Deck 2: Culture and Cross-Cultural Marketing

Question 1

A central authority makes all key economic decisions in a:

A) Market economy
B) Planned economy
C) Command economy
D) Mixed economy
E) Stabilized economy

Answer 1

C

Question 2

When the marketplace guides part of an economic system and the government runs the other part,this is called a:

A) Moderate economy
B) Mixed economy
C) Planned economy
D) Fixed economy
E) Stabilized economy

Answer 2

B

Question 3

An economy in which most economic decisions are made in the marketplace is known as a:

A) Market economy
B) Planned economy
C) Command economy
D) Mixed economy
E) Stabilized economy

Answer 3

A

Question 4

Which has occurred in what were formerly communist countries as they moved to free markets?

A) Industrialization
B) Commercialization
C) Transition economy
D) Fragmented economy
E) Moderation in economic growth

Question 5

Which of the following is a BRIC country?

A) Chile
B) China
C) Chad
D) Colombia
E) Cambodia

Question 6

In a mixed economy,the government usually does not oversee:

A) Defense
B) Education
C) Road building and repair
D) Fire protection
E) Cultural customs

Question 7

In which stage of Rostow's model does rapid expansion of tertiary,third-wave support industries occur alongside a decline in manufacturing?

A) Traditional
B) Preconditions for takeoff
C) Takeoff
D) Drive to maturity
E) Mass consumption

Question 8

The amount of goods and services that producers will provide at various prices is:

A) Supply
B) Demand
C) Price
D) Quantity
E) Quality

Question 9

Which feature of transition economies is described by prices being set by supply and demand and removal of trade barriers?

A) Privatization
B) Liberalization
C) Budget reform
D) Maturation
E) Stabilization

Question 10

Which of the following is a stage in Rostow's stages of development?

A) Traditional
B) Newly formed
C) Regional power
D) Economic leader
E) Postmodern

Question 11

An example of a country with a strong command economy is:

A) United States
B) England
C) Canada
D) Germany
E) Cuba

Question 12

A strong scientific community represents which of the following factors in the theory of national competitive advantage?

A) Demand conditions
B) Related and supporting industries
C) Factor conditions
D) Government
E) Supply conditions

Question 13

An underdeveloped country may also be referred to as:

A) Traditional
B) Industrialized
C) Newly industrialized
D) Sustenance
E) Nationalized

Question 14

Which of the following is not one of Porter's Five Competitive Forces?

A) Threat of new entrants
B) Threat of substitute products
C) Bargaining power of suppliers
D) Rivalry among competitors
E) Threat of governmental actions

Question 15

Which of the following factors generate national competitive advantage according to Michael Porter's theory?

A) Firm strategy, structure, and rivalry
B) Climate conditions
C) International economics
D) Firm age
E) Firm size

Question 16

An extreme form of socialism is:

A) Capitalism
B) Command socialism
C) Market behaviorism
D) Communism
E) Isolationism

Question 17

South Korea,Taiwan,Hong Kong,and Singapore are referred to as:

A) Four Giants
B) Four Lions
C) Four Leaders
D) Four Tigers
E) Four Bears

Question 18

In which stage of Rostow's model do manufacturing industries grow rapidly,and airports,roads and railways are built?

A) Traditional
B) Preconditions for takeoff
C) Takeoff
D) The drive to maturity
E) Mass consumption

Question 19

Older consumers who remain resistant to foreign goods after a conversion from communism suffer from what is known as:

A) Ethnocentric fatigue
B) Transition fatigue
C) Socialist fatigue
D) Regiocentric fatigue
E) Economic fatigue

Question 20

The theory of national competitive advantage was introduced by:

A) Michael Porter
B) Michael Foster
C) Jonathan Dunning
D) Theodore Levitt
E) Sidney Arenas

Question 21

What is a fundamental difference between a strategic alliance and a joint venture?

