Deck 1: The Scope and Challenge of International Marketing

Question 1

The difference between domestic and international marketing lies in the different concepts of marketing.

Answer 1

False
Explanation: The difference between domestic and international marketing lies not with different concepts of marketing but with the environment within which marketing plans must be implemented.

Question 2

The political and legal environment is a controllable element for international marketers because of the ability to lobby and influence legislation.

Answer 2

False
Explanation: Political/legal forces and the level of technology are only two of the uncontrollable aspects of the foreign environment along with economic forces, competitive forces, structure of distribution, geography and infrastructure, and cultural forces.

Question 3

International marketing is 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.

Answer 3

True
Explanation: International marketing is 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.

Question 4

The process of evaluating the uncontrollable elements in an international marketing program involves substantial doses of cultural, political, and economic shock.

Question 5

The foreign uncontrollable environment is the same as the domestic uncontrollable environment.

Question 6

The international marketer must deal with at least two levels of uncontrollable uncertainty.

Question 7

The level of technology is an uncontrollable element for international marketers.

Question 8

In a broad sense, the uncontrollable elements of the foreign business environment constitute the culture.

Question 9

The controllable elements can be altered in the long run and, usually, in the short run to adjust to changing market conditions, consumer tastes, or corporate objectives.

Question 10

Domestic foreign policy is an example of an international uncontrollable element affecting a firm's international marketing success.

Question 11

Abolition of apartheid in South Africa is an example of a positive uncontrollable element in an international marketing scenario.

Question 12

For companies today, becoming international is a luxury only some can afford.

Question 13

The international marketer is not affected by domestic competition.

Question 14

Political and legal forces, economic climate, and competition are some of the domestic environment controllables.

Question 15

One uncontrollable element that is generally well understood is the level of technology.

Question 16

Political and legal issues a company may face abroad are mitigated by the "alien status" of the company.

Question 17

A good illustration of an uncontrollable variable that might impact international business is a marketing decision with respect to research.

Question 18

The uncontrollable factors a company has to deal with decreases with the number of foreign markets in which a company operates.

Question 19

Companies from Japan are the leading group of investors in the United States.

Question 20

In a domestic situation, political details and the ramifications of political and legal events are often more transparent than they are in some foreign countries.

Question 21

Sam Watkins just recently ate and, therefore, feels justified in refusing food from his Middle Eastern host. In this instance, Sam's self-reference criterion has just saved him from making a cultural blunder.

Question 22

The most profound change in the orientation of a company toward markets and associated planning activities happens at the "regular foreign marketing" stage of the international marketing involvement.

Question 23

Understanding one's own culture normally requires no additional study.

Question 24

A company at the "no direct foreign marketing" stage of international marketing involvement does not actively cultivate customers outside national boundaries.

Question 25

Of all the events and trends affecting global business today, four stand out as the most dynamic. Which of the following would be one of those events?

A) The trend toward buying American cars in Europe.
B) The trend toward the acceptance of the free market system among developing countries.
C) The trend toward using English as the global language.
D) The trend toward establishing a world currency.
E) The trend toward worldwide instant communication.

Question 26

Which of the following is a controllable element for an international marketer?

A)

Question 27

To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that emphasizes the need for ethnocentrism.

Question 28

A self-reference criterion is closely related to ethnocentrism.

Question 29

John refuses to buy Japanese products because he sees this as a way of selling out to a nation known for its aggressive behavior. John is using a self-reference criterion to make his decision.

Question 30

The most effective approach to build global awareness into an organization is to increase the diversity mix of the employee profile.

Question 31

Which of the following is the reason why the international marketer's task is more complicated than that of the domestic marketer?

A) Because the international marketer must change his marketing goals in the various countries of operation.
B) Because the international marketer must deal with at least two levels of uncontrollable uncertainty instead of one.
C) Because technological standardization could challenge effective customization in different markets.
D) Because international trade regulations still do not allow free trade in most markets across the globe.
E) Because lack of competent skills makes effective service a major challenge.

Question 32

In dealing with unfamiliar markets, marketers must be aware of the frames of reference they are using in making their decisions.

Question 33

For an international marketer, the _____ can be altered in the long run and, usually, in the short run to adjust to changing market conditions, consumer tastes, or corporate objectives.

A) competitive structure
B) economic climate
C) structure of distribution
D) environmental factors
E) controllable elements

Question 34

Which of the following is an uncontrollable element for an international marketer?

A) Structure of distribution
B) Promotion
C) Price
D) Research
E) Firm characteristics

Question 35

Which of the following is NOT TRUE of the impact of globalization on domestic markets?

