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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
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
DIFFICULTY: Moderate
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
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
LEARNING OBJECTIVES: MARK.PRID.16.09.02 - LO: 09-02
NATIONAL STANDARDS: United States - BUSPROG: Ethics
STATE STANDARDS: United States - AK - DISC: International Perspective
TOPICS: A-Head: Environmental Forces In Global Markets
KEYWORDS: Bloom's: Knowledge
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
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.09.02 - LO: 09-02
NATIONAL STANDARDS: United States - BUSPROG: Technology
STATE STANDARDS: United States - AK - DISC: International Perspective
TOPICS: A-Head: Environmental Forces In Global Markets
KEYWORDS: Bloom's: Knowledge
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
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.09.03 - LO: 09-03
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: International Perspective
TOPICS: A-Head: Regional Trade Alliances, Markets, And Agreements
KEYWORDS: Bloom's: Knowledge
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
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.09.04 - LO: 09-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: International Perspective
TOPICS: A-Head: Modes Of Entry Into International Markets
KEYWORDS: Bloom's: Knowledge
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
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.09.06 - LO: 09-06
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: International Perspective
TOPICS: A-Head: Customization Versus Globalization Of International Marketing Mixes
KEYWORDS: Bloom's: Knowledge
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
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.09.06 - LO: 09-06
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: International Perspective
TOPICS: A-Head: Customization Versus Globalization Of International Marketing Mixes
KEYWORDS: Bloom's: Knowledge
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
LEARNING OBJECTIVES: MARK.PRID.16.09.01 - LO: 09-01
NATIONAL STANDARDS: United States - BUSPROG: Diversity
STATE STANDARDS: United States - AK - DISC: International Perspective
TOPICS: A-Head: Define International Marketing
KEYWORDS: Bloom's: Knowledge
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
LEARNING OBJECTIVES: MARK.PRID.16.09.01 - LO: 09-01
NATIONAL STANDARDS: United States - BUSPROG: Diversity
STATE STANDARDS: United States - AK - DISC: International Perspectives
TOPICS: A-Head: Define International Marketing
KEYWORDS: Bloom's: Knowledge
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
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: 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
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.09.02 - LO: 09-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
United States - BUSPROG: Diversity
STATE STANDARDS: United States - AK - DISC: International Perspective
United States - AK - DISC: International Perspectives
TOPICS: A-Head: Environmental Forces In Global Markets
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
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
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
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: TOPICS: A-Head: Environmental Forces In Global Markets
KEYWORDS: Bloom's: Knowledge
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
DIFFICULTY: Moderate
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: Application
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
DIFFICULTY: Moderate
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: Application
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
DIFFICULTY: Moderate
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: Application
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
DIFFICULTY: Moderate
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: Application
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
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
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
DIFFICULTY: Moderate
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: TOPICS: A-Head: Environmental Forces In Global Markets
KEYWORDS: Bloom's: Knowledge
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
DIFFICULTY: Moderate
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: TOPICS: A-Head: Environmental Forces In Global Markets
KEYWORDS: Bloom's: Knowledge
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
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
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
DIFFICULTY: Moderate
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
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
DIFFICULTY: Moderate
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: Application
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
DIFFICULTY: Moderate
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: Application
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
DIFFICULTY: Moderate
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: Application
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
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
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
DIFFICULTY: Moderate
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
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
LEARNING OBJECTIVES: MARK.PRID.16.09.02 - LO: 09-02
NATIONAL STANDARDS: United States - BUSPROG: Communication
United States - BUSPROG: Reflective Thinking: Re - BUSPROG: Reflective Thinking
STATE STANDARDS: United States - AK - DISC: International Perspective
TOPICS: A-Head: Environmental Forces In Global Markets
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
DIFFICULTY: Moderate
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
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
DIFFICULTY: Moderate
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
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
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
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
DIFFICULTY: Moderate
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
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
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.09.02 - LO: 09-02
NATIONAL STANDARDS: United States - BUSPROG: Diversity
STATE STANDARDS: United States - AK - DISC: International Perspective
TOPICS: A-Head: Environmental Forces In Global Markets
KEYWORDS: Bloom's: Knowledge
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
DIFFICULTY: Moderate
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
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
LEARNING OBJECTIVES: MARK.PRID.16.09.03 - LO: 09-03
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: International Perspective
TOPICS: A-Head: Regional Trade Alliances, Markets, And Agreements
KEYWORDS: Bloom's: Knowledge
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
LEARNING OBJECTIVES: MARK.PRID.16.09.03 - LO: 09-03
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: International Perspective
TOPICS: A-Head: Regional Trade Alliances, Markets, And Agreements
KEYWORDS: Bloom's: Application
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
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.09.03 - LO: 09-03
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: International Perspective
TOPICS: A-Head: Regional Trade Alliances, Markets, And Agreements
KEYWORDS: Bloom's: Knowledge
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
LEARNING OBJECTIVES: MARK.PRID.16.09.03 - LO: 09-03
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: International Perspective
TOPICS: A-Head: Regional Trade Alliances, Markets, And Agreements
KEYWORDS: Bloom's: Knowledge
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
LEARNING OBJECTIVES: MARK.PRID.16.09.03 - LO: 09-03
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: International Perspective
TOPICS: A-Head: Regional Trade Alliances, Markets, And Agreements
KEYWORDS: Bloom's: Application
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
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.09.03 - LO: 09-03
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: International Perspective
TOPICS: A-Head: Regional Trade Alliances, Markets, And Agreements
KEYWORDS: Bloom's: Knowledge
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
LEARNING OBJECTIVES: MARK.PRID.16.09.03 - LO: 09-03
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: International Perspective
TOPICS: A-Head: Regional Trade Alliances, Markets, And Agreements
KEYWORDS: Bloom's: Knowledge