A) Ideas are not shared in a strategic alliance
B) A separate legal entity is not created in a joint venture
C) A separate legal entity is not created in a strategic alliance
D) Resource sharing does not take place in a strategic alliance
E) Joint ventures are not allowed in several European countries while strategic alliances are

Question 22

A greenfield investment is a type of:

A) Strategic partnership
B) Joint venture
C) Joint enterprise
D) Wholly owned subsidiary
E) Cooperative venture

Question 23

When a banking organization sees the potential to become nationalized,it experiences:

A) Threat of new entrants
B) Threat of substitute products
C) Bargaining power of suppliers
D) Rivalry among competitors
E) Threat of governmental action

Question 24

The Quantas American Express Classic Card is an example of a:

A) Strategic partnership
B) Joint venture
C) Joint enterprise
D) Cooperative alliance
E) Cooperative venture

Question 25

What is the primary advantage of a wholly owned subsidiary?

A) Shared risk
B) Shared investment
C) Control
D) Diversification
E) Acquisition equity

Question 26

When Korean Airlines focused on differentiating through the speed and convenience of its service,it was responding to which competitive force?

A) Threat of new entrants
B) Threat of substitute products
C) Bargaining power of suppliers
D) Rivalry among competitors
E) Threat of governmental actions

Question 27

Which type of reseller buys and resells products?

A) Merchant
B) Exchange
C) Company wholesale
D) Joint enterprise
E) None of the above

Question 28

Which is a formal agreement between two companies to work together toward a common goal?

A) Joint alliance
B) Strategic alliance
C) Joint venture
D) Strategic venture
E) None of the above

Question 29

When textbook publishers grant rights to companies to reprint books and sell them in foreign countries,it is:

A) Franchising
B) Cooperative contracts
C) Licensing
D) Wholly owned subsidiaries
E) None of the above

Question 30

Sustainability challenges are highlighted in the trade of virtual:

A) Plants
B) Web space
C) Water
D) Oxygen
E) Ingredients

Question 31

With regard to sustainability,one of the biggest challenges facing international marketers as more countries develop economically is:

A) How to get products into consumers' hands
B) How to set price levels in the face of economic uncertainty
C) How to advertise products internationally with a consistent message
D) How to balance economic growth with environmental protection
E) How to enter free trade areas

Question 32

McDonald's and KFC are well known for which type of activity worldwide?

A) Joint venture
B) Strategic alliance
C) Licensing
D) Franchise
E) Distribution

Question 33

If a technology can be easily copied without violating any laws,which exists?

A) Threat of new entrants
B) Threat of substitute products
C) Bargaining power of suppliers
D) Rivalry among competitors
E) Bargaining power of consumers

Question 34

Which of the following is not a category of joint ventures?

A) Majority owned
B) Minority owned
C) Subsidiary owned
D) Equal split of ownership
E) Divided ownership

Question 35

Which of the following cultural factors emphasizes purchasing new and better goods and services?

A) Patriotism
B) Nationalism
C) Discrimination
D) Materialism
E) Frugality

Question 36

Which of the following entry modes can be accomplished through direct sales and use of an intermediary?

A) Exporting
B) Licensing
C) Wholly owned subsidiaries
D) Joint ventures
E) Strategic alliances

Question 37

Which grants the exporting company the greatest degree of control?

A) Strategic partnership
B) Cooperative venture
C) Joint enterprise
D) Wholly owned subsidiary
E) Joint venture

Question 38

A legal partnership that involves investment,a division of ownership,and the creation of a new legal entity is a:

A) Strategic partnership
B) Joint venture
C) Joint enterprise
D) Cooperative alliance
E) Cooperative venture

Question 39

Consumer price sensitivity leads to increased:

A) Threat of new entrants
B) Threat of substitute products
C) Bargaining power of suppliers
D) Rivalry among competitors
E) Threat of governmental actions

Question 40

Which of the following entry modes has the lowest risk but offers the lowest level of control for the international marketer?

A) Exporting
B) Licensing
C) Wholly owned subsidiaries
D) Joint ventures
E) Strategic alliances

Question 41

A free and competitive marketplace means the government does not interfere with prices.

Question 42

According to Internationalization Theory,companies go through each of the following stages when becoming global except:

A) No regular export activities
B) Export via independent representatives
C) Establishment of an overseas sales subsidiary
D) Establishment of merchant exchange agreements
E) Foreign production

Question 43

Which advantages relate to the ability to capture transactional benefits,such as lower costs?