A) Study of manufacturing companies found that multinationals of all sizes and in all industries outperformed their strictly domestic U.S. counterparts.
B) Profit levels from international ventures exceed those from domestic operations for many multinational firms.
C) On average, firm value is increased by global diversification.
D) Companies with foreign operations find that foreign earnings are making an important overall contribution to total corporate profits.
E) Companies with only domestic markets have found it relatively easy to sustain their customary rates of growth.

Question 36

The global marketing concept views the marketplace as consisting of one primary domestic market that is complimented by several smaller regional markets.

Question 37

All of the following events and trends are among the four major trends described in the chapter as having a major impact or effect on global business EXCEPT:

A) the trend toward the acceptance of the free market system among developing countries in Latin America, Asia, and Eastern Europe.
B) the rapid growth of the World Trade Organization and regional free trade areas such as NAFTA and the European Union.
C) the burgeoning impact of the Internet and other global media on the dissolution of national borders.
D) the trend toward decreasing OPEC profits as oil reserves decline in the 21st century.
E) the mandate to properly manage the resources and global environment for the generations to come.

Question 38

Research has revealed that smaller home markets and larger production capacities appear to favor internationalization.

Question 39

Which of the following is the most critical difference between domestic marketing and international marketing?

A) The environment in which marketing plans must be implemented
B) The different concepts of marketing
C) The change in marketing goals
D) The difference in technological standards
E) The change in corporate objectives

Question 40

_____ is 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.

A) Multinational marketing
B) World trade
C) Corporate management
D) International marketing
E) Global trade

Question 41

Considering the model of the international marketing task displayed in the text, which of the following reasons demonstrates the most important difference between the international marketer's task and that of the domestic marketer?

A) The international marketer must deal with at least two levels of uncontrollable uncertainty instead of one.
B) The level of technology and cultural forces are controllable elements for the domestic marketer.
C) The supply and distribution channels are uncontrollable elements for the international marketer.
D) The competitive structure is one of the controllable factors for an international marketer.
E) The international marketer is less concerned about geography and infrastructure than the domestic marketer.

Question 42

Robert Jonas is in charge of a new marketing effort directed toward Peru. In order for his company to effectively market and distribute to all of Peru's major cities, Mr. Jonas must devise a logistics plan for crossing the Andes Mountains on a daily basis. Which of the following foreign environment uncontrollable variables would be a chief concern as Mr. Jonas devises his plan?

A) Competitive forces
B) Cultural forces
C) Geography and infrastructure
D) Economic forces
E) Political/legal forces

Question 43

Ralph Waite has just been assigned the task of reviewing his company's international investment opportunities. He knows that his view of the list of opportunities should be tempered by foreign environment uncontrollables that might be encountered. Which of the following would be the BEST illustration of a foreign environmental uncontrollable that Mr. Waite should investigate?

A) A country's level of technology.
B) Pricing policies in the foreign country.
C) The ability to do research in the foreign country.
D) Manufacturing capabilities in the foreign country.
E) The ability to do advertising in the foreign country.

Question 44

Which of the following is an example of a positive political action that favored international marketing?

A) Abolition of apartheid in South Africa
B) Trade ban on Libya
C) Trade embargo on Cuba
D) Tariff hike for imports established by China
E) Coupling human rights issues with foreign trade policy

Question 45

Current data says that foreign investments in the U.S. amount to ___.

A) 23.4 trillion
B) 700 million
C) 30 billion
D) 350 billion
E) 670 billion

Question 46

Amy Sims has been assigned the task of preparing a marketing plan for company for the next year's business activities. She knows that she should begin her plan by examining the variables that she has some control over. These controllable variables would include price, product, channels-of-distribution, and:

A) demand.
B) cultural forces.
C) competition.
D) economic climate.
E) promotion.

Question 47

Compared to the foreign environment uncontrollable variables, which of the following elements is excluded from the domestic marketer's list of uncontrollable variables?

A) Political forces.
B) Competitive structure.
C) Economic climate.
D) Cultural forces.
E) Legal forces.

Question 48

Which of the following is an uncontrollable factor in a domestic environment?

A) Firm characteristics
B) Competitive structure
C) Channels of distribution
D) Price
E) Promotion

Question 49

Competition within the home country can have a profound effect on the international marketer's task. Which of the following BEST illustrates this statement?

A) Boeing recently opened talks with its primary trade union to avoid a forecasted strike.
B) Microsoft and Dell have jointly invested $700 million in a new venture to investigate high technology of the future.
C) Fuji opened a $300 million plant in the U.S. and now commands a 12 percent share of the lucrative U.S. film market.
D) Several companies are still under investigation because of the Enron scandal.
E) Declaration of independence by Baltic States after the collapse of the Soviet Union.

