out its product line or keep its seasonal distribution channels functioning throughout the year. which of the following arrangements are undertaken when a firm wants to fill out its product line or keep its seasonal distribution channels functioning throughout the year? A. 433) Typically. A.57. Establishing a retail store D. complimentary marketers For companies seeking entrance into the complicated Japanese distribution system. The omnipresent trading companies virtually control distribution through all levels of channels in Japan. Using services of an export management company E. Because trading companies may control many of the distributors and maintain broad distribution channels. (p. 433) For companies seeking entrance into the complicated Japanese distribution system.

It allows producers of similar products to form export trading companies. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Home-Country Middlemen . E. companies to bypass tax laws with respect to international trading. (p. C. 433) What is the basic function of the Export Trading Company Act? A. The Export Trading Company (ETC) Act allows producers of similar products to form export trading companies. D. It allows U. skimming.S. B. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Home-Country Middlemen 60. E. It allows companies to bypass trade barriers in foreign countries. piggybacking. D. demand shifting. It allows companies to combine export shipments within single containers. (p. Complementary marketing is commonly called as piggybacking. backhauling. 433) Another term that is commonly used to describe the activities of complementary marketing is: A.59. B. It allows companies to earn the highest possible profits in foreign countries. C. shape shifting.

and operates on a straight commission basis. Webb-Pomerene export association D. The formal name for this type of marketing is: A. global retailer E. B. (p. the MEA does not serve as the producer's export department but has a short-term relationship. E. 433) A(n) _____ is an individual agent middleman or an agent middleman firm providing a selling service for manufacturers that normally covers only one or two markets and operates on straight commission basis. complementary marketer B. 433) Companies with marketing facilities or contacts in different countries with excess marketing capacity or a desire for a broader product line sometimes take on additional product lines for international distribution. manufacturer's export agent The manufacturer's export agent (MEA) is an individual agent middleman or an agent middleman firm providing a selling service for manufacturers. complementary marketing.61. A. C. skimming. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Home-Country Middlemen . AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Home-Country Middlemen 62. backhauling. export marketing. demand shifting. D. covers only one or two markets. Unlike the EMC. Companies with marketing facilities or contacts in different countries with excess marketing capacity or a desire for a broader product line sometimes take on additional product lines for international distribution. export management company C. (p. The formal name for this type of marketing is complementary marketing.

The Federal Communications Act C. A. (p. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Home-Country Middlemen 64. (p. 434) A(n) _____ does not serve as the producer's export department but has a short-term relationship. manufacturer's export agent E. global retailer D. covers only one or two markets. and Cosmetic Act E. and operates on a straight commission basis and they do business in their own names rather than in the name of the client.63. The Robinson-Patman act The Webb-Pomerene Act of 1918 allowed American business firms to join forces in export activities without being subject to the Sherman Antitrust Act. complementary marketer A manufacturer's export agent (MEA) does not serve as the producer's export department but has a short-term relationship. The Sherman Antitrust Act B. The Federal Food. manufacturers' retail store B. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Home-Country Middlemen . 434) The Webb-Pomerene Act of 1918 made it possible for American business firms to join forces in export activities without being subject to which of the following acts? A. and operates on a straight commission basis. Drug. The Federal Trade Commission Act D. Another principal difference is that MEAs do business in their own names rather than in the name of the client. covers only one or two markets. trading company C.

S. trading company C. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Foreign-Country Middlemen . (p. Webb-Pomerene export association B. physical distribution. Trading Companies C. possession that can obtain a corporate tax exemption on a portion of the earnings generated by the sale or lease of export property. communications. possession that can obtain a corporate tax exemption on a portion of the earnings generated by the sale or lease of export property. Foreign distributors D. export management company D.S. (p. A. Manufacturers' Retail Stores B. Complementary Marketers E. 434) A(n) _____ is a sales corporation set up in a foreign country or U. Export Management Companies Using foreign-country middlemen moves the manufacturer closer to the market and involves the company more closely with problems of language. export agency E.65. foreign sales corporation A foreign sales corporation (FSC) is a sales corporation set up in a foreign country or U. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Home-Country Middlemen 66. and financing. Some of the more important foreign-country middlemen are manufacturer's representatives and foreign distributors. 434) Which of the following is NOT a type of domestic middlemen? A.

A. Webb-Pomerene Act of 1918 D. trading companies D. Roebuck-Guillaume Act of 1936 C. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Home-Country Middlemen 68.67. Sarbanes-Oxley Act The Webb-Pomerene Act of 1918 allowed American business firms to join forces in export activities without being subject to the Sherman Antitrust Act. Export Trading Company Act B. North American Free Trade Agreement E. thus starting a major trade dispute with the European Union that still simmers and occasionally sizzles. direct marketing partnerships C. export promotion company E. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Home-Country Middlemen . 434) The WTO in 2003 ruled _____ to be in violation of international trade rules. foreign sales corporation B. (p. A. Webb-Pomerene export associations The WTO in 2003 ruled foreign sales corporations to be in violation of international trade rules. thus starting a major trade dispute with the European Union that still simmers and occasionally sizzles. (p. 434) The _____ allowed American business firms to join forces in export activities without being subject to the Sherman Antitrust Act.

Per capita income in the target market Distribution channels vary depending on target market size.69. 2. and profit margin requirements. Identify control. 435) According to the text. Specify financial and personnel commitments to the development of international distribution. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Factors Affecting Choice of Channels . D. (p. distribution channels vary depending on which of the following? A. Specify marketing goals in terms of volume. length of channels. identify control. terms of sale. market share. identify specific target markets within and across countries. (p. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Factors Affecting Choice of Channels 70. identify decision-making processes and languages of prospective middlemen. market share. Identify specific target markets within and across countries. 3. E. and available distribution intermediaries. Available distribution intermediaries D. 4. terms of sale. All of the following points should be addressed prior to the selection process EXCEPT: A. The literacy levels in the target market E. and profit margin requirements. C. Language and dialect spoken in the target market C. specify financial and personnel commitments to the development of international distribution. 435) A variety of factors affect choice of channels in a foreign market. specify marketing goals in terms of volume. competition. and channel relationships. and channel ownership. length of channels. B. The following points should be addressed prior to the selection process: 1. Distance from manufacturer B.

71. Coverage C. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Factors Affecting Choice of Channels . 435) Channel strategy is considered to have six specific strategic goals. Continuity The six Cs of channel strategy are cost. Capacity D. and the extent of control that the manufacturer can exert over middlemen activities. 435) One of the key elements in distribution decisions includes ____. volume discounts and rebates C. Cost B. These goals can be characterized as the six Cs of channel strategy. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Home-Country Middlemen 72. their availability. (p. Character E. the foreign language local advertising modes E. A. the functions performed by middlemen D. capital. (p. character. control. Which of the following is NOT one of these six Cs? A. the target market culture Key elements in distribution decisions include the functions performed by middlemen (and the effectiveness with which each is performed). coverage. the selection of optimum container sizes B. and continuity. the cost of their services.

Trading companies C. number of employees C. Export associations D. Direct sales force E. that is. Complimentary marketers Maximum investment is usually required when a company establishes its own internal channels. Export management companies B. knowledge of the culture of the target market B. 436) In which of the following modes of distribution in the foreign market will a company have to make maximum financial investment? A. (p. capital requirements Capital requirement and cash-flow patterns are considered critical elements associated with using a particular type of middleman. A. 436) According to the text. influence over the target market E. mode of transportation available for moving goods D. (p. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Capital Requirements .73. one of the critical elements associated with using a particular type of middleman is ____. its own sales force. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Capital Requirements 74.

436) One of the highest costs of doing business in China is the: A. secure a reasonable market share. merchant wholesalers. capital required to maintain effective distribution. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Capital Requirements 76. If a company is using manufacturer's agents. money required for the transportation of the goods. Coverage D. B. (p. Cost B. cost of customizing the products for the Chinese market. it is often necessary to use varied distribution forms to reach customers. E. (p. a direct sales force. and attain satisfactory market penetration. Capital E. amount of money and time required for obtaining the appropriate permits. and small retailers to sell goods to this massive market. cost of local advertising. C. D. which of the following Cs of channel strategy is receiving the attention of the company in its strategy process? A. One of the highest costs of doing business in China is the capital required to maintain effective distribution.75. 436) In China. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Easy Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Coverage . Control C. Continuity Full-market coverage is required to gain the optimum volume of sales obtainable in each market.

(p. Tokyo-Nagoya-Osaka B. which essentially functions as one massive city. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Coverage . Complementary marketers B. Export management companies A company's own sales force affords the most control but often at a cost that is not practical. (p. A. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Control 78. Direct sales force C. Nishio-Okazaki-Inazawa E.77. Inuyama-Nisshin-Takahama Sixty percent of the Japanese population lives in the Tokyo-Nagoya-Osaka market area. 436) Which of the following modes of distribution affords the most control over the distribution channels but often at a cost that is not practical? A. Export associations D. Nagoya-Handa-Seto D. Trading companies E. which essentially functions as one massive city. 436) Sixty percent of the Japanese population lives in the _____ market area. Komaki-Tokoname-Kariya C.

most middlemen do not maintain sufficient inventory to serve customers B. the company may find it has lost its distribution in that area. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Continuity 80. Control D. (p. (p. AACSB: Analytic Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Continuity . most middlemen have little loyalty to their vendors D. Continuity C. 438) One of the reasons that channels of distribution often pose longevity problems is that ____. some middlemen lack product knowledge resulting in low sales volume C. Character B. Cost E. Capital requirement Channels of distribution often pose longevity problems. Most agent middlemen firms tend to be small institutions. This is an example of problems associated with which of the following six Cs of channel strategy? A. 437) Most middlemen have little loyalty to their vendors. They handle brands in good times when the line is making money but quickly reject such products within a season or a year if they fail to produce during that period. most middlemen do not have sufficient knowledge of the target market Channels of distribution often pose longevity problems.79. They handle brands in good times when the line is making money but quickly reject such products within a season or a year if they fail to produce during that period. Most middlemen have little loyalty to their vendors. When one individual retires or moves out of a line of business. A. most middlemen tend to slow down distribution to extract higher commissions E.

AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Locating Middlemen 82. studying the target market. shortlisting the middlemen. E. Knowledge of local culture and traditions D. B. 438) According to the text. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 15-03 How distributive patterns affect the various aspects of international marketing Topic: Locating Middlemen . evaluating the financial resources available with the manufacturing company. Basically. C. (p. Productivity or volume E. 438) _____ is one of the basic subject areas that should be on a checklist of criteria for evaluating middlemen serving a market. exploring the financial investment required for using own sales force in the target market. Knowledge of geography or terrain C. Reputation in the target market The checklist of criteria differs according to the type of middlemen being used and the nature of their relationship with the company. such lists are built around four subject areas: productivity or volume. Knowledge of the product B. the search for prospective middlemen should begin with: A. A. understanding the mission and vision of the manufacturing firm. The search for prospective middlemen should begin with study of the market and determination of criteria for evaluating middlemen servicing that market. and the nature and reputation of the business. financial strength. managerial stability and capability. (p. D.81.

and periodicals to all its middlemen. D. communications. consult trade organizations and select the distributor recommended by them.83. when cultural distances are great. but particularly when cultural distances are great. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 15-4 The functions Learning Objective: advantages Learning Objective: and disadvantages of various kinds of middlemen Topic: Motivating Middlemen . to personally talk to ultimate users of your product to find whom they consider to be the best distributors. E. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Hard Learning Objective: 15-4 The functions Learning Objective: advantages Learning Objective: and disadvantages of various kinds of middlemen Topic: Selecting Middlemen 84. (p. consult other manufacturers of the similar products and select the distributor recommended by them. newsletters. Experienced exporters suggest that the only way to select a middleman is to go personally to the country and talk to ultimate users of your product to find whom they consider to be the best distributors. the company should use which of the following techniques for motivating middlemen? A. 439) Particularly. company support. Company support E. psychological rewards. to issue a request-for-proposal (RFP) to all distributors in the target market and evaluate their responses. Psychological rewards D. In all instances. B. Communication B. and corporate rapport. to conduct a background check on all the distributors available in the target market. the company should maintain a continuing flow of communication in the form of letters. C. Corporate rapport Motivational techniques that can be employed to maintain middleman interest and support for the product may be grouped into five categories: financial rewards. (p. 438) Experienced exporters suggest that the only way to select a middleman is: A. Financial rewards C.

the middleman's motivation is clearly correlated with sales volume. (p. degree of freedom On all levels.85. communications. control over the target market D. 439) On all levels of distribution. motivation C. and corporate rapport. A. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 15-4 The functions Learning Objective: advantages Learning Objective: and disadvantages of various kinds of middlemen Topic: Motivating Middlemen . there is a clear correlation between the middleman's _____ and sales volume produced. closeness to the manufacturer E. Motivational techniques that can be employed to maintain middleman interest and support for the product may be grouped into five categories: financial rewards. psychological rewards. company support. reputation in the target market B.

441) Parallel importing is also known as ____. smuggling A company's goods intended for one country are sometimes diverted through distributors to another country. Industrial piracy E. Parallel importing C. black marketing C. A. This is known as parallel importing or secondary wholesaling. Global Electric discovered that Apex was diverting some of the goods of the Global Electric that Apex purchased to the English market where Apex could make higher profits. (p. Backwashing D. where they compete with existing retail or wholesale organizations. secondary wholesaling B. AACSB: Reflective thinking Bloom's: Application Difficulty Level: Easy Learning Objective: 15-4 The functions Learning Objective: advantages Learning Objective: and disadvantages of various kinds of middlemen Topic: Controlling Middlemen 87. Smuggling A company's goods intended for one country are sometimes diverted through distributors to another country. This is known as parallel importing or secondary wholesaling. (p. Apex was able to sell at cheaper prices in the English market than authorized dealers because Global Electric sold its goods at cheaper prices in France. Black marketing B. Which of the forms of business is Apex engaged in with respect to what it is doing with GE products? A. backwashing D. where they compete with existing retail or wholesale organizations.86. industrial piracy E. 441) Apex Corporation is a wholesaler for Global Electric Company in the French market. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-4 The functions Learning Objective: advantages Learning Objective: and disadvantages of various kinds of middlemen Topic: Controlling Middlemen .

South Africa E. e-commerce is a form of ____. 441) E-commerce is more developed in _____ than the rest of the world. partly because of the vast number of people who own personal computers and partly because of the much lower cost of access to the Internet than found elsewhere. dual selling D. Switzerland D. A. A. partly because of the vast number of people who own personal computers and partly because of the much lower cost of access to the Internet than found elsewhere. mass selling E. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-05 The importance of selecting and maintaining middlemen Topic: The Internet 89. parallel selling C. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 15-05 The importance of selecting and maintaining middlemen Topic: The Internet . Brazil C. direct selling B. (p. (p. China B. the United States E-commerce is more developed in the United States than the rest of the world. because of its newness and the unique issues associated with this form of distribution. it is important to differentiate it from other types of direct marketing. however.88. e-commerce is a form of direct selling. targeted selling Technically. 441) Technically.

the United States B. Spain In Spain. Brazil D. . China C. Uruguay E. (p.90. red color is associated with socialism. A. red color is associated with socialism. 448) In ____.

FALSE For most companies.Chapter 16 Integrated Marketing Communications and International Advertising Answer Key True / False Questions 1. advertising and personal selling are the major components in the marketing communications mix. 454) Sales promotions are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation. 454) For most companies. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-02 The strengths and weaknesses of sales promotions and public relations in global marketing Topic: Sales Promotions in International Markets . TRUE Sales promotions are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation. (p. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 16-01 Local market characteristics that affect the advertising and promotion of products Topic: Sales Promotions in International Markets 2. (p. trade shows and direct selling are the major components in the marketing communications mix.

in-store demonstrations. samples. sweepstakes. (p. gifts. FALSE Cents-off. fairs. coupons. 454) Contests. and point-ofpurchase displays are types of sales promotion devices. sponsorship of special events such as concerts are techniques used for maintaining and improving public relations. contests. the Olympics. FALSE Sales promotions are short-term efforts directed to the consumer or retailer. sponsorship of special events such as concerts. 455) Sales promotions are long-term efforts directed to the consumer or retailer. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 16-02 The strengths and weaknesses of sales promotions and public relations in global marketing Topic: Sales Promotions in International Markets . AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-02 The strengths and weaknesses of sales promotions and public relations in global marketing Topic: Sales Promotions in International Markets 4. sweepstakes. product tie-ins. (p.3.

461) Of all the elements of the marketing mix. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 16-02 The strengths and weaknesses of sales promotions and public relations in global marketing Topic: International Advertising 6. 462) A market offering is a bundle of satisfactions that the buyer receives. decisions involving advertising are those most often affected by cultural differences among country markets. 461) While developing an international advertisement campaign. (p. the first step of the process is selecting effective media. (p.5. (p. decisions involving advertising are those most often affected by cultural differences among country markets. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-02 The strengths and weaknesses of sales promotions and public relations in global marketing Topic: International Advertising 7. Develop the most effective message(s) for the market segments selected. Evaluate the campaign relative to the goals specified. TRUE A market offering really is a bundle of satisfactions the buyer receives. Specify the goals of the communication. TRUE Of all the elements of the marketing mix. when modified advertising is necessary Topic: Product Attribute and Benefit Segmentation . FALSE The steps to be performed for developing an international advertisement campaign are: Perform marketing research. Compose and secure a budget based on what is required to meet goals. AACSB: Reflective thinking Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-03 When global advertising is most effective. Execute the campaign. Select effective media.

when modified advertising is necessary Topic: Product Attribute and Benefit Segmentation 9. or the message may reach the intended audience and be understood but have no effect because the marketer did not correctly assess the needs and wants or even the thinking processes of the target market. a camera to take a picture. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-04 The communication process and advertising misfi res Topic: Global Advertising and the Communications Process . (p.8. TRUE Different cultures often seek the same value or benefits from the primary function of a product— for example. the message may be received by the intended audience but not be understood because of different cultural interpretations. 467) One of the reasons that a marketing communication may fail is that the message received by the intended audience is not understood because of cultural interpretations. the ability of an automobile to get from point A to point B. TRUE International communications may fail for a variety of reasons: A message may not get through because of media inadequacy. or a wristwatch to tell time. (p. 463) Different cultures often seek the same value or benefits from the primary function of a product. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Easy Learning Objective: 16-03 When global advertising is most effective.

467) A marketer sends his message to his target audience through newspapers. the message is encoded.10. FALSE In this case. 467) Europe is considered a single homogeneous market for all products. FALSE Europe will never be a single homogeneous market.European AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 16-03 When global advertising is most effective. FALSE If the message from the source is converted into effective symbolism for transmission to a receiver. the message is decoded. (p. (p. since the marketer is sending his message to his target audience through newspapers. A pan. newspaper acts as a message channel. (p. Here newspaper acts as a feedback channel. promotional strategy would mean identifying a market segment across all European countries and designing a promotional concept appealing to market segment similarities. when modified advertising is necessary Topic: Regional Segmentation 12. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-04 The communication process and advertising misfi res Topic: Global Advertising and the Communications Process 11. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-04 The communication process and advertising misfi res Topic: Global Advertising and the Communications Process . 467) If the message from the source is converted into effective symbolism for transmission to a receiver.

poor encoding producing a meaningless message. media availability. (p. FALSE The feedback step of the communications process is important as a check on the effectiveness of the other steps. (p. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 16-04 The communication process and advertising misfi res Topic: Global Advertising and the Communications Process 15. FALSE Errors at the receiver end of the process generally result from a combination of factors: an improper message resulting from incorrect knowledge of use patterns. 471) Errors at the receiving end do not occur if the message is encoded properly. media availability. (p. 471) The encoding step of the communications process is important as a check on the effectiveness of the other steps. or inaccurate decoding by the receiver so that the message is garbled or incorrect. FALSE Problems of literacy. and types of media create problems in the communications process at the decoding step.13. poor media selection that does not get the message to the receiver. 468) Problems of literacy. and types of media create challenges in the communications process at the encoding step. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 16-04 The communication process and advertising misfi res Topic: Global Advertising and the Communications Process 14. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-04 The communication process and advertising misfi res Topic: Global Advertising and the Communications Process .

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 16-05 The effects of a single European market on advertising Topic: Linguistic Limitations . 471) An example of noise in the communications process is competitive advertising. 471) Comparative advertising is considered legal in Germany. FALSE Comparative advertising is illegal in Germany. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-04 The communication process and advertising misfi res Topic: Global Advertising and the Communications Process 17. other sales personnel. FALSE Language is one of the major barriers to effective communication through advertising. (p.16. such as competitive advertising. (p. 473) Physical gestures are one of the major barriers to effective communication through advertising. (p. and confusion at the receiving end. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-05 The effects of a single European market on advertising Topic: Legal Constraints 18. that can detract from the ultimate effectiveness of the communication. TRUE Noise comprises external influences.

