Fast-Track Your Learning with the [International Marketing,8th,Michael R. Czinkota] 2023 Test Bank

Chapter 1

The Global Marketing Environment



TRUE/FALSE


1. Firms that operate in the United States (domestic only) pay significantly higher wages than
international firms.


ANS: F DIF: Moderate REF: Page 10


2. In the definition of international marketing, the major foundation of this process is the
planning and conducting of transactions across national borders to create exchanges that
satisfy the objectives of individuals and organizations.


ANS: T DIF: Easy REF: Page 4


3. World trade has forged a network of global linkages that bind countries together and were
first recognized during the rebuilding of Europe after WWII.


ANS: F DIF: Moderate REF: Page 6


4. The United Nations has been active in trying to influence global trade and financial flows by
implementing quotas and tariffs which in turn affect markets.


ANS: F DIF: Difficult REF: Page 9


5. Because of Canada’s rich uranium deposits, it ranks second behind Western Europe in
major regions in terms of total gross domestic product. The United States is third because
the majority of the products sold in the country are imported.


ANS: F DIF: Difficult REF: Page 12

,6. International marketing is a tool used to obtain improvement of one’s present position and
retains the basic marketing tenets of “satisfaction” and “exchange”.


ANS: T DIF: Easy REF: Page 4


7. To achieve success in the art of international marketing, it is necessary to be firmly
grounded in its technological aspects.


ANS: F DIF: Difficult REF: Page 5


8. 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 DIF: Moderate REF: Page 5

, 9. Today, the United States’ two-way trade with Europe reflects over two hundred years of
history as trading partners and still represents the number one trading alliance the U.S. has
with any region.


ANS: F DIF: Difficult REF: Page 8


10. The effect of closer global linkages on the economics of countries has been dramatic.


ANS: T DIF: Moderate REF: Page 8


11. Currency flows and exchange rates have a greater effect on trade than do government
monetary policies.


ANS: T DIF: Moderate REF: Page 9


12. Many firms do not participate in the global market because they feel international
marketing should only be carried out by large, multinational corporations.


ANS: T DIF: Moderate REF: Page 10


13. Companies are fairly consistent in their international activities because of the similarities in
their levels of experience, resources and capabilities.


ANS: F DIF: Moderate REF: Page 11


14. The marketing manager’s role has two integral parts: determining out-sourcing output and
the level of government regulation as it applies to productivity.


ANS: F DIF: Difficult REF: Page 18 - Appendix A


15. The four variables of the marketing mix are product, price, place, and promotion.


ANS: T DIF: Easy REF: Page 19 - Appendix A

, 16. Short term control tools included in an annual plan include comprehensive and functional
audits.


ANS: F DIF: Moderate REF: Page 20 - Appendix A


17. Lakes, rivers and other bodies of water influence the kinds of economic activities that occur
in a given place.


ANS: T DIF: Moderate REF: Page 22 - Appendix B


18. When human beings build buildings, roads, and other infrastructure in the place in which
they live and work, this activity is defined in the text as place controlled environment.


ANS: F DIF: Moderate REF: Page 23 - Appendix B