Question 50

With respect to the environment in which a business operates, such factors as competition, legal restraints, government controls, and the weather would all be examples of what are called:

A) controllable elements.
B) uncontrollable elements.
C) predictable elements.
D) demographic elements.
E) cultural elements.

Question 51

All of the following would be among the domestic marketer's controllable environmental variables EXCEPT:

A) research.
B) price.
C) product.
D) channels of distribution.
E) competitive structure.

Question 52

Which of the following is a possible outcome of the alien status of a company?

A) The company can be seen as an exploiter.
B) The company receives preferred treatment at the hands of politicians.
C) Political activists can rally support for the company.
D) Local individuals are given control of management.
E) The company is viewed as a platform for cultural integration.

Question 53

Which of the following reflects the relation between international business and domestic business?

A) Domestic economic climate does not normally impact international businesses.
B) Domestic businesses find it relatively easy to manage profits in the current scenario.
C) Most domestic businesses are the result of customization efforts of international businesses.
D) The ability to invest abroad is to a large extent a function of domestic economic vitality.
E) Domestic businesses are more viable as capital tends to move toward minimum use.

Question 54

All of the following appear as a foreign environment uncontrollable variable in the model of the international marketing task shown in the text EXCEPT:

A) economic forces.
B) competitive forces.
C) channels of distribution.
D) cultural forces.
E) political/legal forces.

Question 55

All of the following would be considered to be controllable elements of marketing decisions EXCEPT:

A) product.
B) price.
C) promotion.
D) research.
E) government regulations.

Question 56

Companies from _____ lead in foreign investment in the United States.

A) Kingdom of Saudi Arabia
B) Russia
C) China
D) United Kingdom
E) Canada

Question 57

_____ is 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.

A) Global management
B) Global business
C) Marketing
D) International marketing
E) Global marketing concept

Question 58

Which of the following is NOT true of the impact of culture?

A) The reaction to much of the environment's (cultural) impact on the marketer's activities is automatic.
B) In dealing with unfamiliar markets, frames of reference are unimportant in evaluating the potential of a market.
C) Judgments are derived from experience that is the result of acculturation in the home country.
D) An established frame of reference is an important factor in determining a marketer's reaction to situations-social and even nonsocial.
E) As a result of acculturation, we react in a manner acceptable to our society without consciously thinking about it.

Question 59

A political decision involving _____ would most likely have a direct effect on a firm's international marketing success.

A) domestic foreign policy
B) immigration reform
C) oil exploration policy
D) FCC satellite regulations
E) FAA airline regulations

Question 60

According to the text, the primary difference in the practice of marketing at the domestic versus the international level is:

A) the environment within which the marketing plans must be implemented.
B) the cultural mix of the people working in the organization.
C) the level of investment required.
D) the level of management control.
E) the difference in the concepts of marketing.

Question 61

The task of _____ is the most challenging and important one confronting international marketers.

A) caring for the environment
B) dealing with politics
C) international standardization
D) cultural adjustment
E) international branding

Question 62

Which of the following would be the BEST illustration of the "alien status" found in the political and legal arena that sometimes cause problems for international marketers as they attempt to doing business in foreign countries?

A) A company in the U.K. recently purchased Ben & Jerry's ice cream operations.
B) The Indian government told Coca-Cola that it must reveal its "secret formula" if it wished to continue doing business in India.
C) Richard Branson's Virgin Cola was not widely accepted in the United States.
D) French Canadians prefer French to English when conducting business in Canada.
E) British Airlines and Japan Airlines join American Airlines to form OneWorld Alliance.

Question 63

The _____ is an uncontrollable element that can often be misread because of the vast differences that may exist between developed and undeveloped countries.

A) structure of distribution
B) competitive forces
C) economic forces
D) political/legal forces
E) level of technology

Question 64

To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that isolates the self-reference criterion influences. Which of the following would be the first-step to take to avoid the aforementioned errors?

A) Redefine the problem without the SRC influence.
B) Solve the problem for the optimum business goal situation.
C) Isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem.
D) Define the business problem or goal in home-country cultural traits, habits, or norms.
E) Define the business problem or goal in foreign-country cultural traits, habits, or norms through consultation with natives of the target country.

Question 65

Which of the following is the most effective way to achieve organizational global awareness?

A) Establish regular awareness campaigns across the organization.
B) Organize employee trips to foreign cultures to increase their sensitivity.
C) Increase the diversity mix of the employee profile.
D) Have a culturally diverse senior executive staff or board of directors.
E) Promote social networking as a means to improve inter-cultural communication.

