Deck 6: Contemporary Environmental Variables in International Marketing

Question 1

Locally and internationally there is increasing concern regarding the environmental standards of producers of all forms of product. The reason for this is:

A) major companies are being held responsible for their environmental impact.
B) national and local governments are becoming increasingly involved in the issue.
C) there is greater public awareness of issues.
D) international conferences such as the G20 summit are being targeted by environmentalists.
E) all of the above.

Answer 1

E

Question 2

One of the major areas of confusion for international marketers is what constitutes appropriate ethical behaviour. Outline the factors that influence interpretations of what is ethical and what is not.

Answer 2

Ethical behaviours differ from country to country because of the following: popular attachments to governments (if respected, a government is less likely to break its laws), popular customs (e.g. gift giving as a business norm), level of economic development, relative size of the public sector, low income of public servants, obscure political and legal environments and high levels of government control and state ownership (top officials use their positions for personal gain).

Question 3

Research shows that there is a considerable difference between the stated perceptions of corruption and the practice of engaging in corrupt activities.

Answer 3

True

Question 4

Views of ethical behaviour differ and in some countries bribery is seen as an accepted business practice. From a relativist perspective, bribery would be regarded as:

A) acceptable if it leads to an opening into a new market.
B) acceptable if it is customary in the host country.
C) unacceptable under any circumstances.
D) acceptable if it is going to benefit the organisation.
E) acceptable if it is beneficial to both parties.

Question 5

According to the 2014 Corruption Perceptions Index, which of the following countries is perceived to have the lowest levels of corruption?

A) New Zealand
B) Australia
C) Japan
D) United States
E) Hong Kong

Question 6

Views of ethical behaviour differ and in some countries bribery is seen as an accepted business practice. From a utilitarian perspective, bribery would be regarded as:

A) acceptable because it leads to contracts that create employment.
B) acceptable if it is commonly practiced in the host country.
C) unacceptable under any circumstances.
D) acceptable if it is going to benefit the organisation.
E) acceptable if it was beneficial to both parties.

Question 7

Cronyism is a form of corruption that involves favouring only close family.

Question 8

Ethical misbehaviour can take many forms including smuggling, child labour, coercion, nepotism and abuse of safety standards.

Question 9

Ethical issues are not confined to corruption. Discuss other ethical dilemmas an international marketer may encounter and how the marketer's personal perspective will influence the management of these challenges.

Question 10

Ethical behaviours differ from country to country because of:

A) low income for public servants.
B) levels of economic development.
C) popular customs.
D) options A, B and C.
E) options A and B only.

Question 11

In countries where public servants receive a low income, there is a greater chance of unethical behaviour occurring.

Question 12

Which of the following conditions is most likely to increase the level of unethical international marketing behaviour?

A) Poorly defined legal environments
B) High levels of government control and state ownership
C) Low income for public servants
D) All of the above
E) Options A and C only

Question 13

Cronyism is acceptable in some countries and is often confused with corruption. Cronyism is generally found in social networks characterised by:

A) simple relationships where direct exchange is the norm.
B) complex relationships where legal agreements are used to confirm the arrangement.
C) many businesses and organisations enjoying a transparent and open business relationship.
D) complex, indirect and mutually reinforcing social exchanges.
E) complex relationships with high government intervention.

Question 14

Which of the following is NOT an ethical issue impacting on international marketing?

A) Product quality and safety breaches
B) Employment practices
C) Tax evasion or avoidance
D) Use of power for personal advantage
E) All of the above

Question 15

A high level of government control leads to higher ethical behaviour.

Question 16

Ethical issues that impact international marketing are to be found in:

A) gift giving and bestowing favours.
B) workplace conditions and employment practices.
C) breaching food and drug standards.
D) options A, B and C.
E) options A and C only.

Question 17

A utilitarian perspective of ethics in international marketing takes the view that what is beneficial to the greatest number of people is acceptable behaviour.

Question 18

Views of ethical behaviour differ and in some countries bribery is seen as an accepted business practice. From a universalist perspective, bribery would be regarded as:

A) acceptable if it leads to an opening into a new market.
B) acceptable if it is customary in the host country.
C) unacceptable under any circumstances.
D) acceptable if it is going to benefit the organisation.
E) acceptable if it is beneficial to both parties.

