Question 1

It is impossible for a subsidiary to develop a local identity because it seldom employs personnel from the country within which it operates.

Accepted Answer

A) True 
 B)False

Question 2

​Because firms have different resources and core competencies, their international marketing strategies will also be different. Nevertheless, any firm seeking to be successful in international markets must establish the right organizational structure for its core competencies and resources. Which of the following is a valid international organizational structure?

Accepted Answer

A) Geographic area structure 
B) Non-Domestic structure 
C) Domicile structure 
D) Sales department structure 
E) Overseas operations structure

Question 3

Franchising offers all the following benefits for franchisers except

Accepted Answer

A) franchise agreements require a certain standard of behavior from franchisees, which helps protect the franchise name. 
B) franchisers can retain control of their name while increasing global penetration of their products. 
C) the franchisee's revenue stream is fairly consistent because franchisers pay fixed fees and royalties. 
D) the franchiser's revenue stream is fairly consistent because franchisees pay fixed fees and royalties. 
E) franchisers do not have to put up a large capital investment.

Question 4

In many developing countries around the world, technology is enabling opportunities to "leapfrog" existing technology. What does this mean?

Accepted Answer

A) These countries are able to forgo current technological advances in order to wait for even better technology to be developed. 
B) More advanced technology is reaching these countries even though they lack technological infrastructures. 
C) Technological advances are often offered at prices considerably lower than in well-developed countries. 
D) The technology in developing countries is rapidly surpassing the technology in well-developed countries. 
E) The existing technological infrastructures in these countries are rapidly being replaced by newer, more advanced technology.

Question 5

What is the greatest advantage to an organization of having a subsidiary in a foreign nation?

Accepted Answer

A) Avoidance of all U.S. laws 
B) Increase in cross-cultural approaches to management that allows subsidiaries to develop their own identity 
C) Increased trend toward nationalistic marketing approaches 
D) Greater amount of standardization of the marketing mix 
E) Greater amount of security from government nationalization and other anticompetitive measures

Question 6

Cultural relativism is the unconscious reference to one's own cultural values, experiences, and knowledge when traveling in other countries.

Accepted Answer

A) True 
 B)False

Question 7

A trading company provides a link between buyers and sellers in different countries.

Accepted Answer

A) True 
 B)False

Question 8

A business partnership between a domestic firm and a foreign firm is known as

Accepted Answer

A) a joint venture. 
B) an international partnership. 
C) a multinational enterprise. 
D) licensing. 
E) exporting.

Question 9

One of the effects of NAFTA is the simplification of country-of-origin rules. This will likely hinder the international trade activities of

Accepted Answer

A) Canada. 
B) Japan. 
C) Brazil. 
D) Cuba. 
E) Panama.

Question 10

The United States' prohibition against importing cigars from Cuba is an example of a(n)

Accepted Answer

A) health control. 
B) quota. 
C) embargo. 
D) exchange control. 
E) import control.

Question 11

Sociocultural forces in international markets keep marketer busy trying to understand local preferences, tastes, customs and idioms. The marketer's failure to understand these forces almost certainly leads to failures in the marketing strategies used. Which one of the following statements about the sociocultural forces in international markets is true?

Accepted Answer

A) Cultural differences do not affect marketing negotiations and decision-making behavior. 
B) Buyers' perceptions of other countries do not influence product adoption and use. 
C) Cultural differences do not have significant effects on marketing activities. 
D) Transferring marketing logos, trademarks and symbols is usually an easy process when entering international markets. 
E) Product acceptance in an international market is more likely if similarities exist between buyer and seller cultures.

Question 12

Selling products that are not in demand in all world markets, such as hand-powered washing machines for use in countries where electricity is not universally available, represents an international marketing strategy focusing on

Accepted Answer

A) internationalization. 
B) culturalization. 
C) nationalization. 
D) globalization. 
E) customization.

Question 13

Many companies choose to standardize their ____ across national boundaries to maintain a consistent and well-integrated corporate culture.

Accepted Answer

A) technology 
B) ethical behavior 
C) language 
D) dress code 
E) products

Question 14

Cultural differences do not affect marketing negotiations and decision-making behavior.

Accepted Answer

A) True 
 B)False

Question 15

​The North American Free Trade Agreement (NAFTA) ___________ tariffs on goods produced in and traded between Canada, Mexico and the United States.

Accepted Answer

A) doubled 
B) tripled 
C) introduced 
D) eliminated 
E) extended

Question 16

Firms that use an international division structure are often organized domestically on the basis of functions or product divisions, whereas the international division is organized on the basis of geography.

Accepted Answer

A) True 
 B)False

Question 17

An embargo occurs when a government suspends trade with a particular country.

Accepted Answer

A) True 
 B)False

Question 18

A subsidiary in a foreign country generally operates under

Accepted Answer

A) the laws of the parent company's home country. 
B) foreign management in order to develop a local identity. 
C) strict management control from the home country's executives. 
D) the regulations set forth by the International Trade Agreement. 
E) a team of managers from the distant parent company.

Question 19

At the heart of the ____ are agreements that provide legal ground rules for international commerce and trade policy.

Accepted Answer

A) United Nations 
B) GATT 
C) MERCOSUR 
D) WTO 
E) APEC

Question 20

The U.S. and Japanese economies are more integrated than are the U.S. and Canadian economies.

Accepted Answer

A) True 
 B)False

Exam 9: Reaching Global Markets

It is impossible for a subsidiary to develop a local identity because it seldom employs personnel from the country within which it operates.

Franchising offers all the following benefits for franchisers except

In many developing countries around the world, technology is enabling opportunities to "leapfrog" existing technology. What does this mean?

What is the greatest advantage to an organization of having a subsidiary in a foreign nation?

Cultural relativism is the unconscious reference to one's own cultural values, experiences, and knowledge when traveling in other countries.

A trading company provides a link between buyers and sellers in different countries.

A business partnership between a domestic firm and a foreign firm is known as

One of the effects of NAFTA is the simplification of country-of-origin rules. This will likely hinder the international trade activities of

The United States' prohibition against importing cigars from Cuba is an example of a(n)

Selling products that are not in demand in all world markets, such as hand-powered washing machines for use in countries where electricity is not universally available, represents an international marketing strategy focusing on

Many companies choose to standardize their ____ across national boundaries to maintain a consistent and well-integrated corporate culture.

Cultural differences do not affect marketing negotiations and decision-making behavior.

​The North American Free Trade Agreement (NAFTA) ___________ tariffs on goods produced in and traded between Canada, Mexico and the United States.

Firms that use an international division structure are often organized domestically on the basis of functions or product divisions, whereas the international division is organized on the basis of geography.

An embargo occurs when a government suspends trade with a particular country.

A subsidiary in a foreign country generally operates under

At the heart of the ____ are agreements that provide legal ground rules for international commerce and trade policy.

The U.S. and Japanese economies are more integrated than are the U.S. and Canadian economies.

The North American Free Trade Agreement (NAFTA) ___________ tariffs on goods produced in and traded between Canada, Mexico and the United States.