(p.19. excessive media. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-06 The effect of limited media. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 16-06 The effect of limited media. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-05 The effects of a single European market on advertising Topic: Legal Constraints 20. 473) No advertising is allowed on the BBC in the United Kingdom. and differences are encountered from one nation to another. and government regulations on advertising and promotion budgets Topic: Tactical Considerations 21. 477) Nearly every sizable nation essentially has the same kinds of media. and government regulations on advertising and promotion budgets Topic: Tactical Considerations . TRUE No advertising is allowed on the BBC in the United Kingdom. 479) A majority of the population of less developed countries can be reached readily through the traditional mass medium of advertising. (p. FALSE A majority of the population of less developed countries cannot be reached readily through the traditional mass medium of advertising. excessive media. a number of specific considerations. TRUE Although nearly every sizable nation essentially has the same kinds of media. problems. (p.

that is. 483) Industrial advertisers rarely use direct mail for advertising. (p.22. (p. (p. 481) Satellite TV and the Internet have become major communications media in almost all nations. excessive media. and government regulations on advertising and promotion budgets Topic: Tactical Considerations 24. This span may not be desirable for some products AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 16-06 The effect of limited media. their ability to span a wide geographical region covering many different cultures. That means a single message is broadcast throughout a wide area. 482) One of the drawbacks of satellites is also their strength. FALSE Industrial advertisers are heavy mail users and rely on catalogs and sales sheets to generate large volumes of international business. and government regulations on advertising and promotion budgets Topic: Tactical Considerations . FALSE Radio and television have become major communications media in almost all nations. excessive media. and government regulations on advertising and promotion budgets Topic: Tactical Considerations 23. that is. excessive media. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-06 The effect of limited media. their ability to span a wide geographical region covering many different country markets. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-06 The effect of limited media. TRUE One of the drawbacks of satellites is also their strength.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-01 Local market characteristics that affect the advertising and promotion of products Topic: Sales Promotions in International Markets . International B. TRUE Creating good relationships with the popular press and other media to help companies communicate messages to their publics—customers.25. sales promotions. sales promotions. and governmental regulators. Management E. trade shows. (p. A. Public D. 455) The role of public relations is to create good relationships with the popular press and other media to help companies communicate messages to their publics—customers. 454) _____ communications are composed of advertising. and governmental regulators—is the role of public relations (PR). personal selling. trade shows. the general public. Grapevine Integrated marketing communications (IMC) are composed of advertising. the general public. and public relations. (p. Integrated marketing C. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-02 The strengths and weaknesses of sales promotions and public relations in global marketing Topic: International Public Relations Multiple Choice Questions 26. and public relations. personal selling. direct selling. direct selling.

C. mass customization. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 16-01 Local market characteristics that affect the advertising and promotion of products Topic: Sales Promotions in International Markets . 454) Integrated marketing communications are composed of all of the following EXCEPT: A. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-01 Local market characteristics that affect the advertising and promotion of products Topic: Sales Promotions in International Markets 28. which of the following are the major components in the marketing communications mix? A. Integrated marketing communications (IMC) are composed of advertising. trade shows. and public relations. 454) For most companies. trade shows. Direct selling and trade shows C. advertising. Public relations and sales promotions E. D. E. (p. direct selling. sales promotions. (p. B. Direct selling and sales promotions For most companies. Advertising and personal selling D. public relations. sales promotions.27. advertising and personal selling are the major components in the marketing communications mix. personal selling. Public relations and advertising B.

and supporting and augmenting advertising and personal sales efforts. mid-term C. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 16-02 The strengths and weaknesses of sales promotions and public relations in global marketing Topic: Sales Promotions in International Markets 30. encouraging stores to stock the product. Trade shows D. long-term B. gaining retail point-of-purchase displays. Direct selling E. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-02 The strengths and weaknesses of sales promotions and public relations in global marketing Topic: Sales Promotions in International Markets . Public relations Sales promotions are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation. (p. Advertising C.29. A. bi-annual Sales promotions are short-term efforts directed to the consumer or retailer to achieve such specific objectives as consumer product trial or immediate purchase. annual D. 454) Which of the following has the general marketing goals of stimulating consumer purchases and improving retailer or middlemen effectiveness and cooperation? A. 454) Sales promotions are _____ efforts directed to the consumer or retailer to achieve such specific objectives as consumer product trial or immediate purchase. short-term E. Sales promotion B. consumer introduction to the store or brand. (p.

(p. C. the Olympics. and point-ofpurchase displays are types of sales promotion devices. 454) All of the following are specific objectives of sales promotion EXCEPT: A. sponsorship of special events such as concerts. D. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-02 The strengths and weaknesses of sales promotions and public relations in global marketing Topic: Sales Promotions in International Markets 32. sweepstakes. personal selling B. samples. contests. and sweepstakes are most likely used for ____. encouraging stores to stock the product. coupons. contests. (p. and supporting and augmenting advertising and personal sales efforts. consumer introduction to the store or brand. E. gaining retail point-of-purchase displays. sales promotions C. in-store demonstrations. public relations Cents-off. product tie-ins. B. direct selling E. trade shows D. fairs. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 16-02 The strengths and weaknesses of sales promotions and public relations in global marketing Topic: Sales Promotions in International Markets . Sales promotions are short-term efforts directed to the consumer or retailer to achieve such specific objectives as consumer product trial or immediate purchase. 454) In-store demonstrations. immediate purchase. gifts. building brand loyalty. coupons. A. gaining retail point-of-purchase displays. consumer introduction to the store. samples. encouraging stores to stock the product.31.

33. 455) Creating good relationships with the popular press and other media to help companies communicate messages to their publics—customers. sales promotion Creating good relationships with the popular press and other media to help companies communicate messages to their publics—customers. and governmental regulators—is the role of ____. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-02 The strengths and weaknesses of sales promotions and public relations in global marketing Topic: Sales Promotions in International Markets . direct selling C. (p. contests E. and governmental regulators—is the role of public relations. sweepstakes C. product sampling D. A. the general public. 455) An especially effective promotional tool when the product concept is new or has a very small market share is ____. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-02 The strengths and weaknesses of sales promotions and public relations in global marketing Topic: Sales Promotions in International Markets 34. A. personal selling E. sponsorship of special events such as concerts B. (p. the general public. product tie-ins An especially effective promotional tool when the product concept is new or has a very small market share is product sampling. trade shows B. public relations D.

personal selling and trade shows. profit-projections. 455) Which of the following elements of integrated marketing communications is related to encouraging the press to cover positive stories about companies and managing unfavorable rumors. Personal selling E. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-02 The strengths and weaknesses of sales promotions and public relations in global marketing Topic: Sales Promotions in International Markets 36. D. (p. a consistent advertising campaign. personal selling and direct selling.35. and events? A. Sales promotion The role of public relations is to encourage the press to cover positive stories about companies and manage unfavorable rumors. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Easy Learning Objective: 16-02 The strengths and weaknesses of sales promotions and public relations in global marketing Topic: Sales Promotions in International Markets . Public relations B. C. B. stories. sales promotion. management directive outlining costs. 457) International public relations. sales promotion. E. stories. and events. Direct selling C. International public relations. and outside accounting supervision. and other IMC efforts work best when coordinated and reinforced with: A. Trade shows D. and other IMC efforts work best when coordinated and reinforced with a consistent advertising campaign. (p. trade shows and direct selling.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 16-02 The strengths and weaknesses of sales promotions and public relations in global marketing Topic: International Advertising 38. (p. Automotive D. direct selling B. (p. sales promotion Of all the elements of the marketing mix. computers E. 461) Of all the elements of the marketing mix. Automotive industry is the global leader in advertising expenditures.2. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 16-02 The strengths and weaknesses of sales promotions and public relations in global marketing Topic: International Advertising . Electronics. the Internet D. Food B. A. decisions involving advertising are those most often affected by cultural differences among country markets. Personal care Refer exhibit 16. advertising E. public relations C. Pharmaceuticals C. 460) Which industry is the global leader in advertising expenditures? A.37. decisions involving _____ are those most often affected by cultural differences among country markets.

Kraft Foods D. B. which of the following is the first step of the process? A. Evaluate the campaign relative to the goals specified. Select effective media. D. (p. Specify the goals of the communication. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 16-02 The strengths and weaknesses of sales promotions and public relations in global marketing Topic: International Advertising 40.1. Procter & Gamble Co. The steps to be performed for developing an international advertisement campaign are: Perform marketing research. has spent the highest amount on advertising during the years 2007 and 2008. Perform marketing research. Compose and secure a budget based on what is required to meet goals. Develop the most effective message(s) for the market segments selected. C. Compose and secure a budget based on what is required to meet goals. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-02 The strengths and weaknesses of sales promotions and public relations in global marketing Topic: International Advertising . McDonald's Corp. 461) While developing an international advertisement campaign. Procter & Gamble Co.39. Execute the campaign. Specify the goals of the communication. (p. 461) Which of the following organizations has spent the highest amount on advertising during the years 2007 and 2008? A. E. E. B. General Motors Refer exhibit 16. Select effective media. Coca-Cola Co. C. Execute the campaign.

decisions involving advertising are those most often affected by cultural differences among country markets. (p. developing messages almost always represents the most daunting task for international marketing managers. composing and securing a budget E. A. Services offered along with the product D. decisions involving which of the following are those most often affected by cultural differences among country markets? A. Benefits offered by the product C. specifying the goals of the communication Of the seven steps in developing international advertising. Price of the product B. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-02 The strengths and weaknesses of sales promotions and public relations in global marketing Topic: International Advertising . The place of offering the product E. 461) Of all the elements of the marketing mix. executing the campaign D. The method of advertising the product Of all the elements of the marketing mix. 462) Of the seven steps in developing international advertising.41. _____ almost always represents the most daunting task for international marketing managers. selecting effective media C. developing messages B. (p. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-02 The strengths and weaknesses of sales promotions and public relations in global marketing Topic: International Advertising 42.

(p. The goals of advertising around the world vary substantially. 462) Which of the following is LEAST likely to be an international advertising goal? A.43. Chinese manufacturers establishing new brands as their economy expands. when modified advertising is necessary Topic: Advertising Strategy and Goals 44. standardized products may be marketed globally. Coca-Cola maintaining its global brand stature. a different advertising appeal. because of differences in culture. But because of differences in cultures. Gillette Company attempting to gain distributor cooperation in Japan. B. E. a different packaging. a consistent promotional message. E. a different distribution pattern. (p. C. All the goals mentioned in the question are valid international advertising goals except Gillette Company attempting to gain distributor cooperation in Japan. they still require a different advertising appeal in different markets. C. D. Aeroflot seeking to upgrade its image. the products will require: A. D. Unilever introducing a new product-line extension. In many cases. But. B. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Hard Learning Objective: 16-03 When global advertising is most effective. an alternative benefit-cost calculation. when modified advertising is necessary Topic: Advertising Strategy and Goals . 462) In many markets standardized products may be marketed globally. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 16-03 When global advertising is most effective.

