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1. Describe the sociocultural forces that affect international marketing strategy.
ANSWER: Cultural and social differences among nations can have significant effects on marketing
activities. Because marketing activities are primarily social in purpose, they are influenced by
beliefs and values regarding family, religion, education, health, and recreation. Local
preferences, tastes, and idioms can all prove complicated for international marketers. It can
be difficult to transfer marketing symbols, trademarks, logos, and even products to
international markets, especially if these are associated with objects that have profound
religious or cultural significance in a particular culture. Cultural differences may also affect
marketing negotiations and decision-making behavior. Buyers’ perceptions of other countries
can influence product adoption and use. Multiple research studies have found that consumer
preferences for products depend on both the country of origin and the product category of
competing products. When people are unfamiliar with products from another country, their
perceptions of the country as a whole may affect their attitude toward the product and
influence whether they will buy it. If a country has a reputation for producing quality
products and therefore has a positive image in consumers’ minds, marketers of products from
that country will want to make the country of origin well known. The extent to which a
product’s brand image and country of origin influence purchases is subject to considerable
variation based on national culture characteristics.
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.09.02 - LO: 09-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: International Perspective
TOPICS: A-Head: Environmental Forces In Global Markets
KEYWORDS: Bloom's: Knowledge
2. In what ways can a nation restrict the flow of imported goods?

ANSWER: A government’s policies toward public and private enterprise, consumers, and foreign firms
influence marketing across national boundaries. Some countries have established import
barriers, such as tariffs. An import tariff is any duty levied by a nation on goods bought
outside its borders and brought into the country. Nontariff trade restrictions include quotas
and embargoes. A quota is a limit on the amount of goods an importing country will accept
for certain product categories in a specific period of time. An embargo is a government’s
suspension of trade in a particular product or with a given country. Embargoes are generally
directed at specific goods or countries and are established for political, health, or religious
reasons. Exchange controls, government restrictions on the amount of a particular currency
that can be bought or sold, may also limit international trade. They can force businesspeople
to buy and sell foreign products through a central agency, such as a central bank. Countries
may limit imports to maintain a favorable balance of trade. The balance of trade is the
difference in value between a nation’s exports and its imports. When a nation exports more
products than it imports, a favorable balance of trade exists because money is flowing into
the country.
POINTS: 1
DIFFICULTY: Moderate
3. Describe how economic and competitive forces affect international marketing strategies.
ANSWER: Global marketers need to understand the international trade system, particularly the economic
stability of individual nations, as well as trade barriers that may stifle marketing efforts.
Economic differences among nations—differences in standards of living, credit, buying
power, income distribution, national resources, exchange rates, and the like—dictate many of
the adjustments firms must make in marketing internationally. Instability is one of the
guaranteed constants in the global business environment. The value of the dollar, euro, and
yen has a major impact on the prices of products in many countries. An important economic
factor in the global business environment is currency valuation. Opportunities for
international trade are not limited to countries with the highest incomes. The countries of
Brazil, Russia, India, China, and South Africa (BRICS) have attracted attention as their
economies appear to be rapidly advancing. Other nations are progressing at a much faster rate
than they were a few years ago, and these countries—especially in Latin America, Africa,
eastern Europe, and the Middle East—have great market potential. Many of these countries
are now being classified into two new categories. This has a major impact on international
trade.
Competition is often viewed as a staple of the global marketplace. Customers thrive on the
choices offered by competition, and firms constantly seek opportunities to outmaneuver their
competition to gain customers’ loyalty. Firms typically identify their competition when they
establish target markets worldwide. Beyond the types of competition (i.e., brand, product,
generic, and total budget competition) and types of competitive structures (i.e., monopoly,
oligopoly, monopolistic competition, and pure competition) firms that operate internationally
must do the following:
• Be aware of the competitive forces in the countries they target.
• Identify the interdependence of countries and the global competitors in those markets.
• Be mindful of a new breed of customers: the global customer.
sociocultural, technological, political, legal, regulatory, and economic forces)—that are often
independent of the competitors in that market. Although competitors drive competition,
nations establish the infrastructure and the rules for the types of competition that can take
place.
POINTS: 1
4. What marketing and ethical problems can bribes create in international marketing transactions?
ANSWER: The use of payoffs and bribes is deeply entrenched in many governments. Because U.S. trade
and corporate policy, as well as U.S. law, prohibits direct involvement in payoffs and bribes,
U.S. companies may have a hard time competing with foreign firms that engage in these
practices. Under the Foreign Corrupt Practices Act of 1977, it is illegal for U.S. firms to
attempt to make large payments or bribes to influence policy decisions of foreign
governments. Nevertheless, facilitating payments, or small payments to support the
performance of standard tasks, are often acceptable. The Foreign Corrupt Practices Act also
subjects all publicly held U.S. corporations to rigorous internal controls and record-keeping
requirements for their overseas operations. Differences in ethical standards affect marketing
efforts. When marketers do business abroad, they often perceive that other business cultures
have different modes of operation. This uneasiness is especially pronounced for marketers
who have not traveled extensively or interacted much with foreigners in business or social
settings. However, many businesspeople adopt the principle of “When in Rome, do as the
Romans do.” These businesspeople adapt to the cultural practices of the country they are in
and use the host country’s cultural practices as the rationalization for sometimes straying
from their own ethical values when doing business internationally. For instance, by defending
the payment of bribes or “greasing the wheels of business” and other questionable practices
in this fashion, some businesspeople are resorting to cultural relativism—the concept that
morality varies from one culture to another and that business practices are therefore
differentially defined as right or wrong by particular cultures. Because of differences in
cultural and ethical standards, many companies work both individually and collectively to
establish ethics programs and standards for international business conduct.
POINTS: 1
DIFFICULTY: Easy
NATIONAL STANDARDS: United States - BUSPROG: Ethics
5. What effects are technological forces having on international marketing? What opportunities exist in the global
marketplace that marketers can exploit with regard to technology?
ANSWER: Advances in technology have made international marketing much easier. Interactive Web
systems, instant messaging, and podcast downloads; along with the traditional vehicles of
voice mail, e-mail, and cell phones; make international marketing activities more affordable
and convenient. Internet use and social networking activities have accelerated dramatically
within the United States and abroad. In many developing countries that lack the level of
technological infrastructure found in the United States and Japan, marketers are beginning to
capitalize on opportunities to leap-frog existing technology. For example, cellular and
wireless phone technology is reaching many countries at a more affordable rate than
traditional hard-wired telephone systems. Consequently, opportunities for growth in the cell
phone market remain strong in Southeast Asia, Africa, and the Middle East. One opportunity
created by the rapid growth in mobile devices in Kenya is mobile payment services.
Approximately 8.5 million Kenyans use their mobile phones to transfer money. London-
based Vodafone has taken advantage of this market opportunity with its M-PESA money
transfer service, the most popular money transfer service in Kenya. Because banks tend to
avoid catering to lower income populations, such services are likely to grow.
POINTS: 1
NATIONAL STANDARDS: United States - BUSPROG: Technology
6. What effect is NAFTA having on the international trade of the following countries: United States, Canada, and
Mexico?
ANSWER: The North American Free Trade Agreement (NAFTA), implemented in 1994, effectively
merged Canada, Mexico, and the United States into one market of nearly 460 million
consumers. NAFTA virtually eliminated all tariffs on goods produced and traded among
Canada, Mexico, and the United States to create a free trade area. The estimated annual
output for this trade alliance is more than $17 trillion. NAFTA makes it easier for U.S.
businesses to invest in Mexico and Canada; provides protection for intellectual property (of
special interest to high technology and entertainment industries); expands trade by requiring
equal treatment of U.S. firms in both countries; and simplifies country-of-origin rules,
hindering China and Japan’s use of Mexico as a staging ground for further penetration into
U.S. markets. Canada’s more than 34 million consumers are relatively affluent, with a per
capita GDP of $40,500. Canada is the single largest trading partner of the United States,
which in turn supports millions of U.S. jobs. NAFTA has also enabled additional trade
between Canada and Mexico. Mexico is Canada’s fifth largest export market and third largest
import market. With a per capita GDP of $14,700, Mexico’s more than 114 million
consumers are less affluent than Canadian consumers.
POINTS: 1
TOPICS: A-Head: Regional Trade Alliances, Markets, And Agreements
7. Explain why the modes of entry into an international market are a major issue for managers to consider.
ANSWER: Marketers enter international markets and continue to engage in marketing activities at
several levels of international involvement. Traditionally, firms have adopted one of four
different modes of entering an international market; each successive “stage” represents
different degrees of international involvement.
• Stage 1: No regular export activities
• Stage 2: Export via independent representatives (agents)
• Stage 3: Establishment of one or more sales subsidiaries internationally
• Stage 4: Establishment of international production/manufacturing facilities
Companies’ international involvement covers a wide spectrum, from purely domestic
marketing to global marketing. Domestic marketing involves marketing strategies aimed at
markets within the home country; at the other extreme, global marketing entails developing
marketing strategies for the entire world (or at least more than one major region of the
world). Many firms with an international presence start out as small companies serving local
and regional domestic markets and expand to national markets before considering
opportunities in foreign markets (the born global firm, described earlier, is one exception to
this internationalization process). Limited exporting may occur even if a firm makes little or
no effort to obtain foreign sales. Foreign buyers may seek out the company and/or its
products, or a distributor may discover the firm’s products and export them. The level of
commitment to international marketing is a major variable in global marketing strategies.
POINTS: 1
TOPICS: A-Head: Modes Of Entry Into International Markets
8. In what ways can businesses become involved in international marketing activities?

