Chapter 1: The Scope and Challenge of International Marketing 1. __________ is the performance of business activities designed to plan, price, promote, and direct the flow of a company's goods and services to consumers or users in more than one nation for a profit. A) Global strategy B) Marketing C) Marketing concept D) Regional marketing concept E) International marketing 2. Which of the following is the t he most critical difference between domestic marketing and international marketing? A) The environment in which marketing plans must be implemented B) The different concepts of marketing C) The change in marketing goals D) The difference in technological standards E) The change in corporate objectives 3. Dylan is planning to take his successful fast food venture global. Which of the following is the reason why his task could be more complicated than that of the domestic marketer? A) The international marketer must change his marketing goals in the various countries of operation. B) The international marketer must deal with at least two levels of uncontrollable uncertainty instead of one. C) Technological standardization could challenge effective customization in different markets. D) International trade regulations still do not allow free trade in most markets across the globe. E) Lack of competent skills makes effective service a major challenge. 4. Which of the following would be considered to be an uncontrollable element in the foreign environment? A) Channels of distribution B) Research C) Economic forces D) Promotion E) Product elements 5. Such elements as geography and infrastructure, structure of distribution, and cultural forces are part of which of the following international marketing task environments? A) Foreign environment (uncontrollable) B) Foreign environment (controllable) C) Domestic environment (uncontrollable) D) Domestic environment (controllable) E) Global environment (controllable) 6. Which of the following is NOT true of the impact of culture? A) The reaction to much of the environment's (cultural) impact on the marketer's activities is automatic. B) In dealing with unfamiliar markets, frames of reference are unimportant in evaluating the potential of a market. (In dealing with unfamiliar markets, marketers must be aware of the frames of reference they are using in making their decisions or evaluating the potential of a market.) 1
C) Judgments are derived from experience that is the result of acculturation in the home country. D) An established frame of reference is an important factor in determining a marketer's reaction to situations — social social and even nonsocial. E) As a result of acculturation, we react in a manner acceptable to our society without consciously thinking about it. 7. When Rita Thomas' clothing company began to market its line of inexpensive cotton shirts in Africa, it assumed that it would be able to use its television and print advertising that had worked so well in the t he United States and other countries. However, the company was soon to learn that literacy rates and ability to access television was not the same as in the other areas of the world. Which of the following factors includes this decision-making factor in Rita's international marketing task? A) Domestic environment (controllable) B) Domestic environment (uncontrollable) C) Global environment (uncontrollable) D) Foreign environment (uncontrollable) E) Foreign environment (controllable) 8. The _____ and issues abroad are often of ten amplified by the "alien status" of the company, which increases the difficulty of properly properl y assessing and forecasting the dynamic d ynamic international business climate. A) structure of distribution B) competitive forces C) economic forces D) level of technology E) political/legal forces (Political and legal issues face a business, whether it operates at home or in a foreign country. However, the issues abroad are often amplified by the "alien status" of the company, which increases the difficulty of properly assessing and forecasting the dynamic international business climate.) 9. The task of _____ is the most challenging and important one confronting international marketers. A) cultural adjustment B) dealing with politics C) international standardization D) caring for the environment E) international branding 10. One of Phillipe Ortiz's difficulties in marketing his line of Philippine cabinetry in Los Angeles is that he is still tied culturally to business models that work in the Philippines. These models do not work in the United States. Which of the following best explains the difficulty Philippe is experiencing? A) Xenophobia B) Self-reference criterion( The self-reference criterion is an unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions.) C) Globalism D) Racism E) Intellectual challenges 11. _____ is generally a problem when managers from affluent countries work with managers and markets in less-affluent countries. 2
