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Multiple Choice Questions

26. According to the text, all of the following events have impacted international business
EXCEPT:
A) the Indian Ocean tsunami in 2004
B) the high-tech bust of 2001.
C) the steroids in major league sports scandal
D) 2003 SARS outbreak in Asia.
E) 9/11.
Answer: C Page: 4 Difficulty: Easy Type: Comprehension
27. 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 in Latin America, Asia, and Eastern Europe.
C) The trend toward using English as the global language.
D) The trend toward establishing a world currency.
E) None of the above is among the trends mentioned in the chapter.
Answer: B Page: 5 Difficulty: Moderate Type: Comprehension
28. 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 oil company profits in the 21st century.
E) the mandate to properly manage the resources and global environment for the
generations to come.
Answer: D Page: 5 Difficulty: Hard Type: Comprehension

29. Every American company is international, at least to the extent that:


A) Federal law requires all corporations to outsource whenever it is cost-effective.
B) the Internet generates orders for all American businesses from abroad.
C) its business performance is affected by events that occur abroad.
D) natural disasters create a greater global community.
E) all of the above.
Answer: C Page: 5 Difficulty: Hard Type: Fact
30. Simi Khan wants to move his business into the international arena as quickly as possible;
however, to be successful he must consider a variety of factors that have global
dimensions. Which of the following factors would be most important to Simi Khan's
computer technology business as he moves forward with his global expansion plans?
A) Electricity usage around the world.
B) The drive toward a more ergonomic workplace.
C) Communication and technology networks in third-world countries.
D) Restrictions on advertising in Russia.
E) Increasing licensing fees in Spain and Portugal.
Answer: C Page: 5 Difficulty: Moderate Type: Application
31. Foreign investment in the United States is growing yearly. At present, foreign investment
in the United States is in excess of $2.6______________.
A) trillion
B) million
C) billion
D) thousand
E) cannot be determined. The government does not track foreign investment.
Answer: A Page: 6 Difficulty: Moderate Type: Fact
32. Companies from ____________________ lead in foreign investment in the United
States:
A) Kingdom of Saudi Arabia
B) Russia
C) China
D) United Kingdom
E) Canada
Answer: D Page: 7 Difficulty: Hard Type: Fact

33. Foreign investment is a two-way street. An organization (through investment and


acquisition) from which of the following countries now controls all United Kingdom rail
freight business and runs the queen's private train via its English, Welsh, & Scottish
Railway unit?
A) Germany
B) Switzerland
C) United States
D) Canada
E) Netherlands
Answer: C Page: 7 Difficulty: Hard Type: Fact
34. Many U.S. firms do exceedingly well in the global arena. Which of the following
organizations is considered to be the U.S. leader with global revenues approximated at
$285 billion annually?
A) IBM
B) ExxonMobil
C) Ford Motor
D) Wal-Mart Stores
E) Hewlett-Packard
Answer: D Page: 9, Exhibit 1.2 Difficulty: Moderate Type: Fact
35. For firms venturing into international marketing for the first time, the first requirement is:
A) visas for all executives involved in the venture.
B) a thorough and complete commitment to foreign markets.
C) a visit to the consulate of the country being targeted.
D) an assessment of the cost of doing business in the foreign market.
E) performance reviews of all potential salespeople being considered for foreign
assignment.
Answer: B Page: 9 Difficulty: Moderate Type: Fact

36. ___________ 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
Answer: D Page: 9 Difficulty: Moderate Type: Definition
37. 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 is called:
A) global management.
B) global business.
C) marketing.
D) the global marketing concept.
E) international marketing.
Answer: E Page: 9 Difficulty: Moderate Type: Definition
38. The only difference between the definitions of domestic marketing and international
marketing is that marketing activities:
A) focus on consumers in domestic markets and barterers in foreign markets.
B) take place in more than one country.
C) follow traditional communication paths in domestic markets.
D) focus on distribution in the domestic market.
E) are usually non-regulated in foreign markets.
Answer: B Page: 9 Difficulty: Moderate Type: Comprehension
39. 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 revenues necessary to be successful.
C) the demand charts available to the marketer.
D) the control over the budget.
E) the accountability of board of directors.
Answer: A Page: 10 Difficulty: Hard Type: Comprehension

40. With respect to the environment in which a business operates, such factors as
competition, legal restrains, 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.
Answer: B Page: 9 Difficulty: Easy Type: Definition
41. All of the following would be considered to be controllable elements of marketing
decisions EXCEPT:
A) product.
B) price.
C) promotion.
D) research.
E) all of the above are considered to be controllable elements of marketing.
Answer: E Page: 9 Difficulty: Easy Type: Definition
42. 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 international marketer must rely on at least two levels of controllable certainty
instead of one.
C) The international marketer is never certain about demand.
D) The international marketer is never certain about supply.
E) All of the above are valid differences between the international and domestic
marketing task.
Answer: A Page: 10, Exhibit 1.3 Difficulty: Moderate Type: Comprehension

43. 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
Answer: C Page: 10, Exhibit 1.3 Difficulty: Moderate Type: Application
44. 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/legal forces
B) Competitive structure
C) Economic climate
D) Level of technology
E) All of the above are considerations for the domestic marketer in the uncontrollable
environment.
Answer: D Page: 10, Exhibit 1.3 Difficulty: Hard Type: Comprehension
45. 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) level of demand.
Answer: E Page: 10, Exhibit 1.3 Difficulty: Moderate Type: Comprehension
46. 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) product forces.
D) cultural forces.
E) political/legal forces.
Answer: C Page: 10, Exhibit 1.3 Difficulty: Easy Type: Fact

47. 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) supply.
C) competition.
D) economic climate.
E) promotion.
Answer: E Page: 11 Difficulty: Easy Type: Fact
48. A political decision involving _______________ would most likely have a direct effect
on a firm's international marketing success.
A) domestic foreign policy
B) retirement age
C) the makeup of a board of directors
D) farm subsidies
E) airline regulation
Answer: A Page: 11 Difficulty: Moderate Type: Fact
49. Which of the following would be a chief way that U.S. companies attempt to influence
domestic foreign policy?
A) A company could lobby with respect to its own interests.
B) A company could attempt to bribe elected officials to influence policy decisions.
C) A company could ask a foreign government to bring pressure on U.S. legislative
bodies.
D) A company could threaten to withdraw operations from foreign markets.
E) A company could threaten to move its corporate headquarters to a foreign market.
Answer: A Page: 11 Difficulty: Hard Type: Comprehension

50. 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 joined a consortium to investigate the 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 name companies are still under investigation because of the Enron scandal.
E) All of the above are good illustrations of the statement.
Answer: C Page: 11 Difficulty: Moderate Type: Application
51. With respect to challenges faced by the international marketer, a significant source of
uncertainty is the number of factors in the:
A) foreign environment controllables.
B) foreign environment uncontrollables.
C) domestic environment controllables.
D) parallel environment uncontrollables.
E) parallel environment controllables.
Answer: B Page: 12 Difficulty: Easy Type: Comprehension
52. 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.
Answer: A Page: 12 Difficulty: Hard Type: Application and Comprehension

53. 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
Answer: E Page: 12 Difficulty: Hard Type: Fact
54. 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
Answer: D Page: 13 Difficulty: Moderate Type: Fact
55. 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 do 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 do 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) None of the above is a good illustration of the political/legal forces issue.
Answer: B Page: 13 Difficulty: Moderate Type: Application
56. Global businesses must be willing to adjust and adapt a marketing program to a foreign
market. In a broad sense, the environmental uncontrollable elements constitute the:
A) problem.
B) opportunity.
C) culture.
D) marketplace.
E) commerce landscape.
Answer: C Page: 14 Difficulty: Hard Type: Comprehension

57. The task of ____________ is the most challenging and important one confronting
international marketers.
A) care for the environment
B) dealing with politics
C) international standardization
D) cultural adjustment
E) international branding
Answer: D Page: 14 Difficulty: Moderate Type: Comprehension
58. Which of the following would be the BEST example to illustrate the fact that
international marketers need to make cultural adjustments as they seek to do business
abroad?
A) In America, white is an accepted color for wedding gowns; in Asia it is the color of
mourning.
B) Many teens earn extra income by working.
C) Women out number men in the United States.
D) Most Middle Eastern women do not work outside the home.
E) Many European nations require a period of national service for youth.
Answer: A Page: 14 Difficulty: Hard Type: Application
59. ____________ 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) None of the above matches the statement
Answer: B Page: 15 Difficulty: Moderate Type: Definition
60. 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
Answer: C Page: 15 Difficulty: Easy Type: Comprehension

61. _____________ 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
Answer: C Page: 15 Difficulty: Moderate Type: Definition
62. 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) holism
B) segregation
C) integration
D) space command theory
E) self-reference criterion (SRC)
Answer: E Page: 15 Difficulty: Moderate Type: Application
63. Your ____________ can prevent you from being aware that there are cultural differences
or from recognizing the importance of those differences.
A) holism
B) personality
C) demographic character
D) self-reference criterion (SRC)
E) concept of integration
Answer: D Page: 16 Difficulty: Easy Type: Comprehension
64. The most effective way to control the influence of ethnocentrism and __________ is to
recognize their effects on our behavior.
A) the self-reference criterion (SRC)
B) regionalism
C) tunnel vision
D) standardization
E) xenophobia
Answer: A Page: 16 Difficulty: Moderate Type: Fact

65. 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
BEST 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.
Answer: D Page: 17 Difficulty: Hard Type: Comprehension and Application
66. Which of the following steps in a cross-cultural analysis to isolate self-reference criterion
influences would finalize the process and lead to a solution of the problem?
A) Redefine the problem without the SRC influence and solve the problem for the
optimal business goal situation.
B) Isolate the SRC influence in the problem and examine it carefully to see how it
complicates the problem.
C) Define the business problem or goal in home-country cultural traits, habits, or norms.
D) Define the business problem or goal in foreign-country cultural traits, habits, or
norms through consultation with natives of the target country.
E) The last step is not indicated in the list of alternatives.
Answer: A Page: 17 Difficulty: Easy Type: Comprehension and Application
67. 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 physiology.
E) a knowledge of world market potential.
Answer: D Page: 17 Difficulty: Easy Type: Fact

68. Successful businesspeople in the twenty-first century have ___________ and a frame of
reference that goes beyond a region or even a country and encompasses the world.
A) a sense of fashion
B) global awareness
C) an intimate knowledge of ecological problems
D) a consumer mind-set
E) a pronounced skill in promotion
Answer: B Page: 17 Difficulty: Moderate Type: Fact
69. There are a variety of stages in the process of becoming involved in international
marketing. Which of the following best describes the stage of development where the
company's products reach a foreign market through no conscious effort on the part of the
marketer?
A) Infrequent foreign marketing
B) Regular foreign marketing
C) No direct foreign marketing
D) International marketing
E) Global marketing
Answer: C Page: 18-20 (19) Difficulty: Easy Type: Comprehension
70. If a marketer is motivated to enter into an international marketing effort because of
temporary surpluses in the domestic market, which of the following stages BEST
characterizes the stage of international marketing involvement for this marketer?
A) Infrequent foreign marketing
B) Regular foreign marketing
C) No direct foreign marketing
D) International marketing
E) Global marketing
Answer: A Page: 18-20 (19) Difficulty: Moderate Type: Comprehension
Multiple Choice Questions
26. The United States has many successful trade relationships. Four of these relationships
account for a tremendous volume of trade. All of the following countries are among the
top four producers of trade for the U.S. EXCEPT:
A) Canada
B) Mexico
C) Japan
D) France
E) China
Answer: D Page: 28, Exhibit 2.1 Difficulty: Moderate Type: Fact
27. For every dollar the United States invested in the economic development and rebuilding

of other countries after World War II, hundreds of dollars returned in the form of
purchases of U.S. goods and services. The primary plan after World War II used to
rebuild and reinvigorate war ravaged countries was the:
A) Eisenhower Plan
B) Marshall Plan
C) Bradley Plan
D) Roosevelt Plan
E) Truman Plan
Answer: B Page: 29-30 Difficulty: Hard Type: Fact and Application
28. With respect to international trade, MNC stands for:
A) Municipal, National, and County districts
B) Multilateral and National Cartels
C) Multinational Corporations
D) Military and National Control districts
E) None of the above
Answer: C Page: 30 Difficulty: Moderate Type: Fact and Definition

29. With respect to the nationality of the world's 100 largest industrial corporations, the
United States is home to the largest number of the top 100 firms. Which of the following
countries is home to the second largest number of these firms?
A) Germany
B) United Kingdom
C) France
D) Netherlands
E) Japan
Answer: A Page: 32, Exhibit 2.2 Difficulty: Moderate Type: Fact and Application
30. After 1888, the United States had unparalleled growth and a favorable balance of trade
until _________. After this date, the United States has a negative balance of trade.
A) 1950
B) 1963
C) 1968
D) 1971
E) 1985
Answer: D Page: 32 Difficulty: Hard Type: Fact
31. Recent economic growth in what country has contributed significantly to global demand
for resources?
A) Japan
B) China
C) Germany
D) France
E) Australia
Answer: B Page: 33 Difficulty: Hard Type: Fact
32. The system of accounts that records a nation's international financial transactions is called
its:
A) trade balance.
B) national accounts system.
C) EX-IM (exports-imports) account.
D) balance of payments.
E) none of the above.
Answer: D Page: 35 Difficulty: Moderate Type: Definition

33. A nation's balance-of-payments statement records all financial transactions between:


A) its member states and its primary trading partners.
B) its residents and those of the rest of the world during a given period of time.
C) its suppliers and receivers.
D) profit and nonprofit organizations over a five-year period of time.
E) its top 100 companies and the global top 100 companies.
Answer: B Page: 35 Difficulty: Moderate Type: Definition and Fact
34. A balance-of-payments statement includes three accounts. Two of those accounts are the
current account and the capital account. What is the third account found on the balanceof-payments statement?
A) investment account
B) passed due account
C) services account
D) credit account
E) reserves account
Answer: E Page: 35-36 Difficulty: Hard Type: Fact and Comprehension
35. Which of the following would be the balance-of-payments account that is a record of all
merchandise exports, imports, and services plus unilateral transfers of funds?
A) current account
B) capital account
C) credit account
D) passed due account
E) reserves account
Answer: A Page: 35 Difficulty: Hard Type: Definition
36. The marketing manager for Healthy Horse Products wants to export to Australia but
learns the labeling requirements are quite difficult to comply with limiting imports. This
is a type of:
A) blockage.
B) protectionism.
C) trade refusal.
D) stonewalling.
E) boycotting.
Answer: B Page: 37 Difficulty: Moderate Type: Comprehension and Definition

37. Which of the following has been effective in reducing tariffs but not in preventing
protectionism?
A) GATT
B) the United Nations
C) the International Monetary Fund
D) the World Court
E) None of the above
Answer: E Page: 37 Difficulty: Moderate Type: Fact and Comprehension
38. All of the following would be considered to be reasons for adopting an attitude of
protectionism with respect to world trade EXCEPT:
A) to protect religious beliefs.
B) protection of an infant industry.
C) protection of a home market.
D) the need to keep money at home.
E) to encourage capital accumulation.
Answer: A Page: 37-38 Difficulty: Hard Type: Comprehension
39. Randall Smithe-Jones believes that protectionism is the only way to save the United
Kingdom from outside competitors. He has seen small business after small business go
bankrupt because cheaper foreign goods have been more popular. The UK has just
started a cell-phone manufacturing industry and Smithe-Jones' company is one of the first
to try their hand at cell-phone manufacturing. Which of the following would probably be
the argument that Smithe-Jones would use to persuade his government representatives
that protectionism is still needed in the U.K.?
A) Protection of an infant industry
B) The need to keep money at home
C) Conservation of natural resources
D) National defense
E) The industrialization of a low-wage nation
Answer: A Page: 37 Difficulty: Moderate Type: Application and Comprehension

40. Section 301 of the Omnibus Trade and Competitiveness Act authorizes the U.S.
government to _____________ and ___________against specific foreign trade barriers
judged to be unfair.
A) suppress and attack
B) educate and substantiate
C) investigate and retaliate
D) market and dominate
E) None of the above. Section 301 lists the number of members of the WTO.
Answer: C Page: 38, Crossing Borders 2.1 Difficulty: Hard Type: Comprehension and
Fact
41. A(n) ________ is simply a tax imposed by a government on goods entering at its borders.
A) quota
B) trade penalty
C) tariff
D) boycott
E) embargo
Answer: C Page: 40 Difficulty: Easy Type: Definition
42. __________ generally do all of the following: increase inflationary pressures and special
interests' privileges; decrease balance-of-payments positions; and, restrict competition.
A) Tariffs
B) Voluntary export restraints
C) Orderly market agreements
D) Monetary barriers
E) Quotas
Answer: A Page: 40 Difficulty: Moderate Type: Comprehension and Application
43. In general, __________ are arbitrary, discriminatory, and require constant administration
and supervision.
A) tariffs
B) standards
C) quotas
D) boycotts
E) embargoes
Answer: A Page: 40 Difficulty: Hard Type: Comprehension

44. A specific unit or dollar limit applied to a particular type of good is called a(n):
A) tariff.
B) quota.
C) standard.
D) embargo.
E) boycott.
Answer: B Page: 41 Difficulty: Easy Type: Definition
45. All of the following would be considered to be nontariff barriers that could be erected to
restrict trade EXCEPT:
A) quotas.
B) taxes
C) packaging requirements
D) border taxes.
E) embargoes.
Answer: B Page: 40, Exhibit 2.6 Difficulty: Moderate Type: Comprehension
46. Which of the following types of nontariff barriers would be considered to be specific
limitations on trade by international marketers?
A) Fees
B) Export subsidies
C) Voluntary export restraints
D) Embargoes
E) Packaging, labeling, or marking standards
Answer: D Page: 40, Exhibit 2.6 Difficulty: Hard Type: Comprehension
47. Cybil Chan has been asked by her company to review a series of published nontariff
barriers that is used by the Hong Kong Port Authority to control customs and
administrative entry procedures. Which of the following nontariff barriers should Ms.
Chan look for under the category called customs and administrative entry procedures?
A) Orderly marketing agreements
B) Voluntary export restraints
C) Countervailing duties
D) Export subsidies
E) Documentation requirements
Answer: E Page: 40, Exhibit 2.6 Difficulty: Moderate Type: Application and
Comprehension