ANSWER: Businesses become involved in international marketing activities in the following ways:
a) Importing and exporting: Importing and exporting require the least amount of effort and
commitment of resources. Importing is the purchase of products from a foreign source.
Exporting, the sale of products to foreign markets, enables firms of all sizes to participate in
global business.
b) Licensing and franchising: When potential markets are found across national boundaries,
and when production, technical assistance, or marketing know-how is required, licensing is
an alternative to direct investment. Franchising is a form of licensing in which a company
(the franchiser) grants a franchisee the right to market its product, using its name, logo,
methods of operation, advertising, products, and other elements associated with the
franchiser’s business, in return for a financial commitment and an agreement to conduct
business in accordance with the franchiser’s standard of operations.
c) Contract manufacturing: Contract manufacturing occurs when a company hires a foreign
firm to produce a designated volume of the firm’s product (or a component of a product) to
specification and the final product carries the domestic firm’s name. Marketing may be
handled by the contract manufacturer or by the contracting company. Three specific forms of
contract manufacturing have become popular in the last decade: outsourcing, offshoring, and
offshore outsourcing.
d) Joint ventures: In international marketing, a joint venture is a partnership between a
domestic firm and a foreign firm or government. Joint ventures are especially popular in
industries that require large investments, such as natural resources extraction or automobile
manufacturing.
e) Direct ownership: Once a company makes a long-term commitment to marketing in a
foreign country that has a promising market as well as a suitable political and economic
environment, direct ownership of a foreign subsidiary or division is a possibility.
f) Trading companies: Marketers sometimes employ a trading company, which links buyers
and sellers in different countries but is not involved in manufacturing and does not own
assets related to manufacturing. Trading companies buy products in one country at the lowest
price consistent with quality and sell them to buyers in another country. Trading companies
reduce risk for firms that want to get involved in international marketing. A trading company
provides producers with information about products that meet quality and price expectations
in domestic and international markets. Additional services a trading company may provide
include consulting, marketing research, advertising, insurance, product research and design,
legal assistance, warehousing, and foreign exchange.
POINTS: 1
DIFFICULTY: Easy
9. How do globalized marketing strategies differ from customized marketing strategies? What are the implications of each
for marketing managers?
ANSWER: Like domestic marketers, international marketers develop marketing strategies to serve
specific target markets. Traditionally, international marketing strategies have customized
marketing mixes according to cultural, regional, and national differences. There are many
international issues related to product, distribution, promotion, and price. For example, many
developing countries lack the infrastructure needed for expansive distribution networks,
which can make it harder to get the product to consumers. Realizing that both similarities and
differences exist across countries is a critical first step to developing the appropriate
marketing strategy effort targeted to particular international markets. Today, many firms
strive to build their marketing strategies around similarities that exist instead of customizing
around differences.
POINTS: 1
TOPICS: A-Head: Customization Versus Globalization Of International Marketing Mixes
10. Describe the difficulties encountered in standardizing the marketing mix globally.
ANSWER: For many firms, globalization of marketing is the goal; it involves developing marketing
strategies as though the entire world (or its major regions) were a single entity: a globalized
firm markets standardized products in the same way everywhere. Nike and Adidas shoes, for
example, are standardized worldwide. For many years, organizations have attempted to
globalize their marketing mixes as much as possible by employing standardized products,
promotion campaigns, prices, and distribution channels for all markets. The economic and
competitive payoffs for globalized marketing strategies are certainly great. Brand name,
product characteristics, packaging, and labeling are among the easiest marketing mix
variables to standardize; media allocation, retail outlets, and price may be more difficult. In
the end, the degree of similarity among the various environmental and market conditions
determines the feasibility and degree of globalization. A successful globalization strategy
often depends on the extent to which a firm is able to implement the idea of “think globally,
act locally.” International marketing demands some strategic planning if a firm is to
incorporate foreign sales into its overall marketing strategy. International marketing activities
often require customized marketing mixes to achieve the firm’s goals. Globalization requires
a total commitment to the world, regions, or multinational areas as an integral part of the
firm’s markets; world or regional markets become as important as domestic ones. Regardless
of the extent to which a firm chooses to globalize its marketing strategy, extensive
environmental analysis and marketing research are necessary to understand the needs and
desires of the target market(s) and successfully implement the chosen marketing strategy.
POINTS: 1
11. Before the 1990s, most firms entered international markets

a. globally and quickly.
b. incrementally and slowly.
c. incrementally and quickly.
d. domestically and slowly.
e. regionally and quickly.
ANSWER: b
POINTS: 1
STATE STANDARDS: United States - AK - International Perspective
TOPICS: A-Head: Define International Marketing
12. According to your text, ____ are small technology-based firms operating in international markets almost immediately
after their establishment and realizing as much as 70 percent of their sales outside the domestic home market.
a. "natural globals"
b. "multinational corporations"
c. "born globals"
d. "born multinationals"
e. "multinational enterprises"
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
NATIONAL STANDARDS: United States - BUSPROG: Diversity
13. Approximately ____ of the world's purchasing power is outside of the United States.
a. 1/10
b. 1/3
c. 2/3
d. 1/2
e. 9/10
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
STATE STANDARDS: United States - AK - DISC: International Perspectives
14. The forces that affect foreign markets may differ dramatically from those affecting domestic markets. This makes a
careful ____ a critical part of a successful international marketing strategy.
a. political analysis
b. regulatory analysis
c. social audit
d. environmental analysis
e. marketing analysis
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
KEYWORDS: Bloom's: Comprehension
15. When Starbucks decided to expand into the international markets of India, Japan, and Argentina, management realized
that there would be significant differences in the standards of living, credit, buying power, and income distribution in
those countries. Starbucks is currently examining the ____ forces in its environmental analysis.
a. economic
b. cultural
c. ethical
d. technological
e. legal
ANSWER: a
POINTS: 1
United States - BUSPROG: Diversity
United States - AK - DISC: International Perspectives
KEYWORDS: Bloom's: Application
16. In China, the price of imported Scotch is $30 per glass as opposed to Scotch from China which is $3. Which of the
following do you think accounts for the difference in price?
a. Exchange control
b. Balance of trade
c. Import tariff
d. Embargo
e. Export tariff
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
17. Which of the following is often used to raise revenue for a country and/or to protect domestic products?
a. Quota
b. Warning label
c. Embargo
d. Import tariff
e. Exchange control
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
TOPICS: TOPICS: A-Head: Environmental Forces In Global Markets
18. If Tasmania levied a duty on all goods purchased from the United States and other countries outside its borders that
were brought into Tasmania, its businesses and citizens would be paying a(n)
a. embargo.
b. import tariff.
c. travelers' tax.
d. export tax.
e. foreign duty.
ANSWER: b
POINTS: 1
19. If Germany, in an attempt to bolster the sales of its own auto manufacturers, decided to limit the number of
automobiles that could be brought in from other countries, Germany would be using a(n)
a. embargo.
b. boycott.
c. exchange control.
d. import tariff.
e. quota.
ANSWER: e
POINTS: 1
20. Italy currently limits the number of Coach bags that can be imported during a one-year period, since Coach bags are
made in New York, USA. This is an example of a(an) ____
a. exchange control limit.
b. embargo.
c. quota.
d. import tariff.
e. supply limit.
ANSWER: c
POINTS: 1
21. When a glove manufacturer in China is allowed to sell only a certain number of plastic gloves to Japan, that firm is
facing a(n)
a. tariff.
b. embargo.
c. restrictive product standard.
d. quota.
e. balance of trade restriction.
ANSWER: d
POINTS: 1
22. The United States' prohibition against importing cigars from Cuba is an example of a(n)
a. health control.
b. quota.
c. embargo.
d. exchange control.
e. import control.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
23. Government restrictions on the amount of a particular country's currency that can be bought or sold are known as
a. embargoes.
b. quotas.
c. exchange controls.
d. import controls.
e. balance of trade controls.
ANSWER: c
POINTS: 1
24. ____ can force businesspeople to buy and sell foreign products through a central agency, such as a central bank.
a. Embargoes
b. Export tariffs
c. Quotas
d. Import tariffs
e. Exchange controls
ANSWER: e
POINTS: 1
25. Which of the following is used to help maintain a more favorable balance of trade by a country?
a. Limiting imports
b. Limiting exports
c. Establishing exchange controls
d. Increasing gross domestic product
e. Changing political systems
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
26. The ____ is the difference in value between a nation's exports and its imports.
a. net trade value
b. export/import ratio
c. gross domestic product
d. balance of payments
e. balance of trade
ANSWER: e
POINTS: 1
27. The gross domestic product is

a. a measure of the profit made by all firms in a nation.
b. the average annual earnings per person in a nation.
c. a measure of the types of products produced by a nation.
d. an overall measure of a nation's economic standing.
e. a ratio of domestic products to products produced in foreign countries.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
STATE STANDARDS: United States - AK - DISC: Marketing Plan
28. The country with the highest GDP is

a. Japan.
b. the United Kingdom.
c. Brazil.
d. the United States.
e. China.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
STATE STANDARDS: United States - AK - DISC: International Perspectives
29. In considering the viability of potential international markets for Pepsi products, PepsiCo is advised to take into
account ____, which provides insight into market potential.
a. per capita gross domestic product
b. gross domestic product
c. the quantity of exports
d. the quantity of imports
e. total consumer income
ANSWER: a
POINTS: 1
30. The Mont Blanc Company plans to export expensive consumer gift items to Germany. The best overall economic
measure of market potential would be Germany's
a. gross domestic product.
b. gross domestic product per capita.
c. gross national product.
d. balance of trade.
e. unemployment rate.
ANSWER: b
POINTS: 1
31. Caterpillar, maker of large construction equipment in the U.S., would like to better understand factors that would
affect its ability to export its products to various countries. Which of the following forces determine how trade barriers
affect Caterpillar's marketing efforts?
a. Political and legal
b. Economic
c. Industrial and Technological
d. Technological and Legal
e. Economic and political
ANSWER: a
POINTS: 1
32. Special interest groups and regulatory bodies are ____ forces that must be taken into account in international
marketing.
a. socioeconomic
b. technological
c. economic
d. social and ethical
e. political and legal
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
33. Select the true statement.

a. Legislation regulating marketing in many foreign countries is being eased.
b. A government's attitude toward cooperation with importers has little impact on marketing to that country.
c. Refusing to give payoffs and bribes in some foreign countries may put a marketer at a competitive
disadvantage.
d. Bribes and payoffs are considered unethical in all countries and cultures.
e. Bribes and payoffs are supported by U.S. trade policies under certain conditions.
ANSWER: c
POINTS: 1
34. The Foreign Corrupt Practices Act of 1977 makes it illegal for U.S. firms to
a. attempt to make large payments or bribes to influence policy decisions of foreign governments.
b. offer foreign businesses any type of incentive for purchasing their company's products and services.
c. change their ethical standards when dealing with foreign firms.
d. give even small tips or gifts in countries where such gifts are customary business practices.
e. introduce any type of corruption into foreign businesses that have higher ethical standards than those of the
U.S. firm.
ANSWER: a
POINTS: 1
35. If a certain country considered handshakes in business transactions to be taboo and preferred to use nodding, this
would be an example of differences in ____ forces.
a. sociocultural
b. political
c. sales
d. ethical
e. regulatory
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
NATIONAL STANDARDS: United States - BUSPROG: Communication
United States - BUSPROG: Reflective Thinking: Re - BUSPROG: Reflective Thinking
36. When products are introduced into one nation from another, acceptance is far more likely
a. if prices are set very low.
b. when bribes are paid to local officials to aid distribution.
c. if there are similarities between the two cultures.
d. if packaging is adjusted to match local preferences.
e. when retailers are given incentives to push the products.
ANSWER: c
POINTS: 1
37. Marketers of computer software, music CDs, and books are particularly affected by cultural differences in
a. socioeconomic status of citizens.
b. advances in technology.
c. differences in cross-cultural exchange behavior.
d. ethical codes of conduct for businesses.
e. standards regarding intellectual property.
ANSWER: e
POINTS: 1
38. Many companies choose to standardize their ____ across national boundaries to maintain a consistent and well-
integrated corporate culture.
a. technology
b. ethical behavior
c. language
d. dress code
e. products
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
39. In many developing countries around the world, technology is enabling opportunities to "leapfrog" existing
technology. What does this mean?
a. These countries are able to forgo current technological advances in order to wait for even better technology to
be developed.
b. More advanced technology is reaching these countries even though they lack technological infrastructures.
c. Technological advances are often offered at prices considerably lower than in well-developed countries.
d. The technology in developing countries is rapidly surpassing the technology in well-developed countries.
e. The existing technological infrastructures in these countries are rapidly being replaced by newer, more
advanced technology.
ANSWER: b
POINTS: 1
40. The unconscious reference to one's own cultural values, experiences, and knowledge when encountering new and
different cultures is known as
a. the "when-in-Rome" approach.
b. the Fraedrich Principle.
c. cultural relativism.
d. the self-reference principle.
e. the self-reference criterion.
ANSWER: e
POINTS: 1
41. ____ refers to the idea that morality varies from one culture to another and that business practices are therefore
differentially defined as right or wrong by particular cultures.
a. The self-reference criterion
b. Global ethics
c. Economic relativism
d. Cultural relativism
e. Moral relativism
ANSWER: d
POINTS: 1
42. Maquiladoras are