Question 19

In the international marketing arena, ethical considerations are more complex because:

A) legal frameworks differ across different nations.
B) customer needs and wants vary across national boundaries.
C) different criteria apply in different countries as to what is considered acceptable.
D) market research rarely includes an ethical dimension.
E) all of the above

Question 20

A universalist perspective of ethics in international marketing takes the view that what is ethical is determined by the host culture.

Question 21

Which of the following generated widespread agreement to reduce emissions?

A) Rio Earth Summit Agreement
B) Mauritius Summit Conference
C) Buenos Areas Conference
D) World Summit on Sustainable Development
E) Kyoto Summit Agreement

Question 22

Environmentalists worldwide are losing their support because the average citizen believes the environmental cost of growth is acceptable.

Question 23

In approaching environmental issues overseas, there are a number of options open to an organisation. The best way to deal with these issues is to:

A) leave the decisions to the company agent.
B) leave the decisions to the joint partner in the overseas country.
C) have the home organisation address the issue directly.
D) all of the above.
E) none of the above.

Question 24

What threats does the growth in environmental awareness and concern present for international marketers? Discuss with examples.

Question 25

Which of the following statements about environmentalism in the international marketing environment is FALSE?

A) Australia's reputation regarding environmental issues has declined in the past decade.
B) There is a high level of polarisation between the developing and developed countries based on the conflicting demands between economic growth and protecting the environment.
C) Environmental measures can be used as a protectionist device.
D) Both the WTO and its predecessor (GATT) are the main international influencers when it comes to successful implementation of global environmental policies.
E) Measures to protect the environment can distort the natural flow of trade.

Question 26

Climate has an important impact on international marketing activities because it is shown to influence:

A) culture.
B) construction materials.
C) manufacturing materials.
D) consumption preferences.
E) options A and D.

Question 27

What opportunities does the growth in environmental awareness and concern provide for international marketers? Discuss with examples.

Question 28

Measures to protect the environment can distort the natural flow of trade between nations.

Question 29

Climate is the antecedent of cultural differences that in turn impact on the types of products suitable for international marketing.

Question 30

International marketers who target environmentally conscious market segments through green product innovation are said to have a(n):

A) proactive change orientation with benefit enhancement for customers.
B) incremental change orientation with a focus on modification.
C) strategic change orientation with a focus on pollution prevention.
D) accommodative change orientation with a focus on compliance.
E) reactive change orientation with a focus on cost reduction.

Question 31

When undertaking international marketing in countries with colder climates, Sheth (2002) argues that international marketers need to be aware that, although exceptions can be found, generally those people from colder climates:

A) are more inclined to share space and engage in communal living.
B) place less emphasis on laws and contracts.
C) are more concerned with punctuality and time.
D) have lower stress levels and are more 'laid back'.
E) have a tendency to reward the group rather than the individual.

Question 32

An organisation that follows an environmental strategy of pollution prevention and compliance has:

A) a proactive approach with a focus on cost reduction.
B) an accommodative approach with a focus on benefit enhancement for customers.
C) a proactive approach with a focus on benefit enhancement for customers.
D) an accommodative approach with a focus on cost reduction.
E) none of the above.

Question 33

Which generation is known for being more environmentally aware than their predecessors?

A) Generation X
B) The Silent Generation
C) The Baby Bonus Generation
D) Baby Boomers
E) Generation Y

Question 34

Geography and climate can play a role in consumer preferences and behaviours. Explain how you would cater for these differences as an international marketer. Use examples such as food and beverage, clothing and shelter.

Question 35

Increased environmental awareness is decreasing the polarisation between developing and developed nations.

Question 36

Losses by airlines because of the decision of many Australians to cancel holidays to Bali in light of concerns about terrorism is an example of a ________ impact of terrorism.

A) primary
B) response-generated
C) secondary
D) short-term
E) longer-term

Question 37

What are the factors that have contributed to the growth of, interest in and concern for the environment? How does the importance of the environmental movement vary across different markets and economic systems?

