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| 1.
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When the Malaysian government exchanged 20, 000 tons of rice for an equivalent amount of Philippine corn, this was an example of: |
| | A) | predatory pricing. |
| | B) | a countertrade. |
| | C) | cross-cultural exchange. |
| | D) | economic adaptation. |
| | E) | trade feedback. |
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| 2.
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Turkmenistan is in Central Asia and is one of the former Soviet republics. It sits atop the world's fifth largest natural gas reserve. The country also has other important resources including diamonds and millions of potential laborers. But instead of opening the country to the outside world and using its natural resources as __________ to create a national competitive advantage, the leader of the country is totally resistant to outside influences. |
| | A) | structural conditions |
| | B) | demand conditions |
| | C) | socio-cultural conditions |
| | D) | competitive conditions |
| | E) | factor conditions |
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| 3.
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According to Michael Porter's diamond of national competitive advantage, both the number and sophistication of domestic customers for an industry's products are examples of: |
| | A) | structural conditions. |
| | B) | demand conditions. |
| | C) | socio-cultural conditions. |
| | D) | competitive conditions. |
| | E) | factor conditions. |
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| 4.
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The European Union (EU) bans the importation of hormone-fed U.S. beef and bioengineered corn and soybeans on safety grounds although Americans eat this food every day. This ban encourages consumers in the EU to buy domestic beef and products made from domestically produced corn and soybeans. This ban is an example of: |
| | A) | the rule of protective domain. |
| | B) | ethnocentrism. |
| | C) | domestic imperialism. |
| | D) | protectionism. |
| | E) | blocked currency. |
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| 5.
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Which of the following statements about the World Trade Organization (WTO) is true? |
| | A) | The WTO is a permanent institution. |
| | B) | The members of the WTO account for more 90 percent of all world trade. |
| | C) | The WTO sets rules governing trade among its members through panels of trade experts who can issue binding decisions. |
| | D) | The WTO was formed by the major industrialized nations of the world. |
| | E) | All of the above statements about the WTO are true. |
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| 6.
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The __________ consists of 25 countries that have eliminated most of the barriers to the free flow of goods, services, capital, and labor across their borders. |
| | A) | North American Free Trade Association. |
| | B) | European Union. |
| | C) | Latin American Free Trade Organization. |
| | D) | Commonwealth of Independent States. |
| | E) | Association of Pacific Rim Countries. |
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| 7.
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When visiting teenagers' rooms in Mexico City, Tokyo, Paris, or Los Angeles, it is impossible to tell what nation the rooms are in because teens buy a common gallery of products: Tommy Hilfiger apparel, Nike athletic shoes, Cover Girl makeup, and NBA-related merchandise. Overall, this similarity represents: |
| | A) | international living. |
| | B) | a global marketing strategy. |
| | C) | an Americanization of fashion and culture. |
| | D) | semiotics. |
| | E) | a multidomestic marketing strategy |
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| 8.
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Direct marketing experts believe loyalty programs are poised for tremendous growth in South America. These experts believe as a result of the importance of personal relationships as well as a strong sense of family that is pervasive on the continent, marketing programs that emphasize relationships will perform better than others. This strong sense of family and the importance of relationships would both be classified as: |
| | A) | a cognitive attitude. |
| | B) | ethics. |
| | C) | customs. |
| | D) | idiosyncrasies. |
| | E) | values. |
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| 9.
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Spanish customers view toothpaste as a cosmetic while consumers in the Netherlands view it as a necessary part of daily hygiene and use three times as much their Spanish counterparts. This __________ is one thing that differentiates the two countries. |
| | A) | value perception |
| | B) | subcultural activity |
| | C) | custom |
| | D) | culture |
| | E) | exchange |
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| 10.
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During the 1994 soccer World Cup, both McDonald's and Coca-Cola made the mistake of reprinting the Saudi Arabia flag, which includes sacred words from the Koran, on disposable packaging used in promotions. The uproar over this misuse of __________ forced a recall of the offending items. |
| | A) | cultural symbols |
| | B) | values |
| | C) | ethics |
| | D) | morals |
| | E) | religious belief |
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| 11.