a. exchange controls from central banks in Latin American countries.
b. production facilities in north-central Mexican states.
c. import-export agents of the Mexican government.
d. global marketing programs established in Latin American countries.
e. freight forwarders from Mexico.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
43. The agreement between the United States, Canada, and Mexico that merges these three countries into one marketplace
is called
a. EU.
b. MERCOSUR.
c. APEC.
d. NAFTA.
e. GATT.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
44. Walmart is currently expanding its stores into Canada and Mexico. This expansion is being facilitated by the
a. European Union.
b. North American Free Trade Agreement.
c. Pacific Rim Unification Act.
d. International Retail Alliance Association.
e. Latin American Free Trade Association.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
45. One of the effects of NAFTA is the simplification of country-of-origin rules. This will likely hinder the international
trade activities of
a. Canada.
b. Japan.
c. Brazil.
d. Cuba.
e. Panama.
ANSWER: b
POINTS: 1
46. Which of the following is not true of NAFTA?

a. The agreement has a long adjustment phase-in time period.
b. Increased competition should lead to a more efficient market.
c. It will provide additional opportunities for the United States in long-term affiliations with other countries in
the Western hemisphere.
d. Provides protection for intellectual property among its members.
e. Business licensing requirements have been increased.
ANSWER: e
POINTS: 1
47. Another name for the European Union is

a. the Common Market.
b. the European Market.
c. the Euro.
d. NAFTA.
e. AECO.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
48. The unification of Europe through the European Union (EU)

a. produced the largest single market in the world.
b. calls for greater customization of products and attention to regulations and restrictions of European countries.
c. means that members of the EU have become more heterogeneous in their needs and wants.
d. required the countries to be segmented into many different markets.
e. permits virtually free trade among the member nations of the EU.
ANSWER: e
POINTS: 1
49. All of the following European countries use a common currency, the _____, except for _____, which uses its own
currency.
a. euro; France
b. euro; England
c. dollar; England
d. euro; Germany
e. euro; Austria
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
50. Johnston Chemicals' president is very excited about the possibility of the firm's British subsidiary having access to
customers in the entire EU. He realizes that it will be some time before this area truly becomes one market, primarily
because of differences in which of the following?
a. Available advertising media
b. Cultural factors
c. Legal challenges
d. Technological advances
e. Economic environmental factors
ANSWER: b
POINTS: 1
DIFFICULTY: Challenging
51. The trade alliance that includes Brazil, Argentina, Chile, and other countries is known as
a. OPEC.
b. APEC.
c. MERCOSUR.
d. NAFTA.
e. the Common Market.
ANSWER: c
POINTS: 1
52. Which of the following alliances/agreements is the United States not a part of?
a. NAFTA
b. APEC
c. GATT
d. WTO
e. MERCOSUR
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
53. The Southern Common Market (MERCOSUR) includes

a. countries from southern Africa.
b. both India and Indonesia.
c. Australia and New Zealand.
d. countries in South America.
e. southern China and India.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
54. Which of the following trade alliances differs from others in its commitment to facilitating business and its practice of
allowing the private sector to participate in a wide range of activities?
a. NAFTA
b. EU
c. MERCOSUR
d. WTO
e. APEC
ANSWER: e
POINTS: 1
55. Many marketers claim that ____ will become the world's largest market.
a. Japan
b. the United States
c. China
d. Thailand
e. India
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
56. Which of the following agreements provides a forum for tariff negotiations, reducing trade restrictions, resolution of
international trade problems, and ground rules for international trade?
a. The World Trade Organization
b. The North American Free Trade Agreement
c. The Latin American Free Trade Agreement
d. The European Union Free Trade Agreement
e. The General Agreement on Tariffs and Trade
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
57. If a newly formed country wanted to increase its international trade and reduce worldwide tariffs, it would most likely
try to become a part of
a. NAFTA.
b. WTO.
c. MERCOSUR.
d. APEC.
e. EU.
ANSWER: b
POINTS: 1
58. The term dumping refers to the sale of

a. products sold in foreign markets that cannot be sold in the United States.
b. products sold in foreign markets at prices above those charged in the United States.
c. all discontinued U.S. products in foreign countries.
d. products sold in foreign countries at unfairly low prices.
e. products sold in foreign markets that cannot pass safety standards in the United States.
ANSWER: d
POINTS: 1
59. If Hyundai, a Korean automobile manufacturing firm, started selling its cars at unfairly low prices to Germany,
Hyundai would be engaging in
a. quota-enforcing.
b. embargoing.
c. shoveling.
d. dumping.
e. dipping.
ANSWER: d
POINTS: 1
60. The World Trade Organization accomplishes all of the following except
a. educating companies about international trade rules.
b. lending money to businesses interested in developing international markets.
c. serving as a forum for trade negotiations.
d. helping settle trade disputes.
e. providing legal ground rules for international commerce.
ANSWER: b
POINTS: 1
61. At the heart of the ____ are agreements that provide legal ground rules for international commerce and trade policy.
a. United Nations
b. GATT
c. MERCOSUR
d. WTO
e. APEC
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
62. When a firm's products sell in foreign countries with little or no effort to obtain foreign sales, the firm is engaging in
a. international marketing.
b. global marketing.
c. limited exporting.
d. product licensing.
e. unplanned exporting.
ANSWER: c
POINTS: 1
63. High Plains Furnishings, a furniture manufacturer in southern Montana, markets its furniture products in markets
within the United States. It has also found several niche target markets in Finland, Chile, and Argentina. High Plains
Furnishings is engaging in
a. domestic marketing and limited exporting.
b. localized marketing and domestic marketing.
c. globalized marketing.
d. domestic marketing and international exporting.
e. localized marketing and globalized marketing.
ANSWER: a
POINTS: 1
64. Which of the following lists the levels of involvement in global marketing from the lowest to the highest?
a. Regional marketing, multinational marketing, limited exporting, domestic marketing, globalized marketing
b. Limited exporting, domestic marketing, globalized marketing, multinational marketing, regional marketing
c. Globalized marketing, multinational marketing, regional marketing, limited exporting, domestic marketing
d. Domestic marketing, globalized marketing, regional marketing, multinational marketing, limited exporting
e. Domestic marketing, limited exporting, multinational marketing, regional marketing, globalized marketing
ANSWER: e
POINTS: 1
65. The purchase of products from a foreign source is called

a. exporting.
b. dumping.
c. importing.
d. licensing.
e. venturing.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
66. When the American company Exxon purchases crude oil from Saudi Arabia, it is engaging in
a. licensing.
b. importing.
c. free trade.
d. exporting.
e. dumping.
ANSWER: b
POINTS: 1
67. Henderson Synthetics is a producer of chemical products aimed at increasing agricultural yield per acre. Henderson
Synthetics’ management believes that several of the firm's products could have sizable markets in other countries,
however, it is costly to obtain market research to confirm this. If Henderson Synthetics wanted to temporarily “try out”
these international markets with a minimal level of commitment and cost, it should use
a. contract manufacturing.
b. exporting.
c. joint ventures.
d. licensing.
e. subsidiaries.
ANSWER: b
POINTS: 1
68. The extent of Raytheon's participation in global business is selling the batteries it manufactures to companies in Spain.
In this case, Raytheon is a(n)
a. trading company.
b. importer.
c. exporter.
d. franchiser.
e. contract manufacturer.
ANSWER: c
POINTS: 1
69. The Grummond Group buys air conditioner components in industrialized countries and sells them to business
customers in developing countries where the air conditioners are assembled. Grummond is most likely classified as a(n)
a. trading company.
b. strategic alliance.
c. joint venture.
d. licensee.
e. exporter.
ANSWER: a
POINTS: 1
70. The role of export agents is to