Question 38

In colder climates, indoors and outdoors are blended.

Question 39

There have been several multinational environmental conferences held since Rio in 1992. The positive aspects of these conferences include focusing attention on:

A) a wide range of environmental issues including sustainable development.
B) the anti-globalisation movement.
C) emission targets and climate change.
D) options A, B and C.
E) options A and B only.

Question 40

The 2009 multinational environmental conference was held in Kyoto.

Question 41

Globally, there is a pattern of movement away from cities to regional and rural areas.

Question 42

How have recent global health threats impacted on international marketing activities? Outline some of the opportunities and threats that such health threats pose for international marketers.

Question 43

The availability of an adequate infrastructure will have an impact on the feasibility of different ways of entering a market.

Question 44

There is a growing imbalance in the age distribution of people living in the developing world compared to the developed world.

Question 45

Terrorism has a negative impact on the economic outlook and social attitudes of people globally. The impact of terrorism according to Enderwick (2001) can be categorised as:

A) primary impacts.
B) response-generated impacts.
C) uncertainty rating impacts.
D) options A, B and C.
E) options A and B only.

Question 46

The growth in demand for organic food in Australia can be attributed to:

A) the increase in the spread of SARS and mad cow disease.
B) the growing trend of consumers wanting to know the last detail of food products, including the name of the farmer and when it was harvested.
C) the more affordable prices of organically grown produce.
D) the perception that obesity and disease come from manufactured and genetically modified food.
E) all of the above

Question 47

Market risk is the likelihood of:

A) unanticipated movements in prices, exchange rates and interest rates in a country.
B) customers not paying their accounts on time.
C) a change in a nation's economic circumstances causing major changes in the business environment.
D) local competitors unexpectedly moving to ban production of a product in their country.
E) a government interfering in a business transaction.

Question 48

Increased government spending on defence is an example of the primary impact of terrorism in international marketing.

Question 49

Which of the following statements is FALSE in regards to consumerism?

A) Consumer watchdog groups can exert considerable force on the perception of a brand.
B) In developing countries, consumerism is a strong political force.
C) Groups such as the Australian Consumers Association are often instrumental in having changes made to the law to protect consumers.
D) By using social media, consumers have the power to coordinate and create campaigns against companies perceived to be doing the wrong thing.
E) Consumerism is increasing with the use of the internet and social media.

Question 50

Consumerism is strong in countries like Australia and New Zealand.

Question 51

What threats and opportunities does terrorism pose to the development of the global economy?

Question 52

The belief that the world is becoming overpopulated can be refuted by statistics showing a decrease in the global birth rate. Amongst the problems that have been identified are:

A) a growing imbalance between developed and developing countries.
B) human movement from country to country.
C) more people living in rural than urban areas.
D) all of the above.
E) options A and B only.

Question 53

Consumerism is an organised movement of citizens to improve the rights of sellers in relation to buyers.

Question 54

There have always been risks when expanding an organisation's international marketing activities. Discuss these risks and how an international marketer can manage and prepare for them.

Question 55

Terrorism is a major issue worldwide and its negative effects on international business are a major concern for international companies. The economic costs of terrorism include:

A) increased cost of insurance.
B) affecting developing countries hardest.
C) creating uncertainty.
D) threats for regional economic prospects.
E) all of the above.

Question 56

The availability of adequate infrastructure influences which of the following aspects of international marketing activity?

A) Consumerism
B) Environmental impacts
C) Approach to market entry
D) Government regulation
E) All of the above

Question 57

The outbreak of SARS in Asia during 2003 is an example of a human health-related issue impacting on international marketing.

Question 58

Discuss, with examples, how infrastructure endowment and population trends impact on international marketing activities.

Question 59

Health-related issues that create risk for international marketers are divided into the two key categories of:

A) exogenous and endogenous.
B) acute and chronic.
C) viral and bacterial.
D) animal and human.
E) none of the above.

Question 60

In 1970, the global birth rate was 4.5 children per woman. In 2015, the birth rate was ________ children per woman.

A) 2.4
B) 3.1
C) 1.8
D) 4.0
E) 2.0