45. image of the product. Selecting a message channel D. Decoding E. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-03 When global advertising is most effective. (p. E. C. 463) A market offering most likely refers to the: A. Identifying the sources of noise The interpretation by the receiver of the symbolism transmitted from the information source is known as decoding. the receiver of the message interprets symbolism transmitted from the information source? A. Encoding C. (p. service. when modified advertising is necessary Topic: Product Attribute and Benefit Segmentation 46. bundle of satisfactions the buyer receives. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-04 The communication process and advertising misfi res Topic: Global Advertising and the Communications Process . D. tangible product. price of the product. B. Selecting a message B. 467) During which step of the international communications process. A market offering really is a bundle of satisfactions the buyer receives.

feedback B. decoding E. message channel E. encoding Once a message to be communicated is finalized. (p. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-04 The communication process and advertising misfi res Topic: Global Advertising and the Communications Process 48. once a message to communicate has been decided. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 16-04 The communication process and advertising misfi res Topic: Global Advertising and the Communications Process . receiver C. it goes to the ____ stage. it must be encoded. decoder B. 467) In an international communication process carried out by a company. the sales force of the company acts as a ____. receiver D. 467) In the international communications process. A.47. message channel selection D. (p. A. noise The sales force and/or advertising media convey the encoded message to the intended receiver and thus it acts as a message channel. During encoding the message from the source converted into effective symbolism for transmission to a receiver. message source C.

an international marketing executive with a product message to communicate acts as a ____. receiver D. decoder B. message source C. message channel E. (p. Decoding D. noise In an international communications process. (p. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-04 The communication process and advertising misfi res Topic: Global Advertising and the Communications Process . 467) In an international communications process. 467) Which of the following elements of a communication process can be best defined as the interpretation by the receiver of the symbolism transmitted from the information source? A. Selecting a message channel E. an international marketing executive with a product message to communicate acts as a message source. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 16-04 The communication process and advertising misfi res Topic: Global Advertising and the Communications Process 50. Encoding B.49. A. Evaluating the feedback Decoding is defined as the interpretation by the receiver of the symbolism transmitted from the information source. Selecting a message C.

such as competitive advertising. Receiving the message D. (p. other sales personnel. symbolized a clean. Encoding the message B. 468) Which of the following elements of a communication process refers to external influences. values. The ad prompted many viewers to ask if the perfume was effective against infertility. and appropriateness of spokespersons can cause the international marketer to symbolize the message incorrectly. 468) In an advertisement of a perfume. Selecting a message source B. timing. the perfume was presented against a backdrop of rain that. At this step. and confusion at the receiving end. Encoding C. cool. humor. Noise Noise comprises various external influences. Selecting an appropriate channel of communication E. that can detract from the ultimate effectiveness of the communication. (p. Decoding E. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-04 The communication process and advertising misfi res Topic: Global Advertising and the Communications Process . Providing feedback The encoding step causes problems even with a "proper" message.51. AACSB: Reflective thinking Bloom's: Application Difficulty Level: Hard Learning Objective: 16-04 The communication process and advertising misfi res Topic: Global Advertising and the Communications Process 52. such factors as color. Decoding the message C. tastes. refreshing image but to Africans was a symbol of fertility. beliefs. This miscommunication indicates a problem associated with which of the following steps of an international communication process? A. such as competitive advertising. Selecting a message channel D. other sales personnel. for Europeans. and confusion at the receiving end that can detract from the ultimate effectiveness of the communication? A.

a feedback B. choosing the appropriate channel for the message. identifying the various possible feedbacks to the message. decoding the message. (p.53. 468) After running a series of ads promoting the benefits of her company's skin care products. such factors as color. values. a source of information D. The manager knows what she wants to say but is having trouble coming up with the right language. C. (p. E. a decoded message E. encoding the message. At this step. minimizing noise in the communication channel. The encoding step can cause problems even with a "proper" message. Kathy has received ____. AACSB: Reflective thinking Bloom's: Application Difficulty Level: Easy Learning Objective: 16-04 The communication process and advertising misfi res Topic: Global Advertising and the Communications Process 54. humor. beliefs. A. tastes. Janet is trying to help her in: A. a noise Information about the effectiveness of the message that flows from the receiver (the intended target) back to the information source for evaluation of the effectiveness of the process is known as feedback. timing. B. AACSB: Reflective thinking Bloom's: Application Difficulty Level: Easy Learning Objective: 16-04 The communication process and advertising misfi res Topic: Global Advertising and the Communications Process . Kathy learns some consumers drank her product rather than applying it to their skin. an encoded message C. D. and appropriateness of spokespersons can cause the international marketer to symbolize the message incorrectly. 468) Janet is assisting the IMC manager with the design and language to be used in an upcoming promotional campaign.

and types of media create challenges in the communications process at the encoding step. a consumer takes certain actions to respond to a decoded message. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-04 The communication process and advertising misfi res Topic: Global Advertising and the Communications Process . during the receiver stage. 468) According to the text. Government regulations E. in the international communications process. 468) Once a message. media availability. A. Problems of literacy B. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-04 The communication process and advertising misfi res Topic: Global Advertising and the Communications Process 56. receiver C. (p. encoding E. identifying the message source In a communication process. which of the following creates a problem in the communications process at the encoding step? A. has been decoded.55. (p. Seasonality of the product D. it goes to the _____ stage. feedback B. Market segmentation Problems of literacy. message channel selection D. Amount of budget C.

are examples of ineffective media channel selection in the communications process. decoding C. encoding E. encoding. B. E. and types of media create challenges in the communications process at the encoding step. C. message selection Problems of literacy. or using print media for a channel of communications when the majority of the intended users cannot read or do not read the language in the medium. media availability. feedback B. (p. using the Internet as a medium when only a small percentage of an intended market has access to the Internet.57. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-04 The communication process and advertising misfi res Topic: Global Advertising and the Communications Process 58. media availability. Errors such as using the Internet as a medium when only a small percentage of an intended market has access to the Internet. 468) With reference to a communication process. message selection. message channel selection. 468) According to the text. A. decoding. D. and types of media create challenges in the communications process at the _____ step. feedback. problems of literacy. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Easy Learning Objective: 16-04 The communication process and advertising misfi res Topic: Global Advertising and the Communications Process . is an example of error related to: A. (p. message channel selection D.

D. There really are no laws governing comparative advertising in the international arena. Laws that control comparative advertising vary from country to country. C. B. inadequate media budget. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 16-04 The communication process and advertising misfi res Topic: Global Advertising and the Communications Process 60. 470) Decoding problems are generally caused by: A. D. 471) Which of the following statements about comparative advertising laws is most correct? A. poor media choice. Spain. B. There are laws in the Western nations governing this behavior and not in most other countries. improper encoding. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-05 The effects of a single European market on advertising Topic: Legal Constraints . For example in Germany comparative advertising is illegal whereas it is clearly authorized in the United Kingdom. poor copywriting team. and Portugal.59. cultural bias. There are no laws governing comparative advertising in any country. (p. C. Almost all laws governing this behavior are essentially the same. E. (p. Laws vary from country to country with respect to the subject. Decoding problems are generally created by improper encoding. E. Ireland.

Feedback The feedback step of the communications process is important as a check on the effectiveness of the other steps. B. it is illegal to use any comparative terminology. the government-controlled TV network allows only 32 minutes of advertising per day. decoding. Decoding the message E. Russian law forbids subliminal advertising. encoding. advertising is not allowed on the government-controlled TV network. or receiver to continue longer than necessary. E. in Germany. C. the European Union limits product placement in foreign programming but not EU-produced material. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 16-05 The effects of a single European market on advertising Topic: Legal Constraints . media selection. Encoding the message C. 472) All of the following statements are true regarding legal constraints on advertising EXCEPT: A.61. (p. 471) Which of the following steps of a communications process is important as a check on the effectiveness of the other steps? A. D. in Kuwait. In Kuwait. Selecting a proper message B. Chinese government has banned pigs in advertising. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-04 The communication process and advertising misfi res Topic: Global Advertising and the Communications Process 62. (p. Companies that do not measure their communications efforts are likely to allow errors of source. in the evening. Selecting an appropriate channel of communication D.

Distance E. Personal selling E. Ideology C. Newspaper advertising B. Internet services Internet services are especially vulnerable as EU member states decide which area of regulation should apply to these services. A. Power structure Language is one of the major barriers to effective communication through advertising. (p. (p. Language B. 473) _____ is one of the major barriers to effective communication through advertising. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-05 The effects of a single European market on advertising Topic: Legal Constraints 64. 473) Which of the following are especially vulnerable as EU member states decide which area of regulation should apply to these services? A. Outdoor services D. Technology D.63. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-05 The effects of a single European market on advertising Topic: Legal Constraints . Radio advertising C.

A." AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-05 The effects of a single European market on advertising Topic: Cultural Diversity . don't know how to read. don't have time to watch advertisement." D.65. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 16-05 The effects of a single European market on advertising Topic: Legal Constraints 66. The tax structure in Austria best illustrates how advertising taxation can distort media choice by changing the cost ratios of various media. (p. don't like advertising in general. cultural differences D. (p. don't understand language and culture." C." E. become conditioned to ignore advertising. literacy levels B." The problems associated with communicating to people in diverse cultures present one of the great creative challenges in advertising. Austria is a best illustration of how media choice can be distorted due to ____." B. government laws C. advertising taxation E. One advertising executive puts it bluntly: "International advertising is almost uniformly dreadful mostly because people don't understand language and culture. 473) According to the text. 475) According to one advertising executive. standard of living Some countries have special taxes that apply to advertising. which might restrict creative freedom in media selection. "International advertising is almost uniformly dreadful mostly because people: A.

