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| 1 | |
The Tahitian pearl market might never have existed were it not for Salvador Assael, "pearl king" of the South Seas. Assael got into the pearl business at the end of World War II. Tahiti had thousands of Swiss watches and suddenly had no GIs to sell them to. Assael observed that the Japanese were desperate for watches but had no cash and that the Japanese still had a pearl industry. So Assael oversaw the swapping of for watches pearls, which were then sold to the Australian and U.S. markets. This international barter is an example of __________. |
| | A) | predatory pricing |
| | B) | countertrade |
| | C) | cross-cultural exchange |
| | D) | economic adaptation |
| | E) | trade feedback |
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| 2 | |
Which of the following statements is true? |
| | A) | The U.S. Europe, Canada, China and Japan together account for less than half of world trade |
| | B) | The U.S. accounts for 85 percent of world trade |
| | C) | World trade only involves the exchange of money for goods or services |
| | D) | An estimated 15 to 20 percent of world trade involves countertrade |
| | E) | European intratrade is smaller than for any of the other world regions |
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| 3 | |
The major importers of Japan goods and services are: |
| | A) | Western Europe, Middle East, U.S. and East Asia |
| | B) | Australia, Western Europe, U.S. and Southeast Asia |
| | C) | U.S., Middle East, Western Europe and Eastern Europe |
| | D) | Australia, Southeast Asia, Eastern Europe and East Asia |
| | E) | U.S., East Asia, Australia and Africa |
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| 4 | |
Michael Porter has identified four key elements in a nation's competitive advantage. They are demand conditions; related and supporting industries; company strategy, structure and rivalry; and __________. |
| | A) | consumer behavior |
| | B) | industrial diversity |
| | C) | governmental regulation |
| | D) | timing |
| | E) | factor conditions |
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| 5 | |
Beginning January 1, 2005 China lifted the import quotas and lowered tariffs on automobiles. This removal of the quotas and the lowering of tariffs is an example of __________. |
| | A) | recalling the rule of protective domain |
| | B) | reducing ethnocentrism |
| | C) | reducing domestic imperialism |
| | D) | reducing protectionism |
| | E) | reducing blocked currency |
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| 6 | |
Recently the Japanese government, under pressure from its farm lobby, slapped government taxes on mushrooms, leeks and the reeds used in tatami mats that were being imported from China. Japan levied __________. |
| | A) | GATT taxes |
| | B) | quotas |
| | C) | tariffs |
| | D) | foreign excise taxes |
| | E) | exchange subsidies |
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| 7 | |
President Bill Clinton attempted to protect American firms from foreign competition by placing a government tax on Japanese automobiles imported to the United States. President Clinton's goal was to raise the price on Japanese imports, thereby encouraging American consumers to purchase American-made automobiles. The tax the President threatened to impose is an example of a(n) __________. |
| | A) | boycott |
| | B) | tariff |
| | C) | quota |
| | D) | sanction |
| | E) | exchange subsidy |
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| 8 | |
Every country engages in some form of protectionism. However, protectionism has declined internationally over the past 50 years due in large part to the __________. |
| | A) | Balance of Trade Agreement (BOTA) |
| | B) | International Trade Feedback Act (ITFA) |
| | C) | General Agreement on Tariffs and Trade (GATT) |
| | D) | Gross Domestic Product Agreement (GDPA) |
| | E) | Cross-Cultural Trade Act (CCTA) |
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| 9 | |
McDonald's does not sell beef hamburgers in its restaurants in India because the cow is considered sacred by almost 85% of the population. Instead McDonald's sells the McMaharajah made with mutton. McDonald's respects Indian __________ by not selling beef in India. |
| | A) | values |
| | B) | cultural ethnocentrism |
| | C) | ethics |
| | D) | beliefs |
| | E) | cognitive attitudes |
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| 10 | |
Which of the following statements about bribery is true? |
| | A) | Bribes, kickbacks and payoffs offered to entice someone to commit an illegal or improper act is corrupt in any culture |
| | B) | The world's major exporting nations have agreed to make bribery of foreign government officials a criminal offense |
