MBA 776 Exam 1: Questions With Proven Solutions
What are the benefits of international markets? Correct Answer - More
customers, more business opportunities, enhanced competition, and global
economic stability.
How has US business changed due to globalization? Correct Answer -
More foreign companies in the US and more US companies earn revenue
internationally.
What is the scope of the international marketing task? Correct Answer -
Managing controllable and uncontrollable factors in both domestic and
foreign environments.
Why is the self-reference criterion (SRC) important? Correct Answer - It
can lead to biased decisions based on home country values rather than local
market conditions.
What are the four trends affecting global business? Correct Answer -
Growth of WTO and free trade, movement of developing countries toward free
trade, internet and communication tech, and global environment
management.
How does international trade promote peace? Correct Answer - Trade
relationships reduce political tensions and encourage cooperation between
nations.
What role do foreign direct investments (FDI) play in the US economy?
Correct Answer - FDIs contribute over $4.6 Trillion and bring foreign
competition, innovation, and economic growth
What is "uncontrollable uncertainty" in international marketing? Correct
Answer - It refers to external factors that businesses cannot control, like
political stability, regulations, and economics.
What are examples of uncontrollable elements in the domestic environment?
Correct Answer - Politics, economics, competition, tech, distribution,
geography, and culture
, What are examples of uncontrollable elements in the foreign environment?
Correct Answer - Political/legal forces, economics, competition, tech,
infrastructure, and culture
Why is cultural adaptation critical for international marketers? Correct
Answer - It ensures that marketing strategies align with local customs,
preferences, and business practices
What are two major obstacles in international marketing? Correct Answer -
Self-Reference Criterion (SRC) and Ethnocentrism
How can businesses avoid SRC related mistakes? Correct Answer - By
objectively analyzing foreign markets and consulting with local experts before
making decisions.
What are the main components of global awareness? Correct Answer -
Cultural sensitivity, historical knowledge, and understanding of global
economic and political trends.
What are the five stages of international marketing involvement? Correct
Answer - No direct foreign marketing, infrequent foreign marketing,
regular foreign marketing, international marketing, and global marketing
What characteristics help companies internationalize quickly? Correct
Answer - Strong tech, marketing expertise, small home markets, large
production capacities, and international markets.
What is international marketing? Correct Answer - 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.
What is the basis for the reestablishment of world trade following WW2?
Correct Answer - The General Agreement on Tariffs and Trade (GATT) was
established to reduce trade barriers and promote international trade.
Why are balance-of-payment figures important? Correct Answer - They
provide a record of all financial transactions between a country and other
nations, impacting exchange rates and economic stability.
What are the benefits of international markets? Correct Answer - More
customers, more business opportunities, enhanced competition, and global
economic stability.
How has US business changed due to globalization? Correct Answer -
More foreign companies in the US and more US companies earn revenue
internationally.
What is the scope of the international marketing task? Correct Answer -
Managing controllable and uncontrollable factors in both domestic and
foreign environments.
Why is the self-reference criterion (SRC) important? Correct Answer - It
can lead to biased decisions based on home country values rather than local
market conditions.
What are the four trends affecting global business? Correct Answer -
Growth of WTO and free trade, movement of developing countries toward free
trade, internet and communication tech, and global environment
management.
How does international trade promote peace? Correct Answer - Trade
relationships reduce political tensions and encourage cooperation between
nations.
What role do foreign direct investments (FDI) play in the US economy?
Correct Answer - FDIs contribute over $4.6 Trillion and bring foreign
competition, innovation, and economic growth
What is "uncontrollable uncertainty" in international marketing? Correct
Answer - It refers to external factors that businesses cannot control, like
political stability, regulations, and economics.
What are examples of uncontrollable elements in the domestic environment?
Correct Answer - Politics, economics, competition, tech, distribution,
geography, and culture
, What are examples of uncontrollable elements in the foreign environment?
Correct Answer - Political/legal forces, economics, competition, tech,
infrastructure, and culture
Why is cultural adaptation critical for international marketers? Correct
Answer - It ensures that marketing strategies align with local customs,
preferences, and business practices
What are two major obstacles in international marketing? Correct Answer -
Self-Reference Criterion (SRC) and Ethnocentrism
How can businesses avoid SRC related mistakes? Correct Answer - By
objectively analyzing foreign markets and consulting with local experts before
making decisions.
What are the main components of global awareness? Correct Answer -
Cultural sensitivity, historical knowledge, and understanding of global
economic and political trends.
What are the five stages of international marketing involvement? Correct
Answer - No direct foreign marketing, infrequent foreign marketing,
regular foreign marketing, international marketing, and global marketing
What characteristics help companies internationalize quickly? Correct
Answer - Strong tech, marketing expertise, small home markets, large
production capacities, and international markets.
What is international marketing? Correct Answer - 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.
What is the basis for the reestablishment of world trade following WW2?
Correct Answer - The General Agreement on Tariffs and Trade (GATT) was
established to reduce trade barriers and promote international trade.
Why are balance-of-payment figures important? Correct Answer - They
provide a record of all financial transactions between a country and other
nations, impacting exchange rates and economic stability.