In-country testing with the target consumer group is the only way to avoid linguistic problems in advertising communications. E. 475) According to the text. such as poor-quality printing and a lack of high-grade paper. the only way to avoid linguistic problems in advertising communication is: A. B. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 16-05 The effects of a single European market on advertising Topic: Linguistic Limitations 68. A. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-06 The effect of limited media. C. 477) With respect to advertising. avoiding verbal communication and used only facial expressions and physical gestures in the advertisement. creating an entirely new advertisement for the new market. language C. excessive media. D.67. color B. (p. slogans Creativity is especially important when a budget is small or where there are severe production limitations. creativity E. developing a new version of the product for the new market. technology D. (p. in-country testing with the target consumer group. _____ is especially important when a budget is small or where there are severe production limitations. using the best language experts for translating the advertisement. and government regulations on advertising and promotion budgets Topic: Production and Cost Limitations .

and government regulations on advertising and promotion budgets Topic: Tactical Considerations ." AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 16-06 The effect of limited media. The per contract cost for advertisements varies widely from country to country. C. ____. You cannot buy what you want. (p. The cost of reaching a prospect through advertising is independent of the agent's bargaining ability. and government regulations on advertising and promotion budgets Topic: Tactical Considerations 70. Literacy is not a problem anymore E. Television is always the best communication vehicle D. You cannot buy what you want C. D. Agency space discounts are rarely split with the client. 479) One head of an Italian advertising agency commented about his country: "One fundamental rule. The per contract cost varies widely from country to country. All consumers are alike B. 478) Which of the following statements is true regarding the cost of the media? A.69. excessive media. (p. B. Britain has a fixed rate card for advertising slots. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 16-06 The effect of limited media. The advertiser may find that the cost of reaching a prospect through advertising depends on the agent's bargaining ability. Media prices are susceptible to negotiation in most countries. Only Americans like sex and humor in advertising One head of an Italian advertising agency commented about his country: "One fundamental rule. Media prices remain fixed in all the countries. Agency space discounts are often split with the client to bring down the cost of media. excessive media." A. E.

avoid using newspaper as a medium of advertisement in Mexico. agencies should divide these figures in two and take the result with a grain of salt. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 16-06 The effect of limited media. D. excessive media. divide the circulation data in two and take the result with a grain of salt. (p. The president of the Mexican National Advertisers Association charged that newspaper circulation figures are grossly exaggerated. 479) „Asahi' is the largest newspaper of ____. B. excessive media. E. and government regulations on advertising and promotion budgets Topic: Tactical Considerations 72. agencies should: A. China „Asahi' is the largest newspaper of Japan. (p. Germany B. He suggested that as a rule. and government regulations on advertising and promotion budgets Topic: Tactical Considerations . C. Mexico E. use newspaper circulation figures from other countries and project them for Mexico. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 16-06 The effect of limited media. 481) The president of the Mexican National Advertisers Association charged that newspaper circulation figures are grossly exaggerated. consider television as the best medium of advertisement in Mexico. use magazines for print advertisements rather than newspaper. He suggested that as a rule. A. Japan D. Spain C.71.

481) According to the text. radio and television have become major communications media in almost all nations.73. Radio and newspapers Possibly because of their inherent entertainment value. excessive media. advertising in magazines is costly as compared to any other medium of advertisement. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 16-06 The effect of limited media. in most international markets. C. and government regulations on advertising and promotion budgets Topic: Tactical Considerations 74. consumers read American magazines. and government regulations on advertising and promotion budgets Topic: Tactical Considerations . one of the reasons for the notably low use of foreign national consumer magazines by international advertisers is that: A. B. E. 481) Which of the following are considered to be major communications media in most countries? A. Newspapers and the Internet D. Few magazines have a large circulation or provide dependable circulation figures. consumers in most of the countries rarely read magazines. international magazines are generally incompatible with company values. (p. (p. few magazines have a large circulation and provide reliable circulation data. Radio and television C. The use of foreign national consumer magazines by international advertisers has been notably low for many reasons. excessive media. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-06 The effect of limited media. Newspapers and magazines B. D. Billboards and television E.

(p. excessive media. 482) _____ was the first to broadcast across Asia. Star TV B. one of the drawbacks of satellites is: A. MTV E. That means a single message is broadcast throughout a wide area. their ability to span a wide geographical region covering many different country markets. the government regulations placed on advertisements broadcasted using satellite channels. the limited reach of the satellite television. and government regulations on advertising and promotion budgets Topic: Tactical Considerations 76. C. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-06 The effect of limited media.75. the cost of creating an advertisement with high picture quality for the satellite television. A. their ability to span a wide geographical region covering many different country markets. B. CNN C. This span may not be desirable for some products. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-06 The effect of limited media. D. (p. 482) According to the text. the monopoly of small number of satellite service providers. Al-Jazeera Star TV was the first to broadcast across Asia. excessive media. One of the drawbacks of satellites is also their strength. and government regulations on advertising and promotion budgets Topic: Tactical Considerations . ESPN D. that is. E.

It allows ESPN. D. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 16-06 The effect of limited media. the direct mail communication in Chile is governed by complicated government regulations. streets. stadium sidings—with computer-generated visuals that look like they belong in the scene. 483) _____ is an innovation that will make regional advertising in diverse cultures easier than it presently is when using cable or satellite television. PVI allows ESPN. B. 483) Direct mail is an unpopular medium in Chile because: A. excessive media. (p. to fill visual real estate—blank walls. Texas Visual Imaging E.77. excessive media. and government regulations on advertising and promotion budgets Topic: Tactical Considerations 78. Princeton Digital Imaging PVI (Princeton Video Imaging) is an innovation that will make regional advertising in diverse cultures easier than it presently is when using cable or satellite television. Obviously. C. Massachusetts Video Imaging D. In Chile. stadium sidings—with computer-generated visuals that look like they belong in the scene. and government regulations on advertising and promotion budgets Topic: Tactical Considerations . A. the reach of the direct mail is extremely limited in Chile. the direct mail uses paper and hence it is considered as a threat to the environment. to fill visual real estate—blank walls. Texas Digital Imaging C. which offers this service. the literacy level in Chile is extremely low. (p. E. direct mail is virtually eliminated as an effective medium because the sender pays only part of the mailing fee. the receiver must pay for part of the cost of the direct mail piece. Princeton Video Imaging B. the letter carrier must collect additional postage for every item delivered. advertisers cannot afford to alienate customers by forcing them to pay for unsolicited advertisements. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 16-06 The effect of limited media. streets. which offers this service.

A. (p. Newspapers E. Although still evolving. 484) According to a survey. Yahoo! sites B. T-Online sites E. and government regulations on advertising and promotion budgets Topic: Tactical Considerations 80. The Internet The media being discussed in the question is the Internet. Wikipedia sites D.6. unfair competition. Microsoft sites C. This media suffers from issues such as difficulty in assessing taxes. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 16-06 The effect of limited media. Also it is difficult to control this media. the Internet has emerged as a viable medium for advertising and should be included in a company's possible media mix. Direct mail C. According to a survey. Identify the media in the discussion. excessive media. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-06 The effect of limited media. 483) It has emerged as a viable medium for advertising and should be included in a company's possible media mix. import duties. It is limited in its penetration of households globally and for consumer products. the most visited Web sites in France are ____. and privacy. the most visited Web sites in France are Google sites. Google sites Refer exhibit 16. its major limitation is coverage. A. Radio B. excessive media.79. Magazines D. (p. and government regulations on advertising and promotion budgets Topic: Tactical Considerations .

the major limitation of the Internet is coverage. which of the following is the major limitation of the Internet? A. 484) According to the text. (p. Now with the help of the Internet. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 16-06 The effect of limited media. and government regulations on advertising and promotion budgets Topic: Tactical Considerations . obtain discounts on the brands they endorse on their blogs B. Difficulty in tracking the effectiveness of advertisements on the Internet E. contact the manufacturer directly about warranty issues E. the new social media permits consumers to ____. Cost of using the Internet For consumer products. 485) According to the text. and government regulations on advertising and promotion budgets Topic: Tactical Considerations 82. (p. become authorized virtual brand agents for the product manufacturers Word-of-mouth (WOM) advertising and peer recommendations have always been key influencers of brand choice. for consumer products. Knowledge of how to use the Internet B. excessive media. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Easy Learning Objective: 16-06 The effect of limited media. Coverage of the Internet C. excessive media. A. Government regulations on the use of the Internet D. but the power of the Internet has changed the pace and reach of WOM. create content about brands whether the marketers of those brands like it or not D. obtain free internet access that is supported by brand ads C. consumers can create content about brands whether the marketers of those brands like it or not.81.

the average time spent on social networking sites (measured in terms of hours per user) is the highest? A. social networking. A. local media C. widespread media Blogs. United States C. and video sharing are examples of social media. popular media D. global media B. 485) Blogs. excessive media. Australia D. the average time spent on social networking sites (measured in terms of hours per user) is the highest. Italy In Australia. Spain E. and government regulations on advertising and promotion budgets Topic: Tactical Considerations 84. (p. social media E. and video sharing are examples of media commonly known as ____. (p. 488) In which of the following countries. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-06 The effect of limited media. excessive media. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 16-06 The effect of limited media. and government regulations on advertising and promotion budgets Topic: Tactical Considerations . Britain B.83. social networking.

with high income levels. London D. Hong Kong C.85. excessive media. and government regulations on advertising and promotion budgets Topic: Tactical Considerations 86. with Tokyo's Ginza and New York's Times Square running close seconds. D. 488) According to the text. B. Billboards are especially useful in countries with high illiteracy rates. and government regulations on advertising and promotion budgets Topic: Tactical Considerations . where maximum households are below the poverty line. excessive media. (p. Sydney E. E. (p. C. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 16-06 The effect of limited media. Bras'lia Hong Kong is clearly the neon capital of the world. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 16-06 The effect of limited media. where the laws governing the Internet are very complicated. with high illiteracy rates. Paris B. where people prefer buying in small quantities. A. billboards are especially useful in countries: A. 489) _____ is clearly the neon capital of the world.

S. A. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 16-06 The effect of limited media. and government regulations on advertising and promotion budgets Topic: Tactical Considerations 88. 489) Compensation arrangements for advertising agencies throughout the world are based on the U. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 16-06 The effect of limited media.S. (p. called Publicoche (derived from the words publicidad. 20 E. 10 C. Spain E. Thailand D.87. 15 D. a new medium includes private cars that are painted with advertisements for products and serve as moving billboards as they travel around. has 75 cars in Madrid. This system. (p. the United States B. meaning car). This medium of advertising known as „Publicoche' is generally found in ____. India C. system of 15 percent commissions. A. 489) A new medium of advertising includes private cars that are painted with advertisements for products and serve as moving billboards as they travel around. excessive media. and government regulations on advertising and promotion budgets Topic: Campaign Execution and Advertising Agencies . excessive media. Uganda In Spain. meaning advertising. 5 B. and coche. 25 Compensation arrangements for advertising agencies throughout the world are based on the U. system of _____ percent commissions.

(p. 491) Demands for regulation of advertising _____ is a trend appearing in both industrialized and developing countries. D. Most Brazilians consider ads entertaining and enjoyable. 491) Which of the following statements regarding how Brazilians perceive advertisements is true? A. aimed at children C. E. of medicines B. excessive media. of tobacco Demands for regulation of advertising aimed at children is a trend appearing in both industrialized and developing countries. . A. Most Brazilians believe that advertising often makes them buy things they do not really need. Most Brazilians consider ads entertaining and enjoyable. and government regulations on advertising and promotion budgets Topic: International Control of Advertising: Broader Issues 90.89. (p. aimed at teenagers E. AACSB: Reflective thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 16-06 The effect of limited media. Most Brazilians believe that advertisements do not provide any useful information. Most Brazilians believe that advertisements are often deceptive. of alcohol D. Most Brazilians believe that advertising means higher prices. B. C.