48. Exporting countries sometimes agree to voluntary export restraints (VER) as an


alternative to the threat of:
A) expulsion.
B) disorderly marketing agreements.
C) stiffer quotas and tariffs.
D) export subsidies
E) standardization disparities
Answer: C Page: 42 Difficulty: Moderate Type: Comprehension and Application
49. An agreement between the importing country and the exporting country for a restriction
on the volume of exports is called a(n):
A) tariff.
B) standards option.
C) voluntary export option (VER).
D) fee.
E) documentation requirement.
Answer: C Page: 42 Difficulty: Easy Type: Definition
50. When the United States refuses to sell goods to Iran because of the perception that the
country harbors radicals and terrorists, the refusal is called a(n):
A) boycott.
B) embargo.
C) tariff.
D) orderly market agreement.
E) None of the above.
Answer: B Page: 42 Difficulty: Moderate Type: Definition and Application
51. ____________ is accomplished by refusing to allow importers to exchange its national
currency for the seller's currency.
A) Boycotted money
B) Embargoed capital
C) Blocked currency
D) Anti-banking
E) International cartel dissolution
Answer: C Page: 42 Difficulty: Hard Type: Definition and Fact

52. The practice of ______________ is a particularly ingenious method of controlling


imports as it encourages the importation of goods the government deems desirable and
discourages importation of goods the government does not want.
A) a differential exchange rate
B) blocked currency
C) boycott
D) embargo
E) all of the above fit the definition
Answer: A Page: 42 Difficulty: Moderate Type: Comprehension
53. The function of an exchange permit is to:
A) regulate the supply of money.
B) cut-off all exchange.
C) require that importers gain permission to exchange an amount of local currency for
foreign currency.
D) protect monopolies.
E) limit pornographic or harmful merchandise from the domestic market.
Answer: C Page: 43 Difficulty: Moderate Type: Comprehension and Definition
54. Tall Pine Plywood Company has just received notice that a shipment of plywood (2
metric tons) has been rejected by Japanese customs because the knotholes commonly
found on a plywood sheet are too large. This would be an illustration of which of the
following nontariff barriers to trade?
A) quota
B) predatory pricing
C) embargo
D) boycott
E) standards
Answer: E Page: 43-44 Difficulty: Easy Type: Application
55. According to the material provided in the text, a new nontariff barrier that was designed
to prevent foreign producers from using predatory pricing is called:
A) quotas.
B) fees.
C) standards.
D) antidumping laws.
E) none of the above.
Answer: D Page: 44-45 Difficulty: Moderate Type: Comprehension

56. _____________ is the practice whereby a foreign producer intentionally sells their
products in the United States for less than the cost of production to undermine the
competition and take control of the market.
A) Basing point pricing
B) Offensive pricing
C) Defensive pricing
D) Counterpoint pricing
E) Predatory pricing
Answer: E Page: 44 Difficulty: Moderate Type: Definition
57. Which of the following U.S. trading partners has become the chief concern of
governmental and economic planners?
A) the United Kingdom
B) Japan
C) Germany
D) Canada
E) China
Answer: E Page: 45 Difficulty: Hard Type: Fact
58. Which of the following acts was designed to deal with trade deficits, protectionism, and
the overall fairness of our trading partners?
A) the World Trade Organization Act
B) the Omnibus Trade an Competitiveness Act of 1988
C) the League of Nations Act of 1920
D) the Hawley-Smoot Tariff Act of 1930
E) the International Monetary Fund Act
Answer: B Page: 45 Difficulty: Moderate Type: Fact and Comprehension
59. Protesters have often disagreed with the work of the WTO. Where did the first great
protest against globalization and WTO policies and plans occur?
A) Uruguay
B) Chile
C) Paris
D) Seattle
E) Berlin
Answer: D Page: 51 Difficulty: Moderate Type: Comprehension and Fact

60. All of the following activities or organizations are designed to support the growth of
international trade EXCEPT:
A) GATT.
B) WTO.
C) IPO
D) the World Bank
E) International Monetary Fund (IMF).
Answer: C Page: 46 Difficulty: Moderate Type: Comprehension
61. Shortly after World War II, the United States and 22 other nations signed
_________________ to pave the way for the first effective worldwide tariff agreement.
A) the General Agreement on Tariffs and Trade (GATT)
B) the Trade Related Investment Measures (TRIM)
C) the World Trade Organization (WTO) agreement
D) the International Monetary Fund (IMF) agreement
E) the World Bank act
Answer: A Page: 46 Difficulty: Moderate Type: Comprehension
62. One of the basic elements of the General Agreement on Tariffs and Trade (GATT) is that:
A) no nation shall unfairly create tariffs against another.
B) all tariffs shall be abolished among member nations by 2010.
C) the World Court shall review all claims and make final judgments.
D) trade shall be conducted on a nondiscriminatory basis.
E) all of the above are elements of GATT.
Answer: D Page: 46 Difficulty: Moderate Type: Comprehension
63. The Uruguay Round of the WTO achieved many significant breakthroughs in trade. One
of the most significant was of particular interest to those in the technology field. Which
of the following was considered to be a significant breakthrough of the Uruguay Round?
A) Trade-Related Aspects of Intellectual Property Rights (TRIPs)
B) Trade-Related Investment Measures (TRIMs)
C) Trade-Related Accounting Procedures (TRAPs)
D) Trade-Related Operational Methods (TROMs)
E) None of the above
Answer: A Page: 47 Difficulty: Hard Type: Comprehension

64. The World Trade Organization was created during which of the following GATT Rounds?
A) Seattle
B) Uruguay
C) Paris
D) Berlin
E) Moscow
Answer: B Page: 48 Difficulty: Moderate Type: Fact
65. Unlike GATT, the WTO issues ______________ decisions.
A) illegal
B) counseling
C) no
D) binding
E) intelligent
Answer: D Page: 48 Difficulty: Hard Type: Fact
66. The ratification of the WTO by the United States was challenged in the U.S. Congress for
all of the following reasons EXCEPT:
A) possible loss of sovereignty over its trade laws to the WTO.
B) the lack of veto power by the U.S.
C) the ability of a WTO member to challenge trade laws of individual states.
D) the amount of funds that must be supplied to the WTO to run its organization.
E) all of the above were challenge reasons according to the text.
Answer: D Page: 48 Difficulty: Hard Type: Comprehension
67. One of the most popular ways to circumvent WTO guidelines for free trade has been for a
country to impose:
A) antidumping duties.
B) tariffs.
C) quotas.
D) fees.
E) all of the above.
Answer: A Page: 49 Difficulty: Moderate Type: Comprehension

68. As Taki Muri readies his company to pursue lucrative markets in the United States. He is
apprehensive about running afoul of U.S. antidumping laws. He has always thought that
these laws were constructed just to keep competitors out. However, he also believes (as
many other foreign competitors believe) that one way around the U.S. antidumping laws
deals with a question of interpretation. Which of the following is the best description of
the interpretation loophole that Mr. Muri that believes will work to his benefit?
A) the definition of what a product is
B) the definition of what a price is
C) the interpretation of what selling below cost is
D) the interpretation of what a foreign good is
E) all of the above are considered to be loopholes
Answer: C Page: 44 Difficulty: Moderate Type: Application
69. According to the WTO, which of the following is the definition of dumping?
A) Moving questionable goods into a market that does not want them.
B) Flooding a market with so many goods that prices are depressed.
C) Taking excess capacity of one nation and moving that capacity to another.
D) Selling a good at a lower price in the foreign market than in other markets.
E) None of the above is the WTO definition of dumping.
Answer: D Page: 44 Difficulty: Easy Type: Definition
70. Several nations are frustrated with the slow progress of the most recent round of WTO
trade negotiations. To vent this frustration, several countries are:
A) negotiating bilateral trade agreements.
B) forming a rival organization.
C) refusing to honor rules and regulations imposed by the WTO.
D) using legal means to sue the WTO.
E) doing all of the above to retaliate against the WTO.
Answer: A Page: 49 Difficulty: Moderate Type: Comprehension
71. _____________ and the World Bank Group are two global institutions created to assist
nations in becoming and remaining economically viable.
A) The United Nations
B) The World Court
C) The International Monetary Fund (IMF)
D) The International Red Cross
E) The League of Nations
Answer: C Page: 49 Difficulty: Easy Type: Fact

72. Which of the following is one of the primary objectives of the International Monetary
Fund (IMF)?
A) The abolishment of unfavorable exchange rates for any nation.
B) The abolishment of debt for impoverished nations.
C) The stabilization of foreign exchange rates.
D) The waiver of all debts from World War II.
E) All of the above are primary objectives of the International Monetary Fund (IMF).
Answer: C Page: 50 Difficulty: Easy Type: Comprehension
73. Another term for IMF special drawing rights (SDRs) is:
A) black gold.
B) wealth for capitalists.
C) peace in our time.
D) paper gold.
E) virtual dollars.
Answer: D Page: 50 Difficulty: Easy Type: Definition
74. The World Bank provides all of the following to reduce poverty and improve standards of
living EXCEPT:
A) provides loans.
B) provides technical assistance.
C) provides policy guidance to developing-country members.
D) mock governments for a period of five years.
E) provides all of the above.
Answer: D Page: 50 Difficulty: Easy Type: Comprehension
75. One of the major complaints from protestors during the Seattle Round of the WTO
meetings centered on:
A) the use of the automobile by the industrialized world.
B) sweatshops that supplied industrial nations with goods.
C) strike breaking within industrialized nations.
D) the obesity of citizens of industrialized nations.
E) the use of the Internet by industrialized nations.
Answer: B Page: 51 Difficulty: Moderate Type: Comprehension
26. ___________ can be defined as a society's accepted basis for responding to external and
internal events.
A) Geography
B) Culture
C) Social class
D) History
E) A national mission

Answer: B Page: 56 Difficulty: Moderate Type: Definition


27. A society's accepted basis for responding to external and internal events is associated
with which of the following terms?
A) Geography
B) Culture
C) Social class
D) History
E) A national mission
Answer: B Page: 56 Difficulty: Moderate Type: Definition
28. History helps define a nation's:
A) mission.
B) personality.
C) wealth.
D) birth rates.
E) none of the above.
Answer: A Page: 56 Difficulty: Hard Type: Comprehension

29. History helps define a nation's perspective of all of the following EXCEPT:
A) the nation's mission.
B) how the nation perceives its neighbors.
C) how the nation sees its place in the world.
D) how the nation sees itself.
E) all of the following true with respect to the statement.
Answer: E Page: 56 Difficulty: Moderate Type: Comprehension
30. When _____________ sailed to Japan in 1853, Japan was opened to the West for the first
time.
A) Marco Polo
B) Admiral Halsey
C) Commodore Perry
D) Admiral Pennington
E) None of the above is true
Answer: C Page: 56 (see footnote #3) Difficulty: Moderate Type: Fact
31. History is:
A) written by intellectuals.
B) in the eyes of the beholder.
C) controlled by zealots.
D) ignored by the uninformed.
E) edited by newspapers.
Answer: B Page: 57, Crossing Borders 3.1 Difficulty: Hard Type: Fact
32. All of the following permeate many facets of Japanese behavior EXCEPT:
A) loyalty to family.
B) the strong drive to cooperate.
C) the strong desire to work together for a common cause.
D) loyalty to company.
E) the desire to form partnerships with other nations.
Answer: E Page: 57 Difficulty: Moderate Type: Comprehension

33. Priscilla Jackson is a noted historian of the feminist movement and believes that she
writes objective facts about what she sees. However, like most historians, she is probably
guilty of filtering events through her own ___________ biases.
A) class
B) social
C) cultural
D) physical
E) dimension
Answer: C Page: 58 Difficulty: Hard Type: Comprehension
34. A world map sold in the United States shows the United States in the center of the page
and the rest of the world surrounds it. A world map sold in England shows Great Britain
at the center. Which of the following phrases best describes how these differences might
occur?
A) The mapmakers are wrong in their perception of the world.
B) The mapmakers are expressing cultural bias and self-reference criterion perspective.
C) The mapmakers have been told what to draw by their respective governments.
D) The mapmakers have recognized the truth about geography.
E) The mapmakers are idiots and should be corrected.
Answer: B Page: 58-59 Difficulty: Easy Type: Application and Comprehension
35. Which of the following statements most accurately reflects the feelings of most Mexicans
towards the United States (according to information presented in the text)?
A) In general, Mexicans trust and favor the United States above other trading partners.
B) In general, Mexicans trust and favor Europeans over the United States.
C) Mexicans see the United States as a protector that will aid them in emerging as a
world power in the twenty-first century.
D) Mexicans see the United States as a threat to their political, economic, and cultural
independence.
E) None of the above accurately reflects statements made in the text.
Answer: D Page: 58 Difficulty: Moderate Type: Comprehension

36. Which of the following is the most accurate description of how U.S. citizens see the
Monroe Doctrine?
A) The Monroe Doctrine justifies U.S. expansion into Latin America.
B) The Monroe Doctrine guarantees that communism cannot enter into Latin America.
C) The Monroe Doctrine is rather useless in expanding or protecting U.S. policies
toward Latin America.
D) The Monroe Doctrine is so dated that became ineffective as a policy in the 1890s.
E) The Monroe Doctrine was seen as protection for Latin America from European
colonization and the intervention of Europe in the governments of the Western
Hemisphere.
Answer: E Page: 58 Difficulty: Hard Type: Comprehension and Application
37. All of the following were used by the United States to expand westward toward the
Pacific in the 1800s EXCEPT:
A) financial deals.
B) negotiated settlements.
C) forcible annexations.
D) WTO rulings
E) all of the above been used by the United States to expand its territory.
Answer: D Page: 59, Exhibit 3.1 Difficulty: Moderate Type: Comprehension
38. During which of the following engagements did the United States secure California and
other parts of the West?
A) The Battle of San Jacinto.
B) The War of 1812.
C) The Mexican War of 1836.
D) The Mexican War of 1846-1848.
E) The Gadsden Purchase of 1912.
Answer: D Page: 59, Exhibit 3.1 Difficulty: Hard Type: Fact and Comprehension
39. Which of the following occurred during the Mexican Revolution?
A) The overthrow of dictator Diaz.
B) The modern Mexican state was launched.
C) Foreigners were expelled.
D) North American businessmen, who were the most visible of the wealthy and
influential entrepreneurs in Mexico, were expelled.
E) All of the above occurred during the Mexican Revolution.
Answer: E Page: 59 Difficulty: Moderate Type: Fact and Comprehension

40. Manifest Destiny and ______________ were accepted as the basis for U.S. foreign policy
during much of the nineteenth and twentieth centuries.
A) the big stick approach
B) the Monroe Doctrine
C) the Hays Corollary
D) the Grant Mandate
E) none of the above
Answer: B Page: 59 Difficulty: Moderate Type: Fact
41. ___________ and the Monroe Doctrine were accepted as the basis for U.S. foreign policy
during much of the nineteenth and twentieth centuries.
A) The big stick approach
B) Manifest Destiny
C) The Hays Corollary
D) The Grant Mandate
E) none of the above
Answer: B Page: 59 Difficulty: Moderate Type: Fact
42. _____________, in its broadest interpretation, meant that Americans were a chosen
people ordained by God to create a model society.
A) The Roosevelt Corollary
B) The Monroe Doctrine
C) The Hays Corollary
D) The Grant Mandate
E) The Manifest Destiny
Answer: E Page: 59 Difficulty: Moderate Type: Fact and Comprehension
43. The __________, a cornerstone of U.S. foreign policy, indicated that no further European
colonization in the New World would be accepted.
A) Roosevelt Corollary
B) Monroe Doctrine
C) Hays Corollary
D) Wilson Policy Position
E) Manifest Destiny
Answer: B Page: 60 Difficulty: Hard Type: Fact and Comprehension

44. All of the following were considered to be integral parts of the Monroe Doctrine
EXCEPT:
A) no further European colonization in the New World.
B) abstention of the U.S. from European political affairs.
C) nonintervention of European governments in the governments of the Western
Hemisphere.
D) European governments must pay an entrance tax to the U.S. if trade was to occur
with the Western Hemisphere.
E) All of the above were parts of the Monroe Doctrine.
Answer: D Page: 60 Difficulty: Moderate Type: Fact and Comprehension
45. Theodore Roosevelt applied the Monroe Doctrine with an extension that became known
as the:
A) Manifest Destiny.
B) Hay Corollary.
C) Wilson Mandate.
D) Gadsden Policy Position.
E) Roosevelt Corollary.
Answer: E Page: 60 Difficulty: Easy Type: Fact
46. During the Mexican War of 1846-1848, the ___________ fought for the Mexicans
against the United States. This group was a battalion of defectors from the United States
military.
A) St. Patrick's Battalion
B) Irish Republican Guard
C) Texicans
D) Runaway Brigade
E) None of the above
Answer: A Page: 60, Crossing Borders 3.2 Difficulty: Hard Type: Fact
47. What was the overall end result of The Mexican War of 1846-1848?
A) Mexico was forced to cede half its territory to the United States.
B) Mexico signed a non-aggression pact and borders stayed the same as they were
before the war.
C) Mexico gave up California and the U.S. gave up Baja California.
D) Mexico paid the U.S. $5 million for war damages.
E) The United States was forced to sign a pledge to never again invade Mexico.
Answer: A Page: 60, Crossing Borders 3.2 Difficulty: Hard Type: Fact and
Application