C) Judgments are derived from experience that is the result of acculturation in the home country. D) An established frame of reference is an important factor in determining a marketer's reaction to situations — social social and even nonsocial. E) As a result of acculturation, we react in a manner acceptable to our society without consciously thinking about it. 7. When Rita Thomas' clothing company began to market its line of inexpensive cotton shirts in Africa, it assumed that it would be able to use its television and print advertising that had worked so well in the t he United States and other countries. However, the company was soon to learn that literacy rates and ability to access television was not the same as in the other areas of the world. Which of the following factors includes this decision-making factor in Rita's international marketing task? A) Domestic environment (controllable) B) Domestic environment (uncontrollable) C) Global environment (uncontrollable) D) Foreign environment (uncontrollable) E) Foreign environment (controllable) 8. The _____ and issues abroad are often of ten amplified by the "alien status" of the company, which increases the difficulty of properly properl y assessing and forecasting the dynamic d ynamic international business climate. A) structure of distribution B) competitive forces C) economic forces D) level of technology E) political/legal forces (Political and legal issues face a business, whether it operates at home or in a foreign country. However, the issues abroad are often amplified by the "alien status" of the company, which increases the difficulty of properly assessing and forecasting the dynamic international business climate.) 9. The task of _____ is the most challenging and important one confronting international marketers. A) cultural adjustment B) dealing with politics C) international standardization D) caring for the environment E) international branding 10. One of Phillipe Ortiz's difficulties in marketing his line of Philippine cabinetry in Los Angeles is that he is still tied culturally to business models that work in the Philippines. These models do not work in the United States. Which of the following best explains the difficulty Philippe is experiencing? A) Xenophobia B) Self-reference criterion( The self-reference criterion is an unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions.) C) Globalism D) Racism E) Intellectual challenges 11. _____ is generally a problem when managers from affluent countries work with managers and markets in less-affluent countries. 2
A) Xenophobia B) Racism C) Cultural backlash D) Ethnocentrism E) Global redlining 12. The primary obstacles to success in international in ternational marketing are a person's _____ and an associated ethnocentrism. A) regionalism B) holism C) self-reference criterion D) segregation E) integration 13. The most effective way to control the influence of ethnocentrism and the SRC is to: A) reduce interaction with culturally diverse audience. B) ask for feedback on every possible occasion. C) recognize their effects on our behavior. D) learn at least two foreign languages to understand the cultural differences. E) ask for second opinion in a decision-making scenario. 14. The Ajax Corporation does not actively cultivate customers outside the United States; however, this company's products do reach foreign markets through trading companies. Ajax is probably in the _____ stage of international marketing involvement. A) infrequent foreign marketing B) pre-global marketing C) pre-international marketing D) anti-foreign marketing E) no direct foreign marketing 15. Randy, the marketing manager at Bryte Systems Inc. decides sell to foreign markets as goods become available, and he has little or no intention of maintaining continuous market representation. Randy's firm is at which of the following stage of international marketing involvement? A) No direct foreign marketing B) Infrequent global marketing C) Global marketing D) Regular foreign marketing E) International marketing ---------------------------------------------------------------
Chapter 2: The Dynamic Environment of International Trade 1. Which of the following was the main objective of the American efforts to improve world trade by fostering economic growth in Europe and the underdeveloped world after World War II? A) Halting the growth of Nazi Germany B) Dissolving the colonial powers C) Gaining access to the European market D) Dampening the spread of communism E) Creating a trade bloc to counter the OPEC countries' clout 2. In addition to U.S. economic assistance, _____ __ ___ was a significant move toward international cooperation among trading nations. A) negotiation of the General Agreement on Tariffs and Trade 3
B) forming of the United Nations Development Programme C) signing of the Treaty on Open Skies D) signing of the Montreal Protocol E) establishment of the World Federation of Trade Unions Difficulty Level: Medium Page: 29 Explanation: In addition to U.S. economic assistance, a move toward international cooperation among trading nations was manifest in the negotiation (1986-1994) of the General Agreement on Tariffs and Trade (GATT). 3. The _____, part of the American effort to infuse the ideal of capitalism throughout as much of the world as possible, was aimed at assisting in rebuilding Europe. A) Eisenhower Plan B) Marshall Plan C) Bradley Plan D) Roosevelt Plan E) Truman Plan Difficulty Level: Easy Page: 28 Explanation: The Marshall Plan to assist in rebuilding Europe, financial and industrial development assistance to rebuild Japan, and funds channeled through the Agency for International Development and other groups designed to foster economic growth in the underdeveloped world were used to help create a strong world economy. 