| | C) | Bribery paid to foreign companies is a tax-deductible expense in France and Greece |
| | D) | It is a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain business in a foreign country |
| | E) | All of the above are true |
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| 11 | |
If you were responsible for marketing communications at a company that manufactures office supplies and had to provide product literature to be distributed in France, you would be wise to use ___________, whereby you have someone to translate your literature from American English into French and then have someone else in France translate the French into American English. |
| | A) | back talk |
| | B) | back translation |
| | C) | double talk |
| | D) | double dipping |
| | E) | double indemnity |
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| 12 | |
Motorola developed a low-cost cell phone with battery life as long as 500 hours for rural villagers without regular electricity and an extra-loud volume for use in noisy markets. This phone, a no-frills design priced at $40 is most likely targeted to people __________. |
| | A) | in developed countries |
| | B) | at the bottom of the pyramid |
| | C) | living in Europe |
| | D) | at the edge of the circle |
| | E) | at the bottom of the triangle |
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| 13 | |
The U.S. motorcycle manufacturer Harley-Davidson uses intermediaries to sell its motorcycles in numerous nations outside the U.S. Harley-Davidson uses __________. |
| | A) | direct exporting |
| | B) | indirect exporting |
| | C) | licensing |
| | D) | contract manufacturing |
| | E) | foreign assembly |
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| 14 | |
Fran Wilson Creative Cosmetics Moodmatcher lip coloring is sold in which type of retail store in Japan? |
| | A) | Grocery stores |
| | B) | Flower shops |
| | C) | Beauty shops |
| | D) | Department stores |
| | E) | Gift stores |
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| 15 | |
A joint venture is __________. |
| | A) | offering the right to a trademark, patent, trade secret or similarly valued items of intellectual property in return for a royalty or fee |
| | B) | contracting with a foreign firm to manufacture products according to certain specifications |
| | C) | when a foreign company and a local firm invest together to create a local business |
| | D) | having a company handle its own exports directly, without intermediaries |
| | E) | exporting through an intermediary, which often has the knowledge and means to succeed in selling a firm's product abroad |
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| 16 | |
Both Honda and Toyota have plants in the U.S. that use American labor. This example is an illustration of Honda and Toyota practicing __________. |
| | A) | direct exporting |
| | B) | direct investment |
| | C) | joint venture |
| | D) | licensing |
| | E) | indirect exporting |
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| 17 | |
Coca-Cola, Wrigley's gum and Levi's jeans sell virtually the same product in countries around the world. These are examples of which type of international product strategy? |
| | A) | Product extension |
| | B) | Product customization |
| | C) | Product adaptation |
| | D) | Product invention |
| | E) | Product integration |
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| 18 | |
What is the term for a firm selling a product in a foreign country below its domestic price or below its actual cost? |
| | A) | Competition |
| | B) | Monopolistic practice |
| | C) | Globalization |
| | D) | Dumping |
| | E) | Channeling |
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| 19 | |
Which of the following is(are) the challenge(s) affecting Sakae Sushi when going global? |
| | A) | Cultural differences |
| | B) | Limited market opportunities |
| | C) | Fierce global competition |
| | D) | Careful screening of future overseas partners |
| | E) | All of the above |
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| 20 | |
The Japanese manufacture tractors for rice paddies. They are smaller than most U.S. tractors and perfect for a weekend farmer who wants to tend to a small garden. The tractors are not sold in the U.S. through any authorized channels, yet they are available in the U.S. at prices below the manufacturer's suggested retail price. What is the term for how these tractors are being sold? |
| | A) | On the gray market |
| | B) | Under the counter |
| | C) | Over the counter |
| | D) | Through globalized channels |
| | E) | Through a distribution monopoly |
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