a. bring buyers and sellers from different countries together and collect a commission for arranging sales.
b. purchase products from different companies and sell them to foreign countries.
c. help a firm to make direct investments in foreign countries.
d. contact domestic firms about the opportunities available in exporting.
e. arrange for licensing agreements between domestic and foreign firms.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
71. How does using an exporting intermediary limit the risk involved with global marketing?
a. Most exporting intermediaries assume all financial risks on behalf of their clients.
b. Exporting intermediaries are not subject to the same laws as companies, and therefore limit the legal risk
involved.
c. Using an exporting intermediary restricts a company to being involved with joint ventures and not direct
ownership.
d. Exporting intermediaries guarantee that the products a company is selling will be a good fit for the foreign
markets they are entering.
e. This approach involves limited risk because the company has no direct investment in the foreign country.
ANSWER: e
POINTS: 1
72. A company not involved in manufacturing that brings together buyers and sellers in different countries is usually
referred to as a
a. franchise.
b. contract manufacturer.
c. strategic intermediary.
d. trading company.
e. joint venture.
ANSWER: d
POINTS: 1
73. A large farming cooperative that focuses on the production of fruits and vegetables uses a business that sells the
farmers' products in foreign countries and also provides consulting, insurance, legal assistance, and warehousing to the
cooperative. This business would most likely be called a(n)
a. trading company.
b. export specialist.
c. contract wholesaler.
d. licensor.
e. strategic partner.
ANSWER: a
POINTS: 1
74. A(n) ____ is an organization that links buyers and sellers in different countries but is not involved in manufacturing.
a. trading company
b. exporter
c. joint venture
d. strategic alliance
e. licensee
ANSWER: a
POINTS: 1
75. If Caterpillar wished to reach the market in Malaysia but was leery of a direct investment in the country, it might
provide a Malaysian operation with the knowledge to produce and market its products in exchange for a commission. This
type of arrangement is called
a. licensing.
b. exporting.
c. a strategic alliance.
d. a joint venture.
e. contract manufacturing.
ANSWER: a
POINTS: 1
76. What level of commitment in international marketing may be most attractive when the political and economic stability
of a foreign country is questionable?
a. Joint ventures
b. Direct ownership
c. Exporting
d. Limited exporting
e. Licensing
ANSWER: e
POINTS: 1
77. A special form of licensing in which one company grants another company the right to market its product in
accordance with its standards in exchange for a financial commitment is called
a. a joint venture.
b. contract manufacturing.
c. direct licensing.
d. franchising.
e. a strategic alliance.
ANSWER: d
POINTS: 1
78. Tony & Guy is a global hairdressing and education business headquartered in England. It has recently opened salons
in Mongolia, adding to its numerous salons worldwide. Tony & Guy allows foreign businesspeople to use its name, logo,
methods of operation, advertising, and products. In exchange, Tony & Guy receives a financial commitment and an
agreement to conduct business in accordance with its standard of operations. Tony & Guy is engaging in
a. contract manufacturing.
b. wholesaling.
c. franchising.
d. exporting.
e. direct investment.
ANSWER: c
POINTS: 1
79. Franchising offers all the following benefits for franchisers except
a. franchise agreements require a certain standard of behavior from franchisees, which helps protect the franchise
name.
b. franchisers can retain control of their name while increasing global penetration of their products.
c. the franchisee's revenue stream is fairly consistent because franchisers pay fixed fees and royalties.
d. the franchiser's revenue stream is fairly consistent because franchisees pay fixed fees and royalties.
e. franchisers do not have to put up a large capital investment.
ANSWER: c
POINTS: 1
STATE STANDARDS: United States - AK - DISC: Strategy
80. Which of the following would be a benefit to a franchiser, such as Jiffy Lube, in expanding into international
marketing?
a. There are no risks involved with allowing a foreign franchisee.
b. The franchiser does not have to put up a large capital investment.
c. The franchiser does not have to share its name or operational procedures.
d. The franchisee only pays a set fee every month to the franchiser.
e. An equal partnership is formed between the franchiser and franchisee.
ANSWER: b
POINTS: 1
81. Which of the following describes a company hiring a foreign firm to produce a designated volume of its product to
specification?
a. Licensing
b. Contract manufacturing
c. Exporting
d. Importing
e. Direct investment
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
82. If The Limited Company relies on hiring a foreign textile manufacturer to produce a designated amount of clothing for
its Express, Limited, and other stores, it is using
a. exporting.
b. franchising.
c. contract manufacturing.
d. a joint venture.
e. licensing.
ANSWER: c
POINTS: 1
83. Some hospitals in the United States find that their need for radiologists to read X-rays is volatile during the evening
and early morning hours, especially between 2:00 and 6:00 am. This is because the number of emergency room visits
needing X-rays is usually lower than those required during daytime operating hours. There is a recent trend where
hospitals in the United States are contracting radiologists from countries such as Australia to read the electronically-
transmitted X-rays during the evening and early morning hours. This is an example of
a. outsourcing.
b. licensing.
c. franchising.
d. contract manufacturing.
e. contract sourcing.
ANSWER: a
POINTS: 1
84. A business partnership between a domestic firm and a foreign firm is known as
a. a joint venture.
b. an international partnership.
c. a multinational enterprise.
d. licensing.
e. exporting.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
85. The Cooper Tire & Rubber Company has been searching for less expensive raw materials for manufacturing its
bicycle tires. Cooper has found that there are less expensive sources in the country of Indonesia, but it needs to form a
partnership with the government of Indonesia in order to gain access to the country's rubber. What type of partnership will
need to be formed?
a. a multinational enterprise
b. a contract manufacturing arrangement
c. a strategic alliance
d. a franchise
e. a joint venture
ANSWER: e
POINTS: 1
86. Sometimes business partnerships are formed between traditional rivals competing for market share in the same
product class. These partnerships are known as
a. trading companies.
b. contract manufacturers.
c. joint ventures.
d. strategic alliances.
e. licenses.
ANSWER: d
POINTS: 1
TOPICS: : A-Head: Modes Of Entry Into International Markets
87. Nuhitzu believes it has the technological expertise to produce communication systems that will be leaders around the
globe. Boston Electronics is widely regarded as having excellent management systems and superior marketing programs.
To utilize these strengths, the two firms might form a(n) ____ to work together on a worldwide basis.
a. licensing agreement
b. export trading company
c. joint agreement
d. strategic alliance
e. multinational enterprise
ANSWER: d
POINTS: 1
88. Toshiba Electronics is very interested in taking advantage of business opportunities in India but does not have access
to India's market. Toshiba has the patent on a low-cost, quality computer system that could assist small businesses in
India. Sony Computer, Toshiba's competitor, is experienced in India's small business market but does not have a computer
comparable to Toshiba's. If Toshiba and Sony work together to utilize these strengths to seize this opportunity in India,
what type of business structure would they likely use?
a. Trading company
b. Strategic alliance
c. Licensing
d. Direct ownership
e. Exporting
ANSWER: b
POINTS: 1
89. What is the primary distinction between a joint venture and a strategic alliance in international marketing?
a. Strategic alliances are only formed between companies from well-developed countries whereas joint ventures
are between companies from economically-diverse countries.
b. A joint venture involves only two companies whereas a strategic alliance is formed between three or more
companies.
c. A joint venture is defined in scope, while a strategic alliance is typically represented by an agreement to work
together.
d. A joint venture is formed between companies with dissimilar product offerings while a strategic alliance is
formed between companies with similar product offerings.
e. A joint venture is simply a financial investment in a foreign firm while a strategic alliance involves more than
just financial support.
ANSWER: c
POINTS: 1
90. The Ford Motor Company has entered into an alliance with Yves Saint Laurent, a maker of clothing and one of the
most successful fashion houses in the world. Yves Saint Laurent is headquartered in France. Ford will use Yves Saint
Laurent designs and color traditions in its production of luxury models of the company’s Expedition SUV and Lincoln
vehicles. The Yves Saint Laurent elements will appear in the interior and body paint color. This alliance would most likely
be classified as
a. a strategic alliance.
b. a joint venture.
c. a global direct ownership.
d. a multinational enterprise.
e. contract manufacturing.
ANSWER: a
POINTS: 1
91. Once a company makes a long-term commitment to a foreign market that has a promising political and economic
environment, which of the following options then emerges as a possibility?
a. Exporting
b. Joint venture
c. Limited exporting
d. Direct ownership
e. Licensing
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
92. In relation to international marketing, which of the following best describes direct ownership?
a. A company owns its own manufacturing facilities.
b. A company forms an alliance with a similar company in a foreign country.
c. Foreign companies contract with manufacturers in other countries.
d. A company owns subsidiaries or facilities in foreign countries.
e. Two companies from different nations have interests in each other's facilities.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
93. IKEA, a Swedish retailer of contemporary furniture, operates several stores in various Scandinavian countries, as well
as in the United States and Canada. Which of the following describes IKEA's level of commitment to international
marketing?
a. Licensing
b. Direct ownership
c. Exporting
d. A trading company
e. A joint venture
ANSWER: b
POINTS: 1
LEARNING OBJECTIVES: MARK.PRID.16.09-04 - LO: 09-04
94. Firms that have operations or subsidiaries located in many countries are referred to as
a. multinational enterprises.
b. strategic alliances.
c. joint ventures.
d. international marketers.
e. export alliances.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
95. Southern Tier Industries has operations in more than 30 foreign countries. The headquarters in Atlanta controls the
entire organization while offering subsidiaries the freedom necessary to achieve success in local markets. Southern Tier
Industries is an example of a(n)
a. strategic alliance.
b. joint venture.
c. export-driven corporation.
d. multinational enterprise.
e. trading company.
ANSWER: d
POINTS: 1
96. The Samsung Group sells several different product lines around the world through home appliance and electronics
stores. Samsung appliances and electronics have been historically made in Korea, where the company is headquartered.
Recently, Samsung has been investigating the possibility of buying land and building a production plant in Tennessee, in
the United States. Samsung is now operating as a(an) ______; however, if the plant is built in Tennessee, it will be
operating as a(an) ______.
a. exporter; strategic alliance.
b. limited exporter; national marketer.
c. limited exporter; international proprietorship.
d. exporter; multinational enterprise.
e. exporter; global franchise.
ANSWER: d
POINTS: 1
97. Japan's Sony Corporation is a prime example of a multinational enterprise. With this in mind, which of the following
would most accurately characterize Sony's operations?
a. It follows a strategy of market globalization.
b. It has operations or subsidiaries in many different countries.
c. It places most of its emphasis on profits generated in foreign countries.
d. It would not expect its foreign operations to share the same goals as the parent firm.
e. It does not concern itself with differences in markets around the world.
ANSWER: b
POINTS: 1
98. What is the greatest advantage to an organization of having a subsidiary in a foreign nation?
a. Avoidance of all U.S. laws
b. Increase in cross-cultural approaches to management that allows subsidiaries to develop their own identity
c. Increased trend toward nationalistic marketing approaches
d. Greater amount of standardization of the marketing mix
e. Greater amount of security from government nationalization and other anticompetitive measures
ANSWER: b
POINTS: 1
99. A subsidiary in a foreign country generally operates under