496) Selling in relationship-oriented countries will require the most complete local knowledge possessed only by natives. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 17-02 The considerations in designing an international sales force Topic: Designing the Sales Force 2.Chapter 17 Personal Selling and Sales Management Answer Key True / False Questions 1. TRUE Selling in relationship-oriented countries such as Japan will require the most complete local knowledge possessed only by natives. TRUE The first step in managing a sales force is its design. (p. 496) The first step in managing a sales force is its design. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 17-02 The considerations in designing an international sales force Topic: Designing the Sales Force . (p.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-03 The steps to recruiting three types of international salespeople Topic: Expatriates 4. 498) Only limited number of high-caliber personnel are willing to live abroad for extended periods as expatriates. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-03 The steps to recruiting three types of international salespeople Topic: Expatriates . (p. FALSE The number of companies relying on expatriate personnel is declining as the volume of world trade increases and as more companies use locals to fill marketing positions. (p. TRUE The chief disadvantages of an expatriate sales force are the high cost.3. cultural and legal barriers. 498) The number of companies relying on expatriate personnel is increasing. and the limited number of high-caliber personnel willing to live abroad for extended periods.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-03 The steps to recruiting three types of international salespeople Topic: Local Nationals . TRUE The main disadvantage of hiring local nationals is the tendency of headquarters personnel to ignore their advice. 499) Virtual expatriates find managing contacts with subordinates and customers easier than before. FALSE Close contact with subordinates and customers is tougher for virtual expatriates.5. (p. (p. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Hard Learning Objective: 17-03 The steps to recruiting three types of international salespeople Topic: Local Nationals 7. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 17-03 The steps to recruiting three types of international salespeople Topic: Virtual Expatriates 6. 500) Expatriate managers are still the preferred workforce for foreign assignments. (p. FALSE The historical preference for expatriate managers and salespeople from the home country is giving way to a preference for local nationals. 500) The main disadvantage of hiring local nationals is the tendency of headquarters personnel to ignore their advice.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-03 The steps to recruiting three types of international salespeople Topic: Third-Country Nationals 10. 501) Double taxation is one of the disadvantages of recruiting an American expatriate.8. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-03 The steps to recruiting three types of international salespeople Topic: Local Nationals 9. sales representatives tend to be on the bottom rung of the social ladder. FALSE Third-country nationals (TCNs) are expatriates from their own countries working for a foreign company in a third country. (p. TRUE American companies often seek TCNs from other English-speaking countries to avoid the double taxation costs of their American managers. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 17-03 The steps to recruiting three types of international salespeople Topic: Third-Country Nationals . (p. Mexico. TRUE In the more relationship-oriented cultures such as France. 501) Salespersons in relationship-oriented cultures are considered to belong down in the social ladder. 501) Third-country nationals are foreign nationals working as managers in the company's home country. and Japan. (p.

(p. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-04 Selection criteria for international sales and marketing positions Topic: Third-Country Nationals 12. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 17-04 Selection criteria for international sales and marketing positions Topic: Selecting Sales and Marketing Personnel . The ability to speak one or more other languages is always preferable. 504) Generally. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 17-04 Selection criteria for international sales and marketing positions Topic: Selecting Sales and Marketing Personnel 13. (p. 503) Paper-and-pencil ability tests. biographical information. and reference checks are of secondary importance. and reference checks are the most effective tools in assessing the personality tools required for an expatriate manager's position. FALSE Managers or salespeople operating in foreign countries need considerable breadth of knowledge of many subjects both on and off the job. 503) Though maturity and emotional stability is essential.11. biographical information. (p. FALSE Most of the personality traits can be assessed during interviews and perhaps during role-playing exercises. Paper-and-pencil ability tests. FALSE There is evidence that some traits that make for successful sales representatives in the United States may not be important in other countries. successful sales representatives share common traits across cultures. the transnational manager is not expected to have a breadth of knowledge.

(p. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-06 Motivation techniques for international sales representatives Topic: Motivating Sales Personnel 16. (p. 507) Japanese sales representatives are motivated more by the social pressure of their peers than by the prospect of making more money based on individual effort. which the Japanese rated as more important). social recognition is more important for the American. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 17-06 Motivation techniques for international sales representatives Topic: Motivating Sales Personnel .3 . AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Hard Learning Objective: 17-05 The special training needs of international personnel Topic: Training for International Marketing 15.14. 505) Continual training may be more important in foreign markets than in domestic ones. (p. FALSE Refer Exhibit 17. motivation through individual incentives does not work well because Japanese employees seem to derive the greatest satisfaction from being comfortable members of a group. 506-507) Compared to Japanese salesperson. TRUE Continual training may be more important in foreign markets than in domestic ones because of the lack of routine contact with the parent company and its marketing personnel. TRUE Japan's emphasis on paternalism and collectivism and its system of lifetime employment and seniority.Salespeople's Distribution of 100 Points among Rewards in Terms of Their Importance (The only difference between the two groups was in social recognition.

is that they will be forgotten by the home office. work councils (that is. which can be easily allayed. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-07 How to design compensation systems for an international sales force Topic: For Expatriates 19. 508) Expatriate managers fear that they will be forgotten by the home office. internal labor union committees) are very much involved in setting rules about compensation companywide.17. TRUE In Europe. (p. 508) Separation allowances are benefits paid when an expatriate manager leaves a company to join another. TRUE One of the greatest fears of expatriate managers. (p. FALSE Separation allowances are overseas premiums paid if the family does not go along. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 17-06 Motivation techniques for international sales representatives Topic: Motivating Sales Personnel 18. 509) In Europe. (p. even for sales people. internal labor committees are influential in setting compensation rules for sales people. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 17-07 How to design compensation systems for an international sales force Topic: For a Global Sales Force .

but almost no low performers. system with its emphasis on commissions based on individual performance. but almost no low performers. most in the middle. it was found that compared to the Japanese. TRUE In a study of salesperson's performances. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-07 How to design compensation systems for an international sales force Topic: For a Global Sales Force 21. In the United States. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 17-07 How to design compensation systems for an international sales force Topic: Evaluating and Controlling Sales Representatives . 512) The primary control tool used by American managers is the reporting system. poor performers either quit (because they are not making any money). AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-07 How to design compensation systems for an international sales force Topic: Evaluating and Controlling Sales Representatives 22. (p. 509) Experts believe that compensation systems are becoming more diversified across the world. American distribution was different—a few high. or they are fired. (p.20. 512) American salespersons are mostly distributed as a few high performers and mostly middle-level performers. FALSE The primary control tool used by American sales managers is the incentive system. (p.S. FALSE Experts believe that generally compensation schemes around the world are becoming more similar to the U.

manufacturing. (p. (p. (p. 513) Studies find that the expatriate manager's lack of cultural awareness was the primary reason for his/her failure to function effectively in a foreign assignment. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-08 How to prepare Americans for foreign assignments Topic: Successful Expatriate Repatriation 25. FALSE Surveys of chief executives consistently reported that more than three-quarters had finance. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 17-08 How to prepare Americans for foreign assignments Topic: Reducing the Rate of Early Returns 24. FALSE A study of personnel directors of over 300 international firms found that the inability of the manager's spouse to adjust to a different physical or cultural environment was the primary reason for an expatriate's failure to function effectively in a foreign assignment.23. TRUE Companies with the least amount of returnee attrition differ from those with the highest attrition in one significant way: personal career planning for the expatriate. 516) According to studies. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-09 The changing profi le of the global sales and marketing manager Topic: The Changing Profile of the Global Manager . 514) Personal career planning for the expatriate is the significant strategy that leads to higher retention of returnee expatriates. or marketing backgrounds. most chief executives had an HR background.

(p. Lack of security for confidential information C. 496) According to some experts. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy -Learning Objective: 17-01 The role of interpersonal selling in international marketing Topic: The role of interpersonal selling in international marketing 27. 496) The most direct tie to the customer is the: A. manager of the company. public relations specialist. which of the following may be a reason that substantial reductions in field sales may occur in the future? A. D. leading some to forecast substantial reductions in field sales efforts. Advances in information technology E.Multiple Choice Questions 26. The salesperson is a company's most direct tie to the customer. in the eyes of most customers. C. E. the salesperson is the company. B. (p. Cost of maintaining a sales team B. advertising specialist. Skill-set deficiencies in the sales force D. Increasing competition Advances in information technology are changing the nature of personal selling and sales management. salesperson. product. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium -Learning Objective: 17-01 The role of interpersonal selling in international marketing Topic: The role of interpersonal selling in international marketing .

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-02 The considerations in designing an international sales force Topic: Designing the Sales Force 29. It is a multi-cultural society Selling in information-oriented cultures such as Germany may also allow for greater use of expatriates. (p. Asian selling (i. (p. Localized selling C. what form of selling has the best results in Japan? A.. Expatriate selling B. personnel from China) E. Virtual selling D." AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-02 The considerations in designing an international sales force Topic: Designing the Sales Force . It wants to spread its arms to the international community D. 496) Which of the following reasons would best explain why a country such as Germany allows for greater use of expatriates in international sales forces? A. two international marketing experts agree: "Personal selling as a rule has to be localized for even the most global of corporations and industries. Visionary selling Writing about Japan. The language is easy to master C.e.28. 496-497) According to experts. It is cheap to live there B. It is an information-oriented culture E.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 17-03 The steps to recruiting three types of international salespeople Topic: Recruiting Marketing and Sales Personnel . and third-country nationals. Countries such as Japan will require the most complete local knowledge possessed only by natives. the management team. recruited from three sources: expatriates. General suspicion of foreigners E. whereas others may not.30. B. the service department. D. Unfamiliarity with the English language C. E. Relationship-oriented countries such as Japan will require the most complete local knowledge possessed only by natives. 498) The largest personnel requirement abroad for most companies is: A. the purchasing professionals. The largest personnel requirement abroad for most companies is the sales force. the sales force. the advertising specialists. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 17-02 The considerations in designing an international sales force Topic: Designing the Sales Force 31. Relationship orientation D. (p. (p. Strong traditions and taboos B. Ethnocentrism Distribution strategies will often vary from country to country. Some markets may require a direct sales force. Which aspect of Japanese culture requires this feature in the sales strategy? A. 496) Distribution strategies will often vary from country to country. C. local nationals.