Question 66

The primary obstacles to success in international marketing are a person's _____ and an associated ethnocentrism.

A) regionalism
B) holism
C) self-reference criterion
D) segregation
E) integration

Question 67

Which of the following BEST exemplifies the tolerance of a globally aware manager?

A) You should be familiar with the leading cultural trends in the world.
B) You have to accept as your own the cultural ways of another.
C) You must allow others to be different and equal.
D) You must be aware of globally accepted culturally standards.
E) You must have undertaken courses in cultural differences.

Question 68

Which of the following is true of ethnocentrism?

A) It is the cultural binding force among a diverse employee population in an organization.
B) It is generally a problem when managers from affluent countries work with managers and markets in less affluent countries.
C) American managers have generally been uninfluenced by it, especially in the beginning of the 21st century.
D) Ethnocentrism is the causative factor behind the phenomenon of self-reference criterion.
E) Self-reference criterion is universally considered the technique to reduce or eliminate ethnocentrism.

Question 69

_____ is an unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions.

A) Regionalism
B) Holism
C) Self-reference criterion
D) Segregation
E) Xenophobia

Question 70

Which of the following is an obvious strategy organizations should use to build global awareness into organizations?

A) Establish subsidiaries in culturally diverse countries, thus leading to inter-cultural communication.
B) Select individual managers specifically for their demonstrated global awareness.
C) Recruit managers from other nations to increase diversity.
D) Organize foreign trips for managers to improve their understanding.
E) Increase mix of diversity in the employee profile of the organization.

Question 71

The _____ and issues abroad are often amplified by the "alien status" of the company, which increases the difficulty of properly assessing and forecasting the dynamic international business climate.

A) structure of distribution
B) competitive forces
C) economic forces
D) political/legal forces
E) level of technology

Question 72

To be globally aware, an international marketer must have all the following EXCEPT:

A) a tolerance of cultural differences.
B) a knowledge of cultures.
C) a knowledge of history.
D) a knowledge of microeconomics.
E) a knowledge of world market potential.

Question 73

A part of cross-cultural analysis requires understanding of one's own culture. Why is it surprising that understanding one's own culture requires additional study?

A) Because self-criticism is not easy to build when studying one's own culture.
B) Because much of cultural influence on market behavior is at the subconscious level.
C) Because of the complexity of the cultural traits in one's own country.
D) Because international trade treaties mandate that managers have extensive cultural knowledge of their own country.
E) Because cultural influence on one's own market behavior is generally undocumented.

Question 74

In the United States, unrelated individuals keep a certain physical distance between themselves and others when talking or in groups. We do not consciously think about that distance; we just know what feels right without thinking. Someone from another culture would not necessarily understand this and would apply their own rules for contact when speaking. The preceding is an illustration of what is called applying a _____ when reviewing the mentioned social custom of contact.

A) self-space
B) segregation
C) integration
D) space command theory
E) self-reference criterion (SRC)

Question 75

The most effective way to control the influence of ethnocentrism and the SRC is to:

A) reduce interaction with culturally diverse audience.
B) ask for feedback on every possible occasion.
C) recognize their effects on our behavior.
D) learn at least two foreign languages to understand the cultural differences.
E) ask for second opinion in a decision-making scenario.

Question 76

Your _____ can prevent you from being aware that there are cultural differences or from recognizing the importance of those differences.

A) self-space
B) personality
C) demographic character
D) self-reference criterion (SRC)
E) concept of integration

Question 77

Which of the following is closely related to self-reference criterion?

A) Central tendency
B) Marketing myopia
C) Ethnocentrism
D) Multiculturalism
E) Pluralism

Question 78

Which of the following will aid a manager in understanding some Latin Americans' reluctance toward foreign investment or Chinese reluctance to open completely to outsiders?

A) A better understanding of global economic trends.
B) A deeper understanding of world market potential.
C) A tolerance toward cultural differences.
D) An understanding of microeconomics.
E) A historical perspective.

Question 79

Which of the following organizations seem better equipped for internationalization?

A) A firm that has more than two liaison offices in foreign countries
B) A firm that has a production capacity that is much greater than home market demand
C) A firm that has more than three production facilities in the home market
D) A firm that has a culturally diverse employee profile
E) A firm that has experienced increased profits in home market for three consecutive years

Question 80

_____ is the conscious effort on the part of the international marketer to anticipate the influences of both the foreign and domestic uncontrollable factors on a marketing mix and then adjust the marketing mix to minimize the effects.

A) Standardization
B) Adaptation
C) Segregation
D) Segmentation
E) Projection