4. _____ refers to the system of accounts that records a nation's international financial transactions. A) Trade balance B) National accounts system. C) EX-IM (exports-imports) account D) Balance of payments E) Exchange rate Difficulty Level: Easy Page: 33 Explanation: A nation's balance-of-payments statement records all financial transactions between its residents and those of the rest of the world during a given period of time — usually one year. 5. Which of the following is true regarding balance-of-payments records? A) The fact that assets and liabilities balance means a nation is in particularly good financial condition. B) The fact that assets and liabilities balance does not mean a nation is in particularly poor financial condition. C) A balance of payments is not a record of condition. D) A balance of payments is a determinant of condition. E) A balance of payments reflects all the financial transactions that occurred in the country. Difficulty Level: Hard Page: 33 Explanation: The fact that assets and liabilities balance does not mean a nation is in particularly good or poor financial condition. A balance of payments is a record of
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condition, not a determinant of condition. Each of the nation's financial transactions with other countries is reflected in its balance of payments. 6. Which of the following would be the balance-of-payments account that is a record of all merchandise exports, imports, and services plus unilateral transfers of funds? A) current account B) capital account C) credit account D) receivables account E) reserves account Difficulty Level: Easy Page: 33 Explanation: The current account is a record of all merchandise exports, imports, and services plus unilateral transfers of funds. 7. A(n) _____ is simply a tax imposed by a government on goods entering at its borders. A) quota B) trade penalty C) tariff D) boycott E) embargo Difficulty Level: Easy Page: 36 Explanation: A tariff is a tax imposed by a government on goods entering at its borders. Tariffs may be used as revenue-generating taxes or to discourage the importation of goods, or for both reasons. 8. In general, tariffs restrict: A) inflationary pressures. B) special interests' privileges. C) government control in economic matters. D) the number of tariffs. E) manufacturers' supply sources. Difficulty Level: Hard Page: 37 Explanation: In general, tariffs restrict manufacturers' supply sources, choices available to consumers, and competition. 9.Which of the following types of nontariff barriers would be considered to be "specific limitations on trade" by international marketers? A) Fees B) Export subsidies C) Voluntary export restraints D) Embargoes E) Packaging, labeling, or marking standards Difficulty Level: Hard Page: 38 Explanation: Refer Exhibit 2.6 - Types of Nontariff Barriers 10. Exporting countries sometimes agree to voluntary export restraints (VER) as an alternative to the threat of: A) expulsion. B) disorderly marketing agreements. 5
C) stiffer quotas and tariffs. D) export subsidies E) standardization disparities Difficulty Level: Medium Page: 39 Explanation: Similar to quotas are the voluntary export restraints (VERs) or orderl y market agreements (OMAs). 11. Which of the following trade policy tools require the importers who want to buy a foreign good to apply for an exchange permit? A) Tariffs B) Import quota C) Blocked currency D) Government approval E) Export levies Difficulty Level: Hard Page: 40 Explanation: Government approval requires that importers who want to buy a foreign good must apply for an exchange permit, that is, permission to exchange an amount of local currency for foreign currency. 12. _____ is the practice whereby a foreign producer intentionally sells their products in the United States for less than the cost of production to undermine the competition and take control of the market. A) Basing point pricing B) Offensive pricing C) Defensive pricing D) Counterpoint pricing E) Predatory pricing Difficulty Level: Easy Page: 41 Explanation: Antidumping laws were designed to prevent foreign producers from "predatory pricing." Violators are assessed "antidumping" duties for selling below cost and/or "countervailing duties" to prevent the use of foreign government subsidies to undermine American industry. Many countries have similar laws, and the y are allowed under WTO rules. 13. Which section of the Omnibus Trade and Competitiveness Act recognizes that foreign penetration of U.S. markets can cause serious competitive pressure, loss of market share, and, occasionally, severe financial harm? A) The market access section B) The export expansion section C) The import relief section D) The foreign exchange regulation section E) The trade deficit section Difficulty Level: Hard Page: 43 Explanation: Recognizing that foreign penetration of U.S. markets can cause serious competitive pressure, loss of market share, and, occasionally, severe financial harm, the import relief section of the Omnibus Trade and Competitiveness Act provides a menu of remedies for U.S. businesses adversely affected by imports.
