MBA 776 LSUS Darrat Exam 1: Questions And Expert
Answers (A+)
Global Commerce thrives during... Correct Answer - Peacetime
(Economic boom in 1990s, end o gthe Cold War, Opening former communist
countries to world trading system)
Why is international trade important? Correct Answer - Lack of
consistent and predictable trade policies can lead to tension
(Company scandals and layoffs, wars and political unrest, natural disasters
and pandemics, financial and economic disruptions)
4 trends affecting global business Correct Answer - 1. Growth of the
WTO and open trade agreements
2. developing countries moving toward free trade
3. Internet, cellular and networked communication
4. Mandate to manage the global environment for the future
What happens during the globalization of markets increase Correct Answer
- More foreign customers, competitors, suppliers
Competition comes from domestic and foreign firms
What is the importance of US brands having global reach Correct Answer -
Important for US businesses to thrive
Foreign Sales can exceed domestic sales
Foreign investments generate a lot of revenue
The performance of business activities Correct Answer - Plan, price,
promotion, direct flow of goods and services for profit
For consumers or users in more than one nation
Unique form domestic marketing Correct Answer - Many unfamiliar
problems require unique strategies to cope with problems
Level of uncertainty and uncontrollable in foreign markets
, Uncontrollable uncertainty Correct Answer - Created by uncontrollable
elements in business environments
Each international market has it's own set of factors
Why is a marketing program designed Correct Answer - For optimal
adjustment to uncertainty
What do controllable elements in domestic environments do Correct
Answer - Blend all elements to capitalize on anticipated demand
Can alter elements if needed:
(changing market conditions, consumer tastes, and corporate objectives)
What are uncontrollable elements in domestic environments Correct
Answer - Actively evaluate elements to make adjustments
Determine the outcome of the marketing enterprise
Domestic Environment Uncontrollables Examples Correct Answer -
political/legal forces, economic climate, competition, level of technology,
Structure of distribution, geography and infrastructure, cultural forces
Foreign Environment Uncontrollables Examples Correct Answer -
Political/legal forces, economic forces, competitive forces, level of technology,
structure of distribution, geography and infrastructure, cultural forces
What is cultural adjustment? Correct Answer - The most challenging and
important task
Duties of international marketers Correct Answer - •Interpret influence
of each uncontrollable element on market
•Adjust marketing efforts to cultures in which they are not attuned
•Be aware of own frame of reference when evaluating markets
Self-Reference Criterion (SRC) Correct Answer - Unconscious reference
to own cultural values, experiences, knowledge.
Problematic when used for decisions
Ethnocentrism Correct Answer - One's own country, culture, or country
is best
Answers (A+)
Global Commerce thrives during... Correct Answer - Peacetime
(Economic boom in 1990s, end o gthe Cold War, Opening former communist
countries to world trading system)
Why is international trade important? Correct Answer - Lack of
consistent and predictable trade policies can lead to tension
(Company scandals and layoffs, wars and political unrest, natural disasters
and pandemics, financial and economic disruptions)
4 trends affecting global business Correct Answer - 1. Growth of the
WTO and open trade agreements
2. developing countries moving toward free trade
3. Internet, cellular and networked communication
4. Mandate to manage the global environment for the future
What happens during the globalization of markets increase Correct Answer
- More foreign customers, competitors, suppliers
Competition comes from domestic and foreign firms
What is the importance of US brands having global reach Correct Answer -
Important for US businesses to thrive
Foreign Sales can exceed domestic sales
Foreign investments generate a lot of revenue
The performance of business activities Correct Answer - Plan, price,
promotion, direct flow of goods and services for profit
For consumers or users in more than one nation
Unique form domestic marketing Correct Answer - Many unfamiliar
problems require unique strategies to cope with problems
Level of uncertainty and uncontrollable in foreign markets
, Uncontrollable uncertainty Correct Answer - Created by uncontrollable
elements in business environments
Each international market has it's own set of factors
Why is a marketing program designed Correct Answer - For optimal
adjustment to uncertainty
What do controllable elements in domestic environments do Correct
Answer - Blend all elements to capitalize on anticipated demand
Can alter elements if needed:
(changing market conditions, consumer tastes, and corporate objectives)
What are uncontrollable elements in domestic environments Correct
Answer - Actively evaluate elements to make adjustments
Determine the outcome of the marketing enterprise
Domestic Environment Uncontrollables Examples Correct Answer -
political/legal forces, economic climate, competition, level of technology,
Structure of distribution, geography and infrastructure, cultural forces
Foreign Environment Uncontrollables Examples Correct Answer -
Political/legal forces, economic forces, competitive forces, level of technology,
structure of distribution, geography and infrastructure, cultural forces
What is cultural adjustment? Correct Answer - The most challenging and
important task
Duties of international marketers Correct Answer - •Interpret influence
of each uncontrollable element on market
•Adjust marketing efforts to cultures in which they are not attuned
•Be aware of own frame of reference when evaluating markets
Self-Reference Criterion (SRC) Correct Answer - Unconscious reference
to own cultural values, experiences, knowledge.
Problematic when used for decisions
Ethnocentrism Correct Answer - One's own country, culture, or country
is best