48. What policy was used to justify the American intervention in the Dominican Republic in
1905?
A) Manifest Destiny.
B) Hay Corollary.
C) Wilson Mandate.
D) Gadsden Policy Position.
E) Roosevelt Corollary.
Answer: E Page: 60 Difficulty: Hard Type: Fact
49. The manner in which the United States acquired the land for the Panama Canal Zone
typifies _________________--whatever is good for the United States is justifiable.
A) Manifest Destiny.
B) Hay Corollary.
C) Wilson Mandate.
D) Gadsden Policy Position.
E) Roosevelt Corollary.
Answer: E Page: 60 Difficulty: Hard Type: Fact
50. All of the following have been U.S. interventions in Latin America since 1945 EXCEPT:
A) U.S. intervention in Afghanistan in 2002.
B) Popular Revolution was neutralized by U.S. economic pressure (1952).
C) CIA-organized invasion overthrows Arbenz (1954).
D) U.S. invasion to arrest President Noriega on charges of drug trafficking (1989).
E) U.S. attempts to thwart the election of Peron (1946).
Answer: A Page: 61, Exhibit 3.2 Difficulty: Hard Type: Fact
51. ____________ is the study of the earth's surface, climate, continents, countries, peoples,
industries, and resources.
A) Culture
B) Geography
C) Cartography
D) Demography
E) Geo-politics
Answer: B Page: 62 Difficulty: Easy Type: Definition

52. The study of the earth's surface, climate, continents, countries, peoples, industries, and
resources is called:
A) culture.
B) geography.
C) cartography.
D) demography.
E) geo-politics.
Answer: B Page: 62 Difficulty: Easy Type: Definition
53. Geography is part of which of the following?
A) An organization's internal environment.
B) An organization's controllable external environment.
C) An organization's uncontrollable external environment.
D) An organization's parallel environment (controllable).
E) An organization's parallel environment (uncontrollable).
Answer: C Page: 62 Difficulty: Moderate Type: Definition
54. Larry Lam has the responsibility of doing a geographic appraisal for his company as it
attempts to build a manufacturing facility in Borneo. Which of the following elements of
geography will be of particular interest to Mr. Lam as he prepares an appraisal of the
feasibility of a venture in this tropical country?
A) Altitude
B) Humidity
C) Temperature extremes
D) Climate
E) Mr. Lam should consider all of the above factors.
Answer: E Page: 63 Difficulty: Moderate Type: Application
55. Geographic features affect marketing. These effects range from the obvious influences
on product adaptation to more profound influences on the development of:
A) marketing systems.
B) high-level strategic statements.
C) corporate executives.
D) new theories of chaos management.
E) all of the above.
Answer: A Page: 63 Difficulty: Moderate Type: Comprehension

56. All of the following have the tendency to propel less-privileged countries into further
economic stagnation EXCEPT:
A) religious practices.
B) climate and topography.
C) civil wars.
D) natural disasters.
E) all of the above are causes of economic stagnation.
Answer: A Page: 65 Difficulty: Moderate Type: Comprehension
57. Which of the following statements would best complete the statement that countries that
suffer the most from major calamities are:?
A) usually at fault.
B) usually helped by neighbors to overcome the difficulties.
C) usually among those that are prepared to handle such difficulties.
D) usually among the poorest in the world.
E) all of the above could be used to complete the statement.
Answer: D Page: 65 Difficulty: Moderate Type: Comprehension
58. As the global rush toward industrialization and economic growth accelerates,
environmental issues become:
A) more apparent.
B) less important.
C) easier to solve.
D) the responsibility of governments to solve.
E) none of the above adequately completes the sentence.
Answer: A Page: 66 Difficulty: Moderate Type: Comprehension
59. Disruption of ecosystems, relocation of people, inadequate hazardous waste management,
and industrial pollution are mostly by-products of:
A) U.S. expansion.
B) European expansion.
C) lack of resources to solve problems.
D) processes that have contributed significantly to economic development and lifestyles.
E) all of the above.
Answer: D Page: 66-67 Difficulty: Easy Type: Comprehension

60. Mary Blankenship has just written her congresswoman complaining about the high taxes
imposed on her by her government. To quote Mary, I don't see why I should have to pay
taxes to clean up the environment. I didn't dirty it up. I am environmentally conscious.
Tax those that are not. Which of the following statements most likely is being used by
Mary to justify her response to the congressman?
A) Many people view ecological problems as a global issue rather than a national issue
(an isolationist view).
B) Many people believe there is no problem (a hole in the sand view).
C) Many people believe that cleaning the environment is everyone's responsibility (a
responsibility view).
D) Many people believe that the rich should pay for everything (a wealth-class issue or
view).
E) None of these views is applicable to Mary's situation.
Answer: A Page: 67 Difficulty: Moderate Type: Application
61. Which of the following is considered to be a by-product of pollution controls?
A) corporate responsibility
B) evading responsibility
C) the disposal of hazardous waste
D) increased labeling of products
E) increasing advertising to explain environmental policies
Answer: C Page: 67 Difficulty: Hard Type: Fact and Comprehension
62. Which of the following agreed to a total ban on the export of hazardous wastes by
developing nations?
A) The United Nations
B) The Basel Convention
C) NAFTA
D) The European Union
E) The Soviet Bloc
Answer: B Page: 67 Difficulty: Hard Type: Fact

63. A treaty among members of the ____________ requires a total ban on the export of
hazardous wastes by developed nations.
A) The United Nations
B) The Basel Convention
C) NAFTA
D) The European Union
E) The Soviet Bloc
Answer: B Page: 67 Difficulty: Hard Type: Fact
64. ______________ is the concept that guides many governments and multinational
companies with respect to the wise use of resources and economic benefits.
A) Parallel development
B) Global development
C) Sustainable development
D) Restricted development
E) Biased development
Answer: C Page: 67 Difficulty: Moderate Type: Definition
65. The term that best describes the process of wherein governments and multinational
corporations agree that wise resource management and equitable distribution of benefits
from the process of economic development is in everyone's best interest is called:
A) parallel development.
B) global development.
C) sustainable development.
D) restricted development.
E) biased development.
Answer: C Page: 67 Difficulty: Moderate Type: Definition and Application
66. The availability of ___________ and the ability to generate energy are the foundations of
modern technology.
A) minerals
B) money
C) patents
D) labor
E) the Internet
Answer: A Page: 70 Difficulty: Moderate Type: Fact

67. The saga of the Khian Sea illustrates the problem of:
A) survival of the fittest.
B) toxic wastes as a by-product of economic and technological growth.
C) the global community is not a neighborhood.
D) Manifest Destiny.
E) None of the above.
Answer: B Page: 69, Crossing Borders 3.6 Difficulty: Hard Type: Fact
68. All of the following help to determine today's demand for various categories of goods
EXCEPT:
A) infant deaths.
B) current population.
C) rural/urban population shifts.
D) rates of growth.
E) age levels.
Answer: A Page: 71 Difficulty: Moderate Type: Fact
69. Most population experts predict that the world population will continue to grow. What is
the expected population of the world by the year 2050?
A) 3.5 billion
B) 4.2 billion
C) 6 billion
D) 7.3 billion
E) 9 billion
Answer: E Page: 72 Difficulty: Hard Type: Fact
70. Consumers in which of the following continents or geographical areas consume the least
part of total world energy consumption?
A) Africa
B) Middle East
C) South America
D) Eastern Europe
E) Developing Asia
Answer: A Page: 71, Exhibit 3.3 Difficulty: Moderate Type: Fact

71. Perhaps the most important deterrent to population control is:


A) ignorance.
B) cultural attitudes about the importance of large families.
C) income level.
D) a means to secure birth control.
E) the concept of machismo.
Answer: B Page: 72 Difficulty: Moderate Type: Fact and Comprehension
72. Migration from rural to urban areas is largely a result of the desire for greater access to
sources of:
A) energy.
B) cultural adaptations, religion, and international security.
C) population control, basic agricultural products, and harmonization.
D) education, health care, and improved job opportunities.
E) All of the above.
Answer: D Page: 73 Difficulty: Hard Type: Fact
73. At the same time that population growth is declining in the industrialized world, there
are:
A) higher infant mortality rates.
B) more aging people today than ever before.
C) increasing pressures to have larger families.
D) all of the above are true.
E) none of the above is true.
Answer: B Page: 74 Difficulty: Moderate Type: Fact
74. Demographic projections suggest that, in the future, the part of the world with the largest
portion of people over 65 will also be the part with the fewest people under age 15. This
means there will be:
A) fewer workers to support future retirees.
B) taxes will be lowered on future workers to pay for benefits for the elderly.
C) more under 65 workers will retire early
D) there will be pressure to prevent migration
E) all of the above.
Answer: A Page: 75 Difficulty: Hard Type: Fact

75. Trade routes represent attempts of countries to:


A) influence the course of world history through international marketing.
B) prevent the United States from dominating the world.
C) solicit economic and social ideas to maintain the existing culture.
D) overcome economic and social imbalances created in part by geography.
E) All of the above.
Answer: D Page: 78 Difficulty: Hard Type: Comprehension
26.The marketer's efforts are judged in ______________ for acceptance, resistance, or rejection.
A) a social class context
B) a cultural context
C) a global context
D) a public relations context
E) none of the above
Answer: B Page: 94 Difficulty: Moderate Type: Comprehension
27. _____________ is the human-made part of human environment.
A) Sociology
B) Psychology
C) Culture
D) Reference groups
E) Cohort groups
Answer: C Page: 94 Difficulty: Moderate Type: Definition
28. The sum total of knowledge, beliefs, art, morals, law, customs, and any other capabilities
and habits acquired by humans as members of society is called:
A) Sociology
B) Psychology
C) Culture
D) Reference groups
E) Cohort groups
Answer: C Page: 94 Difficulty: Moderate Type: Definition
29. When marketers first introduced the PDA to the American consumer they performed the
role of being a(n) _____________ because the cultural impact of the product became
widespread.
A) gatekeeper
B) role player
C) supply creator
D) agent of change
E) none of the above
Answer: D Page: 94 Difficulty: Moderate Type: Application and Definition

30. With respect to a cultural fact, which of the following countries has the highest rate of
consumption of chocolate?
A) France
B) Germany
C) United States
D) Italy
E) United Kingdom
Answer: E Page: 96, Exhibit 4.2 Difficulty: Hard Type: Application and Fact
31. According to Dutch management professor Geert Hofstede, culture is seen as:
A) software of the mind.
B) the difference between life and death.
C) the conflict of civilization versus the masses.
D) tool of the elite.
E) art's triumph over banality.
Answer: A Page: 98 Difficulty: Hard Type: Comprehension
32. According to Dutch management professor Geert Hofstede, culture is seen as a:
A) weapon that is often used on the poor.
B) problem-solving tool.
C) bias that is used to justify racial inequality.
D) a tool that is of little value.
E) none of the above is attributed to Hofstede.
Answer: B Page: 98 Difficulty: Moderate Type: Fact
33. All of the following are considered to part of the origins of culture EXCEPT:
A) geography.
B) history.
C) technology and political economy.
D) mathematical models
E) social institutions.
Answer: D Page: 99, Exhibit 4.4 Difficulty: Moderate Type: Comprehension

34. Which of the following would be considered to among the elements of culture according
to a model presented in the text?
A) family
B) religion
C) media
D) rituals
E) none of the above is elements of culture
Answer: D Page: 99, Exhibit 4.4 Difficulty: Moderate Type: Comprehension
35. A traditional definition of ____________ centers around the notion that it is the sum of
the values, rituals, symbols, beliefs, and thought processes that are learned, shared by a
group of people, and transmitted from generation to generation.
A) social class
B) psychology
C) anthropology
D) demography
E) culture
Answer: E Page: 98 Difficulty: Moderate Type: Definition
36. As Mike Jones has grown up he has learned a great about his culture from his schools,
church, mass media, and family. This learning is called:
A) acculturation.
B) socialization.
C) naturalization.
D) emancipation.
E) adaptation.
Answer: B Page: 98 Difficulty: Hard Type: Application and Definition
37. Mervin is excited about his new home in the Philippines. Even though he was born in
Los Angeles, Mervin has been given the opportunity to learn about a new culture, form
new friends, and capitalize on opportunities than were not available in his previous home
or workplace. Mervin will go through what is called a ______________ as he adjusts to
living in Manila.
A) acculturation
B) socialization
C) naturalization
D) emancipation
E) standardization
Answer: A Page: 98 Difficulty: Moderate Type: Application

38. The family, religion, schools, the media, government, and corporations are all
illustrations of what are called:
A) social institutions.
B) cultural icons.
C) internal variables.
D) external variables.
E) demographic variables.
Answer: A Page: 103 Difficulty: Moderate Type: Definition
39. In most cultures the first social institution infants are exposed to outside the home takes
the form of a:
A) day care center.
B) school.
C) religious institution (church, mosque, shrine, or temple).
D) shopping mall.
E) government agency.
Answer: C Page: 104 Difficulty: Hard Type: Comprehension
40. The four social institutions that most strongly influence values and culture are schools,
churches (religious institutions), families, and:
A) shopping malls.
B) day care centers.
C) government agencies.
D) the media.
E) corporations.
Answer: D Page: 105 Difficulty: Moderate Type: Comprehension
41. Compared with the early (during childhood) and direct influences of family, religion,
school, and the media during childhood, governments:
A) hold a very strong position.
B) hold a moderate position.
C) hold relatively little sway.
D) control a great deal of our lives.
E) basically ignore people.
Answer: C Page: 105 Difficulty: Hard Type: Comprehension and Application

42. The most useful information on how cultural values influence various types of business
and market behavior comes from work done by:
A) Sigmund Freud.
B) George Gallup.
C) Geert Hofstede.
D) Ayn Rand.
E) Milton Friedman.
Answer: C Page: 106 Difficulty: Hard Type: Fact
43. Many languages are very different from other languages. Which of the following
languages is the most distant from English?
A) French.
B) German.
C) Spanish.
D) Arabic.
E) Taiwanese (Taiwan).
Answer: E Page: 111 &112- Exhibit 4.5 Difficulty: Hard Type: Fact
44. The ________________ Index refers to the preference for behavior that promotes one's
self-interest.
A) Individualism/Collectivism
B) Power Distance
C) Uncertainty Avoidance
D) Ritual
E) Language
Answer: A Page: 107 Difficulty: Moderate Type: Fact and Definition
45. Which of the following countries scores highest on the Individualism/Collectivism Index
meaning that this country values and rewards individual initiative more that the others
cited?
A) Brazil
B) Greece
C) France
D) Germany
E) United States
Answer: E Page: 106, Exhibit 4.5 Difficulty: Easy Type: Fact and Application

46. Which of the following countries would have the most affinity (score highest) for
collectivism (cohesive groups are honored and encouraged)?
A) Great Britain
B) Australia
C) Canada
D) France
E) Japan
Answer: E Page: 106, Exhibit 4.5 Difficulty: Easy Type: Fact and Application
47. The Uncertainty Avoidance Index measure the tolerance of ___________ and
__________among members of a society.
A) social equality and inequality
B) self-interest and collective interest
C) uncertainty and ambiguity
D) primary and secondary language tolerance
E) ritual and dislocation
Answer: C Page: 107 Difficulty: Moderate Type: Comprehension
48. Emma Smith has just been hired as a consultant for the Smith Barney stock brokerage
firm. Her task is to determine whether Smith Barney should use face-to-face contacts to
encourage sales or the more impersonal electronic communications that have become so
popular today. Her data indicates (based on reviews of Individualism/Collectivism
studies) that all but one of the following countries would probably favor electronic
communication. Which country would most likely favor face-to-face contact with a
Smith Barney broker?
A) United States
B) Australia
C) Canada
D) Japan
E) Great Britain
Answer: D Page: 106, Exhibit 4.5 Difficulty: Moderate Type: Application and Fact

49. Giving a gift in another country requires careful attention if it is to be done properly.
According to the characteristics of gift giving that follows, which country most likely
matches with this form of gift giving? Characteristics: never make an issue of a gift
presentation--publicly or privately; gifts should be presented privately, with the exception
of collective ceremonial gifts at banquets or after speeches.
A) Arab World
B) United States
C) Japan
D) Latin America
E) China
Answer: E Page: 108, Crossing Borders 4.1 Difficulty: Moderate Type: Application
and Fact
50. Rituals let people know:
A) what to expect.
B) what something costs.
C) how the government operates.
D) the impact of language.
E) All of the above.
Answer: A Page: 108-109 Difficulty: Moderate Type: Comprehension
51. Anthropologist Edward T. Hall tells us that culture is:
A) all-encompassing.
B) relatively minor in the scheme of life.
C) communication.
D) strongly linked to physiology.
E) standard throughout the world.
Answer: C Page: 109 Difficulty: Moderate Type: Fact
52. In many parts of the world language is itself thought of as a social institution (often with
political importance). Which of the following countries best exemplifies the above
statement?
A) Australia
B) United States
C) France
D) Mexico
E) Switzerland
Answer: C Page: 109 Difficulty: Moderate Type: Fact and Application

53. The relationship between language and international marketing is an important factor that
cannot be overestimated. Recent studies indicate that a new concept, __________, is
proving useful to marketing researchers in market segmentation and strategic entry
decisions.
A) linguistic traps
B) linguistic distance
C) language parallels
D) language roots
E) none of the above
Answer: B Page: 110 Difficulty: Moderate Type: Comprehension and Definition
54. Which of the following general terms would most closely be associated with the arts,
folklore, music, drama, and dance?
A) controllable environmental variables
B) uncontrollable environmental variables
C) aesthetics
D) cultural mandates
E) cultural icons
Answer: C Page: 111 Difficulty: Moderate Type: Definition
55. Much of what we learn to believe comes from:
A) the media.
B) the Internet.
C) religious training.
D) biological heredity.
E) physiological need states.
Answer: C Page: 112 Difficulty: Easy Type: Comprehension

