474 exam 1 questions with correct
solutions
false CORRECT ANSWERS Companies from Japan are the leading group of investors
in the United States.
false CORRECT ANSWERS For companies today, becoming international is a luxury
only some can afford.
true CORRECT ANSWERS International marketing involves selling of a company's
goods and services to consumers or users in more than one nation for a profit.
false (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.) CORRECT ANSWERS The difference between domestic and
international marketing lies in the different concepts of marketing.
true CORRECT ANSWERS An international marketer must deal with at least two levels
of uncontrollable uncertainty.
true CORRECT ANSWERS The geography and infrastructure of a country are
uncontrollable factors that influence the business decisions of a company in an
international market.
false CORRECT ANSWERS The uncontrollable factors affecting international marketing
are limited to political forces, economic climate, and competitive structure.
true CORRECT ANSWERS The level of technology in a country is an uncontrollable
element for international marketers.
false CORRECT ANSWERS The uncontrollable factors a company has to deal with
decreases with the number of foreign markets in which it operates.
true CORRECT ANSWERS The controllable elements can be altered in the long run
and, usually, in the short run to adjust to changing market conditions, consumer tastes,
or corporate objectives.
false CORRECT ANSWERS Political and legal forces, economic climate, and
competition are some of the domestic environment's controllable factors.
true CORRECT ANSWERS The foreign policies of a country have a direct effect on a
firm's international marketing success.
,false CORRECT ANSWERS The business activities of international marketers are not
affected by competition in their domestic market.
false CORRECT ANSWERS Level of technology remains unchanged across countries
making it a fairly predictable factor in international marketing.
false CORRECT ANSWERS Political and legal issues a company may face abroad are
mitigated by the "alien status" of the company.
true CORRECT ANSWERS The political details and the ramifications of political and
legal events are often more transparent in a domestic situation than they are in a foreign
market.
false CORRECT ANSWERS The political and legal environment is a controllable
element for international marketers because of their potent ability to lobby and influence
legislation in foreign markets.
true CORRECT ANSWERS In a broad sense, the uncontrollable elements of the foreign
business environment constitute the culture.
true CORRECT ANSWERS In dealing with unfamiliar markets, marketers must be
aware of the frames of reference they are using in making their decisions.
true CORRECT ANSWERS John refuses to buy Japanese products because he sees
this as a way of selling out to a nation known for its aggressive behavior. John is using a
self-reference criterion to make his decision.
true CORRECT ANSWERS The self-reference criterion is closely related to
ethnocentrism.
false CORRECT ANSWERS Sam Watkins just ate cookies and, therefore, feels justified
in refusing food offered by his Middle Eastern host. In this instance, Sam's self-
reference criterion has just saved him from making a cultural blunder.
false CORRECT ANSWERS To avoid errors in business decisions, it is necessary to
conduct a cross-cultural analysis that emphasizes the need for ethnocentrism.
false CORRECT ANSWERS Understanding one's own culture normally requires no
additional study
false (The most effective approach to build global awareness into an organization is to
have a culturally diverse senior executive staff or board of directors.) CORRECT
ANSWERS The most effective approach to build global awareness into an organization
is to increase the diversity mix of the employee profile, especially for entry-level jobs
,true CORRECT ANSWERS Research has revealed that smaller home markets and
larger production capacities appear to favor internationalization.
true CORRECT ANSWERS A company in the "no direct foreign marketing" stage of
international marketing involvement does not actively cultivate customers outside
national boundaries
false CORRECT ANSWERS The global marketing concept views the marketplace as
consisting of one primary domestic market that is complimented by several smaller
regional markets.
b CORRECT ANSWERS Which of the following is a dynamic trend that is affecting the
current global business strategies?
A. The trend toward buying American cars in Europe.
B. The trend toward the acceptance of the free market system among developing
countries.
C. The trend toward using English as the global language.
D. The trend toward establishing a world currency.
E. The trend toward worldwide instant communication.
d CORRECT ANSWERS Companies from _____ lead in foreign investment in the
United States.
A. Kingdom of Saudi Arabia
B. Russia
C. China
D. United Kingdom
e
E. Canada
e CORRECT ANSWERS Which of the following is true regarding the impact of
globalization on domestic markets in the United States?
A. Companies with only domestic markets have been able to sustain their customary
rates of growth.
B. Multinational companies are making more profits from their domestic operations
compared to their earnings from the foreign markets.
, C. Only multinational companies with large production facilities have succeeded in the
international markets.
D. The domestic companies have reduced their manufacturing employment more than
the US multinationals.
E. Multinational manufacturing companies in all industries and sizes have outperformed
their domestic counterparts.
d CORRECT ANSWERS Which of the following is an essential requirement for
companies to succeed in international markets?
A. Binding strictly to their traditional methods of operations to succeed in international
markets.
B. Focusing primarily on their production to meet the demands at home.
C. Venturing into multiple markets at once.
D. Committing themselves completely to foreign markets.
E. Focusing on improving the domestic market to invest the returns in international
markets.
d CORRECT ANSWERS _____ 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.
A. Internal marketing
B. Importing
C. Corporate management
D. International marketing
E. Domestic trade
d CORRECT ANSWERS Which of the following is the most critical difference between
domestic marketing and international marketing?