a. the laws of the parent company's home country.
b. foreign management in order to develop a local identity.
c. strict management control from the home country's executives.
d. the regulations set forth by the International Trade Agreement.
e. a team of managers from the distant parent company.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
100. Exporting, licensing, and using trading companies are preferred modes of international market entry for firms with
a(n) ____ structure.
a. international division
b. internationally integrated
c. export department
d. geographic area
e. matrix
ANSWER: c
POINTS: 1
TOPICS: A-Head: Global Organizational Structures
101. Which of the following centralizes all of the responsibility for international operations?
a. Product division structures
b. Export department structures
c. Internationally integrated structures
d. International division structures
e. Global matrix structures
ANSWER: d
POINTS: 1
102. Which of the following is most likely to engage in direct ownership activities internationally?
a. Internationally integrated structures
b. International division structures
c. Export department structures
d. Import department structures
e. Outsourcing structures
ANSWER: a
POINTS: 1
103. Northeastern University and Penn State University both offer online MBA programs that are available to students
around the world. This is an example of
a. globalization.
b. customization.
c. licensing.
d. nationalization.
e. regionalization.
ANSWER: a
POINTS: 1
104. When asked where Laser Tools, Inc., markets its products, company president and founder Roger Helms says that
"the world is just one big market." He feels anyone not taking this stance is systematically passing up profitable business.
Helms's international marketing strategy is best described as
a. customization of marketing.
b. globalization of marketing.
c. limited exporting.
d. full-scale international marketing.
e. export agenting.
ANSWER: b
POINTS: 1
105. Organizations that employ standardized products, promotion campaigns, and prices for all markets are practicing
what is known as
a. customization.
b. internationalization.
c. globalization.
d. regionalization.
e. nationalization.
ANSWER: c
POINTS: 1
106. Selling products that are not in demand in all world markets, such as hand-powered washing machines for use in
countries where electricity is not universally available, represents an international marketing strategy focusing on
a. internationalization.
b. culturalization.
c. nationalization.
d. globalization.
e. customization.
ANSWER: e
POINTS: 1
107. Both Nike and Adidas standardize many of their shoe models and colors worldwide, which is an example of
_______.
a. globalization.
b. customization.
c. nationalization.
d. culturalization.
e. internationalization.
ANSWER: a
POINTS: 1
108. Levi Strauss markets its denim jeans in many countries and develops its marketing strategy as if the world were a
single market. This approach to selling a standardized product in all countries represents which type of international
marketing?
a. Exporting
b. Accidental exporting
c. Limited exporting
d. Licensing
e. Globalization of markets
ANSWER: e
POINTS: 1
109. Globalization of markets requires developing marketing strategies as if the world were one market. Which of the
following marketing mix variables is most difficult to standardize for globalization?
a. Brand name
b. Package
c. Media allocation
d. Labels
e. Product characteristics
ANSWER: c
POINTS: 1
110. Swiss-based Nestlé has taken a global approach to marketing its chocolate products. Which of the following is most
easily standardized?
a. Product
b. Promotion
c. Distribution
d. Advertising
e. Price
ANSWER: a
POINTS: 1
111. When the makers of Red Bull, an energy drink, decided to go international with their marketing effort, a global
approach was adopted. With which of the following factors did Red Bull most likely experience difficulty as the firm
applied a global strategy for marketing?
a. Branding
b. Product characteristics
c. Packaging
d. Labeling
e. Advertising
ANSWER: e
POINTS: 1
112.
Scenario 9.1
Use the following to answer the questions.
Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of four sites. With a large number of its
bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons,
one being that its management wants to keep close watch on the quality of its products. However, for all the accessories,
apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the items with the Harley
name and logo. Some of these items, particularly the apparel, are made in China. Lately, some members of the Harley
Owners' Group (HOG) have been complaining to the company about this practice, citing that "everything Harley should
be made in America".
Refer to Scenario 9.1. Harley-Davidson's practice of having manufacturers in China produce apparel items with the
Harley logo is an example of
a. contract manufacturing
b. globalization
c. direct ownership
d. joint venture
e. exporting
ANSWER: a
POINTS: 1
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
113.
Scenario 9.1
Refer to Scenario 9.1. One of Harley-Davidson's largest international markets is in Japan, where American brands are
highly sought after. This is an example of ____ impacting the market.
a. international forces
b. economic forces
c. domestic forces
d. cultural forces
e. environmental forces
ANSWER: d
POINTS: 1
114.
Scenario 9.1
Refer to Scenario 9.1. If Harley-Davidson were to suddenly find its inventory building up in Japan, it might reduce
inventory by selling the bikes at below cost prices. This practice is known as
a. price skimming.
b. market penetration.
c. dumping.
d. differential pricing.
e. inventory compensation.
ANSWER: c
POINTS: 1
115.
Scenario 9.1
Refer to Scenario 9.1. At what level of involvement in international marketing is Harley-Davidson with regard to its
bikes?
a. Full-scale
b. Globalization
c. Joint venture
d. Direct ownership
e. Exporting
ANSWER: e
POINTS: 1
116.
Scenario 9.2
KFC opened its first franchised restaurant outside of North America in England in 1964. Now, over a billion KFC chicken
dinners are sold annually at more than 80 countries and territories around the world. KFC has established its own
processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at
KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However,
when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu items such as fried
octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at
the front of the store. This is a tradition for many restaurants in these countries to offer the customer passing by a
preliminary view of their product.
Refer to Scenario 9.2. KFC's establishment of international production/processing facilities is an example of

a. direct ownership.
b. franchising.
c. strategic alliance.
d. outsourcing.
e. a trading company.
ANSWER: a
POINTS: 1
117.
Scenario 9.2
Refer to Scenario 9.2. The practice of offering fried octopus and squid at Asian KFC's is best described as
a. a strategy of standardization.
b. a strategy of globalization.
c. a strategy of some customization.
d. competitive advantage.
e. internationalizing the franchise.
ANSWER: c
POINTS: 1
118.
Scenario 9.2
Refer to Scenario 9.2. Suppose that KFC's parent company experienced difficulty in opening its restaurants in China
unless KFC was willing to pay the government a "bribe". If KFC were to resort to paying this bribe in China saying that
"it's different doing business there" this would be an example of
a. a licensing arrangement.
b. the self-reference criterion.
c. cultural relativism.
d. balance of trade issues.
e. exchange controls.
ANSWER: c
POINTS: 1
119.
Scenario 9.2
Refer to Scenario 9.2. Which of the following alliances will KFC most likely utilize to guide its business transactions in
Japan and China?
a. WTO
b. MERCOSUR
c. FTAA
d. NAFTA
e. APECAPEC
ANSWER: e
POINTS: 1
120. International marketing is defined as marketing activities performed across national boundaries.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
121. Two-thirds of the world's total purchasing power is outside the United States.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
122. Customers that travel the globe expect to be able to buy the same product in most of the world's more than 200
countries.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
123. An embargo occurs when a government suspends trade with a particular country.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
124. A quota is the suspension, by a government, of trade in a particular product.

a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
125. Government restrictions on the amount of a particular currency that can be bought or sold are known as import
controls.
a. True
b. False
ANSWER: False
POINTS: 1
126. A positive balance of trade is considered good because it means that U.S. dollars are supporting foreign economies at
the expense of U.S. companies and workers.
a. True
b. False
ANSWER: False
POINTS: 1
127. In determining the size of the market for consumer products, the international marketer will probably be very
interested in per capita GDP figures.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
128. Opportunities for international marketers are limited to industrial nations with the highest incomes.
a. True
b. False
ANSWER: False
POINTS: 1
129. U.S. marketers may engage in bribery to compete with foreign firms.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
130. The study of the cultural environment is unnecessary in the foreign market because foreign consumers will accept
anything that American marketers have to sell.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
131. Customs and taboos are culture-bound and should be taken into consideration when products are marketed in a
foreign environment.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
132. Cultural differences do not affect marketing negotiations and decision-making behavior.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
133. When products are introduced from one nation into another, acceptance is more likely if the two cultures are
different.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
134. Cultural relativism is the unconscious reference to one's own cultural values, experiences, and knowledge when
traveling in other countries.
a. True
b. False
ANSWER: False
POINTS: 1
135. NAFTA eventually eliminates all tariffs on goods produced and traded between the United States, Mexico, and
Brazil.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
136. NAFTA simplifies country-of-origin rules, hindering Japan's use of Mexico as a staging ground for further
penetration into U.S. markets.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
137. While NAFTA eliminates many tariffs immediately, the tariffs on more sensitive goods, such as glassware, footwear,
and some fruits and vegetables, will be phased out over a 15-year period.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
138. The unification of Europe permits virtually free trade among the member nations of the European Union.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
139. Because of continuing disputes and inconsistencies among the administrations of member states, it will be many
years before the European Union truly becomes one deregulated market.
a. True
b. False
ANSWER: True
POINTS: 1
140. The U.S. and Japanese economies are more integrated than are the U.S. and Canadian economies.
a. True
b. False
ANSWER: False
POINTS: 1
141. GATT was based on negotiations between member countries to reduce worldwide tariffs and increase international
trade.
a. True
b. False
ANSWER: True
POINTS: 1
142. The World Trade Organization was an important outcome of the unification of Europe.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
143. Domestic marketing involves marketing strategies aimed at markets within the home country.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
144. Importing is the sale of products to foreign markets.