56. Gin and Oki Chen are about to purchase a new home in San Francisco. The first home
shown to the couple is a lovely ranch-style house. As Gin looks at the home she
comments to the real estate broker, This will never do. I am sorry but the front entrance
faces northwest. No one would ever visit us. May we please see another house from
your list. Her husband concurs. Which of the following would explain why Gin Chen's
statement was so strong and why she would rather look at another home?
A) She is afraid of earthquakes in the San Francisco area.
B) She dislikes the color of the house but is afraid to say so because it would be rude.
C) She never has liked houses that face shaded areas.
D) She is from southern China and, therefore, prefers an entrance that faces southwest.
E) She respects traditional feng shui beliefs.
Answer: E Page: 112 Difficulty: Moderate Type: Application
57. How people think and view the world is important to any cultural study of the
international environment. According to a book written by Richard Nisbett, The
Geography of Thought, Asians tend to:
A) prefer home cooking to fast food.
B) see the whole picture and can report details about background and foreground.
C) focus on small details in the foreground but cannot often see the big picture.
D) see the world (surprisingly) in a similar way to everyone else.
E) see only what they want to see as they are very biased on their outlook on life.
Answer: B Page: 113 Difficulty: Hard Type: Application and Comprehension
58. ____________ knowledge about a culture is usually obvious and must be learned.
A) Factual
B) Interpretative
C) Virtual
D) Historical
E) Superstitious
Answer: A Page: 113 Difficulty: Moderate Type: Definition

59. _____________ knowledge about a culture is an ability to understand and to appreciate


fully the nuances of different cultural traits and patterns.
A) Factual
B) Interpretative
C) Virtual
D) Historical
E) Superstitious
Answer: B Page: 113 Difficulty: Moderate Type: Definition
60. Factual knowledge is very important to understanding a culture. Which of the following
would be the best illustration of this importance?
A) The Catholic religion is widespread throughout the world.
B) The United States is located in the Northern Hemisphere of what was called the New
World.
C) 98 percent of Mexico is Roman Catholic.
D) Great Britain is made up of England, Scotland, Ireland, and Wales.
E) All of the above would be very important to understanding culture in a factual sense.
Answer: C Page: 114 Difficulty: Hard Type: Comprehension and Application
61. ______________ is being attuned to the nuances of culture so that a new culture can be
viewed objectively, evaluated, and appreciated.
A) Cultural ombudsmanship
B) Being a cultural icon
C) Being a cultural maven
D) Cultural sensitivity
E) Cultural borrowing
Answer: D Page: 115 Difficulty: Moderate Type: Definition
62. ________________ is a responsible effort to learn from other's cultural ways in the quest
for better solutions to a society's particular problems.
A) Cultural ombudsmanship
B) Being a cultural icon
C) Being a cultural maven
D) Cultural sensitivity
E) Cultural borrowing
Answer: E Page: 116 Difficulty: Moderate Type: Definition

63. Modern medicine in the United States has been impacted by application of herbal
remedies from South America and acupuncture from the Orient. This would be an
example of which of the following?
A) Cultural ombudsmanship
B) Being a cultural icon
C) Being a cultural maven
D) Cultural sensitivity
E) Cultural borrowing
Answer: E Page: 116 Difficulty: Moderate Type: Definition and Application
64. Which of the following best illustrates the concept of cultural borrowing in the United
States?
A) Eating three meals a day.
B) Working five days a week.
C) Eating salsa on just about everything.
D) The popularity of SUVs in suburban neighborhoods.
E) The popularity of basketball among urban youth.
Answer: C Page: 116 Difficulty: Easy Type: Application
65. According to Hofstede's data, acceptance of innovations varies across cultures. In the
Hofstede studies it was shown that innovation was associated with all of the following
EXCEPT:
A) higher individualism (IDV)
B) lower power distance (PDI)
C) uncertainty avoidance (UAI).
D) all of the above are correct
E) none of the above is correct
Answer: D Page: 117 Difficulty: Moderate Type: Comprehension and Application
66. Some studies have shown that one of the most important factors in determining what kind
and how much of an innovation will be accepted is the:
A) degree of interest in the field.
B) how much the item costs.
C) what color the item is.
D) how the item is packaged.
E) knowledge of the brand name.
Answer: A Page: 117 Difficulty: Hard Type: Comprehension

67. Often, cultural resistance to change disappears as:


A) government mandates force consumers to change.
B) religion and rituals spark acceptance of cultural change.
C) change agents provide correct change.
D) superstition overcomes science.
E) ideas initially too complex for consumers become less so.
Answer: E Page: 118 Difficulty: Hard Type: Application and Comprehension
68. Marketers have two options when introducing an innovation to a culture. First, they can
cause change. What is the other option?
A) They can wait.
B) They re-package the innovation to cause confusion.
C) They mandate adoption by withdrawing all alternatives.
D) They can plea for governmental assistance and support.
E) None of the above would be an acceptable option.
Answer: A Page: 118 Difficulty: Moderate Type: Comprehension
69. One of the ways to introduce change into a market is to do it in slow gradual steps by
making the new products as similar to the old ones as possible. This would be called a
strategy of:
A) unplanned change.
B) cultural adiaphoria.
C) cultural syncopation.
D) cultural congruence.
E) none of the above
Answer: D Page: 118 Difficulty: Moderate Type: Comprehension
70. Morton Foods has decided to introduce a new line of turkey products to the American
consumer. Turkey Steaks will resemble beefsteak in taste but will be made from turkey
meat. The Turkey Steaks will be leaner and healthier for a variety of reasons. However,
Morton Foods is concerned that the product will not be accepted. If Morton Foods
follows a strategy of ______________, they are more likely to success with the
introduction of the new product.
A) unplanned change
B) cultural adiaphoria
C) cultural syncopation
D) cultural congruence
E) none of the above
Answer: D Page: 118-119 Difficulty: Hard Type: Application and Comprehension

71. Nexar Energy is advocating the use solar power to replace all petroleum-based energy
sources. The company has demonstrations to show how solar power could be used in all
major petroleum-based products--automobiles, power sources, and heating and cooling.
Since Nexar Energy is advocating _____________, their information documents their
deliberate attempt to change the way we do things with respect to energy sources.
A) unplanned change
B) planned change
C) parallel change
D) syncopated change
E) synergistic change
Answer: B Page: 118 Difficulty: Moderate Type: Application and Definition
72. The Westernized diet has caused many Japanese to become overweight. This would be
an illustration of which of the following forms of change?
A) unplanned change
B) planned change
C) parallel change
D) syncopated change
E) synergistic change
Answer: A Page: 119 Difficulty: Moderate Type: Application and Definition
73. When ____________ (acceptance) occurs, a process of social change may also occur.
A) product replacement
B) product abandonment
C) product innovation
D) product diffusion
E) none of the above
Answer: D Page: 119 Difficulty: Hard Type: Comprehension
74. The marketer seeking _____________ and adoption may inadvertently bring about
change that affects the very fabric of a social system.
A) product replacement
B) product abandonment
C) product innovation
D) product diffusion
E) none of the above
Answer: D Page: 119-120 Difficulty: Hard Type: Comprehension

75. If the consequences of diffusion on an innovation on a society are undesirable, then the
innovation can be said to have had a(n) ____________ impact on the society.
A) functional
B) dysfunctional
C) symmetrical
D) parallel
E) dynamic
Answer: B Page: 120 Difficulty: Moderate Type: Definition
26.Culture affects management style around the world. Which of the following statements
would be an improper characterization of business behavior and practices around the
world?
A) North Americans are individualists.
B) The Japanese are consensus oriented.
C) The central and southern Europeans are elitists and rank conscious.
D) All Russians are communists.
E) None of the above is an accurate generalization.
Answer: D Page: 124 Difficulty: Easy Type: Comprehension
27. Knowledge of _______________ consists of understanding the business culture,
management values, and business methods and behaviors.
A) management style
B) management trends
C) management missions
D) management personalities
E) management theories
Answer: A Page: 124 Difficulty: Moderate Type: Definition
28. ___________ is a key concept in international marketing because it is required on small
matters as well as large ones.
A) Profit perception
B) Adaptation
C) Standardization
D) Correlation
E) Individualization
Answer: B Page: 124 Difficulty: Moderate Type: Definition and Comprehension

29. As a guide to adaptation, all of the following criteria would be appropriate EXCEPT:
A) open to tolerance.
B) flexibility.
C) humility.
D) profit motive.
E) all of the above.
Answer: D Page: 125 Difficulty: Hard Type: Comprehension
30. A liking for others, open to tolerance, flexibility, and ability to adjust to varying tempos
would all be criteria for achieving ___________ in international marketing.
A) profit perception
B) adaptation
C) standardization
D) correlation
E) individualization
Answer: B Page: 125 Difficulty: Moderate Type: Comprehension
31. With respect to business customs, customs that must be recognized and accommodated
are called:
A) imperatives.
B) electives.
C) exclusives.
D) non-traditional.
E) standardized.
Answer: A Page: 125 Difficulty: Moderate Type: Definition
32. With respect to business customs, customs to which adaptation is helpful, but not
necessary are called:
A) imperatives.
B) electives.
C) exclusives.
D) non-traditional.
E) standardized.
Answer: B Page: 125 Difficulty: Easy Type: Definition

33. With respect to business customs, customs in which the outsider must not participate are
called:
A) imperatives.
B) electives.
C) exclusives.
D) non-traditional.
E) standardized.
Answer: C Page: 125 Difficulty: Moderate Type: Definition
34. Which of the following would most likely be characterized as being an imperative
business custom?
A) establishing friendships
B) speaking the language
C) understanding the native religions
D) drinking the local drinks
E) having a knowledge of trading law
Answer: A Page: 125-126 Difficulty: Hard Type: Application and Comprehension
35. Simon Peters is very conscious of his behavior as he greets prospective Japanese clients
at a local Tokyo restaurant. Though he invites all of the guests to drink sake from
lacquered trays, he abstains because of a severe stomach ulcer. He perceives his
abstention to be permissible in Japanese society because drinking sake would be
considered to be a cultural ___________ for foreign guests.
A) imperative
B) elective
C) exclusive
D) non-tradition
E) standard
Answer: B Page: 126-127 Difficulty: Moderate Type: Application

36. Betty Roberts became an embarrassment to her company when she joked about the ruling
monarchy in England before a group of visiting English businessmen and women. Betty
should have known that political ridicule by a foreigner is rarely accepted. Ms. Roberts
has violated what is known as a cultural:
A) imperative.
B) elective.
C) exclusive.
D) landmark.
E) standard.
Answer: C Page: 127 Difficulty: Moderate Type: Application
37. There are many different views regarding the most important ideas on which normative
U.S. cultural concepts are based. All of the following are generally accepted as
acceptable ideas with this respect EXCEPT:
A) Master of destiny viewpoint.
B) independent enterprise as the instrument of social action.
C) wide sharing in decision-making.
D) the collective good outweighs the individual gain.
E) competition yields efficiency.
Answer: D Page: 127 (127-130) Difficulty: Moderate Type: Comprehension
38. Competition yielding efficiency, master of destiny viewpoint, and wide sharing of
decision making would characterize which of the following country's cultural concepts in
business?
A) Germany
B) France
C) Japan
D) China
E) United States
Answer: E Page: 127-128 Difficulty: Moderate Type: Comprehension and
Application

39. Which of the following would be the best description of the master of destiny
philosophy that is fundamental to U.S. management thought?
A) A skill that must be mastered is foretelling one's destiny.
B) A manager must control all employees' destinies if profit is to be made.
C) People can substantially influence the future--they are in control of their own future.
D) The state is the master of its citizens' destiny.
E) None of the above explains the concept.
Answer: C Page: 127-128 Difficulty: Moderate Type: Definition and Comprehension
40. There is a very strong belief in the United States that business decisions (and the
managers that make these decisions) should be based on a scientific approach and made
from a non-emotional posture. Which of the following terms best describes this
approach?
A) Master of destiny
B) Independent enterprise
C) Objective analysis
D) Wide sharing in decision-making
E) Never-ending quest for improvement
Answer: C Page: 128 Difficulty: Moderate Type: Comprehension
41. Adam Smith in his Wealth of Nations stated, By pursuing his own interest he frequently
promotes that of the society more effectually than when he really intended to promote it.
Which of the following notions is most closely associated with this view as stated by
Adam Smith?
A) Master of destiny
B) Caveat emptor
C) Greed is good
D) The invisible hand
E) Survival of the fittest
Answer: D Page: 129 Difficulty: Hard Type: Application and Fact

42. In countries with high- _____________, subordinates would be unlikely to contradict


bosses, but in low- ___________ countries they often do.
A) religious values
B) Position Distance Indexes (PDIs)
C) decision-making models
D) wealth quotients
E) mobility tendencies
Answer: B Page: 130 Difficulty: Moderate Type: Comprehension and Application
43. Which of the following forms of business decision-making characterizes most Asian
countries?
A) independent
B) contractual
C) dual
D) consensus
E) dictatorial
Answer: D Page: 131 Difficulty: Moderate Type: Comprehension
44. Personal security and job mobility relate directly to basic human motivation. Assume
that you wanted to work for a company that had a strong paternalistic orientation and
would probably employ you for your entire life. In which of the following countries
would you find that the majority of companies would follow the employment model you
have described?
A) France
B) United States
C) Canada
D) England
E) India
Answer: A Page: 132 Difficulty: Hard Type: Application
45. For international marketers operating in authoritative and delegated societies, the chief
problem is:
A) paying sufficient bribes to the right people.
B) identifying the individual with authority.
C) coming to consensus with the group dynamic.
D) convincing each member of the decision-making group.
E) all of the above
Answer: B Page: 132 Difficulty: Hard Type: Fact and Application

46. For many individuals, ________________ takes priority over profit, security, or any
other goal.
A) religious freedom
B) education
C) social status
D) a good personal and/or family life
E) personal possessions
Answer: D Page: 132 Difficulty: Moderate Type: Comprehension
47. Gen Akoi has worked for Mitsubishi for all of his adult life. In fact, Mitsubishi is his life.
When asked what he does for a living he immediately responds, I work for Mitsubishi!
Even though he is a crane operator, Mr. Akio most closely identifies with his employer.
Which of the following terms most accurately describes the work identification present in
Gen Akoi's life?
A) feudalism
B) dictatorship
C) complete servitude
D) group
E) hopelessness
Answer: D Page: 132 Difficulty: Moderate Type: Application
48. Edward T. Hall wrote a book entitled The Silent Language of Overseas Business. Which
of the following phrases or terms would most likely be covered in his book?
A) how deaf people are treated in Japan
B) feng shui
C) the symbolic importance (lack of importance) of time
D) gender bias
E) quiet attempts to use English
Answer: C Page: 134 Difficulty: Moderate Type: Comprehension and Application
49. In a high context implicit communication environment who says something, how it is
said, and when it is said is very important. Which of the following countries would we
find to be high context implicit with respect to communication practices?
A) Switzerland
B) Saudi Arabia
C) France
D) United States
E) Germany
Answer: B Page: 135, Exhibit 5.2 Difficulty: Hard Type: Fact and Application

50. In a low-context explicit communication culture one would expect to find that verbal
exactness in communication dominates other communication variables. Which of the
following countries has been described as being low context explicit with respect to
communication practices?
A) Switzerland
B) Japan
C) Saudi Arabia
D) England
E) Italy
Answer: A Page: 135, Exhibit 5.2 Difficulty: Hard Type: Fact and Application
51. Many international marketing companies address the Internet language problem by:
A) using only English on their Web sites.
B) using language translation software whenever possible.
C) having country-specific Web sites.
D) using foreign language blocking software to screen international communications.
E) all of the above.
Answer: C Page: 136 Difficulty: Easy Type: Fact
52. One of the communications issues associated with Web sites in international marketing is:
A) paying for Internet access in each country.
B) soliciting sales tax versus value added tax correctly.
C) always using the correct English translation.
D) examining sites for symbols, icons, and other nonverbal impressions that could be
misinterpreted by foreign consumers.
E) all of the above.
Answer: D Page: 136 Difficulty: Hard Type: Fact
53. Time is viewed differently around the world. For example, in Spain those who rush
arrive first at the grave is a description of feelings toward time. In which country would
we expect to hear the description of time as being time is money?
A) France
B) Japan
C) Hong Kong
D) England
E) United States
Answer: E Page: 138, Crossing Borders 5.4 Difficulty: Easy Type: Fact and
Application

54. In the United States, Switzerland, Germany, and Norway one thing at a time receives
attention with respect to time. This would be called:
A) P-time--polychronic time.
B) B-time--bimodal time.
C) D-time--dual time.
D) M-time-monochronic time.
E) None of the above would be correct.
Answer: D Page: 138-140 Difficulty: Moderate Type: Definition and Application
55. As Luci Chen sits in her office in Shanghai she is looking at her daily appointment
calendar. Even though she has many appointments, she knows that she will spend quality
time with each person. After all, being involved with people and being sensitive to
relationships is just as important (if not more important) than sticking to a schedule. Ms.
Chen could be characterized following which of the following time models?
A) P-time--polychronic time.
B) B-time--bimodal time.
C) D-time--dual time.
D) M-time-monochronic time.
E) None of the above would be correct.
Answer: D Page: 138-140 Difficulty: Hard Type: Definition and Application
56. Ramon Garcia is excited about his first visit to the United States. As a representative of a
Mexican vegetable producer, Ramon knows that he will have to forget Mexican time
and be aware of American time. As he shifts to American time, which of the
following time models will Mr. Garcia need to understand and follow if he is to be
successful during his stay in America?
A) P-time--polychronic time.
B) B-time--bimodal time.
C) D-time--dual time.
D) M-time-monochronic time.
E) None of the above would be correct.
Answer: D Page: 138-140 Difficulty: Hard Type: Definition and Application