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14. Which was the most notable achievement of the Uruguay Round of GATT negotiations? A) The signing of the Trade-Related Aspects of Intellectual Property Rights (TRIPs) agreement B) The formulation of the Kyoto Protocol C) The inclusion of Africa and Indonesia into its member-list D) The creation of the World Trade Organization E) The ratification of the Internet as a global business platform Difficulty Level: Medium Page: 45 Explanation: Perhaps the most notable achievement of the Uruguay Round was the creation of a new institution as a successor to the GATT — the World Trade Organization. 15. The five institutions of the World Bank Group perform all the following services EXCEPT: A) lending money to the governments of developing countries to finance development projects in education, health, and infrastructure. B) providing assistance to governments for developmental projects to the poorest developing countries. C) helping strengthen the private sector in developing countries with long-term loans, equity investments, and other financial assistance. D) providing investors with investment guarantees against "commercial risk". E) providing facilities for the conciliation and arbitration of disputes between governments and foreign investors. Page: 48 Explanation: The institutions provide investors with investment guarantees against "noncommercial risk," such as expropriation and war, to create an en vironment in developing countries that will attract foreign investment. ----------------------------------------------------
Chapter 3: History and Geography: The Foundations of Culture 1. The single most horrific civil war in the history of the world was the _____. A) American Revolution B) Taiping Rebellion C) Boxer Rebellion D) Hong Kong Revolution E) Satsuma Rebellion Difficulty Level: Medium Page: 56 Explanation: The Taiping Rebellion is the single most horrific civil war in the history of the world. Estimates of the death toll from the Taiping Rebellion stand between 20 and 40 million people. 2. Historians interpret history differently, especially if they are from different cultures. Which of the following could explain the difference? A) The level of funding received B) The historian's self-reference criteria C) The technical tools to examine history D) The extent of government support E) The amount of time spent on observation and analysis Difficulty Level: Hard 7
Page: 57 Explanation: Historical events always are viewed from one's own biases and self-reference criteria (SRC), and thus, what is recorded by one historian may not be what another records, especially if the historians are from different cultures. 3. Which of the following reflects Mexico's attitude toward the United States, which is voiced as a variation of President John F. Kennedy's proclamation? A) Immigration can become a form of conquest. B) The rich require an abundant supply of the poor. C) A man who thinks of himself as belonging to a particular national group in America has not yet become an American. D) Geography has made us closer, tradition has made us far apart. E) The people of this country are too tolerant. There's no other country in the world where they'd allow it. Difficulty Level: Medium Page: 58 Explanation: Most Americans would agree with President John F. Kennedy's proclamation during a visit to Mexico that "Geography has made us neighbors, tradition has made us friends." North Americans may be surprised to learn that most Mexicans "felt it more accurate to say 'Geography has made us closer, tradition has made us far apart.'" 4. During which of the following engagements did the United States secure California and other parts of the West? A) The Battle of San Jacinto B) The War of 1812 C) The Mexican War of 1836 D) The Mexican War of 1846-1848 E) The Gadsden Purchase of 1912 Difficulty Level: Medium Page: 59 Explanation: Refer Exhibit 3.1 - Territorial Expansion of United States from 1783 5. U.S. foreign policy during much of the nineteenth and twentieth centuries was based on two important approaches. One of them was the Manifest Destiny. Which of the following is the other one? A) The "Big Stick" approach B) The Monroe Doctrine C) The Hays Corollary D) The Grant Mandate E) The Latin American Security Treaty Difficulty Level: Easy Page: 59 Explanation: Manifest Destiny and the Monroe Doctrine were accepted as the basis for U.S. foreign policy during much of the 19th and 20th centuries. 6. _____, in its broadest interpretation, meant that Americans were a chosen people ordained by God to create a model society. A) The Roosevelt Corollary B) The Monroe Doctrine C) The Hays Corollary D) The Grant Mandate E) The "Manifest Destiny" 8