a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
145. The job of the export agent is to bring together buyers and sellers from different countries.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
146. A trading company provides a link between buyers and sellers in different countries.
a. True
b. False
ANSWER: True
POINTS: 1
147. Under a licensing arrangement, the licensee pays commissions or royalties on sales or supplies used in
manufacturing.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
148. Franchising is an arrangement whereby a franchisee grants a franchiser the right to market its product, using its
name, logo, methods of operation, advertising, products, and other elements of the franchising company's business, in
return for a financial commitment and an agreement to conduct business in accordance with the franchisee's standard of
operations.
a. True
b. False
ANSWER: False
POINTS: 1
149. Contract manufacturing occurs when a firm pays a commission or royalties on sales or supplies used in
manufacturing.
a. True
b. False
ANSWER: False
POINTS: 1
TOPICS: -Head: Modes Of Entry Into International Markets
150. The joint venture approach has little appeal to industries involved in extraction of natural resources.
a. True
b. False
ANSWER: False
POINTS: 1
151. A multinational enterprise is a firm that has operations or subsidiaries located in many countries.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
152. It is impossible for a subsidiary to develop a local identity because it seldom employs personnel from the country
within which it operates.
a. True
b. False
ANSWER: False
POINTS: 1
153. The greatest danger in becoming involved in direct ownership in international marketing is political uncertainty.
a. True
b. False
ANSWER: True
POINTS: 1
154. A subsidiary operating in a foreign country may have important tax, tariff, and other operating advantages over a
licensing agreement or a joint venture.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
155. Exporting, licensing and franchising, trading companies, contract manufacturing, and joint ventures are preferred
modes of international market entry for firms with an export department structure.
a. True
b. False
ANSWER: False
POINTS: 1
156. Firms that use an international division structure are often organized domestically on the basis of functions or
product divisions, whereas the international division is organized on the basis of geography.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
157. Firms with internationally integrated structures are the least likely to engage in direct ownership activities
internationally.
a. True
b. False
ANSWER: False
POINTS: 1
158. Globalization of marketing involves developing marketing strategies as though the entire world (or major regions of
it) were a single entity.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
159. Media allocation, retail outlets, and price are among the easiest marketing mix variables to standardize.
a. True
b. False
ANSWER: False
POINTS: 1
160. Brand name, product characteristics, packaging, and media allocation are among the easiest marketing mix variables
to standardize around the world.
a. True
b. False
ANSWER: False
POINTS: 1
161. Regardless of the extent to which a firm chooses to globalize its marketing strategy, extensive environmental analysis
and marketing research are necessary to understand the needs and desires of the target market(s) and successfully
implement the chosen marketing strategy.
a. True
b. False
ANSWER: True
POINTS: 1
162. _____________ are companies that were started with the knowledge and resources to compete in a global
marketplace. They are usually small technology companies that quickly establish themselves in international markets.
They reach a point where as much as ________ percent of their sales come from locations outside the United States.
a. Multinationals; 80
b. International enterprises; 60
c. Global techs; 50
d. Global tigers; 75
e. Born globals; 70
ANSWER: e
POINTS: 1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking: Re - BUSPROG: Reflective Thinking
163. The international marketplace offers a new set of challenges for the marketer to navigate. There are multiple forces
that must be overcome if the firm’s marketing strategies are to be successful in international markets. For example, some
countries have import tariffs and quotas that restrict the flow of foreign products into their domestic markets. This is an
example of which of the following environmental forces present in international markets?
a. Political, Legal and Regulatory Forces
b. Sociocultural Forces
c. Ethical and Social Responsibility Forces
d. Competitive Forces
e. Economic Forces
ANSWER: a
POINTS: 1
TOPICS: A-Head: Environmental Forces in Global Markets
164. The trade agreement that links Mexico, Canada and Unites States into one economic market is called which one of
the following?
a. European Union
b. MERCOSUR
c. Central American Free Trade Agreement
d. APEC
e. NAFTA
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
TOPICS: A-Head: Regional Trade Alliances, Markets, and Agreements
165. Because firms have different resources and core competencies, their international marketing strategies will also be
different. Nevertheless, any firm seeking to be successful in international markets must establish the right organizational
structure for its core competencies and resources. Which of the following is a valid international organizational structure?
a. Geographic area structure
b. Non-Domestic structure
c. Domicile structure
d. Sales department structure
e. Overseas operations structure
ANSWER: a
POINTS: 1
166. The ______________ of marketing suggests that firms should adopt marketing strategies as though the entire world
was one single marketplace. These firms would then market ___________ products using the same marketing mix
everywhere in the world.
a. internationalization; customized
b. globalization; customized
c. flexibility; standardized
d. globalization; standardized
e. international vision; custom
ANSWER: d
POINTS: 1
TOPICS: A-Head: Customization versus Globalization of International Marketing Mixes
167. U.S. businesses are increasingly recognizing that international markets provide enormous opportunities for growth
and profit. ___________companies are entering international markets and quickly realizing as much as 70 percent of their
sales outside the domestic market within two years.
a. Joint venture
b. Born global
c. Internationally integrated
d. Export
e. Trading
ANSWER: b
POINTS: 1
168. Sociocultural forces in international markets keep marketer busy trying to understand local preferences, tastes,
customs and idioms. The marketer’s failure to understand these forces almost certainly leads to failures in the marketing
strategies used. Which one of the following statements about the sociocultural forces in international markets is true?
a. Cultural differences do not affect marketing negotiations and decision-making behavior.
b. Buyers’ perceptions of other countries do not influence product adoption and use.
c. Cultural differences do not have significant effects on marketing activities.
d. Transferring marketing logos, trademarks and symbols is usually an easy process when entering international
markets.
e. Product acceptance in an international market is more likely if similarities exist between buyer and seller
cultures.
ANSWER: e
POINTS: 1
TOPICS: A-Head: Environmental Forces in Global Markets
169. The North American Free Trade Agreement (NAFTA) ___________ tariffs on goods produced in and traded
between Canada, Mexico and the United States.
a. doubled
b. tripled
c. introduced
d. eliminated
e. extended
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
TOPICS: A-Head: Regional Trade Alliances, Markets, and Agreements
170. A ______________ links buyers and sellers in different countries but it has no manufacturing capability. It most
important function is ___________ to products and moving them from the domestic country to the foreign country.
a. joint venture; adding customizations
b. foreign subsidiary; taking title
c. trading company; adding value
d. foreign subsidiary; adding value
e. trading company; taking title
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
TOPICS: A-Head: Modes of Entry Into International Markets
171. The internationally integrated structure is one type of organizational structure used by U.S. firms for their
international operations. Which of the following statements is true about internationally integrated structures?
a. There are five types of internationally integrated structures.
b. The international subsidiary is one type of internationally integrated structure.
c. The matrix structure is not a type of internationally integrated structure.
d. The product division structure is one type of internationally integrated structure.
e. The geographic area structure is not a type of internationally integrated structure.
ANSWER: d
POINTS: 1
172. Brand name, product characteristics, packaging, and labeling are some of the ______________ marketing mix
variables to standardize for international markets.
a. most difficult
b. most urgent
c. easiest
d. most expensive
e. most culturally sensitive
ANSWER: c
POINTS: 1
TOPICS: A-Head: Customization versus Globalization of International Marketing Mixes
Another random document with
no related content on Scribd:
KÓWAM AND GÁHGA
CHARACTERS
Gáhga Heron
Kówam Red-billed Duck
Lok Bear
Kówam and his little brother lived on the south side of Klamath Lake.
The little boy’s name was Gáhga.
Kówam had a nice-looking wife, and when he went to fish in the lake,
he always told her that if any one came to bother her she must send
Gáhga to tell him.
One morning, when Kówam had gone to the lake, and his old
mother-in-law was out gathering wood, Kówam’s wife sat down by
the fire and began to make a reed basket for Kówam to put fish in.
After a while the old woman ran in and cried: “The big-footed people
are coming!”
Soon the five Lok brothers came in and sat down by the fire. The
eldest brother put his head on the young woman’s lap.
Gágha began to cry, and Lok said: “Why do you cry, little boy? Are
you sorry for me because I haven’t a wife? This woman is my wife.”
Gágha kept crying. At midday his eyes were so swollen that he could
hardly open them. “Stop crying,” said his sister-in-law. “Go and find
your brother and tell him that the big-footed men are here. Maybe
nothing has happened, and he doesn’t know there is trouble at
home.”
Gágha cried all the time he was going to the lake. When he found his
brother Kówam asked: “What’s the matter? What makes you cry?
Did you hurt yourself?”
“No,” said Gágha, “five of the big-footed people from the north side
of the lake are in our house, and one of them has his head on my
sister-in-law’s knees.” [285]
“Is she crying?” asked Kówam.
“No, but I’ve cried all the time, I’m so sorry they have taken my
sister-in-law away from me.”
“If she isn’t crying, she doesn’t care for us, and there is no use in
crying. If they had made her cry, I should kill those men.”
Kówam sat still a long time; he was thinking what he could do. Then
he said to Gágha: “Stop crying and get some wood; we will cook fish
to eat. You must hurry, so we can go home before it’s dark.”
Little Gágha could hardly stand; he had cried so long that he was
dizzy.
Kówam said: “Don’t cry any longer. I know what I will do to those big-
footed people.”
They built a fire and cooked fish. Gágha’s tears were dropping all the
time he was eating.
“Stop crying and finish eating!” said his brother. “Whenever a man
has a nice wife he is bothered. It will always be that way.”
Kówam filled an old basket with fish, picked it up, put it on his back,
and said: “Now we will go home.”
“How can we go home while those big-footed people are there?”

asked Gágha. He was crying again.
“I am not afraid of those men,” said Kówam. “That is my house; I will

drive them out of it or I will kill them.”
When they were part of the way home, Kówam said: “Little brother,
take my bow and arrow and shoot me in the heart.”
“How can I do that? You are my brother.”
“It won’t hurt me. I want you to practise shooting.”
“You are my own brother, all the one I have. I won’t do it,” said
Gágha.
“You must,” said Kówam. “It won’t hurt me.”
“It will kill you; then I shall be all alone,” said Gágha.
Kówam talked a long time, asked in every way, but Gágha always
said: “You are my brother; I won’t kill you.” At last Kówam said: “If
you don’t shoot me and make me strong, I will let the big-footed
people have your sister-in-law; I [286]won’t try to kill them. You can’t
kill me. Nobody can kill me; I shall live always.”
At last Gáhga took the bow and arrow and shot Kówam in the heart,
killed him; then he ran, for he felt scared. Right away Kówam
overtook him, and said: “Now shoot me in the heart and tear my
body to pieces.” Gáhga did as Kówam told him to and then ran away.
Again Kówam overtook him. That time he said: “Kill me and pound
my body to pieces; then mix the pieces with dirt and stones.” Gáhga
did as he was told. Soon his brother caught up with him, and said:
“Kill me, then pound my body up and throw the pieces away.” Gágha
did that, and went on; he didn’t run that time, he just walked; he
didn’t feel scared any longer. Kówam came up behind him, and said:
“Now, little brother, try again. Kill me, then build a big fire and burn
up my body and let the wind carry the ashes away.” Gáhga did that.
His brother overtook him again.
“What kind of a man are you?” asked Gáhga. “Is there any way to kill
you?”
“I wasn’t made to die,” said Kówam, “I shall live always. Now kill me
and cut off my feet and hands and carry them away. Hold them tight.”
Gáhga shot Kówam in the heart, cut off his hands and feet, held
them tight in his own hands, and traveled on, went fast. Right away
his brother called to him. Gáhga’s hands were shut, but the feet and
hands that he had been carrying were gone, and Kówam was by his
side. Then he cut Kówam’s head off and threw it away. At once the
head and body came together.
The brothers were almost home now and Kówam said: “You must
take my bow and quiver and wait on top of the house; I will go in
alone. Don’t be scared when they throw me out; they can’t hurt me.”
Kówam went in, pulled Lok’s head off from the woman’s knees, and
threw him out of the house. Lok came in, caught Kówam, killed him,
and threw the pieces on the fire.
Right away Kówam had Lok by the throat. He choked him and threw
him out. [287]
When Kówam was killed and thrown out, his mother-in-law

screamed: “I am glad you are dead, old Black Legs!” When Lok was
thrown out, she screamed, “Now you are killed, old Big Feet, my
son-in-law is a great man!”
The fight lasted all night. Just as daylight came, Lok tore Kówam’s
head off; he kicked the body out and held tight to the head. That
moment Kówam said to his brother: “Now I am ready to fight. I was
just waiting for another sun to come up.”
He took his bow and arrows and shot at the Loks through the smoke
hole, and killed them all. Then he covered the house with dry grass,
piled up wood around it, and set it on fire.
Gáhga screamed and cried; he wanted his sister-in-law saved.

Kówam wouldn’t listen to him and wouldn’t let his wife out. Then
Gáhga got mad at his brother, and said: “Hereafter you won’t have a
person for a wife. You will be an animal. People will call you by
different names, and you will always live in the woods and make a
great noise talking.”
Kówam said: “Punch a stick in where your sister-in-law was sitting.”