57. Even though speed is relative in a cultural context, we would expect workers from which
of the following countries to be so obsessed with speed (walking, accomplishing tasks,
and accuracy of time pieces) that this country ranks number one in the world?
A) Switzerland
B) Japan
C) Germany
D) Brazil
E) United States
Answer: A Page: 139, Exhibit 5.3 Difficulty: Moderate Type: Application
58. As Mark Hall examines markets for his company's new digital watch product, he has
reservations about market potential in some countries. He knows that countries that are
addicted to speed with respect to time would make better markets than those that are not.
According to rankings of speed (with respect to time) appreciation, which of the
following markets would most likely be a good one for Mr. Hall to pursue first with his
company's new product?
A) China
B) Mexico
C) Germany
D) Canada
E) Indonesia
Answer: C Page: 139, Exhibit 5.3 Difficulty: Moderate Type: Application
59. The basic elements of an international business negotiation include all of the following
EXCEPT:
A) price and terms
B) services
C) product
D) politics
E) friendship between vendor and customers.
Answer: D Page: 140 Difficulty: Hard Type: Fact

60. When a U.S. female is selected for an international assignment the going might be
difficult given the attitude of many foreign organizations toward females in positions of
authority. In addition to training, which of the following would be a key to the female's
success in a foreign assignment?
A) amount of money to be paid for the assignment
B) bonus options
C) social background
D) age
E) strength of the firm's backing
Answer: E Page: 140-141 Difficulty: Moderate Type: Comprehension and
Application
61. According to various views around the world, all of the following have been defined or
viewed as being corruption EXCEPT:
A) profits.
B) individualism.
C) rampant consumerism.
D) intellectual property laws.
E) all are viewed as being corruption in parts of the world
Answer: E Page: 142 Difficulty: Moderate Type: Comprehension and Application
62. According to information presented in the text, which of the following would be
considered to be corruption (or a corrupt practice) in India?
A) profits
B) individualism
C) rampant consumerism
D) intellectual property laws
E) currency speculators
Answer: C Page: 142 Difficulty: Moderate Type: Comprehension and Application

63. AIDS is rampant in many sub-Saharan African nations. Because of this fact, which of the
following would most likely be viewed as a corrupt practice (or corruption) by African
nations and their leaders?
A) capitalism
B) individualism
C) rampant consumerism
D) intellectual property laws
E) currency speculators
Answer: D Page: 142 Difficulty: Hard Type: Comprehension and Application
64. The decision to pay a bribe can be seen as creating a major conflict between what is
ethical and proper and what is profitable and sometimes necessary for business. Led by
the U.S. many nations have now signed an accord by the member nations of the
________________________ to force their companies to follow anti-bribery rules
similar to those followed in the U.S.
A) United Nations
B) Organization of American States
C) NAFTA
D) NATO
E) Organization for Economic Cooperation and Development (OECD)
Answer: E Page: 144 Difficulty: Moderate Type: Comprehension
65. Which of the following organizations is dedicated to curbing corruption through
international and national coalitions encouraging governments to establish and implement
effective laws, policies, and anticorruption programs?
A) Organization of American States
B) United Nations
C) The Hague
D) Transparency International (TI)
E) none of the above
Answer: D Page: 145 Difficulty: Moderate Type: Fact

66. Transparency International (TI) scores countries with respect to their prevalence for bribe
taking. Bribery is least tolerated in which of the following countries?
A) United States
B) Japan
C) Germany
D) Israel
E) Finland
Answer: E Page: 145-146, Exhibit 5.5 Difficulty: Hard Type: Fact
67. Transparency International (TI) scores countries with respect to their prevalence for bribe
taking. Bribery is most tolerated in which of the following countries?
A) United States
B) Japan
C) Germany
D) Austria
E) Nigeria
Answer: E Page: 145, Exhibit 5.5 Difficulty: Easy Type: Fact
68. If it often said that it takes two to bribe--one to receive and one to pay. In which of the
following countries would companies be least likely to pay a bribe to obtain business or
gain favor?
A) United States
B) Australia
C) Russia
D) Taiwan
E) Japan
Answer: B Page: 145, Exhibit 5.6 Difficulty: Moderate Type: Fact
69. Voluntarily offered payment by someone seeking unlawful advantage is called:
A) extortion.
B) subordination.
C) lubrication.
D) agent's fees.
E) bribery.
Answer: E Page: 147 Difficulty: Easy Type: Definition

70. ___________ involves a relatively small sum of cash, a gift, or service that is intended to
facilitate or expedite the normal, lawful performance of a duty by an official.
A) Extortion
B) Subordination
C) Lubrication
D) Agent's fees
E) Bribery.
Answer: C Page: 148 Difficulty: Moderate Type: Definition
71. A finance minister in a third-world country demands a heavy payment be made to him or
he will stall or veto a multi-million dollar contract that is on his desk. This practice
would be called:
A) extortion.
B) subordination.
C) lubrication.
D) agent's fees.
E) bribery.
Answer: A Page: 147 Difficulty: Easy Type: Definition
72. Perhaps the best guide to good business ethics is to follow all of the guidelines
(principles) shown below EXCEPT:
A) utilitarian ethics.
B) rights of the parties.
C) profit.
D) fairness.
E) justice.
Answer: C Page: 149 Difficulty: Moderate Type: Comprehension
73. According to Lester Thurow, a _____________ form of capitalism is practiced in Japan
and Germany where there is cooperation among government, management, and labor.
A) individualistic
B) communistic
C) communitarian
D) universal
E) docile
Answer: C Page: 149-150 Difficulty: Moderate Type: Definition and Application

74. Which of the following orientations (synthesis) of culture would be described by a


culture that is low-context, has individualism, low power distance, and uses
monochromic time?
A) Information-oriented (IO)
B) Relationship-oriented (RO)
C) Government-oriented (GO)
D) Worker-oriented (WO)
E) Capitalist-oriented (CO)
Answer: A Page: 151, Exhibit 5.7 Difficulty: Hard Type: Definition and
Comprehension
75. Which of the following orientations (synthesis) of culture would be described by a
culture that is high-context, has collectivism, high power distance, and uses polychronic
time?
A) Information-oriented (IO)
B) Relationship-oriented (RO)
C) Government-oriented (GO)
D) Worker-oriented (WO)
E) Capitalist-oriented (CO)
Answer: B Page: 151, Exhibit 5.7 Difficulty: Hard Type: Definition and
Comprehension
26.When the United States and the European Union get into trade disputes, where do both sides
go to settle the matter?
A) The United Nations
B) The World Court
C) The Organization of American States
D) The World Trade Organization
E) none of the above
Answer: D Page: 157, Global Perspective Difficulty: Moderate Type: Comprehension
and Application
27. When the World Trade Organization attempted to settle what was called a banana war,
what was the outcome?
A) The European Union won and received payments from the United States.
B) The matter was declared a draw.
C) Both sides in the matter were instructed to cease and desist.
D) The WTO ruled in favor of the United States, however, the EU ignored the ruling.
E) The WTO ruled in favor of the United States and the matter was ended.
Answer: D Page: 157, Global Perspective Difficulty: Hard Type: Comprehension and
Application

28. In the context of international law, a _____________ state is independent and free from
all external control.
A) bounded
B) sovereign
C) legal
D) free-born
E) none of the above
Answer: B Page: 158 Difficulty: Easy Type: Definition
29. A sovereign state, in the context of international law, has all of the following
characteristics EXCEPT:
A) is obligated to be a member of the United Nations.
B) is independent and free from all external control.
C) enjoys full legal equality with other states.
D) governs its own territory.
E) all of the above are true.
Answer: A Page: 158 Difficulty: Moderate Type: Comprehension

30. __________ refers to both the powers exercised by a state in relation to other countries
and the supreme powers exercised over its own members.
A) Sovereignty
B) Government
C) A cartel
D) An international partnership
E) A trade pact
Answer: A Page: 158 Difficulty: Moderate Type: Definition
31. The ideal political climate for a multinational firm is:
A) a country where there are no laws.
B) a country where favors can be purchased cheaply.
C) a stable, friendly government.
D) a government where absolute power is a reality.
E) an authoritarian government that can be dealt with through non-legal channels.
Answer: C Page: 159 Difficulty: Moderate Type: Comprehension
32. At the top of the list of political issues concerning foreign businesses is the:
A) ruling party of a country.
B) the political history of a country.
C) the voting process of a country.
D) the court system of a country.
E) the stability or instability of prevailing government policies.
Answer: E Page: 159 Difficulty: Moderate Type: Comprehension
33. The five main causes of instability in international markets include trade disputes and all
of the following EXCEPT:
A) some forms of government seem to be inherently unstable
B) changes in political parties
C) nationalism
D) U.S. domestic political policies
E) animosity targeted toward specific countries
Answer: D Page: 159-160 Difficulty: Moderate Type: Fact

34. Which of the following is NOT one of the common forms of government?
A) democracy
B) aristocracy
C) oligopoly
D) monarchy
E) dictatorship
Answer: C Page: 161 Difficulty: Hard Type: Fact
35. The election of Vicente Fox as President of Mexico was an example of:
A) overthrowing a corrupt regime.
B) peaceful political change.
C) U.S. interference in international politics.
D) cultural adjustment to global expectations.
E) none of the above
Answer: B Page: 162 Difficulty: Moderate Type: Fact
36. Countertrade is often used by international marketers to gain entry into a country.
PepsiCo used this strategy when it agreed to:
A) offer a more lucrative contract than rival Coca-Cola.
B) to package its Russian products in red rather than blue packages.
C) exchange Pepsi syrup for Russian vodka.
D) pressures the U.S. government into giving PepsiCo an exclusive contract with Russia.
E) to merge with KFC and Taco Bell.
Answer: C Page: 161 Difficulty: Hard Type: Application and Comprehension
37. For most countries around the world it is important for international marketers to know
the philosophies of all the major political parties, since one them might become dominant
and affect:
A) the status of WTO control.
B) the overall business climate.
C) global warming.
D) international support for the United Nations.
E) all of the above.
Answer: B Page: 162 Difficulty: Hard Type: Application and Fact

38. An intense feeling of national pride and unity, an awakening of a nation's people to pride
in their country is called:
A) socialism.
B) communism.
C) fascism.
D) nationalism.
E) polarism.
Answer: D Page: 163 Difficulty: Easy Type: Definition
39. The phrase Buy American would most closely be associated with which of the
following?
A) Socialism
B) Jingoism
C) Nationalism
D) Mercantilism
E) Polarism
Answer: C Page: 163 Difficulty: Moderate Type: Definition and Application
40. No nation-state will tolerate penetration by a foreign company into its market if it
perceives a(n) ______________ its well-being.
A) sympathy for
B) synergistic relationship to
C) economic boost
D) threat to
E) profitable outcome
Answer: D Page: 1 64-165 Difficulty: Easy Type: Definition
41. With respect to political risk that can be faced by a company seeking to invest abroad,
which of the following presents the most severe political risk?
A) confiscation
B) expropriation
C) domestication
D) exchange controls
E) local-content laws
Answer: A Page: 166 Difficulty: Moderate Type: Definition and Application

42. The seizing of a company's assets without payment is called:


A) confiscation.
B) expropriation.
C) domestication.
D) exchange controls.
E) local-content laws.
Answer: A Page: 166 Difficulty: Moderate Type: Definition and Application
43. When a government seizes an investment of a foreign investor but some reimbursement
for the assets is made, the government is following a process called:
A) confiscation.
B) expropriation.
C) domestication.
D) exchange controls.
E) local-content laws.
Answer: B Page: 166 Difficulty: Moderate Type: Definition
44. Often an expropriated investment becomes ____________ (i.e., it becomes a
government-run entity).
A) democratized
B) domesticated
C) nationalized
D) prioritized
E) none of the above
Answer: C Page: 166 Difficulty: Easy Type: Definition and Application
45. _____________ occurs when host countries gradually cause the transfer of foreign
investment to national control and ownership through a series of government decrees by
mandating ownership and greater national involvement in a company's management.
A) Confiscation
B) Expropriation
C) Domestication
D) Exchange controls
E) Local-content laws
Answer: C Page: 166 Difficulty: Moderate Type: Definition

46. The government in Chile recently informed Clint Travis' company that his retail grocery
chain in Chile would have to be gradually turned over to the people of Chile by the year
2050. Additionally, starting next year fifty percent of the board of directors of the
Chilean operation must be Chileans. Which of the following political risk actions is Mr.
Travis facing in Chile?
A) Confiscation
B) Expropriation
C) Domestication
D) Nationalism
E) Dictatorship
Answer: C Page: 166 Difficulty: Moderate Type: Application and Definition
47. The national telephone company in Mexico was privatized; this meant that the Mexican
government sold its operation to _________________.
A) investors
B) regional state regulatory groups.
C) democrats
D) outsourcers.
E) None of the above. The Mexican telephone company is part of the government.
Answer: A Page: 166-167 Difficulty: Moderate Type: Fact and Definition
48. All of the following are considered to be economic risks that can be faced by
international companies EXCEPT:
A) exchange controls.
B) local-content laws.
C) import restrictions.
D) tax controls.
E) all of the above are economic risks.
Answer: E Page: 167-168 Difficulty: Moderate Type: Comprehension
49. If there is a substantial amount of capital leaving the country, the country is likely to
implement which of the following to control the situation?
A) exchange controls
B) local-content laws
C) import restrictions
D) tax controls
E) price controls
Answer: A Page: 167 Difficulty: Moderate Type: Comprehension and Definition

50. In Thailand, it is required that any milk sold in the country must contain at least 50
percent milk from Thai dairy farmers. This would be an illustration of which of the
following economic risks faced by international producers of milk?
A) exchange controls
B) local-content laws
C) import restrictions
D) tax controls
E) price controls
Answer: B Page: 167 Difficulty: Easy Type: Application and Definition
51. When Toyota Motor Company built automobile manufacturing plants in Tennessee and
Ohio, it faced economic risks associated with _____________. This occurred because
the United States required that 50 percent of all parts used in an automobile constructed
in the United States must contain parts that were manufactured in the United States. The
United States wanted to promote it Buy American policy.
A) exchange controls.
B) local-content laws.
C) import restrictions.
D) tax controls.
E) price controls.
Answer: C Page: 167-168 Difficulty: Hard Type: Application and Definition
52. Since the government of Nigeria is strapped for cash, it has decided to tax all foreign
investments (such as oil production equipment) by up to forty percent of appraised value.
The Nigerian government has found that this is the handiest and quickest means of
finding operating funds. This form of economic risk is associated with which of the
following?
A) exchange controls
B) local-content laws
C) import restrictions
D) tax controls
E) price controls
Answer: D Page: 168 Difficulty: Moderate Type: Application and Definition

53. In North Korea there is little foreign investment. One of the reasons is the severe
application of ________________. Any foreign investor or producer is required to sell
its products at prices stated by the North Korean government rather than letting market
value and demand determine prices.
A) exchange controls
B) local-content laws
C) import restrictions
D) tax controls
E) price controls
Answer: E Page: 168 Difficulty: Easy Type: Application and Definition
54. Stopping or refusing to trade with another nation for political reasons is called:
A) activism.
B) boycotting.
C) confiscation.
D) democratization.
E) expropriation.
Answer: B Page: 169 Difficulty: Easy Type: Definition
55. Which of the following statements most accurately describes the impact of boycotts?
A) In general, these policies normally control and rectify situations that caused the
boycotts.
B) Boycotts are generally not very successful.
C) Boycotts are illegal.
D) The United Nations encourages boycotts as a means of settling a dispute as opposed
to armed conflict.
E) None of the above is appropriate with respect to boycotts.
Answer: B Page: 169 Difficulty: Moderate Type: Comprehension and Application
56. Crossing Borders 6.2 Trade Does Not Work as a Stick, Only as a Carrot suggests:
A) Thomas Jefferson understood how to get the French and English to stop fighting.
B) The U.S. was able to get the Soviet Union out of Afghanistan by boycotting the
Moscow Olympics.
C) The U.S. needs to increase its embargo against Myanmar.
D) Coercion does not work, exchange does.
E) All of the above.
Answer: D Page: 170 Difficulty: Hard Type: Fact

57. Which of the following would be the best illustration of a NGO (nongovernmental
organization) group?
A) Red Crescent
B) Red Cross
C) Amnesty
D) Oxfam
E) All of the above
Answer: E Page: 171-172 Difficulty: Easy Type: Comprehension
58. Which of the following is NOT a common goal of terrorists?
A) Use victims as pawns in political or social disputes.
B) Develop military management capability.
C) Inflict fear within a country.
D) To generate funds
E) To embarrass a government.
Answer: B Page: 172 Difficulty: Easy Type: Comprehension
59. Why do terrorism experts predict multinational businesses will be targeted by terrorists
more frequently?
A) They are rich and they are powerful.
B) They are capitalists and what they sell.
C) They less well defended and what they symbolize.
D) None of the above. Terrorism experts predict multinational businesses are less likely
to be targeted.
E) All of the above.
Answer: C Page: 172 Difficulty: Moderate Type: Fact
60. The newest form of terrorism directed toward a peaceful world is:
A) germ warfare.
B) nuclear warfare.
C) cyberterrorism.
D) hate crimes.
E) extortion.
Answer: C Page: 172-173 Difficulty: Easy Type: Comprehension