Difficulty Level: Medium Page: 59 Explanation: Manifest Destiny, in its broadest interpretation, meant that Americans were a chosen people ordained by God to create a model society. More specifically, it referred to the territorial expansion of the United States from the Atlantic to the Pacific. 7. Further to the inclusion of the Roosevelt Corollary, all of the following were considered to be integral parts of the Monroe Doctrine EXCEPT: A) no further European colonization in the New World. B) abstention of the U.S. from European political affairs. C) nonintervention of European governments in the governments of the Western Hemisphere. D) "entrance tax" for European nations wanting to engage in trade with the U.S. E) the United States would police Latin American nations. Difficulty Level: Hard Learning Objective: 03-3 Page: 60 Explanation: The Monroe Doctrine proclaimed three basic dicta: no further European colonization in the New World, abstention of the United States from European political affairs, and nonintervention of European governments in the governments of the Western Hemisphere. Theodore Roosevelt applied the Monroe Doctrine with an extension that became known as the Roosevelt Corollary which stated that not only would the United States prohibit non-American intervention in Latin American affairs, but it would also police the area and guarantee that Latin American nations met their international obligations. 8. After the U.S. House of Representatives voted to censure Mexico for drug corruption, President Ernesto Zedillo came under pressure to take a hard stand with Washington. Which of the following did Ernesto Zedillo use as a "symbol of Mexico's historical struggles for sovereignty?" A) The Imperial Crown of Mexico B) Our Lady of Guadalupe C) The Mexican-American war D) The Mexican state oil monopoly Pemex E) The Cinco de Mayo holiday Difficulty Level: Medium Page: 60-61 Explanation: Mexican President Ernesto Zedillo praised the state oil monopoly Pemex as a "symbol of our historical struggles for sovereignty." Union members cheered him on, waving a huge banner that read: "In 1938 Mexico was 'decertified' because it expropriated its oil and it won — today we were decertified for defending our dignity and sovereignty." 9. Which of the following best describes the present day view on mountains, oceans, seas, and jungles in Europe? A) Natural protection from potentially hostile neighbors B) Impediments to efficient trade in an integrated economic union C) Natural landmarks that symbolize national treasure D) Fortuitous blessings that provide a wealth of natural resources E) Symbols of national heritage and history Difficulty Level: Easy 9
Page: 65 Explanation: Once seen as natural protection from potentially hostile neighbors, physical barriers that exist within Europe are now seen as impediments to efficient trade in an integrated economic union. 10. Which of the following agreed to a total ban on the export of hazardous wastes by developed nations? A) The United Nations B) The Basel Convention C) NAFTA D) The European Union E) The Soviet Bloc Difficulty Level: Medium Page: 69 Explanation: A treaty among members of the Basel Convention that required prior approval before dumping could occur was later revised to a total ban on the export of hazardous wastes by developed nations. 11. _____ provide(s) the major chunk of energy in much of the underdeveloped world. A) Hydroelectric power B) Human labor C) Wind energy D) Solar renewable batteries E) Alkaline batteries Difficulty Level: Medium Page: 70 Explanation: In much of the underdeveloped world, human labor provides the preponderance of energy. The principal supplements to human energy are animals, wood, fossil fuel, nuclear power, and, to a lesser and more experimental extent, the ocean's tides, geothermal power, and the sun. 12. According to the text, which is the most important deterrent to population control? A) Financial benefits of having large families B) Poor enforcement mechanism C) Lack of awareness about population trends D) Government welfare schemes for the homeless/orphans E) Cultural attitudes about the importance of large families Difficulty Level: Hard Page: 75 Explanation: Perhaps the most important deterrent to population control is cultural attitudes about the importance of large families. 13. Which of the following reflects the view held by economists regarding population growth? A) Fertility rates increase proportionate to the rate of economic growth. B) A decline in fertility rate is a function of economic prosperity. C) A difference in the male-female ratio heavily influences the fertility rate. D) Developing nations tend to have lower population growth rates compared to developed nations. E) Increased global trade and migration will eventually even-out population growth rates across different nations. Difficulty Level: Hard 10
Page: 75 Explanation: Family planning and all that it entails is by far the most universal means governments use to control birthrates, but some economists believe that a decline in the fertility rate is a function of economic prosperity and will come only with economic development. 14. According to the text, which of the following is one of the reasons for the decreasing birthrates in Europe and Japan? A) Decreasing fertility rates of women in industrialized nations B) More women are choosing careers instead of children C) Modern work-life reduces potency of males in industrialized nations D) Governments favor immigration to balance population requirements E) Punitive measures for larger families lead to decreasing birthrates Difficulty Level: Medium Page: 76 Explanation: Birthrates in western Europe and Japan have been decreasing since the early or mid-1960s; more women are choosing careers instead of children, and many working couples are electing to remain childless. 15. Which of the following is the region of the world most affected by aging and thus by a steadily decreasing worker-to-retiree ratio? A) Africa B) The United States C) China D) Asia E) Europe Difficulty Level: Medium Page: 78 Explanation: Europe is the region of the world most affected by aging and thus by a steadily decreasing worker-to-retiree ratio. ----------------------------------------------
