Which one is not an item of Current Account?

*
0/1
Transfers
Services
Lending
Gifts

Income from tourism

Correct answer
Lending

All of the following are arguments that favor protectionism EXCEPT: *

1/1
Increase of business size.
Maintenance of employment and reduction of unemployment.
National defense.
All of the options are correct arguments for protectionism.

Conservation of natural resources.

A(n) __________ will generally increase inflationary pressures, weaken balance-of-

payments positions, and restrict manufacturers' supply sources. *
1/1
Tariff.

Orderly market agreement.

Quota.
Standard monetary barrier.
Voluntary export restraint.

Dutch management professor Geert Hofstede refers to culture as "software of the

mind" arguing that culture provides: *
1/1
Systematic assessment of relative cost-benefit analysis.
A guide for humans on how to think and behave.

A measure of peer group status.

Computer-compatible prediction systems.
Alternative ways of viewing the world.

An ability to understand and to appreciate fully the nuances of different cultural traits
and patterns is called ____________ knowledge. *
1/1
Psychic
Metaphysical
Factual
Interpretive

Demographic

A statement that records all financial transactions between a nation's residents and
those of the rest of the world during a given period of time (usually one year) is called
a nation's: *
1/1
Supply-demand statement.
Import-export statement.
Positive supply-demand statement.
Balance-of-payments.

Balance of trade.

A company in the “no direct foreign marketing” stage does actively cultivate customers
outside national boundaries. Sales may be made to trading companies as well as
foreign customers who directly contact the firm. Or products may reach foreign
markets via domestic wholesalers or distributors who sell abroad without explicit
encouragement or even knowledge of the producer. As companies develop Web sites
on the Internet, many receive orders from international Web surfers. *
0/1
True

False

Correct answer
False
Different ____________ are a major source of trade difficulties between the United
States and Japan. For example, the size of knotholes in plywood shipped to Japan
can determine whether or not the shipment is accepted. This becomes an issue of
perceived quality. *
1/1
Standards

Valuation systems
Measurements
Differential exchange rate
Exchange control

To be globally aware, a manager must have knowledge of cultures, history, world

market potential, and global economic, social, and political trends. Additionally, the
manager will not succeed with respect to global awareness if he or she does not
have: *
1/1
A local counterpart to handle negotiations.
All the options are correct
An ability to drive a hard bargain with any foreigner.
Pronounced skill in languages.
A tolerance of cultural differences.

To avoid errors in business decisions, it is necessary to conduct a ______________

that isolates the SRC influences and to maintain a vigilance regarding
ethnocentrism. *
1/1
Purge
Global research effort
Parallel cultural simulation
Cross-cultural analysis

Search of the Internet

The _________________ measure the tolerance of social inequality within a social

system. *
1/1
Cultural Value index
Individualism/Collectivism index
Uncertainty Avoidance index
Power distance index

Consumer Behavior index

_____________ is generally a problem when managers from affluent countries work

with managers and markets in less-affluent countries. *
1/1
Xenophobia
Ethnocentrism

Racism
Cultural backlash
SRC

M-time concentrates on the occurrence of many things and great involvement with
people. *
1/1
False

True

All of the following are considered to be a member of what is called a social institution
EXCEPT: *
1/1
Family.
Religion.
Government.
School.
Peer groups.

Adaptation becomes difficult if a marketer is not attuned to the culture. *

1/1
False
True
"One need not greet another man with a kiss (a custom in some countries)"- is an
example of *
1/1
Cultural empathy
Cultural sensitivity
Cultural imperative
Cultural exclusive
Cultural elective

Michele Phillips has just begun to understand the French culture even though she has
lived there for two years. She speaks the language almost fluently; however, learning
to live in France will certainly take time. The process of how a person learns and
adjusts to a new culture is called: *
1/1
Socialization.
Democratization.
Acculturation.

Embodiment.
A reference path.

Which of the following terms would most closely match with the following description --
the performance of business activities designed to plan, price, promote, and direct the
flow of a company's goods and services to consumers or users in more than one
nation for a profit? *
1/1
Regional Marketing Concept
Marketing
International Marketing

Global Strategy
Marketing Concept

Which one is not the danger of the SRC? *

0/1
Reacting to a situation in a way offensive to your hosts
Discounting the cultural differences that exist among countries
All are the dangers of the SRC

Failing to recognize the need to take action

Failing to understand the importance of international marketing

Correct answer
Failing to understand the importance of international marketing

If the United States were to place an absolute restriction against the purchase and
importation of Cuban sugar as a punishment for past actions against U.S. businesses
in Cuba, the United States would have imposed which of the following against Libya? *
1/1
BOP pricing
Predatory pricing.
Protectionism.
Boycotts.