61. Slammer, Melissa, and goner worm are all examples of:
A) viruses damaging the Internet
B) politically sensitive products
C) third-world diseases.
D) hackers intent on attacking multinational businesses.
E) new video games espousing Internet crime.
Answer: A Page: 172-173 Difficulty: Moderate Type: Fact
62. Although some products are more vulnerable than others with regard to political
sensitivity in foreign markets, ______________ have often been the lightning rods for
groups opposed to foreign companies.
A) grocery chains
B) Wal-Mart stores
C) fast-food restaurants
D) clothing stores
E) travel agencies
Answer: C Page: 173-174 Difficulty: Hard Type: Fact and Comprehension
63. Some products and issues are more politically sensitive in international trade than others.
Which of the following would likely be LEAST the politically sensitive?
A) the environment.
B) exchange rates.
C) national and economic security.
D) space travel.
E) publicly visible assets.
Answer: D Page: 173-174 Difficulty: Easy Type: Comprehension
64. Brian is attempting to forecast political instability and help management identify and
evaluate political events and their potential influence on current and future international
business decisions. Brian is engaged in:
A) political risk assessment.
B) political security.
C) democratization.
D) risk abatement.
E) quantification of risk.
Answer: A Page: 174 Difficulty: Moderate Type: Definition

65. Relations between governments and multinational corporations are generally positive if:
A) products impact national security.
B) products are only directed toward the consumer sector.
C) products are only directed toward the business sector.
D) products can be purchased via the Internet.
E) the investment makes tax contributions.
Answer: E Page: 176 Difficulty: Moderate Type: Comprehension and Application
66. Relations between governments and multinational corporations are generally positive if
investments:
A) are tied to national security.
B) are only oriented toward the consumer sector.
C) are under $1 million.
D) create jobs.
E) do not involve extensive Internet business.
Answer: D Page: 176 Difficulty: Moderate Type: Comprehension and Application
67. Relations between governments and multinational corporations are generally positive if
investments do all of the following EXCEPT:
A) transfers capital, technology, or skills.
B) creates jobs.
C) makes tax contributions.
D) uses locally produced resources.
E) is tied to national security.
Answer: E Page: 176 Difficulty: Hard Type: Comprehension and Application
68. Juliet is concerned with the potential for political harassment when her company enters a
new international market. To reduce the risk of political harassment she will consider
using _______________ to enter the market.
A) importing
B) sole-proprietorships
C) multinational corporations
D) joint ventures
E) all of the above are equal with respect to political harassment
Answer: D Page: 177 Difficulty: Easy Type: Comprehension

69. All of the following would be considered to be strategies that multinational corporations
can use to minimize vulnerability and risk EXCEPT:
A) joint ventures.
B) sole-proprietorship.
C) expanding the investment base.
D) planned domestication.
E) licensing.
Answer: B Page: 176-178 Difficulty: Moderate Type: Comprehension
70. Which of the following strategies minimizes political risks for the multinational
corporation that wishes to expand into overseas markets?
A) joint ventures
B) licensing
C) expanding the investment base
D) planned domestication
E) none of the above eliminates almost all political risks
Answer: B Page: 177 Difficulty: Moderate Type: Comprehension
71. All of the following strategies can be effective in forestalling or minimizing the effect of
a total takeover of a multinational corporation's holdings by a foreign government
EXCEPT:
A) joint ventures.
B) licensing.
C) expanding the investment base.
D) advertising.
E) planned domestication.
Answer: D Page: 176-178 Difficulty: Moderate Type: Comprehension
72. The most effective solution to a situation where a foreign government is demanding local
participation in a multinational corporation's business activities in the host country is:
A) joint ventures.
B) licensing.
C) expanding the investment base.
D) planned domestication.
E) political payoffs.
Answer: D Page: 177-178 Difficulty: Moderate Type: Comprehension

73. Which of the following best describes the U.S. government's policy toward multinational
corporations that are confronted with situations where bribery is an issue?
A) A bribe may be paid as long as it is not a domestic situation.
B) A bribe is justified is if is the documented traditional practice in a country.
C) A bribe may be paid in a foreign country if there is a tie to national security.
D) It is illegal for a U.S. citizen to pay a bribe--period.
E) The issue revolves around the customs of the country and each issue is decided
separately.
Answer: D Page: 178 Difficulty: Moderate Type: Comprehension and Application
74. The most important reason to encourage foreign investment is to:
A) accelerate world peace.
B) accelerate the development of an economy.
C) accelerate the development of the Internet.
D) stall the effects of communism and socialism.
E) make profits.
Answer: B Page: 178 Difficulty: Hard Type: Comprehension
75. The principle U.S. agency that supports U.S. business abroad is the:
A) State Department.
B) Better Business Bureau.
C) Department of Commerce.
D) Department of Foreign Relations.
E) Department of Defense.
Answer: C Page: 178 Difficulty: Easy Type: Fact
26.The _________ of a legal system profoundly affects how the law is written, interpreted, and
adjudicated.
A) foundation
B) legality
C) cost
D) religious ties
E) none of the above
Answer: A Page: 182 Difficulty: Easy Type: Comprehension
27. Which of the following forms of law was derived from English law?
A) code law
B) common law
C) religious law
D) civil law
E) universal law

Answer: B Page: 183-184 Difficulty: Moderate Type: Fact


28. Which of the following types of law is primarily found in the United States, England,
Canada, and other countries once under English influence?
A) code law
B) common law
C) religious law
D) civil law
E) universal law
Answer: B Page: 183-184 Difficulty: Moderate Type: Fact
29. Another term for code law is:
A) business law
B) common law
C) religious law
D) civil law
E) universal law
Answer: D Page: 183-184 Difficulty: Moderate Type: Fact

30. Civil or code law was derived from which of the following?
A) English law
B) economic law
C) Greek law
D) Persian law
E) Roman law
Answer: E Page: 182 Difficulty: Moderate Type: Fact
31. Which of the following countries would have its patent laws best represented by the
following three facts--operates under first to invent rule, protects individual inventors,
and patent applications are secret?
A) Japan
B) Brazil
C) Saudi Arabia
D) France
E) United States
Answer: E Page: 183, Crossing Borders 7.1 Difficulty: Hard Type: Fact and
Application
32. The basis for which of the following is tradition, past practices, and legal precedents set
by the courts through interpretations of statutes, legal legislation, and past rulings?
A) common law
B) code law
C) Islamic law
D) Marxist-socialist tenets
E) all of the above
Answer: A Page: 183 Difficulty: Moderate Type: Definition
33. If law is founded on tradition, past practices, legal precedents set by the courts through
interpretations of statutes, legal legislation, and past rulings, it is called:
A) common law
B) code law
C) Islamic law
D) Marxist-socialist tenets
E) all of the above
Answer: A Page: 183 Difficulty: Moderate Type: Definition

34. Which of the following is based on an all-inclusive system of written rules of law that is
generally divided into commercial, civil, and criminal sections?
A) common law
B) code law
C) Islamic law
D) Marxist-socialist tenets
E) all of the above
Answer: B Page: 183-184 Difficulty: Hard Type: Definition
35. ___________ is considered complete as a result of catchall provisions found in most of
this type of law's system.
A) Common law
B) Code law
C) Islamic law
D) Marxist-socialist tenets
E) none of the above
Answer: B Page: 183-184 Difficulty: Moderate Type: Definition
36. The overriding objective of ___________ is social justice.
A) common law
B) code law
C) Islamic law
D) Marxist-socialist tenets
E) all of the above
Answer: C Page: 185-186 Difficulty: Hard Type: Definition
37. The basis of ___________ is the Koran.
A) common law
B) code law
C) Islamic law
D) Marxist-socialist tenets
E) all of the above
Answer: C Page: 185 Difficulty: Easy Type: Definition

38. Among the unique aspects of Islamic law is the prohibition against the payment of:
A) taxes.
B) profits.
C) interest.
D) equity.
E) accounting fees.
Answer: C Page: 185 Difficulty: Hard Type: Fact
39. Under _____________, the legal system is subordinate to prevailing economic
conditions.
A) common law
B) code law
C) Islamic law
D) Marxist-socialist tenets
E) all of the above
Answer: D Page: 186 Difficulty: Moderate Type: Definition
40. Because of political changes in the late twentieth century, which of the following
countries has had to build from scratch an entire commercial legal system?
A) France
B) Germany
C) Taiwan
D) Russia
E) Saudi Arabia
Answer: D Page: 186 Difficulty: Moderate Type: Comprehension and Application
41. Which of the following supranational system of laws governs world commerce today?
A) U.S. law
B) English law
C) traditional Roman law
D) code law as explained by French courts
E) there is no supranational system of laws that governs behavior
Answer: E Page: 186 Difficulty: Hard Type: Comprehension and Application

42. The World Court can adjudicate disputes between which of the following?
A) disputes between governments
B) disputes between a company and a government
C) disputes between two companies
D) disputes between a private citizen and a government
E) the World Court does not adjudicate in any of the above matters
Answer: A Page: 187 Difficulty: Moderate Type: Comprehension
43. In international commercial disputes, jurisdiction is generally determined in any of the
following ways EXCEPT:
A) on the basis of the money involved in a contract (who gains the most).
B) on the basis of jurisdiction clauses included in contracts.
C) on the basis of where a contract was entered into.
D) on the basis of where the provisions of the contract were performed.
E) all of the above are ways that jurisdiction is determined.
Answer: A Page: 187 Difficulty: Hard Type: Comprehension
44. In settling international commercial transaction disputes, which of the following methods
accounts for the majority of settlements?
A) conciliation
B) informal settlement
C) arbitration
D) litigation
E) none of the methods accounts for a majority of settlements
Answer: B Page: 187 Difficulty: Hard Type: Comprehension
45. Another name for conciliation as a means for settling a dispute in international commerce
is:
A) mediation.
B) informal settlement.
C) arbitration.
D) litigation.
E) bartering.
Answer: A Page: 187 Difficulty: Moderate Type: Definition

46. A nonbonding agreement between parties to resolve disputes by asking a third party to
mediate differences is called:
A) conciliation.
B) informal settlement.
C) arbitration.
D) litigation.
E) none of the above.
Answer: A Page: 187 Difficulty: Moderate Type: Definition
47. Ralph Richards has been attempting to solve a problem that his company has with a
contract default by the Dutch government. He has tried conciliation but the two parties
could never find any common ground on which to begin a fruitful negotiation for
settlement. Which of the following will most likely be the course of action that both of
the two parties will try next?
A) mediation
B) informal settlement
C) arbitration
D) litigation
E) none of the above as there is another step not mentioned
Answer: C Page: 189 Difficulty: Moderate Type: Application
48. In the usual ______________ procedure, parties select a disinterested and informed party
or parties to sever as a referee to determine the merits of the case and make a judgment
that both parties agree to honor.
A) conciliation
B) informal settlement
C) arbitration
D) litigation
E) none of the above
Answer: C Page: 189 Difficulty: Moderate Type: Definition
49. The first step that most arbitrators try to resolve a dispute between two parties is to
attempt:
A) conciliation.
B) informal settlement.
C) fault finding or wrong doing.
D) litigation.
E) coercion.
Answer: A Page: 189 Difficulty: Moderate Type: Comprehension

50. Most arbitration is successful, but success depends on the:


A) amount of the judgment.
B) personalities of the complainants.
C) nationalities of the complainants.
D) willingness of both parties to accept the arbitrator's rulings.
E) amount of money involved in the dispute.
Answer: D Page: 189-190 Difficulty: Hard Type: Comprehension
51. Which of the following is usually NOT placed in the arbitration clause that is becoming
standard in many international contracts?
A) the number of arbitrators to be involved.
B) the place of the arbitration (city and/or country).
C) the language of the arbitration.
D) the age of the arbitrators.
E) all of the above should be part of the contract with respect to arbitration.
Answer: D Page: 189-190 Difficulty: Moderate Type: Comprehension
52. Arbitration clauses require agreement on two counts. Which of the following is one of
those accounts?
A) The complainants agree on who is right and who is wrong.
B) The complainants agree on litigation issues.
C) The complainants agree to abide by the awards resulting from the arbitration.
D) The complainants agree to not hire legal counsel.
E) The complainants agree to hear the case before the World Court if the arbitration
fails.
Answer: C Page: 189-190 Difficulty: Easy Type: Comprehension and Application
53. When all else fails in an international commercial dispute, the final step is:
A) conciliation.
B) to encourage one's government to force the other party to comply.
C) to find fault or wrong doing as a public relations device.
D) litigation.
E) coercion.
Answer: D Page: 190 Difficulty: Moderate Type: Comprehension

54. All of the following are considered to be deterrents to litigation EXCEPT:


A) fear of creating a poor image and damaging public relations.
B) fear of unfair treatment in a foreign court.
C) difficulty in collecting a judgment that may otherwise have been collected in a
mutually agreed settlement through arbitration.
D) the relatively low cost and time required when bringing legal action.
E) loss of confidentiality.
Answer: D Page: 190-191 Difficulty: Moderate Type: Comprehension
55. One authority suggests that settlement of every dispute should follow four steps. Which
of the following is considered to be the first step in this process?
A) conciliate
B) arbitrate
C) coerce
D) try to placate the injured party
E) litigate
Answer: D Page: 190 Difficulty: Easy Type: Comprehension
56. One counterfeiting problem for international marketers is:
A) the ease with which consumers can tell the difference between real and counterfeit
products.
B) the theft of products by pirates during shipping.
C) government regulations legitimizing counterfeiting.
D) collusion between contract manufacturers and illegitimate sellers.
E) all of the above.
Answer: D Page: 191 Difficulty: Hard Type: Fact and Application
57. Companies spend millions of dollars establishing brand names and trademarks primarily
to symbolize:
A) U.S. marketing power.
B) environmentally-friendly production processes.
C) local content.
D) consistency with generic products.
E) quality.
Answer: E Page: 191 Difficulty: Hard Type: Fact and Application

58. Which of the following commonly counterfeited products has the potential for doing the
greatest harm to the consuming public?
A) toys
B) CDs
C) pharmaceuticals
D) software
E) clothing
Answer: C Page: 193 Difficulty: Easy Type: Fact
59. A famous case occurred in Japan where a Japanese business registered McDonald's world
famous trademark before the McDonald's did and was given permission to use the
trademark. McDonald's eventually got the trademark back after a lengthy court battle and
a monetary award to the Japanese company. McDonald's learned that trademarks
registered in the United States:
A) must be ratified by the United Nations trademark protection agency.
B) are worthless.
C) are protected in the European Union under the Geneva Convention but not in Japan.
D) need to be registered with the World Court.
E) are not protected in other countries.
Answer: E Page: 194 Difficulty: Hard Type: Application and Comprehension
60. In a common-law country, ownership of intellectual property rights is established by:
A) prior use versus registration.
B) registration versus prior use.
C) design proof.
D) the common sense mandate.
E) the golden rule of property.
Answer: A Page: 194 Difficulty: Moderate Type: Fact

61. In a common-law country, ownership of intellectual property rights is established by


prior use versus registration. What does the phrase prior use versus registration
mean?
A) One must register a trademark to gain rightful ownership of it.
B) One must pay for the right to own a trademark.
C) Whoever can establish first use of a trademark is typically considered the rightful
owner.
D) Ownership of a trademark can only be established in a court of law.
E) Ownership of a trademark is global and is established by the United Nations.
Answer: C Page: 194-195 Difficulty: Moderate Type: Definition and Application
62. Which of the following international conventions was established to recognize
intellectual property rights?
A) the Paris Convention
B) the Madrid Agreement
C) the Tokyo Convention
D) the Eurasian Convention
E) all of the above
Answer: A Page: 196 Difficulty: Hard Type: Fact
63. Which of the following conventions is responsible for the promotion of the protection of
intellectual property rights?
A) the Paris Convention
B) the Madrid Agreement
C) the Tokyo Agreement
D) the Eurasian Convention
E) The United Nation's WIPO
Answer: E Page: 196 Difficulty: Hard Type: Fact
64. All countries have laws regulating which of the following marketing activities?
A) promotion
B) product development
C) labeling
D) channels of distribution
E) all countries have laws regulating all of the above
Answer: E Page: 198 Difficulty: Easy Type: Fact

65. Which of the following acts developed by the European Union erases legal and trade
differences that have existed for decades between the member nations?
A) European Sanctity Act
B) European Antitrust Act
C) European Unification Act
D) Single European Market Act
E) none of the above
Answer: D Page: 198 Difficulty: Hard Type: Fact and Comprehension
66. Which of the following countries has enacted the most stringent green marketing laws
that regulate the management and recycling of packaging waste?
A) Britain
B) France
C) Germany
D) United States
E) Japan
Answer: C Page: 201 Difficulty: Hard Type: Fact and Comprehension
67. Which of the following is NOT one of the areas of antitrust enforcement in the European
Union and elsewhere?
A) full-line forcing
B) price discrimination
C) supply restrictions
D) competitiveness councils
E) antimonopoly
Answer: D Page: 202 Difficulty: Easy Type: Fact and Comprehension
68. The question of jurisdiction of U.S. law over acts committed outside the territorial limits
of the country has been settled by the courts through application of a long-established
principle of international law called the:
A) the right of imminent domain.
B) the legal transfer of power.
C) the rights of foreign powers and citizens.
D) the objective theory of jurisdiction.
E) the McNeil Principle of International Law.
Answer: D Page: 203 Difficulty: Hard Type: Application and Fact

69. The ________________ of the United States makes it illegal for companies to pay bribes
to foreign officials, candidates, or political parties.
A) Constitution
B) Bill of Rights
C) Foreign Corrupt Practices Act
D) Best Practices Act
E) International Codes of Law
Answer: C Page: 203 (see also Chapter 5) Difficulty: Moderate Type: Fact
70. U.S. firms, their foreign subsidiaries, or foreign firms that are licensees of U.S.
technology cannot sell a product to a country in which the sale is considered by the U.S.
government to affect:
A) the competitive balance of world trade.
B) the competitive balance of free competition inside the U.S.
C) relationship with the world community.
D) the overall balance of payments of the United States.
E) the national security of the United States.
Answer: E Page: 204 Difficulty: Easy Type: Fact and Application
71. Antitrust enforcement has two purposes in international commerce. Which of the
following accurately describes one of those purposes?
A) Protection of American consumers by ensuring that they benefit from products and
ideas produced by foreign competitors as well as by domestic competitors.
B) Protection of the trade balance of the United States.
C) Protection of the U.S. dollar abroad.
D) Protection of the right to compete abroad.
E) All of the above are really purposes of antitrust enforcement.
Answer: A Page: 205 Difficulty: Moderate Type: Comprehension
72. Which of the following U.S. government agencies oversees antitrust enforcement in
international commerce?
A) Department of State
B) Department of Justice
C) Department of Commerce
D) Department of Defense
E) Department of Home Land Security
Answer: B Page: 205 Difficulty: Hard Type: Fact and Application

73. Under the Antiboycott Law, U.S. companies are forbidden to participate in any
unauthorized foreign boycott. Which of the following situations brought about the
Antiboycott Law in the U.S.?
A) The boycott of Cuba by the U.S.
B) The boycott of South Africa by the world community.
C) The boycott of Israel by the Arab League.
D) The boycott of Iraq by the United States.
E) The boycott of the U.S. by the U.S.S.R. (the wheat embargo).
Answer: C Page: 205-206 Difficulty: Hard Type: Fact and Application
74. Even though each nation is considered to be sovereign, many nations consider the
extraterritoriality of U.S. laws to be a threat. Which of the following best describes the
most realistic of these threats as interpreted by foreign governments?
A) the threat to annex a foreign country.
B) the threat to boycott a foreign country.
C) the threat to go to war with a foreign country.
D) the threat of influencing a foreign government through American government policy
on their economies through U.S. multinationals
E) the threat of germ warfare
Answer: D Page: 206 Difficulty: Moderate Type: Application and Fact
75. According to the text, _____________ buy and register descriptive nouns, geographic
names, ethnic groups, pharmaceutical substances and other similar descriptors and hold
them until they can be sold at an inflated price.
A) cyberterrorists
B) cybersquatters
C) cyberpirates
D) cybermarkers
E) cyberghosts
Answer: B Page: 207 Difficulty: Moderate Type: Definition
26.According to the text, ___________ is the key component in developing successful marketing
strategies and avoiding major marketing blunders in the international marketing
environment.
A) public relations
B) information
C) advertising
D) government support
E) deep pockets
Answer: B Page: 214 Difficulty: Easy Type: Comprehension
27. ___________ is traditionally defined as the systematic gathering, recording, and

analyzing of data to provide information useful in marketing decision making.