an expatriate sales force remains the best choice. (p. When the product caters to a niche market D. 498) Which of the following is one of the advantages of using an expatriate salesperson? A. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 17-03 The steps to recruiting three types of international salespeople Topic: Expatriates . When the product is mass-marketed C. Increases the diversity mix of the organizational profile C. 498) In which of the following scenarios is an expatriate sales force the best choice for a company? A. However. better knowledge of the company and its product line. Usually more experienced than local nationals D. and proven dependability. When the product is customized B. Greater technical training B. (p. When the product is global in nature The number of companies relying on expatriate personnel is declining as the volume of world trade increases and as more companies use locals to fill marketing positions. Lesser risk of employee-poaching in a foreign market The expatriate salesperson may have the advantages of greater technical training. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Hard Learning Objective: 17-03 The steps to recruiting three types of international salespeople Topic: Expatriates 33.32. when products are highly technical. Other-country teams are more accepting of an expatriate manager E. or when selling requires an extensive background of information and applications. When the product is highly technical E.

one of these advantages stands out above the others.34. Greater technical training B. 498) A(n) _____ is a person who leaves their home country to work for their domestic employer in a foreign country. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-03 The steps to recruiting three types of international salespeople Topic: Expatriates . however. Which one is it? A. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 17-03 The steps to recruiting three types of international salespeople Topic: Expatriates 35. in the eye of the buyer E. (p. other-country manager E. outsourcer D. Proven dependability D. (p. A. expatriate The number of companies relying on expatriate personnel is declining as the volume of world trade increases and as more companies use locals to fill marketing positions. home-country manager B. 498) All of the following are advantages that an expatriate salesperson has in representing his or her company in a foreign market. Better knowledge of the company and its product line C. The ability to communicate with and influence headquarter's personnel Perhaps most important advantage is that expatriates usually are able to effectively communicate with and influence headquarters personnel. foreign manager C. Adds prestige to the product line.

high cost. and proven dependability. legal barriers. The lack of proper communication technology E. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-03 The steps to recruiting three types of international salespeople Topic: Expatriates 37. (p. The loss of visibility at corporate headquarters C. The steep increase in living costs in a foreign location D. willingness to live abroad for extended periods. unverified dependability. 498) Which of the following is the major deterrent for executives offered an expatriate position? A. B. (p. The loss of deep-rooted friendships at the home-country office The loss of visibility at corporate headquarters plus the belief that "out of sight is out of mind" are major reasons for the reluctance to accept a foreign assignment. cultural barriers. The threat of international terrorist attacks in foreign markets B. better knowledge of the company and its product line. C.36. 498) All of the following are disadvantages to having an expatriate salesperson in a foreign market EXCEPT: A. The expatriate salesperson may have the advantages of greater technical training. D. E. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 17-03 The steps to recruiting three types of international salespeople Topic: Expatriates .

C. Find a mentor in the new country to guide the executive The best international companies make it crystal clear that a ticket to top management is an overseas stint. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-03 The steps to recruiting three types of international salespeople Topic: Expatriates 39. (p. professional expatriate. 498) Mike Assaini has found that his ability to speak several Middle-Eastern languages is a real asset in his chosen career as a salesperson for Shell Oil. wanderer. D. others are essentially professional expatriates. Promote overseas stint as a ticket to top management B. rover. Since Mike works one foreign assignment after another and rarely returns to home base in Holland. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 17-03 The steps to recruiting three types of international salespeople Topic: Expatriates . (p.38. Some expatriates have one-time assignments (which may last for years). Mandate expatriate positions for all executives C. working abroad in country after country. castaway. Transfer a support team along with the expatriate manager E. E. he is called a(n): A. Shift a part of the head-office to the new location D. 498) What strategy do companies take to ensure that executives accept expatriate positions? A. B. troubleshooter. after which they return to the parent company.

are glued to their laptops and cell phones. maintain their families at home. 499) All of the following is true of virtual expatriates EXCEPT that they: A. (p. They stay in hotels. C. a new form of expatriate has emerged. are creating a new breed of expatriate. E. The e-com expatriate D.40. The geek expatriate B. D. and maintain their families at home. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-03 The steps to recruiting three types of international salespeople Topic: Virtual Expatriates . The dotcom expatriate E. do not move to other countries. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 17-03 The steps to recruiting three types of international salespeople Topic: Virtual Expatriates 41. Virtual expatriates manage operations in other countries but do not move there. What is the name of this new form of expatriate? A. make long visits. 499) Because of new advances in communications technology. The virtual expatriate C. don't stay in hotels. B. The visionary expatriate The Internet and other advances in communications technologies. make long visits. (p. the virtual one. along with the growing reluctance of executives to move abroad.

Thrice the average pay is the normal expatriate compensation expected Although expatriates' salaries may be no more than those of their national counterparts. visionary expatriates. virtual expatriates. 500) Which of the following makes an expatriate manager often three times costlier than their national counterparts? A. outsourcers from the home country. local nationals. Exchange rate variations B. 500) The historical preference for expatriate managers and salespeople from the home country is giving way to a preference for: A. virtual managers and salespeople. D. The historical preference for expatriate managers and salespeople from the home country is giving way to a preference for local nationals.42. Added costs for the goodwill generated E. (p. moving expenses. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 17-03 The steps to recruiting three types of international salespeople Topic: Local Nationals . C. (p. Special cost-of-living benefits D. B. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 17-03 The steps to recruiting three types of international salespeople Topic: Local Nationals 43. taxes. Higher taxes for earnings C. the total cost of keeping comparable groups of expatriates in a country can be considerably higher (often three times the expense) because of special cost-of-living benefits. and other costs associated with keeping an expatriate abroad. E.

B. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 17-03 The steps to recruiting three types of international salespeople Topic: Local Nationals 45. D. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-03 The steps to recruiting three types of international salespeople Topic: Local Nationals . B. 500) Which of the following is the main disadvantage of hiring local nationals? A. D. National interests conflict with the corporate strategy. respected and held in high esteem. sales representatives tend to be: A. C. Headquarters personnel ignore their advice. Cultural differences lead to communication issues. C. Particularly in relationship-oriented cultures such as France. E. E.44. The main disadvantage of hiring local nationals is the tendency of headquarters personnel to ignore their advice. and Japan. unwilling to commit to an organization for any length of time. available only on a part-time basis. Poaching by competition turns out to be a huge challenge. (p. Mexico. Most local nationals turn out to be costlier in the long run. on the bottom rung of the social ladder. too close to customers to develop a professional selling relationship.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-03 The steps to recruiting three types of international salespeople Topic: Third-Country Nationals ." AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 17-03 The steps to recruiting three types of international salespeople Topic: Local Nationals 47. transnational expatriates E. The TCNs are a group whose nationality has little to do with where they work or for whom. virtual expatriates B. (p. A. the United States has been described as "a nation of salesmen. 501) Which of the following is the most common job in the United States? A. 501) The _____ are a group whose nationality has little to do with where they work or for whom.46. (p. Construction worker B. Truck driver C. Office manager D. expatriate managers C. Personal selling E. Indeed. third-country nationals D. Teacher Personal selling is the most common job in the United States. local nationals The internationalization of business has created a pool of third-country nationals (TCNs). expatriates from their own countries working for a foreign company in a third country.

an attempt to stimulate world peace through international marketing. (p. E. 501) The growing use of third-country nationals is. in part. the development of TCN executives reflects not only a growing internationalization of business but also an acknowledgment that personal skills and motivations are not the exclusive property of one nation. company in Argentina. symbol of the death of nationalism. response to the increased availability of third-country nationals. An example would be a German working in Argentina for a U. This would be an example of which of the following types of foreign worker classifications? A. D. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 17-03 The steps to recruiting three types of international salespeople Topic: Third-Country Nationals . 501) Fritz Weaver is a German national working for a U. (p. B. Overall.48. Outsourcers B. acknowledgment that personal skills and motivation are international values. Third-country nationals E. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 17-03 The steps to recruiting three types of international salespeople Topic: Third-Country Nationals 49. Multi-country nationals Third-country nationals (TCNs) are expatriates from their own countries working for a foreign company in a third country. company.S. a(n): A. alternative to using domestic product controls.S. Global expatriates D. C. Global specialists C.

AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-03 The steps to recruiting three types of international salespeople Topic: Host-Country Restrictions 51. People management and reporting skills D. (p. Market acceptance of foreign products C. what are the major skills people operating in the home country require? A. (p. Demographic profile of the target customer The host government's attitudes toward foreign workers often complicate selecting expatriate U. Technical complexity of the product(s) D. 502) Which of the following external uncontrollable factor influences selection of expatriates over local nationals? A. The host government's attitude toward foreign workers B. Quantitative skills to read market trends E. nationals over locals. 502) Compared to the diplomatic skills required in a transnational management position. whereas a transnational management position can require skills and attitudes that would challenge a diplomat.S. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-04 Selection criteria for international sales and marketing positions Topic: Selecting Sales and Marketing Personnel . Proficiency in at least two languages B. Size and spread of the customer base E. Attributes of effective salespersons C.50. Effective strategic planning skills People operating in the home country need only the attributes of effective salespersons.

C. Many international sales representatives spend about two-thirds of their nights in hotel rooms around the world. B. International sales and marketing personnel must be energetic and enjoy travel. (p. Flexibility E.52. Interacting with other-country colleagues is a stressful procedure. 503) Why do international sales representatives require lots of stamina? A. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 17-04 Selection criteria for international sales and marketing positions Topic: Selecting Sales and Marketing Personnel . It requires lots of stressful travel and immigration procedures. Positive outlook B. or they cannot be individually effective. Presentations to foreign customers are generally lengthy procedures. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Hard Learning Objective: 17-04 Selection criteria for international sales and marketing positions Topic: Selecting Sales and Marketing Personnel 53. Maturity Maturity is a prime requisite for expatriate and third-country personnel. E. Cultural empathy C. Going through the long lines of customs and immigration after a 15-hour flight requires a certain kind of stamina not commonly encountered. Breadth of knowledge D. (p. D. The company must have confidence in their ability to make ethical decisions and commitments without constant recourse to the home office. Most of them are required to work late nights. The new market may be physically difficult to access. Managers and sales personnel working abroad typically must work more independently than their domestic counterparts. 503) Which of the following traits of the expatriate would ensure the company to have confidence in his/her ability to make ethical decisions and commitments without constant recourse to the home office? A.

knowledgeable in the major cultural trends. Cultural empathy is clearly a part of the basic orientation. hostile to all cultures except his own. 503) Cultural empathy means that a person is: A. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 17-04 Selection criteria for international sales and marketing positions Topic: Selecting Sales and Marketing Personnel . Paper-and-pencil ability tests. E. D. most of the traits necessary for success in international marketing can be assessed by: A. body language. sympathetic and understanding of a culture other than their own. (p. C.54. checking references. subservient to a superior culture. D. tests. biographical information. and reference checks are of secondary importance. B. E. B. biographical information. because anyone who is antagonistic or confused about the environment is unlikely to be effective. tolerant of inferior cultures. (p. Successful adaptation in international affairs is based on a combination of attitude and effort. interviews and role-playing exercises. Most of the necessary traits for international marketing can be assessed during interviews and perhaps during role-playing exercises. 503) When hiring new personnel. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-04 Selection criteria for international sales and marketing positions Topic: Selecting Sales and Marketing Personnel 55. globally. C.