A. The difference in marketing principles being followed.
B. The different concepts of marketing.
solutions
false CORRECT ANSWERS Companies from Japan are the leading group of investors
in the United States.
false CORRECT ANSWERS For companies today, becoming international is a luxury
only some can afford.
true CORRECT ANSWERS International marketing involves selling of a company's
goods and services to consumers or users in more than one nation for a profit.
false (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.) CORRECT ANSWERS The difference between domestic and
international marketing lies in the different concepts of marketing.
true CORRECT ANSWERS An international marketer must deal with at least two levels
of uncontrollable uncertainty.
true CORRECT ANSWERS The geography and infrastructure of a country are
uncontrollable factors that influence the business decisions of a company in an
international market.
false CORRECT ANSWERS The uncontrollable factors affecting international marketing
are limited to political forces, economic climate, and competitive structure.
true CORRECT ANSWERS The level of technology in a country is an uncontrollable
element for international marketers.
false CORRECT ANSWERS The uncontrollable factors a company has to deal with
decreases with the number of foreign markets in which it operates.
true CORRECT ANSWERS The controllable elements can be altered in the long run
and, usually, in the short run to adjust to changing market conditions, consumer tastes,
or corporate objectives.
false CORRECT ANSWERS Political and legal forces, economic climate, and
competition are some of the domestic environment's controllable factors.
true CORRECT ANSWERS The foreign policies of a country have a direct effect on a
firm's international marketing success.
,false CORRECT ANSWERS The business activities of international marketers are not
affected by competition in their domestic market.
false CORRECT ANSWERS Level of technology remains unchanged across countries
making it a fairly predictable factor in international marketing.
false CORRECT ANSWERS Political and legal issues a company may face abroad are
mitigated by the "alien status" of the company.
true CORRECT ANSWERS The political details and the ramifications of political and
legal events are often more transparent in a domestic situation than they are in a foreign
market.
false CORRECT ANSWERS The political and legal environment is a controllable
element for international marketers because of their potent ability to lobby and influence
legislation in foreign markets.
true CORRECT ANSWERS In a broad sense, the uncontrollable elements of the foreign
business environment constitute the culture.
true CORRECT ANSWERS In dealing with unfamiliar markets, marketers must be
aware of the frames of reference they are using in making their decisions.
true CORRECT ANSWERS John refuses to buy Japanese products because he sees
this as a way of selling out to a nation known for its aggressive behavior. John is using a
self-reference criterion to make his decision.
true CORRECT ANSWERS The self-reference criterion is closely related to
ethnocentrism.
false CORRECT ANSWERS Sam Watkins just ate cookies and, therefore, feels justified
in refusing food offered by his Middle Eastern host. In this instance, Sam's self-
reference criterion has just saved him from making a cultural blunder.
false CORRECT ANSWERS To avoid errors in business decisions, it is necessary to
conduct a cross-cultural analysis that emphasizes the need for ethnocentrism.
false CORRECT ANSWERS Understanding one's own culture normally requires no
additional study
false (The most effective approach to build global awareness into an organization is to
have a culturally diverse senior executive staff or board of directors.) CORRECT
ANSWERS The most effective approach to build global awareness into an organization
is to increase the diversity mix of the employee profile, especially for entry-level jobs
,true CORRECT ANSWERS Research has revealed that smaller home markets and
larger production capacities appear to favor internationalization.
true CORRECT ANSWERS A company in the "no direct foreign marketing" stage of
international marketing involvement does not actively cultivate customers outside
national boundaries
false CORRECT ANSWERS The global marketing concept views the marketplace as
consisting of one primary domestic market that is complimented by several smaller
regional markets.
b CORRECT ANSWERS Which of the following is a dynamic trend that is affecting the
current global business strategies?
A. The trend toward buying American cars in Europe.
B. The trend toward the acceptance of the free market system among developing
countries.
C. The trend toward using English as the global language.
D. The trend toward establishing a world currency.
E. The trend toward worldwide instant communication.
d CORRECT ANSWERS Companies from _____ lead in foreign investment in the
United States.
A. Kingdom of Saudi Arabia
B. Russia
C. China
D. United Kingdom
e
E. Canada
e CORRECT ANSWERS Which of the following is true regarding the impact of
globalization on domestic markets in the United States?
A. Companies with only domestic markets have been able to sustain their customary
rates of growth.
B. Multinational companies are making more profits from their domestic operations
compared to their earnings from the foreign markets.
, C. Only multinational companies with large production facilities have succeeded in the
international markets.
D. The domestic companies have reduced their manufacturing employment more than
the US multinationals.
E. Multinational manufacturing companies in all industries and sizes have outperformed
their domestic counterparts.
d CORRECT ANSWERS Which of the following is an essential requirement for
companies to succeed in international markets?
A. Binding strictly to their traditional methods of operations to succeed in international
markets.
B. Focusing primarily on their production to meet the demands at home.
C. Venturing into multiple markets at once.
D. Committing themselves completely to foreign markets.
E. Focusing on improving the domestic market to invest the returns in international
markets.
d CORRECT ANSWERS _____ 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.
A. Internal marketing
B. Importing
C. Corporate management
D. International marketing
E. Domestic trade
d CORRECT ANSWERS Which of the following is the most critical difference between
domestic marketing and international marketing?
A. The difference in marketing principles being followed.
B. The different concepts of marketing.