A) Market segmentation
B) Marketing information systems
C) Marketing research
D) Database management
E) Marketing intelligence
Answer: C Page: 214 Difficulty: Easy Type: Definition

28. The systematic gathering, recording, and analyzing of data to provide information useful
in marketing decision making is considered to be the traditional definition of which of the
following terms?
A) Market segmentation
B) Marketing information systems
C) Marketing research
D) Database management
E) Marketing intelligence
Answer: C Page: 214 Difficulty: Easy Type: Definition
29. Though definitions of marketing research and international marketing research are
basically the same, there are two distinct complications that impact international
marketing research. Which of the following would be one of those complications?
A) International marketing research is always more expensive than domestic research.
B) International marketing research is very poor when it comes to promotional studies.
C) International marketing research is better with respect to cultural research because it
involves more cultural information.
D) Information must be communicated across cultural boundaries.
E) All of the above are complications.
Answer: D Page: 214 Difficulty: Hard Type: Comprehension
30. Though definitions of marketing research and international marketing research are
basically the same, there are two distinct complications that impact international
marketing research. Which of the following would be one of those complications?
A) International marketing research is always more expensive than domestic research.
B) International marketing research is very poor when it comes to promotional studies.
C) International marketing research is better with respect to cultural research because it
involves more cultural information.
D) The environments within which the research tools are applied are often different in
foreign markets.
E) None of the above applies to the situation mentioned in the question.
Answer: D Page: 215 Difficulty: Hard Type: Comprehension

31. The basic difference between domestic and foreign market research is:
A) the cost of foreign market research.
B) the security factor with respect to the researchers.
C) the broader scope needed for foreign research necessitated by higher levels of
uncertainty.
D) the response of governments when they discover that research is being conducted.
E) the inability to get accurate pricing data from foreign markets.
Answer: C Page: 215 Difficulty: Hard Type: Comprehension
32. Research can be divided into different types based on information needs. All of the areas
below fit these different types EXCEPT:
A) general information about the country, area, and/or market.
B) information necessary to forecast future marketing requirements by anticipating
social, economic, consumer, and industry need trends within specific markets or
countries.
C) specific market information used to make product, promotion, distribution, and price
decisions and to develop marketing plans.
D) specific information necessary to attract investors from foreign countries or markets.
E) all of the above are correct types of research as indicated by the text.
Answer: D Page: 215 Difficulty: Moderate Type: Comprehension
33. According to a system for collecting and assessing information developed by Unisys
Corporation, which of the following steps would consist of reviewing competitors' sales
revenues, methods of market segmentation, products, and apparent strategies on an
international scope?
A) Economic
B) Cultural, sociological, and political climate
C) Overview of market conditions
D) Summary of the technological environment
E) Competitive situation
Answer: E Page: 215 Difficulty: Moderate Type: Comprehension and Application

34. Many firms engaged in foreign marketing do not make decision with the benefit of all the
information they would have for most domestic marketing decisions. __________,
________________, and ___________________are the three major reasons why these
companies do not have all the information desired.
A) price, product, and promotion
B) cost, time, and lack of appreciation for information
C) culture, politics, and management style
D) sociology, serendipity, and supply-side economics
E) corruption, political power, and logistics
Answer: B Page: 216 Difficulty: Moderate Type: Comprehension
35. Which of the following would not be considered to be a step in the traditional marketing
research process?
A) Define the research problem and establish research objectives.
B) Analyze, interpret, and summarize the results.
C) Determine the sources of information to fulfill the research objectives.
D) Consider the costs and benefits of the research effort.
E) Pair the research results with all other recent research efforts to determine validity.
Answer: E Page: 216 Difficulty: Hard Type: Comprehension
36. Bert Wong has decided to pursue a marketing research effort to acquire information
before his company makes a strategic relocation move to the West Coast. Which of the
following marketing research process steps would be the first step that Bert's company
(and marketing researchers) should take as it embarks on the research effort?
A) Define the research problem and establish research objectives.
B) Analyze, interpret, and summarize the results.
C) Determine the sources of information to fulfill the research objectives.
D) Consider the costs and benefits of the research effort.
E) Gather relevant data from secondary or primary sources, or both.
Answer: A Page: 216 Difficulty: Moderate Type: Application and Comprehension
37. The ___________ process should begin with a definition of the research problem and the
establishment of specific research objectives.
A) marketing
B) promotion
C) market segmentation
D) research
E) information systems
Answer: D Page: 217 Difficulty: Easy Type: Comprehension

38. After an international marketing researcher has defined the research problem and
established research objectives, the next step to be undertaken to:
A) effectively communicate the results to decision makers.
B) analyze, interpret, and summarize the results.
C) determine the sources of information to fulfill the research objectives.
D) gather relevant data from secondary or primary sources, or both.
E) none of the above.
Answer: C Page: 216 Difficulty: Easy Type: Comprehension
39. After the problem is adequately defined (in a marketing research effort) and research
objectives established, the researcher must determine:
A) the sample size.
B) the cost of the project.
C) number of people needed to undertake the research effort.
D) the availability of the information needed.
E) none of the above.
Answer: D Page: 218 Difficulty: Moderate Type: Comprehension
40. Ben Grissom has decided to use information collected by the United States government
in his upcoming research project on cultural trends. Since Ben is not collecting this
information himself, the information is described as being:
A) primary research.
B) secondary research.
C) tertiary research.
D) parallel research.
E) simplistic research.
Answer: B Page: 218 Difficulty: Easy Type: Application and Definition
41. Which of the following reasons best describes why much of secondary research provided
by foreign governments is suspect with respect to reliability?
A) The data in foreign countries is usually written in a foreign language and there are
translation difficulties that are often insurmountable.
B) The data will not be released to any foreign government or foreign corporation.
C) The data is prone to being overly optimistic and unreliable in reporting relevant
economic data about their countries.
D) The data contains political statements about the current regime that foreigners would
object to reading or hearing.
E) None of the above is valid reasons with respect to the question asked.
Answer: C Page: 219 Difficulty: Moderate Type: Comprehension and Application

42. Which of the following is NOT a problem associated with secondary data obtained from
many international markets and international data sources?
A) comparability of data
B) availability of data
C) reliability of data
D) necessity of data
E) validity of data
Answer: D Page: 218-220 Difficulty: Moderate Type: Comprehension
43. Which of the following questions should be asked by a marketing researcher that is
seeking to establish the validity of secondary data sources in the international arena?
A) How much does data cost?
B) What language is used in the host country?
C) How does the government view marketing research in the host country?
D) Who collected the data?
E) Was the data available on the Internet?
Answer: D Page: 220 Difficulty: Hard Type: Comprehension
44. Which of the following is an effective and often-used way of judging validity of data
from an international market or source?
A) determining how much the data costs
B) checking the consistency of one set of secondary data with other data of known
validity
C) examining government seals of approval or authenticity
D) using only U.S. researchers to conduct any research
E) none of the above
Answer: B Page: 220 Difficulty: Moderate Type: Comprehension
45. If data is collected specifically for the particular research project at hand it is called:
A) secondary data.
B) primary data.
C) simplistic data.
D) bipolar data.
E) cohort data.
Answer: B Page: 221 Difficulty: Easy Type: Definition

46. In most ____________ data collection, the researcher questions respondents to determine
what they think about some topic or how they might behave under certain conditions.
A) secondary
B) simplistic
C) primary
D) bipolar
E) tertiary
Answer: C Page: 221 Difficulty: Easy Type: Definition
47. Marketing research methods can be grouped into two basic types. What are these two
types?
A) primary and secondary
B) quantitative and qualitative
C) summary and conclusive
D) written and electronic
E) human and nonhuman
Answer: B Page: 221-222 Difficulty: Moderate Type: Comprehension
48. In ___________ research, usually a large number of respondents are asked to reply either
verbally or in writing to structured questions using a specific response format or to select
a response from a set of choices.
A) quantitative
B) qualitative
C) exploitive
D) secondary
E) secular
Answer: A Page: 221 Difficulty: Moderate Type: Definition
49. Mary Hills would like to ask respondents a series of open-ended questions that will help
to explain the respondents' feelings and thoughts on the subject of child labor. Which of
the following research formats will Mary need to choose to best complete her research
assignment?
A) quantitative
B) qualitative
C) exploitive
D) secondary
E) subliminal
Answer: B Page: 222 Difficulty: Moderate Type: Application and Definition

50. Suki Nguyen is planning her Masters Thesis. One of her assignments will be to develop a
series of research hypotheses that eventually can be tested. Her thesis will specifically
focus on sociocultural factors and their impact on behavior patterns in Vietnamese
commerce. Which of the following research formats is most suited to her initial research
explorations?
A) quantitative research
B) qualitative research
C) subliminal research
D) secondary research
E) exploitive research
Answer: B Page: 222 Difficulty: Hard Type: Application and Definition
51. Assuming the research problem is well defined and the objectives are properly
formulated, the success of primary research in an international arena hinges on the ability
of the researcher to:
A) bribe the correct officials where the information is to be gathered.
B) speak the language of the country where the research is being conducted.
C) get correct and truthful information that addresses the research objectives.
D) hire enough staff to complete the mission.
E) use the Internet.
Answer: C Page: 224 Difficulty: Hard Type: Comprehension
52. Gerber's primary consumers usually______________, making it difficult to communicate
and gather marketing information from them.
A) are poor
B) reject new products
C) offer too many opinions
D) can't talk
E) are married to international marketers
Answer: D Page: 224 Difficulty: Easy Type: Comprehension and Application
53. ____________ offer(s) the best explanation for the unwillingness or inability of many
international consumers to respond to research surveys.
A) Fear of government reprisals
B) Lack of incentives
C) In ability to use the Internet
D) Lack of interest
E) Cultural differences
Answer: E Page: 224 Difficulty: Hard Type: Comprehension

54. With respect to the international arena, the greatest problem in sampling stems from:
A) the lack of adequate demographic data and available lists from which to draw
meaningful samples.
B) the lack of expertise in how to design samples.
C) government intervention in the sampling process.
D) an inability to speak foreign languages.
E) none of the above.
Answer: A Page: 225 Difficulty: Moderate Type: Comprehension
55. In many Asian cities, there are no street maps, some streets are not identified, and some
houses are not numbered making it difficult for market researchers attempting to conduct
an accurate __________.
A) product enhancement analysis.
B) situational analysis.
C) strategic management overview.
D) sampling process.
E) exit interview.
Answer: D Page: 226 Difficulty: Moderate Type: Fact and Application
56. The adequacy of sampling techniques is most affected by which of the following?
A) lack of understanding of sampling methods by marketing researchers
B) inability of the respondents to access the Internet
C) lack of detailed social and economic information
D) lack of funds to conduct the research effort
E) lack of specific quantitative tools for devising a sample
Answer: C Page: 226 Difficulty: Hard Type: Comprehension
57. In the international marketing research arena all of the following problems in drawing a
simple random sample can occur EXCEPT:
A) no eligible respondents possible.
B) no other listings that can serve as sampling frames.
C) incomplete and out-of-date telephone directories.
D) no accurate maps of population centers.
E) no officially recognized census of population.
Answer: A Page: 226 Difficulty: Easy Type: Comprehension

58. The most universal survey research problem in foreign countries is the:
A) timing problem.
B) religious barrier.
C) social barrier.
D) literacy barrier.
E) language barrier.
Answer: E Page: 226 Difficulty: Hard Type: Fact
59. Marketers use several different techniques to ferret out translation errors ahead of time.
All of the following would be among those techniques EXCEPT:
A) back translation.
B) parallel translation.
C) decentering.
D) polar translation.
E) all of the above are correct techniques.
Answer: D Page: 226-229 Difficulty: Moderate Type: Comprehension
60. In __________ translation, the questionnaire is translated from one language to another,
and then a second party translates it back into the original.
A) back
B) parallel
C) decentering
D) polar
E) simultaneous
Answer: A Page: 228 Difficulty: Moderate Type: Definition
61. In _________ translation, more than two translators are used for the translation into the
origination language; the results are compared, differences discussed, and the most
appropriate translation selected.
A) back
B) parallel
C) decentering
D) polar
E) simultaneous
Answer: B Page: 228 Difficulty: Moderate Type: Definition

62. In a process know as ___________, a successive process of translation and retranslation


of a questionnaire occurs. In this process each time there are translations by a different
translator. The process is repeated until all language difficulties or differences are
resolved.
A) back translation
B) parallel translation
C) decentering
D) polar translation
E) simultaneous translation
Answer: B Page: 228 Difficulty: Moderate Type: Definition
63. Mark Bressler is having great difficulties with his company's advertising in Japan. As a
representative of Ford Motor Company he believes that it is entirely proper to use
American campaigns in the Japanese market. He was very surprised to learn that a
slogan "Body by Fisher" (the company that makes Ford undercarriages) translated in
Japanese as "Corpse by Fisher." Which of the following problems is Mr. Bressler
experiencing with his company's advertising?
A) improper syntax
B) improper colloquialisms or slang
C) improper grammar
D) improper local language
E) none of the above
Answer: B Page: 228 Difficulty: Hard Type: Application
64. Alex is engaged in research involving countries that have different languages, economies,
social structures, behavior, and attitude patterns. Alex is engaged in ____________
research.
A) Marketing
B) Measurement
C) Psychological
D) Sociological
E) Multicultural
Answer: E Page: 229 Difficulty: Moderate Type: Definition

65. As Margaret Smith begins her study of ten European nations as possible market centers
for Xerox's new photocopying equipment line, she is well aware of the different
languages, economies, social structures, behavior, and attitude patterns that are present in
the ten countries. To research these new markets, which of the following terms most
accurately describes the form of research that Ms. Smith will most likely pursue?
A) Marketing research
B) Measurement research
C) Psychological research
D) Sociological research
E) Multicultural research
Answer: E Page: 229 Difficulty: Moderate Type: Definition and Application
66. There are several different uses for the Internet in international research. Which of the
following WOULD NOT be among those uses?
A) online surveys and buyer panels
B) mall-intercept surveys
C) Web visitor tracking
D) advertising measurement
E) online focus groups
Answer: B Page: 230 Difficulty: Easy Type: Comprehension
67. One of the ways the Internet is being used with respect to international research is that
servers automatically track and time visitors' travel through websites. Which of the
following uses for the Internet in international research most closely matches the above
usage?
A) online surveys and buyer panels
B) online focus groups
C) Web visitor tracking
D) advertising measurement
E) e-mail marketing lists
Answer: C Page: 230 Difficulty: Easy Type: Comprehension and Application

68. Ray Simmons' company would like to construct a "virtual panel" on the Internet to
review planned products for the upcoming year. Which of the following uses for the
Internet in international research most closely matches what Mr. Simmons would like to
accomplish?
A) online surveys and buyer panels
B) online focus groups
C) customer identification systems
D) advertising measurement
E) e-mail marketing lists
Answer: C Page: 230 Difficulty: Moderate Type: Comprehension and Application
69. Given the greater uncertainty and data limitations associated with foreign markets, two
methods of forecasting demand are particularly suitable for international marketers.
Which of the following most accurately describes these two methods?
A) purchaser behavior and supplier behavior
B) expert opinion and analogy
C) modeling and morphing
D) linear progression and linear regression
E) plotting and profiling
Answer: B Page: 232 Difficulty: Hard Type: Comprehension
70. Forecasting demand in many foreign countries is more difficult because of
____________ and _______________.
A) data corruption and collusion
B) statistical barriers and social norms
C) United Nations cultural restrictions and WTO data collection rulings
D) greater uncertainties and data limitations
E) All of the above.
Answer: D Page: 232-234 Difficulty: Easy Type: Comprehension
71. The key in using expert opinion to help in forecasting demand is ______________ that is,
comparing estimates produced by different sources.
A) polling
B) analogy
C) morphing
D) modeling
E) triangulation
Answer: E Page: 232 Difficulty: Moderate Type: Comprehension