Chapter 4: Cultural Dynamics in Assessing Global Markets 1.The sum total of knowledge, beliefs, art, morals, law, customs, and any other capabilities and habits acquired by humans as members of society is called: A) sociology. B) psychology. C) culture. D) reference groups. E) cohort groups. Difficulty Level: Easy Page: 96 Explanation: Culture is the human-made part of human environment — the sum total of knowledge, beliefs, art, morals, laws, customs, and any other capabilities and habits acquired by humans as members of society. 2. Based on the growing popularity of smaller families worldwide, what do experts predict for the future? A) As countries move toward service economies, larger families will be more favored in future. B) Countries with larger families will outdo developed countries owing to their larger talent pool. 11
C) As smaller families increase, the multiplier effect could increase world population beyond control by the year 2050. D) Countries facing labor shortages will encourage and popularize larger families. E) The planet's population will actually begin to decline after 2050. Difficulty Level: Medium Page: 96-97 Explanation: Almost everywhere, smaller families are becoming favored. This cultural change now leads experts to predict that the planet's population will actually begin to decline after 2050 unless major breakthroughs in longevity intervene. 3. All of the following are ways individuals learn culture EXCEPT: A) application. B) socialization. C) acculturation. D) role modeling. E) imitation of peers. Difficulty Level: Medium Page: 103 Explanation: Individuals learn culture from social institutions through socialization (growing up) and acculturation (adjusting to a new culture). Individuals also absorb culture through role modeling, or imitation of their peers. People make decisions about consumption and production through application of their cultural-based knowledge. 4.Michele Phillips has just begun to understand the French culture even though she has lived there for two years. She speaks the language almost fluently; however, learning to live in France will certainly take time. The process of how a person learns and adjusts to a new culture is called: A) socialization. B) democratization. C) a reference path. D) acculturation. E) embodiment. Difficulty Level: Easy Page: 103 Explanation: Individuals learn culture from social institutions through socialization (growing up) and acculturation (adjusting to a new culture). 5. Which of the following best summarizes Professor Jared Diamond's contribution regarding the influence of geography on history and cultural values? A) People in the plains are more likely to invade than those settled in higher altitudes. B) Historically, societies in the north are more developed than those in the south. C) Civilizations near major rivers are more developed than those settled near major oceans. D) Historically, innovations spread faster east to west than north to south. E) Historically, invasions have always happened from the west to the east. Difficulty Level: Hard Page: 104 Explanation: Jared Diamond, a professor of physiology, tells us that historically, innovations spread faster east to west than north to south. 12
6. According to the text, which of the following technological innovations has had the greatest impact on institutions and cultural values in the past 50 years in the United States? A) Mobile phones B) Computers C) Aircraft D) The Internet E) Birth control techniques Difficulty Level: Medium Page: 105 Explanation: Birth control pills, or more broadly birth control techniques, have had a huge effect on everyday life for most Americans and people around the world. Before the advent of the pill, men's and women's roles were proscribed by reproductive responsibilities and roles. 7. In most cultures, the first social institution infants are exposed to outside the home takes the form of a: A) day care center. B) school. C) religious institution. D) shopping mall. E) government agency. Difficulty Level: Easy Page: 107 Explanation: In most cultures, the first social institution infants are exposed to outside the home takes the form of a church, mosque, shrine, or synagogue. 8. Which of the following languages is the most distant from English? A) French B) German C) Spanish D) Arabic E) Taiwanese Difficulty Level: Hard Page: 110 Explanation: Refer Exhibit 4.6 - Hofstede's Indexes, Language, and Linguistic Distance 9. The _____ measure the tolerance of social inequality within a social system. A) Individualism/Collectivism index B) Power Distance index C) Uncertainty Avoidance index D) Cultural Value index E) Consumer Behavior index Difficulty Level: Medium Page: 111 Explanation: The Individualism/Collective Index refers to the preference for behavior that promotes one's self-interest. 10. Which of the following countries would have the most affinity (score highest) for collectivism (cohesive groups are honored and encouraged)? A) Great Britain B) Australia C) Canada 13