A) Transaction ownership
B) Transaction equity
C) Transaction accounting
D) Transaction settlement
E) Transaction offering

Question 44

Internationalization Theory is closely related to which school?

A) Oxford
B) Blanley
C) Windem
D) Hardman
E) Uppsala

Question 45

Which can be thought of as explaining the "why" of multinational corporation foreign activities according to Eclectic Theory?

A) Resource advantages
B) Demand advantages
C) Supply advantages
D) Ownership advantages
E) Asset advantages

Question 46

The updated categorization of economic development that is accepted by the United Nations includes first-,second-,and third-world country designations.

Question 47

A traditional country is a country in which little technology exists and the capital required to purchase raw materials and create services is not widely available.

Question 48

Socialism refers to economic systems where the state owns at least some parts of industry.

Question 49

Development of an economy generally leads to less competition due to monopolization by very few producers.

Question 50

Capitalism is considered to be a type of market economy.

Question 51

Which can be thought of as the "how" of market entry according to Eclectic Theory?

A) Resource advantages
B) Demand advantages
C) Internalization advantages
D) Internationalization advantages
E) Asset advantages

Question 52

Countries moving through the transformation from developing to developed are termed emerging markets.

Question 53

Eclectic Theory assumes that which mode of entry is most efficient?

A) Exporting
B) Licensing
C) Joint venture
D) Strategic alliance
E) Wholly owned subsidiary

Question 54

Which moves beyond the ordered,staged approach of Internationalization Theory to focus solely on the reasons a company's leaders select a specific type of entry mode?

A) Internalization Theory
B) Global Trade Theory
C) Economic Selection Theory
D) Theocratic Operations Theory
E) Multinational Selection Theory

Question 55

Economic systems dictate the distribution of resources to members of a society.

Question 56

According to Eclectic Theory,which represents anything that a company does well?

A) Resource advantages
B) Demand advantages
C) Supply advantages
D) Ownership advantages
E) Asset advantages

Question 57

Which plays a primary role in country selection under Internationalization Theory?

A) Governmental contacts
B) Psychic distance
C) Trade restrictions
D) Global relations
E) Economic barriers

Question 58

When selecting a mode of entry,which represents reduced costs per item due to increased production?

A) Risk
B) Uncertainty
C) Economics of scale
D) Rivalries
E) New entrants

Question 59

Greater economic development affords an increased number of potential products to be sold to an expanding number of potential customers.

Question 60

Urbanization occurs during the "takeoff" stage of Rostow's stages of development.

Question 61

Industries with a relatively small number of buyers face increased customer power.

Question 62

The existence of substitute products increases competitive intensity in an industry.

Question 63

The Rostow Modernization Model has been criticized for failing to recognize that some nations have experienced rapid economic expansion.

Question 64

Risk is not a factor that influences entry mode selection.

Question 65

Bottom-of-the-pyramid consumers are most likely to reside in most-developed countries.

Question 66

Transition economies occur in impoverished areas.

Question 67

A NIC is a newly industrialized country.

Question 68

The theory of national competitive advantage provides an explanation for why countries succeed in certain industries.

Question 69

Bottom-of-the-pyramid customers do not offer a valid target market.

Question 70

One way of lessening the bargaining power of suppliers is to buy the supplier in question.

Question 71

BRIC countries include Brazil,Russia,India,and Cambodia.

Question 72

The term EMM stands for "emerging,mature markets."

Question 73

The growth of the Internet has made the direct-sales approach increasingly difficult for international marketers.

Question 74

The ability to innovate helps establish national competitive advantage.

Question 75

BEMS,or big emerging markets,are generally unattractive for international marketers due to limited growth opportunities.

Question 76

One factor in Porter's theory of national competitive advantage is the government.

Question 77

Widely accessible knowledge and processes result in more rivalry among competitors than does specialized knowledge.

Question 78

Economic growth usually means more complex marketing infrastructures.

Question 79

One of Porter's Five Forces is the threat of price increases.

Question 80

Transition economies occur in what were formerly communist countries.