72. The__________ method for estimating demand assumes that demand for a product
develops in much the same way in all countries as comparable economic development
occurs in each country.
A) polling
B) analogy
C) morphing
D) modeling
E) triangulation
Answer: B Page: 232 Difficulty: Moderate Type: Comprehension
73. To deal with problems in analyzing and interpreting research information in the
international marketplace, the marketing researcher must possess all of the following
traits EXCEPT:
A) have a high degree of cultural understanding.
B) have the ability to manage money.
C) have a creative talent for adapting research methods.
D) have a skeptical attitude in handling both primary and secondary data.
E) all of the above are traits of the international marketing researcher.
Answer: B Page: 235 Difficulty: Moderate Type: Comprehension
74. A Comprehension review of the different approaches to multicountry research suggests
that the ideal approach is to have:
A) all research done by the domestic research entity.
B) all research done by the local research entities.
C) local researchers in each country, with close coordination between the client company
and the local research companies.
D) an international research department that is solely responsible for all research not
matter where in might be needed.
E) none of the above is really the correct answer.
Answer: C Page: 236 Difficulty: Moderate Type: Comprehension

75. The text describes four kinds of company-agency-customer relationships that might be
used to bridge the cultural barrier that is present in most international marketing research.
Which of the following is deemed to best suited for managing the cultural barrier across
the chain of communication?
A) Option A (company--agency--customers)
B) Option B (company--agency--local agency--customers)
C) Option C (Company--foreign agency--customers)
D) Option D (Company--customers)
E) none of the above is a correct option for a company to follow in the situation
described
Answer: B Page: 237, Exhibit 8.3 Difficulty: Hard Type: Comprehension and
Application
26.Which of the following is NOT one of the factors changing the way countries trade and
prosper in the twenty-first century?
A) The transition from socialist to market-driven economies.
B) Liberalization of trade and investment policies in developing countries.
C) The transfer of public-sector enterprises to the private sector.
D) The rapid development of regional market alliances.
E) The expansion of military interventions around the world.
Answer: E Page: 247 Difficulty: Hard Type: Fact
27. The __________ level of a country is the single most important environmental element to
which the foreign marketer must adjust the marketing task.
A) political stability
B) entrepreneurial
C) economic
D) technology
E) literacy
Answer: C Page: 246 Difficulty: Moderate Type: Comprehension
28. The current level of economic development within a country:
A) determines the economic models to be used in countries' universities and colleges.
B) solidifies the mindset of the economic minister of any country to be traded with.
C) dictates the kind and degree of market potential that exists.
D) constrains the ability to exchange currency.
E) none of the above.
Answer: C Page: 247 Difficulty: Moderate Type: Comprehension

29. ___________ development is generally understood to mean an increase in national


production that results in an increase in the average per capita gross domestic product
(GDP).
A) Market
B) Export
C) Import
D) Economic
E) Supply
Answer: D Page: 247 Difficulty: Moderate Type: Definition
30. _____________, as commonly defined today, tends to mean rapid economic growth and
increases in consumer demand.
A) Economic development
B) Market development
C) Supply development
D) Export development
E) Import development
Answer: A Page: 247 Difficulty: Moderate Type: Definition
31. Which of the following people is generally recognized as having developed the bestknown model for classifying countries by stage of economic development?
A) Milton Friedman
B) John Maynard Keynes
C) Arthur Laffer
D) Walt Rostow
E) Yorham Jerry Wind
Answer: D Page: 247 Difficulty: Hard Type: Fact
32. All of the following would be considered to be recognized stages of Rostow's five-stage
model presented in the text for classifying countries with respect stage of economic
development EXCEPT:
A) The abandonment of socialistic structures
B) The traditional society
C) The preconditions for take-off
D) The drive to maturity
E) The age of high mass consumption
Answer: A Page: 247 Difficulty: Hard Type: Comprehension

33. Considering Rostow's five-stage model presented in the text for classifying countries with
respect stage of economic development, if a country lacks the capability of significantly
increasing the level of productivity and has low levels of modern science and technology,
the country is in which of the following stages?
A) The take-off
B) The traditional society
C) The preconditions for take-off
D) The drive to maturity
E) The age of high mass consumption
Answer: B Page: 247 Difficulty: Moderate Type: Comprehension
34. Considering Rostow's five-stage model presented in the text for classifying countries with
respect stage of economic development, if a country achieves a growth pattern that
becomes a normal condition and has steady development in agriculture and industrial
modernization, the country is in which of the following stages?
A) The take-off
B) The traditional society
C) The preconditions for take-off
D) The drive to maturity
E) The age of high mass consumption
Answer: A Page: 247 Difficulty: Hard Type: Comprehension
35. The final stage of Rostow's five-stage model for classifying countries with respect to
stage of economic development is one called:
A) the take-off.
B) the traditional society.
C) the preconditions for take-off.
D) the drive to maturity.
E) the age of high mass consumption.
Answer: E Page: 247 Difficulty: Easy Type: Comprehension
36. Countries that are experiencing rapid economic expansion and industrialization and do
not exactly fit as LDCs or MDCs are typically referred to as:
A) LLDCs (least-developed countries)
B) KDCs (kinetically-developing countries)
C) PDCs (parallel-developed countries)
D) NICs (newly industrialized countries)
E) none of the above
Answer: D Page: 248 & Exhibit 9.1 Difficulty: Hard Type: Comprehension

37. Most newly industrialized countries (NICs) have moved away from restrictive trade
practices and instituted significant free market reforms. As a result these countries have:
A) attracted both trade and foreign direct investment.
B) overcome environmental damages caused by lack of development.
C) reduced population pressures through labor outsourcing.
D) joined the United Nations' economic development referral council.
E) all of the above.
Answer: A Page: 248 Difficulty: Hard Type: Comprehension
38. Which of the following countries would carry the label MDC (more-developed
countries)?
A) Canada
B) England
C) France
D) Germany
E) all of the above would carry the label
Answer: E Page: 248 Difficulty: Easy Type: Fact and Definition
39. Countries classified LLDC (least-developed countries) would be industrially
underdeveloped, agrarian, subsistence societies with rural populations, extremely low per
capita income levels, and would have_____________ world trade involvement.
A) only petroleum products
B) significant
C) little
D) substantial
E) service-oriented
Answer: C Page: 248 Difficulty: Moderate Type: Definition
40. According to information presented in the text, Chile, Brazil, Mexico, and South Korea
don't exactly fit as MDCs (more-developed countries) or LDCs (less-developed
countries). A new category applies to these countries. Which of the following would be
most appropriate?
A) LLDCs (least-developed countries)
B) KDCs (kinetically-developing countries)
C) PDCs (parallel-developed countries)
D) NICs (newly industrialized countries)
E) none of the above
Answer: D Page: 248 Difficulty: Moderate Type: Application and Definition

41. Which of the following countries WOULD NOT be classified as one of the Four Tigers
of Southeast Asia?
A) South Korea
B) Taiwan
C) the Philippines
D) Hong Kong
E) Singapore
Answer: C Page: 249 Difficulty: Moderate Type: Fact and Comprehension
42. All of the following factors are cited as being reasons that NICs (newly industrializing
countries) have had such remarkable success EXCEPT:
A) political stability.
B) economic and legal reforms.
C) development of mass media advertising.
D) outward orientation.
E) entrepreneurship.
Answer: C Page: 248 Difficulty: Moderate Type: Comprehension
43. If a NIC (newly industrializing country) had the characteristic of increasing the
production for the domestic market and export markets with increases in efficiencies and
continual differentiation of exports from competition as its focus, the country would be
using which of the following factors as a component for growth?
A) economic and legal reforms
B) privatization
C) an outward orientation
D) entrepreneurship
E) factors of production
Answer: C Page: 248 Difficulty: Moderate Type: Comprehension and Application
44. When countries sell off state-owned enterprises, it usually results in a:
A) surge in domestic savings to spend.
B) decline in productivity throughout the private sector.
C) release of capital to invest elsewhere.
D) change in political leadership which often reduces social tension.
E) all of the above.
Answer: C Page: 250 Difficulty: Moderate Type: Comprehension and Application

45. The Internet accelerated the process of economic growth by speeding up the diffusion of
____________ to emerging economies.
A) political propaganda
B) cell phones
C) PDAs
D) new technologies
E) simulated consumption
Answer: D Page: 251 Difficulty: Moderate Type: Comprehension
46. The Internet facilitates ________________, a fundamental underpinning for economic
development.
A) psychological dialogue
B) anthropological change
C) social cohesiveness
D) political ideas
E) education
Answer: E Page: 252 Difficulty: Hard Type: Comprehension
47. Which of the following would be characterized as being the fundamental objective of
most developing countries?
A) Entrepreneurship
B) Industrialization
C) Conservation of resources
D) Enabling a strong home land defense force
E) Establishing a strong agricultural system
Answer: B Page: 252 Difficulty: Moderate Type: Comprehension
48. Paved roads, railroads, and energy supplies are illustrations of a country's:
A) supply system.
B) labor support system.
C) infrastructure.
D) extrastructure.
E) microenvironment.
Answer: C Page: 253 Difficulty: Moderate Type: Definition and Application

49. Countries begin to lose economic development ground when their ___________ cannot
support an expanding population and economy.
A) source remediation technology
B) infrastructure
C) cultural arts
D) statistical discrepancy accounting
E) currency conversion ratio
Answer: B Page: 253 Difficulty: Hard Type: Fact
50. Economic planners are often more ___________ oriented than __________ oriented.
A) production; marketing
B) private; public
C) profit; policy
D) system; subject
E) logistically; symbolically
Answer: A Page: 254 Difficulty: Easy Type: Fact
51. According to a case made by the text, economic planners with a national goal of growth
should be more concerned with the efficiency of __________ than with the other choices
mentioned.
A) production
B) investment
C) finance
D) distribution
E) advertising
Answer: D Page: 254 Difficulty: Moderate Type: Fact and Application
52. __________ is an economy's arbitrator between productive capacity and consumer
demand.
A) Management
B) Marketing
C) Public relations
D) Operations procedures
E) Economics
Answer: B Page: 255 Difficulty: Easy Type: Comprehension

53. The level of market development roughly parallels the stages of:
A) the product life cycle.
B) the adoption curve.
C) a production cycle.
D) marketing mix application.
E) economic development.
Answer: E Page: 256 Difficulty: Moderate Type: Comprehension
54. Estimating demand potential in less-developed countries involves myriad challenges.
Most of the difficulty arises from economic:
A) dualism.
B) scarcity.
C) boycotts.
D) chaos.
E) symbolism.
Answer: A Page: 256 Difficulty: Moderate Type: Definition and Comprehension
55. Morris Mayer has found it difficult to accurately estimate market potential in Mexico. He
has observed that while Mexico has had rapid technological growth and production that
can certainly be classified as modern, it also has certain traditional sectors in the rural
parts of the country that are at best primitive. This situation is best described as being
one of economic:
A) dualism.
B) scarcity.
C) fantasy.
D) chaos.
E) symbolism.
Answer: A Page: 256 Difficulty: Easy Type: Application and Definition
56. With respect to the evolution of the marketing process, which of the following stages
would be considered to be the most fundamental stage (first stage) of the process?
A) marketing
B) regionalism
C) manufacturing
D) agricultural and raw materials
E) entrepreneurship
Answer: D Page: 257, Exhibit 9.3 Difficulty: Easy Type: Comprehension

57. If a country was primarily dominated by nomadic or hunting tribes, which of the
following stages of the marketing process would most likely be used to describe the
country?
A) marketing
B) regionalism
C) manufacturing
D) agricultural and raw materials
E) entrepreneurship
Answer: D Page: 257, Exhibit 9.3 Difficulty: Moderate Type: Comprehension and
Application
58. According to the evolution of the marketing process, mass production first came to the
United States during which of the following time periods?
A) 1885-1914
B) 1776-1785
C) 1805-1830
D) 1915-1929
E) 1950-present
Answer: A Page: 257, Exhibit 9.3 Difficulty: Hard Type: Fact and Application
59. Which of the following best characterizes the United States today with respect to the
evolution of the marketing process?
A) mass production
B) commercial--transition
C) cottage industry
D) surplus commodity product
E) mass distribution
Answer: E Page: 257, Exhibit 9.3 Difficulty: Moderate Type: Fact and Application
60. With respect to the evolution of the marketing process, the United States is best
characterized today as to its primary orientation as being a nation whose focus is on:
A) entrepreneurial/commercial.
B) entrepreneurial/financial.
C) production and finance.
D) marketing.
E) public relations and advertising.
Answer: D Page: 257, Exhibit 9.3 Difficulty: Hard Type: Fact and Application

61. Cars, TVs, and personal computers per 1000 people are indicators of:
A) internal supply coefficients
B) external market demand
C) interactive communication complications
D) demand for consumer services
E) market potential
Answer: E Page: 259, Exhibit 9.4 Difficulty: Moderate Type: Fact
62. In a country with a dual economy, as the transition from traditional to modern takes
place:
A) the traditional sector will continue to offer the most potential.
B) the modern, middle income class may offer the greatest potential.
C) the modern sector will revert to the consumer practices of the traditional sector.
D) the traditional sector will block entry of marketers to the modern sector.
E) all of the above.
Answer: B Page: 258 Difficulty: Hard Type: Fact
63. The companies that invest in developing markets _______________ will benefit in the
future.
A) when it is difficult and initially unprofitable
B) after the process of growth has begun
C) where there are many competitors
D) at the request of the poorest citizens
E) all of the above
Answer: A Page: 260 Difficulty: Easy Type: Fact
64. In the language of international marketing, BEM stands for:
A) business, e-commerce, and marketing.
B) business units and economic models.
C) big emerging markets.
D) bilingual economic microcosms.
E) none of the above.
Answer: C Page: 261 Difficulty: Moderate Type: Definition

65. Big emerging markets (BEMs) share a number of important traits. All of the following
would be among those traits EXCEPT:
A) they principally export labor and raw resources.
B) they are all physically large.
C) they have significant populations.
D) they are regional economic drivers.
E) they are of major political importance within their regions.
Answer: A Page: 261 Difficulty: Hard Type: Fact and Comprehension
66. If a market is characterized as being physically large, has significant population, is a
regional economic driver, and has undertaken significant programs of economic reform,
the market is classified as a(n):
A) cottage industry market.
B) less developed market.
C) entrepreneurial market.
D) agrarian market.
E) big emerging market.
Answer: E Page: 261 Difficulty: Moderate Type: Definition
67. Which of the following Latin American countries would NOT be considered a BEM (big
emerging country)?
A) Argentina
B) Brazil
C) Guatemala
D) Mexico
E) Venezuela
Answer: C Page: 261 Difficulty: Moderate Type: Fact
68. What is happening in BEMs today is analogous to what happened in:
A) Saudi Arabia in the 1800s.
B) India during the British Empire period.
C) Russia after the fall of the czar.
D) Europe after World War II.
E) no where else in the world, ever. It is unique in economic development history.
Answer: D Page: 263 Difficulty: Easy Type: Comprehension

69. Of the former Soviet bloc nations of Eastern Europe, the Czech Republic seems to be
doing the best in reshaping itself in terms of:
A) returning to pre-occupation political and market structures.
B) offering alternative economic development to Asian partners.
C) adapting to realigned Russian economic partnerships.
D) the Western model of economic behavior and performance
E) the transition from capitalism to socialism.
Answer: D Page: 267 Difficulty: Moderate Type: Fact
70. The former Soviet-controlled Eastern European countries that did not move to market
economies:
A) permitted Western experts to run their economies for them.
B) have experienced the fastest rates of economic growth in the region.
C) substituted domestic capital for foreign investment.
D) permitted bureaucrats from communist days to delay and derail reforms.
E) all of the above.
Answer: D Page: 267 Difficulty: Easy Type: Comprehension
71. According to information found in the text, of the Baltic States, Estonia has made the
most of its split from the former Soviet Union and exceeds its neighbors in production
and economic reform because Estonia did all of the following EXCEPT:
A) established domestic export controls.
B) dropped the ruble as its currency.
C) privatized companies and land.
D) let struggling banks fail.
E) adopted a free trade policy.
Answer: A Page: 267 Difficulty: Hard Type: Comprehension
72. The text describes China as having a dual economic system. This refers to
China's_______________ and _______________ tenets.
A) market-driven; supply-side driven
B) egalitarian; unitarian
C) socialist; capitalist
D) aristocratic; democratic
E) internal; external
Answer: C Page: 269 Difficulty: Easy Type: Fact

73. Miles Daniels has heard that if his company is to succeed in Asia it must be willing to
trade with one or more of the Four Tigers. All of the following are part of the group of
countries known as the Four Tigers EXCEPT:
A) Hong Kong.
B) South Korea.
C) Australia.
D) Singapore.
E) Taiwan.
Answer: C Page: 268 Difficulty: Easy Type: Comprehension and Fact
74. The rule of governing law that most accurately describes the relationship between Hong
Kong and China is:
A) let the buyer beware.
B) he who has the might makes the right.
C) trade will not supersede the people.
D) communist wealth.
E) one country, two systems.
Answer: E Page: 271 Difficulty: Moderate Type: Application
75. The talks on One China include establishing three direct links referring to:
A) education, emancipation, and equity
B) religion, culture, and marketing
C) systems, energy, and advertising
D) sports, education, and environmental
E) transportation, trade, and communications.
Answer: E Page: 269 Difficulty: Moderate Type: Fact