D) France E) Japan Difficulty Level: Hard Page: 110 Explanation: Refer Exhibit 4.6 - Hofstede's Indexes, Language, and Linguistic Distance 11.According to anthropologist Edward T. Hall, culture is: A) all-encompassing. B) relatively minor in the scheme of life. C) communication. D) strongly linked to physiology. E) standard throughout the world. Difficulty Level: Easy Page: 114 Explanation: Anthropologist Edward T. Hall tells us that culture is communication. In his seminal article about cultural differences in business settings, he talks about the "languages" of time, space, things, friendships, and agreements. 12. What is the main idea suggested by linguistic distance that helps in determining differences in values across countries and the amount of trade between countries? A) The closer the languages the tougher the interactions. B) Crossing "wider" language differences increases transaction costs. C) The more distant a language from the other, the more valuable the brand becomes in the new territory. D) Major languages have "syntactical superiority" over minor languages or dialects which help in brand positioning. E) A 'neutral' language is required to address the differences arising out of linguistic distances. Difficulty Level: Hard Page: 114-115 Explanation: Linguistic distance has been shown to be an important factor in determining differences in values across countries and the amount of trade between countries. The idea is that crossing "wider" language differences increases transaction costs. 13. Based on Richard Nisbett's metaphor involving Confucius's worthy picture, what is his analysis regarding the thought process or perceptual process of westerners? A) Westerners can provide great detail about central figures but see relatively little in the background. B) Westerners observe things sequentially, thus fail to comprehend the larger picture. C) Westerners are good at observing details but fail to comprehend the central message. D) Westerners prefer larger than life figures to convey messages. E) Westerners tend to focus on the brighter colors in the image and fail to see the lines and finer drawings. Difficulty Level: Hard Page: 118 Explanation: A good metaphor for Richard Nisbett's views involves going back to Confucius's worthy picture. Asians tend to see the whole picture and can report details about the background and foreground. Westerners alternatively focus on the foreground and can provide great detail about central figures but see relatively little in the background. 14
14. Which of the following is the most important factors in determining what kind and how much of an innovation will be accepted? A) The time required for the change to occur B) The number of people that could be benefited C) The degree of interest in the particular subject D) The power or authority of the change agent E) The financial impact, immediate and long-term, of accepting the change Difficulty Level: Medium Page: 121 Explanation: Studies show that the most important factors in determining what kind and how much of an innovation will be accepted is the degree of interest in the particular subject, as well as how drastically the new will change the old — that is, how disruptive the innovation will be to presently acceptable values and behavior patterns. 15. Marketing strategy is judged culturally in terms of _____. A) inclusion or exclusion B) cultural intensity or cultural sublimity C) acceptance, resistance, or rejection D) sensitivity to hidden aspects of culture in a society E) spread, intensity, and degree of change required Difficulty Level: Medium Page: 122 Explanation: Marketing strategy is judged culturally in terms of acceptance, resistance, or rejection. How marketing efforts interact with a culture determines the degree of success or failure. --------------------------------------------
Chapter 5: Culture, Management Style, and Business Systems 1. _____ are the business customs and expectations that must be met and conformed to or avoided if relationships are to be successful. A) Functional imperatives B) Business imperatives C) Global axioms D) Universal axioms E) Cultural imperatives Difficulty Level: Easy Page: 127 Explanation: Cultural imperatives are the business customs and expectations that must be met and conformed to or avoided if relationships are to be successful. 2. Sheila became an embarrassment to her company when she joked about the ruling monarchy in England before a group of visiting English businessmen and women. Sheila should have known that political ridicule by a foreigner is rarely accepted. Sheila has violated what is known as a cultural: A) imperative. B) elective. C) exclusive. D) landmark. E) standard. Difficulty Level: Hard Page: 129 15
Explanation: Cultural exclusives are those customs or behavior patterns reserved exclusively for the locals and from which the foreigner is barred. 3. Which of the following is the fundamental concept of U.S. corporations? A) Individual self-interest is socially beneficial. B) The corporation has no soul. C) An organization is the world in miniature. D) Independent enterprise is an instrument for social action. E) The government should be an integral part of any organization Difficulty Level: Hard Page: 130 Explanation: The acceptance of the idea that independent enterprise is an instrument for social action is the fundamental concept of U.S. corporations. A corporation is recognized as an entity that has rules and continuity of existence and is a separate and vital social institution. 