Embargoes.

The ___________ measures the tolerance of social inequality. *

1/1
Power distance index

Cultural Value index

Consumer Behavior index
Individualism/Collectivism index
Uncertainty Avoidance index

Within the balance-of-payments statement, the ___________ account is a record of all

exports and imports of gold, increases or decreases in foreign exchange, and
increases or decreases in liabilities to foreign central banks. *
1/1
balance-of-payment
balance-of-trade
reserves

capital
current
There are four events and trends that have affected and will continue to affect global
business today. Which of the following would be classed as one of those four major
trends? *
0/1
The trend toward the acceptance of the free market system among developing countries in Latin
America, Asia, and Eastern Europe
The trend toward friendship in almost all sections of Africa
The trend toward acceptance of English as the global language
The trend toward affluence in all nations
All of the options are considered to be among the four major trends that are affecting global
business today.

Correct answer
The trend toward the acceptance of the free market system among developing countries in Latin
America, Asia, and Eastern Europe

One of the weapons used by the United States against global terrorism is a monetary
barrier called ______________ where the U.S. refuses to allow importers to exchange
its national currency for the seller's currency. *
1/1
Valuation systems
Blocked currency

Differential exchange rate

Export restraint
Exchange control

___________is generally a problem when managers from affluent countries work with
managers and markets in less affluent countries. Both the SRC and ethnocentrism
impede the ability to assess a foreign market in its true light. *
1/1
Superego
Ethnocentrism

Self reference criterion

Ego
Self status
Your_______can prevent you from being aware of cultural differences or from
recognizing the importance of those differences. Thus you might fail to recognize the
need to take action, you might discount the cultural differences that exist among
countries, or you might react to a situation in a way offensive to your hosts *
1/1
Self reference criterion

Self status
Ego
Superego
Ethnocentrism

Japan is an example of a low-context culture. *

1/1
False

True

Such elements as geography and infrastructure, structure of distribution, and cultural

forces are part of which of the following international marketing task environments? *
1/1
Domestic environment (controllable)
Domestic environment (marketing mix variables)
Domestic environment (uncontrollable)
Foreign environment (controllable)
Foreign environment (uncontrollable)

Which of the following would be considered to be an uncontrollable element in the

foreign environment? *
1/1
Research
Product elements
Channels of distribution
Economic forces

Promotion
Serena represents an American company initiating business in China. She has been
told, in China, to enter into a proper contract, the Chinese company or individual must
be considered to be a "legal person." To be a legal person in China, the company or
person must have registered as such with the Chinese government. Which of the
following environments would most correctly apply to the above situation? *
0/1
Domestic environment (uncontrollable)
Domestic environment (controllable)
Foreign environment (uncontrollable)
Domestic environment (marketing mix variables)
Foreign environment (controllable)

Correct answer
Foreign environment (uncontrollable)

Who imposes alien status which increases the difficulty of assessing and forecasting
business climate because they feel marketers are outsiders? *
0/1
Foreigners
Domestic marketers
Home government
Foreign government

International marketers

Correct answer
Foreigners

A common mistake made by Americans is to refuse food or drink when offered. In the
United States, a polite refusal is certainly acceptable, but in Asia or the Middle East, a
host is offended if you refuse hospitality. Although you do not have to eat or drink
much, you do have to accept the offering of hospitality. Understanding and dealing
with the __________are two of the more important facets of international marketing. *
1/1
Ego
Self reference criterion

Superego
Self status
Ethnocentrism

in high PDI countries such as Mexico & Malaysia, understanding the rank & status of
clients & business partners is much more important than in more egalitarian ( low PDI)
societies such as Denmark & Israel. *
1/1
True

False

If a nation uses tariffs, quotas, and nontariff barriers to restrict trade so that domestic
industries can flourish, it may be guilty of what is called: *
1/1
Boycotts.
Embargoes.
BOP pricing
Protectionism.

Predatory pricing.