She was dead, but a voice spoke out of the fire and said to Kówam:
“You will always stick your bill up in the sun and look off on the water.
And you, my little boy, will be like your brother.”—Ningádaniak. [288]
[Contents]
MINK AND WEASEL
CHARACTERS
Blaiwas Eagle Lok Bear

Gäk Crow Moi Squirrel
Gapni Louse Näníhläs Bat
Kāhkaas Stork Skóŭks Woodtick
Kaiutois Wolf Súbbas Sun
Kaltsik Spider Sukas
Kéis Rattlesnake Tcûskai Weasel
Kékina Lizard Tskel Mink
Kówe Frog Tusasás Skunk
Kûlta Otter Wŏn Elk
Leméis Thunder
Two brothers, Tskel and Tcûskai, lived together not far from Klamath
Lake. Tskel’s wife was Skóŭks. Tcûskai was a little fellow. One day
when Skóŭks was outside cooking deer meat and was blowing the
fire to make it burn, she saw Tcûskai watching her; that made her
mad and she threw the meat into the fire. Tskel hit Tcûskai and told
him to stay in the house when Skóŭks was cooking; then he said to
Skóŭks: “Cook more meat; Tcûskai and I are going to the mountain
to hunt for deer. If I kill a big deer, we will camp and stay all night.”
Tskel never killed a deer; no matter how many he saw, he always let
them get away.
When they got to the mountain, they saw a large deer; Tcûskai killed
it, and they camped in sight of a big hole between the rocks. Tskel
wouldn’t camp very near the hole, for he was afraid his brother would
go into it and get hurt. Tcûskai would go anywhere, he wasn’t afraid
of anything.
Tskel cut up the deer; then he and Tcûskai lay down, one on each
side of the fire. As soon as Tcûskai was asleep, Gopher came and
ran across him, just to tease him. Tcûskai [289]woke up and called his
brother: “Come here! Come and see this little fellow! I will give him a
piece of our meat, and we will catch him.”
Tskel didn’t move; he was asleep. Tcûskai gave Gopher a small

piece of meat. He took it and ran off to the rocks, then came back for
more, carried that off and came back again. Each time he came
Tcûskai gave him a larger piece. At last all the deer meat was gone;
then Tcûskai went to Tskel, shook him, and said: “Get up! Get up!
This little fellow has carried off all of our meat.”
Tskel didn’t move or say a word. Tcûskai gave Gopher all the roots
Tskel had brought from home; then he took off Tskel’s belt and gave
it to him. Gopher carried it under the rocks. He gave him Tskel’s
deerskin cap and his rabbit-skin blanket.
In the morning when Tskel woke up, the north wind was blowing and
he was almost frozen. He asked Tcûskai where the blanket was.
Tcûskai said: “Gopher took it.”
“Then you gave it to him,” said Tskel; “Gopher couldn’t unwrap me.”
Tcûskai began to feel cold; he wanted to get into Tskel’s ear, but
Tskel was mad, and threw him out. Then he tried to get under Tskel’s
arm, but Tskel pushed him away and sat with his arms folded across
his breast, for he had no blanket and he was cold.
“Why are you so mad?” asked Tcûskai. “I will get those things back;
they are over there under the rocks.”
It was near daylight; Tcûskai was freezing to death. Tskel made a fire
and told him to lie down near it and get warm. Then he made himself
a bark blanket. When Tcûskai was warm, his brother said: “Now you
must get back the things you gave to Gopher.”
Tcûskai ran to the rock and looked into the hole; he thought it was
awful deep, but he ran back, and said: “The hole isn’t deep; we can
build a fire and drive Gopher out.”
“I want my blanket,” said Tskel; “maybe you can crawl in and get it.”
The mountain was Gopher’s house. The rocks were only [290]the roof
of it. Tcûskai saw his brother’s belt, but he was afraid to go and get it.
Tskel said: “Make a fire and blow the smoke into the hole. How long
can you fan the fire without getting tired?”
“I can fan it till Gopher comes out,” said Tcûskai.
“But there are many holes,” said his brother. “You will have lots of
trouble. Do you think you can fill the holes with stones?”
“I can fill them quickly,” said Tskel. He ran around, threw stones into
the holes, then came back and blew the fire. But the smoke came
out through other holes, and Tskel said: “Go and stop up every hole
you can find.”
Tskel, to make Tcûskai sorry for what he had done, hid all the water
in a hole where he couldn’t find it. Little Tcûskai got very thirsty. He
ran from one spring to another but couldn’t find water; then he knew
that his brother had hidden it and he said: “I want some water.”
“You can’t have any until you have killed Gopher,” said Tskel. “When
he is dead, I will give you some.”
Tcûskai filled all the little holes and fanned smoke into the big hole.
At midday he said to his brother: “I am stronger than you are; you
never could have filled all these holes.” He went again to hunt for
water. At last he found the place where Tskel had hidden it; then he
drank and drank, drank nearly all the water there was in the hole.
Tskel wondered why Tcûskai didn’t come back. At last he thought:

“Maybe he has found the water; I will go and see.” Tcûskai was still
drinking, and only a little water was left. If Tskel hadn’t thought of the
water and gone to look for his brother, he would have drunk it all and
there would have been no water in the world.
Tskel caught hold of Tcûskai and threw him against the rocks so hard
that he killed him; then he scattered the water. There was only a little
left, but it spread fast, spread until there were rivers and lakes. Then
Tskel went to his brother, took off the string of rattles he wore around
his neck, and struck him five times with it. Tcûskai came to life. Tskel
said: “The holes are stopped up; now I will help you kill Gopher.
[291]He is terrible to look at when he is mad. You must keep your
eyes closed; if you see him, you will die.”
Tskel had two stone knives. He gave one to Tcûskai, then he built a
fire and blew the smoke into the big hole. Tcûskai listened; there was
a noise of some one moving around in the hole. He was so scared
that he died. Tskel brought him to life, and said: “You mustn’t get
scared. That was only a young Gopher; old Gopher hasn’t moved
yet.”
Tskel blew more smoke into the hole. There was a roar as though
the mountain was going to burst open. Tcûskai died again. Tskel
brought him to life, and said: “You have played with these people
and made all this trouble; now you must stay here till it is over. Don’t
get scared every time you hear a noise.”
Just then old Gopher moved and the earth shook. Tcûskai was
dreadfully frightened. (He was on one side of the hole and Tskel was
on the other.) There was a shaking and roar, then a great, red, fiery
head came out of the hole. Tskel cut the head off with his long knife,
skinned it, and made a cap of the skin; then he buried the head
under great flat rocks. Right away the rocks were as red as blood.
(They are red to this day.)
Tskel said to Gopher: “Hereafter you will be of no account. You will

dig in the ground and people will make fun of you.”
If Tskel hadn’t killed Gopher, there would be no one living in the

world now.
In the hole where Gopher was it is always hot, no matter how cold it
is outside. Gopher’s body, turned to stone, is still in the hole.
After Tskel killed Gopher, he and Tcûskai went home, but Tskel didn’t
want to stay there. He thought about his cousin, Kaiutois. One day
he said to Skóŭks: “I am going to see my cousin,” and he sent
Tcûskai to ask Gäk if he would go with them. Gäk was willing and the
three started off. As they traveled, people told them they mustn’t go
near the Leméis family, that they were killing everybody, that each
day they carried off men to eat. Tskel said: “I am traveling around the
world to see people; I’m not afraid of Leméis.” [292]
When they got near Leméis’ house, Tskel put on his gopher-skin cap
and put little Tcûskai under his arm, where he couldn’t do any
mischief. Then he gave Gäk a sharp bone, and said: “When they
give you dead men’s meat to eat, make a hole in your throat and let
it out; don’t swallow it.”
The five Kaiutois brothers and old man Leméis with his wife and five
boys lived in one house. The five Kaiutois lived on one side of the
house and old Leméis on the other. When Tskel went to the house,
the Kaiutois brothers and Leméis boys were off hunting for deer.
Old Leméis and his wife saw Tskel’s gopher-skin cap and they were
so scared that they ran out of the house. They built a fire and began
cooking; they were afraid to go inside. The wives and children of the
Kaiutois brothers were frightened, too.
Tskel sat in the house with his head down. Tcûskai teased him to let
him put the cap on and run out and scare the old man, but Tskel
pinched him and told him to keep still where he was, under his arm.
Gäk was lying on the ground and looking at Tskel.
Soon old Leméis’ eldest son came home. When he saw his father
and mother outside, he asked: “What are you doing out here?”
The old man said: “There is something strange in our house. We

can’t stay there. We have never seen anything like it before. It is
terrible!”
“What is there stronger than I am?” asked the son. “I have been off
killing men. I am not afraid of this thing.”
“You haven’t seen it,” said old Leméis. “You can’t go into the house.”
The young man went to the house. He took one step down the
ladder, saw Tskel’s cap, and turned back, screaming so loud that the
ground shook. He said to his father, “There is something there
stronger than I am; I can’t go in.”
The second brother came home. He saw his father outside and
asked: “Why are you out here?”
“There is something in our house stronger than we are. We can’t go

in,” said the father. [293]
The young man laughed, and asked: “What is there stronger than I
am? There is nothing I can’t kill.” He was down two steps of the
ladder when he saw the cap; he screamed and ran out.
One after another the five brothers came home. Each brother got
one step farther into the house; each one screamed and ran out. The
fourth brother said: “I am stronger than anybody. If this man had ever
heard of me, he wouldn’t have come here.” He took four steps into
the house, roared with fright, and ran away. The fifth brother was the
strongest of all the brothers. There were five steps down into the
house; he was on the last step when he saw Tskel’s cap. He roared
and with one step was out.
The five Kaiutois brothers came home just at sundown. When Tskel
saw them, he looked up and they knew him. He took off his cap, put
it behind him, and they all went in. Then they called their wives, and
asked: “Why didn’t you cook for this man? He is hungry. Come in
and cook deer meat for him.”
Tskel said: “Tell Leméis and his sons to come in. It is cold outside.”
They were glad; they went in, and right away they began to cook
dead men.
Kaiutois’ meat was done first, and Gäk and Tskel ate deer meat.
Little Tcûskai said: “Let me down, brother; I want to eat. I am
hungry.” Tcûskai pinched him and told him to keep still, but Tcûskai
said: “I can’t, you don’t give me enough to eat.”
When Leméis’ meat was done, the eldest son gave some of it to
Gäk. Gäk put it in his mouth, but it came out of the hole in his throat
and dropped on the ground.
Tskel put some strong sticks in Gäk’s arms, for he knew that the
Leméis brothers would try to kill him. They sat down by the fire and
asked Gäk to come and sit near them. Then they said to one
another: “Let’s twist arms,” and the eldest brother said: “Come and
play with us, Gäk.”
Gäk said: “I never play that way.” After they had teased him a long
time, Tskel said: “Play with them; I won’t let them hurt you.” [294]
The eldest brother took hold of Gäk, twisted his arm hard, but
couldn’t break it; it was soft. “Stiffen your arm,” said Leméis. Gäk
stiffened his arm, but Leméis couldn’t break it. Then Gäk took hold of
Leméis’ arm, twisted it hard, and broke it. Leméis ran out of the
house and died.
The second brother was ashamed. He said: “That is the way my