Japanese sales representatives tended to be more satisfied with their jobs when: A. they had high salaries and were better educated. sex C. (p. Americans who cared more about money and were more educated tended to perform better and be more satisfied with their sales jobs. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-04 Selection criteria for international sales and marketing positions Topic: Selecting Sales and Marketing Personnel 57. B. emotional stability Evidence indicates that a manager's culture affects personnel decisions. they were better educated. Conversely. One study compared sales representatives in the electronics industries in Japan and the United States." AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 17-04 Selection criteria for international sales and marketing positions Topic: Selecting Sales and Marketing Personnel . C. culture D. their values were consistent with those of their company. age B. 504-505) There is evidence that a manager's _____ affects personnel decisions when hiring in the international arena. they did not have to work abroad.56. (p. One study reports "that managers given an identical [personnel selection] problem do not make the same decisions nor do they value the criteria often used in recruitment and promotion decisions equally. the Japanese sales representatives tended to be more satisfied with their jobs when their values were consistent with those of their company. E. income level E. 504) According to a recent study. D. they received high salaries. A.

C. whereas local personnel require greater emphasis on the company. technical information. 505) What explains the fact that continual training may be more important in foreign markets than in domestic ones? A. and selling methods. its products. (p. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 17-04 Selection criteria for international sales and marketing positions Topic: Selecting Sales and Marketing Personnel 59. selling methods. Updating of newer technological innovations in the product D. (p. Lack of routine contact with the parent company Continual training may be more important in foreign markets than in domestic ones because of the lack of routine contact with the parent company and its marketing personnel. Lack of technical knowledge among the foreign salespersons E. special foreign problems. Training for expatriates focuses on the customs and the special foreign sales problems that will be encountered. Foreign markets are slower to adapt to innovative products B. Cultural distance could result in dilution of core aspects of the strategy C. 505) Training for local personnel should require greater emphasis on all of the following EXCEPT: A. the company.58. the company's products. E. D. B. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Hard Learning Objective: 17-05 The special training needs of international personnel Topic: Training for International Marketing . technical information.

Personal growth and development The only real difference between the two groups was in social recognition. Social recognition (sales club awards) E. (p. Feeling of worthwhile accomplishment D. Cross-cultural training B. However. the social and competitive contexts still require different motivational systems. predictably. Japanese and American salespersons showed surprising similarity barring one aspect which the Japanese rated as more important than what their American counterparts did. Job security B. 505) Which of the following is suggested to make home-office personnel more aware of problems of foreign operations? A. (p. 506-507) In a study. Email and presentation skills The best companies provide home-office personnel with cross-cultural training and send them abroad periodically to increase their awareness of the problems of the foreign operations. the authors of the study concluded that though individual values for rewards may be similar. which. Identify the one from the following. A.60. Promotion C. Telecommuting and teleconferencing skills E. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-06 Motivation techniques for international sales representatives Topic: Motivating Sales Personnel . Global selling techniques C. the Japanese rated as more important. Newer technical skills D. when asked to rate the rewards from work. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 17-05 The special training needs of international personnel Topic: Training for International Marketing 61.

Job security B. 507) Considering the specific characteristics of Japan's culture. Promotion C. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 17-06 Motivation techniques for international sales representatives Topic: Motivating Sales Personnel . Japanese bonus systems are therefore based on group effort. Individual rewards B. (p. and individual commission systems are rare. Merit increase with pay D. 507) Which of the following reward areas scores the highest among American salespeople? A. Early promotion opportunities D. Individual commission system E. motivation through individual incentives does not work well because Japanese employees seem to derive the greatest satisfaction from being comfortable members of a group.62. Merit increase in pay With Japan's emphasis on paternalism and collectivism and its system of lifetime employment and seniority. Group bonus schemes C. which of the following strategies might be used as a motivator in Japanese organizations? A. (p. Social recognition (sales club awards) Refer Exhibit 17. Feeling of worthwhile accomplishment E.3 .Salespeople's Distribution of 100 Points among Rewards in Terms of Their Importance AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-06 Motivation techniques for international sales representatives Topic: Motivating Sales Personnel 63.

(p. is that they will be forgotten by the home office. They might be stressed out in the new market. They will be forgotten by the home office. family compensation. displacement allowances. 508) Overseas premiums. Short-term assignments involve payments of overseas premiums (sometimes called separation allowances if the family does not go along). resettlement claims. C. D. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 17-07 How to design compensation systems for an international sales force Topic: For Expatriates . They will forget their own culture and traditions. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-06 Motivation techniques for international sales representatives Topic: Motivating Sales Personnel 65. Their product(s) might be unsuitable in the new market. (p. E. separation allowances.64. 508) Which of the following represents one of the greatest fears of expatriate managers? A. and allowances for tax differentials. which can be easily allayed. C. One of the greatest fears of expatriate managers. all excess expenses. D. are called: A. B. paid if the family does not go along. fringe benefits. Colleagues in the foreign country will be hostile. B. E.

Work councils C. C. D. Pension committees B. is gaining popularity in European countries. E. 509) Which of the following agencies/bodies is actively involved in setting rules about compensation (even for sales people) in Europe? A.S. system with its emphasis on commissions based on individual performance. International Labour Organization D. Most Asian MNCs have adopted the U. A majority (nearly 75 percent) of multinational companies describe their sales compensation plans as global in nature. B. internal labor union committees) are very much involved in setting rules about compensation companywide. even for sales people.5. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-07 How to design compensation systems for an international sales force Topic: For a Global Sales Force 67. work councils (that is. The WTO In Europe. As can be seen in Exhibit 17. (p. Government intervention in pay determination aimed at leveling pay scales. The European Union E. 510) Which of the following is true of sales compensation practices across the globe? A. The International Labour Organization is playing a key role in determining compensation practices worldwide. Most companies establish sales compensation practices locally. (p. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 17-07 How to design compensation systems for an international sales force Topic: For a Global Sales Force . most companies establish sales compensation practices locally (either at the country or regional levels).66.

tolerance and patience. Do involve representatives from key countries. (p. Do allow local countries flexibility in implementations. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 17-07 How to design compensation systems for an international sales force Topic: Evaluating and Controlling Sales Representatives 69. D. C. D. the quota system. (p.6 .68. The primary control tool used by American sales managers is the incentive system. E.000 Sales Executives Worldwide AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-07 How to design compensation systems for an international sales force Topic: For a Global Sales Force . 511) IBM's revamping of its sales compensation scheme led to some valuable information. the attraction of a foreign assignment. Also refer Exhibit 17. the threat of termination. C. The list of do's and don'ts is provided on page 511. E. B. B.A Compensation Blueprint: How IBM Pays 140. Do use consistent performance measures. Do assume that cultural differences can be managed through the incentive plan. Which of the following is NOT one of them? A. 512) The primary control tool used by American sales managers is: A. Do allow local managers to decide the mix between base and incentive pay. the incentive system.

The system of peer-mentoring takes care of progress of low performers. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Hard Learning Objective: 17-07 How to design compensation systems for an international sales force Topic: Evaluating and Controlling Sales Representatives 71. C. Thus sales managers in Japan have a problem their American counterparts do not: how to motivate poor performers. The team usually does not have any low performers as they quit or are fired. Concerns for career and family E. According to a study. Destination of the assignment C. Fear of travel and its hardships D. Companies are more focused on long-term loyalty and are willing to compromise on performance initially. most in the middle. or they are fired. In the United States.70. 512) What are the most frequently mentioned reasons for a manager to refuse a foreign assignment? A. B. D. the distribution of performance American salespersons was as follows—a few high. poor performers either quit (because they are not making any money). (p. 512) Unlike the Japanese. Compensation B. The group incentive system balances pay differences and thus is motivating enough. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-08 How to prepare Americans for foreign assignments Topic: Overcoming Reluctance to Accept a Foreign Assignment . but almost no low performers. E. Dislike of foreigners Concerns for career and family are the most frequently mentioned reasons for a manager to refuse a foreign assignment. They are automatically shifted to areas where their performance levels could meet expectations. (p. Americans sales managers do not have to worry about the problem of how to motivate poor performers. Why? A.

acculturation. D. C. Without evidence of advance planning to protect career development. B. 513) Better qualified and ambitious personnel decline to go abroad because sometimes expatriate positions do not have clear evidence of advance planning to protect career development. skill redundancy. repatriation. Redundant/mismatching skills in a foreign country The most important reasons a growing number of companies are including an evaluation of an employee's family among selection criteria are the high cost of sending an expatriate abroad and increasing evidence that unsuccessful family adjustment is the single most important reason for expatriate dissatisfaction and the resultant request for return home. 513) Which of the following is the single most important reason for expatriate dissatisfaction? A. out of mind" fear is closely linked to the problems of: A. Communication issues with home-country head quarters E. variable compensation. This "out of sight. out of mind" fear is closely linked to the problems of repatriation. conflict of interests.72. (p. Unsuccessful family adjustment B. This "out of sight. AACSB: Reflective Thinking Bloom's: Comprehension Difficulty Level: Medium Learning Objective: 17-08 How to prepare Americans for foreign assignments Topic: Overcoming Reluctance to Accept a Foreign Assignment 73. Non-cooperation of foreign colleagues D. (p. Cultural conflict in the foreign country C. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-08 How to prepare Americans for foreign assignments Topic: Reducing the Rate of Early Returns . E. better qualified and ambitious personnel may decline offers to go abroad.

Specialized expatriate department B. Family migration planning Companies with the least amount of returnee attrition differ from those with the highest attrition in one significant way: personal career planning for the expatriate. Inability of the manager's spouse to adjust to a different environment E. (p. (p. 515) Which of the following differentiates companies with least amount of returnee attrition from those with the highest attrition? A.74. Personal career planning C. Continued cultural training D. Cultural differences leading to conflicts of interest A study of personnel directors of over 300 international firms found that the inability of the manager's spouse to adjust to a different physical or cultural environment was the primary reason for an expatriate's failure to function effectively in a foreign assignment. Lack of synergy owing to ineffective team communication C. Differing customer expectations on product features B. . 513) Which of the following is the primary reason for an expatriate's failure to function effectively in a foreign assignment? A. Increased compensation E. Ineffectiveness of home-country skills in the foreign country D. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 17-08 How to prepare Americans for foreign assignments Topic: Reducing the Rate of Early Returns 75.

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