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Which of the following statements illustrates consumer ethnocentrism? |
| | A) | "Buy American-made products. Keep America working."- Jim Brown, Cleveland, Ohio, USA. |
| | B) | "Buy British-made products. Keep the United Kingdom working." - James Burns, Manchester, England. |
| | C) | "Buy German-made products. Keep Germany working ." - Franz Braun, Homburg, Germany. |
| | D) | "Buy Korean-made products. Keep Korea working." - Jim-ahn Kim, Seoul, Korea. |
| | E) | All of the above illustrate consumer ethnocentrism. |
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| 12.
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Turkmenistan is a former Soviet republic in Central Asia. The Internet debuted late in Turkmenistan and has advanced only slightly since its introduction. In 1996 the government created the Telecommunications Ministry to oversee and license telecommunications services. The ministry has taken the national domain .tm for itself and forbids individuals or companies from posting their own websites. In 2000, the Telecommunications Ministry set up an Internet service provider and shut down all of the independent ISPs in the nation because they had "falsified information." This misuse of power reflects a problem in Turkmenistan's __________ environment. |
| | A) | ecological |
| | B) | cultural |
| | C) | political-regulatory |
| | D) | economic |
| | E) | competitive |
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| 13.
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Centrica PLC Direct Energy Marketing unit in Canada exports electricity to a Delaware-based utility company. This means: |
| | A) | Centrica pays a royalty for the right to use the Delaware company's trade secrets. |
| | B) | Delaware utility company will pay a fee for the right to use patents held by Centrica. |
| | C) | Centrica is making the electricity in Canada and selling it in the United States. |
| | D) | the Delaware utility will own Centrica. |
| | E) | Centrica will own a foreign subsidiary in Delaware. |
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| 14.
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When Tahitian pearls were first sold outside of Japan and the South Pacific area, pearl farmers brought strands of them to jewelers in California hoping to interest them in stocking them. Which market entry strategy was used with the Tahitian pearls when they were first introduced to the U.S. market? |
| | A) | direct exporting |
| | B) | indirect exporting |
| | C) | licensing |
| | D) | contract manufacturing |
| | E) | franchising |
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| 15.
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Which of the following is an advantage inherent in the use of licensing? |
| | A) | high entry costs |
| | B) | high risk |
| | C) | the licensee gains information about the dynamics of the market |
| | D) | increased employment in the company licensing the use of its brand or technology |
| | E) | all of the above |
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| 16.
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Cargill, Inc., the largest U.S. agricultural company, plans to buy Cerestar of France once it wins European Union approval for the $1.1 billion takeover. Which market-entry strategy is Cargill hoping to use? |
| | A) | direct investment |
| | B) | joint venture |
| | C) | licensing |
| | D) | contract manufacturing |
| | E) | contract assembly |
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| 17.
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One of the largest international markets for the Northwest Cherry Growers (headquartered in the state of Washington) is Taiwan. Since the growers' association sells the same cherries in the U.S. as it does in Taiwan, the Northwest Cherry Growers is using a __________ strategy. |
| | A) | product extension |
| | B) | product customization |
| | C) | product adaptation |
| | D) | dual adaptation |
| | E) | product invention |
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| 18.
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KFC in Japan altered the sweetness of its coleslaw to appeal to Japanese tastes. This is an example 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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| 19.
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Dumping occurs when: |
| | A) | an international company replaces its advertising agency. |
| | B) | a manufacturer refuses to pay slotting allowances. |
| | C) | a retailer requests failure fees. |
| | D) | a product is distributed in a direct channel. |
| | E) | a firm sells a product in a foreign country below the domestic price for the item. |
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| 20.
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Parallel importing is also called: |
| | A) | a gray market. |
| | B) | a countertrade. |
| | C) | dumping. |
| | D) | a dual adaptation strategy. |
| | E) | a product extension strategy. |
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