brother always does. If he gets beaten, he runs away. Try me.” He
twisted Gäk’s arm, but no matter how he twisted he couldn’t break it.
Then Gäk twisted his arm and broke it, and he ran outside and died.
Gäk killed four of the brothers; then the youngest and strongest
wanted to try. Gäk didn’t want to twist arms with him, but Tskel said:
“Don’t be afraid, he can’t kill you.” Gäk held out his arm and Leméis
twisted it terribly. Gäk screamed; he couldn’t help it, it hurt so.
Then Tskel said to Leméis: “Let me twist your arm.” He took hold of
Leméis’ hand with a tight grip and broke every bone in it; then he
twisted his arm and broke it.
When all five of the old man’s sons were dead, Tskel said: “Hereafter
you will be of no use in this world. You will be persons no longer. You
will go up to the sky and all you will do there will be to frighten people
by making a big noise.”
He told the five Kaiutois brothers not to live in the house with old
Leméis and his wife. “Their house is dirty,” said he. “It smells of dead
people. The juice of dead people runs on to your meat; you have the
taste of it now, and in after times you will try to kill people.”
The Kaiutois brothers moved away. Old Leméis and his wife felt
badly; they were lonesome for their children. Tskel said: “You can go
to your sons; you are of no use in this world,” and he sent them to
the sky.
Now Tskel and Tcûskai went home. Skóŭks was mourning; she
thought they were dead.
The next day Tskel went to hunt. He killed five deer and was home at
midday. He was dry and he sent his brother to bring him some water.
Tcûskai ran to the spring, and there, sitting in the spring, was an old,
white-haired man.
“What are you here for?” asked Tcûskai. “We don’t [295]want old men
in our spring. My brother is dry. I am after water for him. Get out of
our spring!” He told him two or three times to get out. The old man
didn’t move, but at last he said: “Go and tell your brother to come
and wrestle with me.” Tcûskai ran back to the house.
“Why didn’t you bring me some water?” asked Tskel.
“There is an old man sitting in the spring,” said Tcûskai. “He won’t let
me get a drop of water.”
“Go back and get me some water!” said Tskel.
Tcûskai went back and screamed: “Get out of there, old man! You
are all dirt; you’ll spoil our water!”
The old man didn’t move, but he said: “Tell your brother to come and
wrestle with me. I hear that he has killed all the Leméis people. I am
their kin. I have come to wrestle with him.”
Tcûskai said: “Let my brother have some water to drink; then he will
come.”
The old man turned around and let Tcûskai take a little water out of
the spring. Tcûskai carried it to his brother, and said: “That old man
has come to fight you for killing the Leméis people. He wants you to
come to the spring and wrestle with him.”
Tskel drank the water and ate pounded seed. Then he went to the
spring and wrestled with the old man. They wrestled till dark, then
the old man threw Tskel, rolled him up in a skin blanket, took his own
form,—an animal with great horns,—put Tskel on his horns, and
carried him down in the water and off under the ground. He carried
him a long distance, then came out near a large lake. He took Tskel
off his horns, unrolled him, and said: “Look around, before I kill you.”
Tskel saw that they were on a narrow ridge of rock that ran, like a
little trail, to the middle of the lake.
The old man said: “When I get to the end of this trail, I will cut you
into small pieces and throw you to my children. They are hungry for
your flesh. As I throw the pieces, I will say: ‘Here is a piece of Tskel.
Eat it.’ They will be glad, and all my kin will be glad that you are
dead.” [296]
When he was through talking, he rolled Tskel up again, put him on

his horns, and started. Tskel moved a little.
“What are you doing?” asked the old man.
“I am scratching myself.”
“You needn’t scratch; you will die soon.”
“I itch; I can scratch while I live,” said Tskel. He moved again.

“What are you doing now?” asked the old man.
“I don’t lie easy.”
“Why bother about that? you will die soon.”
“I don’t want to suffer while I live,” said Tskel. He was getting his
stone knife out. It was tied up in his hair and the old man hadn’t seen
it. With the knife Tskel cut holes in the skin blanket for his eyes and
his hands, and just as he got to the end of the trail, he stuck the knife
into the old man and killed him. Then he cut the body up and threw it
piece by piece into the lake. As he threw the pieces, he called out:
“Here is Tskel’s shoulder! Here are Tskel’s ribs! Here are his legs!
Here are his arms!” As fast as he threw the pieces, the old man’s
children caught and ate them. At last he threw the head. It was an
awful-looking thing, enough to scare any one.
When the children saw it and knew that they had eaten their father,
they were so mad that they sent everything they had to find Tskel
and kill him. They sent what they thought he would like,—knives,
hatchets, beads, shells, blankets—to lie in his path. If he took up any
one of them, he would die.
Tskel passed them all till he came to the last, a stone knife sharp on
both edges, that looked so nice that he picked it up. Right away the
ends of his fingers were burned off. He dropped the knife, rubbed his
fingers with his own stone knife, and they were well again. Then he
went on till he reached home. Skóŭks and little Tcûskai had covered
their hair with deer fat and pounded coal; they were mourning for
him.
When Tskel saw Tcûskai, he asked: “What are you doing? Why are
you so dirty?”
Tcûskai said: “I was just going to look for you.”
Skóŭks said: “He should be whipped for telling lies. He [297]has been
everywhere in the world hunting for you. Just now he came home
and put coal on his head, for when he couldn’t find you he thought
you were dead.”
Tskel was chief in the Klamath country. He was the strongest person
living. No other man could have killed the old man of the lake.
Now Tskel stayed at home for a long time. He killed deer and dried
the meat and told his brother many things about the people in the
world.
One day when he was out hunting, he heard somebody singing a

beautiful song; he listened and wondered who it was. Then he
followed the sound. It drew him along till he came to a big cedar tree.
A woman was sitting on a bough of the tree and throwing cedar
berries on to a blanket spread under the tree. When she saw Tskel,
she called out: “Come and sit on the blanket!” He knew she was the
old man’s daughter, and he wouldn’t go near her; he went home.
The next day he heard the song again, but he didn’t follow it. He
went home and told Skóŭks that the old man’s daughter had come to
kill him. He didn’t hunt again. One day the woman came and sat in a
clump of bushes near Tskel’s house and told the crows to fly over
her. Little Tcûskai saw the crows and said to his brother: “The crows
are eating something. You had better go and see what it is.”
“Don’t go near that place,” said Tskel.
Tcûskai thought: “Why does my brother tell me not to go to those

bushes? I am going.” He went around the house, out of Tskel’s sight,
and crept toward the bushes. He found a woman sitting on a low
stump; as he went up to her she spat out beautiful beads. The
second time she spat, Tcûskai picked up some of the beads. Each
time she spat the beads were more beautiful than before.
“What kind of a woman are you?” asked Tcûskai. She didn’t answer.
Tcûskai went home, and said: “Oh, brother, there is a beautiful

woman over there in the bushes. You must have her for a wife. Send
Skóŭks off and take her.” Tskel said: “Why don’t you get her for a
wife; she must have come for you.” He [298]was sleepy. He had been
in a half dream since the first day he heard the woman’s song.
Tcûskai went three or four times to see the woman and each time
she spat beads. When she found that Tskel wouldn’t come to her,
she went to the house. Skóŭks saw her coming and she fixed herself
up. She had power and could do things. Tskel was lying on the
ground. When the woman came in, she sat down by him and began
spitting beads. Then Skóŭks spat, and her beads were nice. The
woman was frightened a little; she spat long white beads; Skóŭks
spat more beautiful beads. They kept spitting beads till, just as the
sun went down, the woman by her power made sleep come over
Tskel and Tcûskai, and made Skóŭks grow so sleepy she could
scarcely see. When darkness came the woman began to wrap Tskel
in a skin blanket to carry him off.
Right away Skóŭks was wide awake. She jumped on the woman and
fought with her. They fought all night. First one would have Tskel and
then the other. He was sound asleep all the time. There was such a
dust from their fighting that Tcûskai was covered with it. Just at
daylight Skóŭks gave out; she couldn’t fight any longer.
The woman snatched up Tskel and carried him off. She went under
the ground, and as she went she made a furrow on the surface.
Skóŭks followed for a long time, but she couldn’t get at the woman,
for she couldn’t travel underground. At last she went home, struck
Tcûskai with his neck rattles, and said: “You had better get up and
follow your brother. You found him a nice wife, nicer than I am. Now
you can go and live with them!”
Tcûskai woke up and went off to look for his brother. The trail had
disappeared; he couldn’t find even one track.
When the woman went into the ground, she was just such an animal
as her father had been. She carried Tskel on her horns till she came
out at the lake, then she put him down and said: “I will let you rest
twice before I kill you. How do you like this place?”
“I like it. I have been here before,” said Tskel.
She carried him to the middle of the trail in the lake, then [299]she put
him down, and asked: “What did you do when you were here
before?”
“Nothing.”
“Do you think you will ever go home?”
“No.”
“What do you think you will do when you die? Will you come to life,
or will you stay dead?”
“I don’t know,” said Tskel.
She took him up to carry him to the end of the trail where she could
throw him into the lake. He got his knife out, a little at a time, and just
as she was going to put him down again, he cut her head off. From
each side of the ridge the water rushed up; the ridge shook and
made a terrible noise. Tskel cut the woman’s body up, and threw the

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Basic Marketing A Strategic Marketing Planning Approach

2. In what ways can a nation restrict the flow of imported goods?

8. In what ways can businesses become involved in international marketing activities?

11. Before the 1990s, most firms entered international markets

27. The gross domestic product is

28. The country with the highest GDP is

33. Select the true statement.

42. Maquiladoras are

46. Which of the following is not true of NAFTA?

47. Another name for the European Union is

48. The unification of Europe through the European Union (EU)

53. The Southern Common Market (MERCOSUR) includes

58. The term dumping refers to the sale of

65. The purchase of products from a foreign source is called

70. The role of export agents is to

99. A subsidiary in a foreign country generally operates under

Refer to Scenario 9.2. KFC's establishment of international production/processing facilities is an example of

124. A quota is the suspension, by a government, of trade in a particular product.

144. Importing is the sale of products to foreign markets.

“Is she crying?” asked Kówam.

“How can we go home while those big-footed people are there?”

“I am not afraid of those men,” said Kówam. “That is my house; I will

“How can I do that? You are my brother.”

“It won’t hurt me. I want you to practise shooting.”

“You must,” said Kówam. “It won’t hurt me.”

When Kówam was killed and thrown out, his mother-in-law

Gáhga screamed and cried; he wanted his sister-in-law saved.

Kówam said: “Punch a stick in where your sister-in-law was sitting.”

Blaiwas Eagle Lok Bear

Tskel didn’t move; he was asleep. Tcûskai gave Gopher a small

“I can fan it till Gopher comes out,” said Tcûskai.

Tskel wondered why Tcûskai didn’t come back. At last he thought:

Tskel said to Gopher: “Hereafter you will be of no account. You will

If Tskel hadn’t killed Gopher, there would be no one living in the

The old man said: “There is something strange in our house. We

“There is something in our house stronger than we are. We can’t go

The second brother was ashamed. He said: “That is the way my

“Why didn’t you bring me some water?” asked Tskel.

“Go back and get me some water!” said Tskel.

When he was through talking, he rolled Tskel up again, put him on

“What are you doing?” asked the old man.

“You needn’t scratch; you will die soon.”

“I itch; I can scratch while I live,” said Tskel. He moved again.

“I don’t lie easy.”

“Why bother about that? you will die soon.”

One day when he was out hunting, he heard somebody singing a

“Don’t go near that place,” said Tskel.

Tcûskai thought: “Why does my brother tell me not to go to those

Tcûskai went home, and said: “Oh, brother, there is a beautiful

“I like it. I have been here before,” said Tskel.

“Do you think you will ever go home?”