McDonald's (normally a non-alcoholic restaurant) has decided to offer wine as the

drink of choice in its French restaurants. Which of the following terms would best
match to the proposed strategy of McDonald's? *
0/1
Cultural innovation
Cultural deviation
Standardization
Unplanned cultural change

Cultural congruence

Correct answer
Cultural congruence

A circle with thumb and forefinger means: *

1/1
Zero or worthless in France
All the options are correct
Sexual insult in Greece
OK in USA
Money in Japan

If a government wants to tax goods entering at its borders, it will impose what is called
a(n): *
1/1
Tariff.

Voluntary export restraint.

Quota.
Orderly market agreement.
Standard monetary barrier.

When Rita Thomas' clothing company began to market its line of inexpensive cotton
shirts in Africa, it assumed that it would be able to use its television and print
advertising that had worked so well in the United States and other countries. However,
the company was soon to learn that literacy rates and ability to access television was
not the same as in the other areas of the world. Which of the following environments
would most correctly apply to the above situation? *
1/1
Foreign environment (uncontrollable)

Domestic environment (controllable)

Foreign environment (controllable)
Domestic environment (uncontrollable)
Domestic environment (marketing mix variables)

The difference between domestic marketing and international marketing lies with
……………..within which marketing plans/strategies must be implemented. *
1/1
Marketing concept
Domestic market extension orientation.
Multidomestic marketing orientation.
Global marketing concept.
The environment.
If a company adopts a concept wherein it views an entire set of country markets as a
unit, identifying groups of prospective buyers with similar needs as global market
segment and developing a marketing plan that strives for standardization wherever it
is cost and culturally effective, the company has adopted what is called the: *
1/1
Domestic market extension orientation.
Global marketing concept.

Multidomestic marketing orientation.

Social marketing concept.
Marketing concept

Depending on the product and market, firms may pursue a global market strategy for
one product (global market orientation – P&G diapers) but a multidomestic strategy for
another product (international market orientation = P&G detergents). *
1/1
False
True

The Acrobat Corporation has ____________________ in that it actively does not

cultivate customers outside the United States; however, this company's products do
reach foreign markets through trading companies. *
0/1
Anti-foreign marketing
Pre-international marketing

Pre-global marketing
No direct foreign marketing
Infrequent foreign marketing

Correct answer
No direct foreign marketing

Lawyers are very important in the high context culture. *

1/1
False
True

If a country sells more to other countries than it buys from them, the situation is called
a favorable: *
0/1
Import-export statement.
Positive supply-demand statement.
Balance of trade.
Supply-demand statement.
Balance-of-payments.

Correct answer
Balance of trade.

If Germany limits the number of Japanese ball bearings that may enter its country to
protect its domestic industry and reduce reliance of foreign supply, it is using a(n)
_______ as a trade barrier. *
1/1
Orderly market agreement.
Voluntary export restraint.
Quota

Standard monetary barrier.

Tariff.

A Taiwanese chip manufacturer is intentionally selling its chips in the United States for
less than the cost of production. It is doing this to undermine the U.S. competition and
to take control of the U.S. chip market. Such a company would be correctly accused of
__________ pricing. *
0/1
Monopolistic

Predatory
Demand-based
Supply-based
Standard

Correct answer
Predatory
What is required for a firm to be successful in international marketing? *
1/1
Entrepreneurial salespeople
Political connections
Monopoly control
Past success in domestic marketing
A thorough and complete commitment

One of Phillipe Ortiz's difficulties in marketing his line of Philippine cabinetry in Los
Angeles is that he is still tied culturally to business models that work in the Philippines.
These models do not work in the United States. The obstacle that Mr. Ortiz is facing
may be identified as being which of the following? *
1/1
Cultural backlash
SRC

Ethnocentrism
Racism
Xenophobia

Such elements as political and legal forces, economic climate, and competition are the
three elements found in the ___________________ according to the international
marketing task model found in the text. *
0/1
Foreign environment (uncontrollable)

Foreign environment (controllable)

Domestic environment (controllable)
Domestic environment (marketing mix variables)
Domestic environment (uncontrollable)

Correct answer
Domestic environment (uncontrollable)

Rupkatha has just been assigned to her company's international marketing office in
Switzerland. Rupkatha is attuned to the nuances of Swiss culture, the many languages
that are spoken there, and appreciates the diversity of cultural ideas. Rupkatha is: *
1/1
Socially adept.
A low power distance sales representative.
Making unplanned cultural adjustments.
Culturally sensitive.

A change agent.