,International Marketing, 18e (Cateora)
Chapter 1 The Scope and Challenge of International Marketing
1) Today, becoming international is a luxury only some companies can afford.
Answer: FALSE
Explanation: For a growing number of companies, being international is no longer a luxury but a
necessity for economic survival.
Difficulty: 2 Medium
Topic: Challenges and Opportunities Created by Globalization
Learning Objective: 01-01 The benefits of international markets.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
2) Companies from the Netherlands are the leading group of investors in the United States.
Answer: FALSE
Explanation: Foreign direct investment in the United States is more than $3 trillion. Companies
from the United Kingdom lead the group of investors, with companies from Japan, the
Netherlands, Canada, and France following, in that order.
Difficulty: 1 Easy
Topic: Benefits and Challenges of Foreign Direct Investment
Learning Objective: 01-02 The changing face of U.S. business.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
3) International marketing involves selling of a company's goods and services to consumers or
users in more than one nation for a profit.
Answer: TRUE
Explanation: International marketing 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.
Difficulty: 1 Easy
Topic: Differences Between Domestic and International Marketing
Learning Objective: 01-02 The changing face of U.S. business.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
,4) The main difference between domestic and international marketing lies in the different
concepts of marketing.
Answer: FALSE
Explanation: The difference between domestic and international marketing lies not with
different concepts of marketing but with the environment within which marketing plans must be
implemented.
Difficulty: 2 Medium
Topic: Differences Between Domestic and International Marketing
Learning Objective: 01-02 The changing face of U.S. business.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
5) An international marketer must deal with at least two levels of uncontrollable uncertainty.
Answer: TRUE
Explanation: The international marketer must deal with at least two levels of uncontrollable
uncertainty instead of one. Uncertainty is created by the uncontrollable elements of all business
environments, but each foreign country in which a company operates adds its own unique set of
uncontrollable factors.
Difficulty: 1 Easy
Topic: Differences Between Domestic and International Marketing
Learning Objective: 01-03 The scope of the international marketing task.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
6) The geography and infrastructure of a country are uncontrollable factors that influence the
business decisions of a company in an international market.
Answer: TRUE
Explanation: The uncontrollable international environment includes political/legal forces,
economic forces, competitive forces, level of technology, structure of distribution, geography
and infrastructure, and cultural forces.
Difficulty: 1 Easy
Topic: Environmental Analysis and Market Screening
Learning Objective: 01-03 The scope of the international marketing task.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
, 7) The uncontrollable factors affecting international marketing are limited to political forces,
economic climate, and competitive structure.
Answer: FALSE
Explanation: The uncontrollable international environment includes political/legal forces,
economic forces, competitive forces, level of technology, structure of distribution, geography
and infrastructure, and cultural forces.
Difficulty: 1 Easy
Topic: Environmental Analysis and Market Screening
Learning Objective: 01-03 The scope of the international marketing task.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
8) The level of technology in a country is a controllable element for international marketers.
Answer: FALSE
Explanation: The uncontrollable international environment includes political/legal forces,
economic forces, competitive forces, level of technology, structure of distribution, geography
and infrastructure, and cultural forces.
Difficulty: 2 Medium
Topic: Environmental Analysis and Market Screening
Learning Objective: 01-03 The scope of the international marketing task.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
9) The uncontrollable factors a company has to deal with decrease with the number of foreign
markets in which it operates.
Answer: FALSE
Explanation: The more the foreign markets in which a company operates, the greater is the
possible variety of foreign environmental factors with which to contend.
Difficulty: 2 Medium
Topic: Environmental Analysis and Market Screening
Learning Objective: 01-03 The scope of the international marketing task.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
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