Chapter 1: Global Environmental Drivers
TRUE/FALSE
1. International marketing is unable to retain the basic marketing tenets of value and exchange.
ANS: F PTS: 1 DIF: Easy REF: p. 5
OBJ: LO: 1-1 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
2. It is in the domestic marketing field where one can observe most closely the role of marketing as
a key agent of societal change.
ANS: F PTS: 1 DIF: Easy REF: p. 5
OBJ: LO: 1-1 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
3. Only those who participate in the transactions are exposed to international marketing and subject
to its changing influences.
ANS: F PTS: 1 DIF: Easy REF: p. 7
OBJ: LO: 1-1 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
4. To achieve success in the art of international marketing, it is necessary to be
firmly grounded in its scientific aspects.
ANS: T PTS: 1 DIF: Moderate REF: p. 7
, OBJ: LO: 1-1 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
5. World trade has assumed an importance heretofore unknown to the global community and as a
result, many countries and firms have found it highly desirable to become major participants in
international marketing.
ANS: T PTS: 1 DIF: Moderate REF: p. 7
OBJ: LO: 1-2 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
6. International specialization and cross-sourcing have made production much more efficient.
ANS: T PTS: 1 DIF: Easy REF: p. 7
OBJ: LO: 1-2 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
7. The network of global linkages that bind us all as a result of world trade were first recognized
during the rebuilding of Europe after WWII.
ANS: F PTS: 1 DIF: Moderate REF: p. 8
OBJ: LO: 1-2 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
8. World trade has brought about a global reorientation of corporate processes.
ANS: T PTS: 1 DIF: Easy REF: p. 10
OBJ: LO: 1-2 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
, 9. Due to ongoing global technological innovation in marketing, products are distributed at a higher
cost.
ANS: F PTS: 1 DIF: Moderate REF: p. 10
OBJ: LO: 1-2 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
10. Global investment strategies, coupled with production and distribution sharing, increase the
challenge of staying in a leadership position.
ANS: T PTS: 1 DIF: Easy REF: p. 10
OBJ: LO: 1-2 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
11. The level of global investment has resulted in a decrease in international debt by governments.
ANS: F PTS: 1 DIF: Moderate REF: p. 10
OBJ: LO: 1-2 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
12. Currency flows and exchange rates have a greater effect on trade than government monetary
policies.
ANS: T PTS: 1 DIF: Moderate REF: p. 12
OBJ: LO: 1-2 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
13. The level of trade is now determined by exchange rates.
, ANS: T PTS: 1 DIF: Moderate REF: p. 12
OBJ: LO: 1-2 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
14. Trade flows outnumber currency flows by 100 to 1.
ANS: F PTS: 1 DIF: Easy REF: p. 12
OBJ: LO: 1-2 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
15. Constant rapid technological change and vast advances in communication permit firms and
countries to quickly emulate innovation and counteract carefully designed plans.
ANS: T PTS: 1 DIF: Easy REF: p. 12
OBJ: LO: 1-2 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
16. Policymakers restrict the impact of global trade and financial flows by eliminating tariffs and
quotas.
ANS: F PTS: 1 DIF: Easy REF: p. 12
OBJ: LO: 1-2 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
17. Market saturation can be avoided by lengthening or rejuvenating product life cycles in other
countries.
ANS: T PTS: 1 DIF: Easy REF: p. 13
OBJ: LO: 1-3 NAT: BUSPROG: Analytic
TRUE/FALSE
1. International marketing is unable to retain the basic marketing tenets of value and exchange.
ANS: F PTS: 1 DIF: Easy REF: p. 5
OBJ: LO: 1-1 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
2. It is in the domestic marketing field where one can observe most closely the role of marketing as
a key agent of societal change.
ANS: F PTS: 1 DIF: Easy REF: p. 5
OBJ: LO: 1-1 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
3. Only those who participate in the transactions are exposed to international marketing and subject
to its changing influences.
ANS: F PTS: 1 DIF: Easy REF: p. 7
OBJ: LO: 1-1 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
4. To achieve success in the art of international marketing, it is necessary to be
firmly grounded in its scientific aspects.
ANS: T PTS: 1 DIF: Moderate REF: p. 7
, OBJ: LO: 1-1 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
5. World trade has assumed an importance heretofore unknown to the global community and as a
result, many countries and firms have found it highly desirable to become major participants in
international marketing.
ANS: T PTS: 1 DIF: Moderate REF: p. 7
OBJ: LO: 1-2 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
6. International specialization and cross-sourcing have made production much more efficient.
ANS: T PTS: 1 DIF: Easy REF: p. 7
OBJ: LO: 1-2 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
7. The network of global linkages that bind us all as a result of world trade were first recognized
during the rebuilding of Europe after WWII.
ANS: F PTS: 1 DIF: Moderate REF: p. 8
OBJ: LO: 1-2 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
8. World trade has brought about a global reorientation of corporate processes.
ANS: T PTS: 1 DIF: Easy REF: p. 10
OBJ: LO: 1-2 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
, 9. Due to ongoing global technological innovation in marketing, products are distributed at a higher
cost.
ANS: F PTS: 1 DIF: Moderate REF: p. 10
OBJ: LO: 1-2 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
10. Global investment strategies, coupled with production and distribution sharing, increase the
challenge of staying in a leadership position.
ANS: T PTS: 1 DIF: Easy REF: p. 10
OBJ: LO: 1-2 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
11. The level of global investment has resulted in a decrease in international debt by governments.
ANS: F PTS: 1 DIF: Moderate REF: p. 10
OBJ: LO: 1-2 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
12. Currency flows and exchange rates have a greater effect on trade than government monetary
policies.
ANS: T PTS: 1 DIF: Moderate REF: p. 12
OBJ: LO: 1-2 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
13. The level of trade is now determined by exchange rates.
, ANS: T PTS: 1 DIF: Moderate REF: p. 12
OBJ: LO: 1-2 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
14. Trade flows outnumber currency flows by 100 to 1.
ANS: F PTS: 1 DIF: Easy REF: p. 12
OBJ: LO: 1-2 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
15. Constant rapid technological change and vast advances in communication permit firms and
countries to quickly emulate innovation and counteract carefully designed plans.
ANS: T PTS: 1 DIF: Easy REF: p. 12
OBJ: LO: 1-2 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
16. Policymakers restrict the impact of global trade and financial flows by eliminating tariffs and
quotas.
ANS: F PTS: 1 DIF: Easy REF: p. 12
OBJ: LO: 1-2 NAT: BUSPROG: Analytic
STA: DISC: International Perspective KEY: Bloom's: Knowledge
17. Market saturation can be avoided by lengthening or rejuvenating product life cycles in other
countries.
ANS: T PTS: 1 DIF: Easy REF: p. 13
OBJ: LO: 1-3 NAT: BUSPROG: Analytic