4. In _____ countries, subordinates are not likely to contradict bosses, but in _____ countries, they often do. A) low collectivism; low PDI B) low PDI; high individualism C) high-PDI; low-PDI D) high individualism; high collectivism E) high-PDI; low individualism Difficulty Level: Hard Page: 132 Explanation: In high-PDI countries, subordinates are not likely to contradict bosses, but in low-PDI countries, they often do. 5. As businesses grow and professional management develops, there is a shift toward: A) dilution of standards in decision making. B) decentralized management decision making. C) centralized decision making. D) concentration of authority. E) laissez-faire management. Difficulty Level: Medium Page: 132 Explanation: As businesses grow and professional management develops, there is a shift toward decentralized management decision making. Decentralized decision making allo ws executives at different levels of management to exercise authority over their own functions. 6. What explains the fact that group decision making predominates in Asian cultures? A) Asian leaders consider themselves benevolent and inclusive leaders. B) Asian cultures lack sufficient aggressiveness for bold individual decision making. C) Most Asian cultures and religions emphasize harmony and collectivism. D) Most Asian countries lack expert professionals capable of bold decision making. E) Ownership, if things go wrong, is distributed amongst all decision makers. Difficulty Level: Medium Page: 132 Explanation: Because Asian cultures and religions tend to emphasize harmony and collectivism, group decision making predominates there. 16
7. According to Max Weber, part of the standard of living in the United States today can be attributed to: A) the historical hard-working Protestant ethic. B) the (artificially) low price of gasoline. C) the near complete penetration of the Internet. D) the leveling of statuses brought about by the American business class. E) the slave-labor that formed the basis for early industry. Difficulty Level: Hard Page: 134 Explanation: According to Max Weber, at least part of the standard of living that we enjoy in the United States today can be attributed to the hard-working Protestant ethic from which we derive much of our business heritage. 8. In a high context implicit communication environment who says something, how it is said, and when it is said is very important. Which of the following countries would we find to be "high context implicit" with respect to communication practices? A) Switzerland B) Saudi Arabia C) France D) United States E) Germany Difficulty Level: Hard Page: 137 Explanation: Refer Exhibit 5.2 - Context, Communication, and Cultures: Edward Hall's Scale 9. In societies with this time orientation, being involved with people and being sensitive to relationships is just as important (if not more important) than sticking to a schedule. Which of the following time models involves these characteristics? A) P-time--polychronic time B) B-time--bimodal time C) D-time--dual time D) M-time-monochronic time E) S-time-sequence time Difficulty Level: Hard Page: 139 Explanation: P-time is characterized by the simultaneous occurrence of many things and by "a great involvement with people." P-time allows for relationships to build and context to be absorbed as parts of high-context cultures. 10. According to the text, which of the following increases the possibility of misinterpretation of others' motives in a negotiation scenario? A) Using one's self-reference criteria as the basis for assessment B) Insufficient probing about unclear and ambiguous areas C) Lack of documentation of the negotiation process D) Involvement of a neutral third-party mediator E) Lack of proficiency in the other's language Difficulty Level: Hard Page: 140 Explanation: The possibility of offending one another or misinterpreting others' motives is especially high when one's self-reference criteria (SRC) is the basis for assessing a situation. 17
11. When a U.S. female is selected for an international assignment, the going might be difficult given the attitude of many foreign organizations toward females in positions of authority. In addition to training, which of the following would be a key to the female's success in a foreign assignment? A) Amount of money to be paid for the assignment B) Bonus options C) Social background D) Age E) Strength of the firm's backing Difficulty Level: Medium Page: 143 Explanation: A key to success for both men and women in international business often hinges on the strength of a firm's backing. When a female manager receives training and the strong backing of her firm, she usually receives the respect commensurate with the position she holds and the firm she represents. 12. Which aspect of Japanese culture, predicted by many to favor bribery, makes Japan's success in reducing corruption more remarkable? A) Relationship-orientation B) Multiple marriages C) The extended family D) Strong organizational hierarchy E) Increase in consumerism Difficulty Level: Hard Page: 148 Explanation: Japan's successes in reducing corruption in its business system are all the more remarkable because of its relationship-oriented culture, which would be predicted by many to favor bribery. 13. Which of the following ethical principles tries to optimize the "common good" or benefits of all constituencies? A) Secularism and philanthropy B) Rights of the parties C) Justice or fairness D) Utilitarian ethics E) Benefit optimization Difficulty Level: Medium Page: 151 Explanation: Three ethical principles provide a framework to help the marketer distinguish between right and wrong, determine what ought to be done, and properly justify his or her actions. Simply stated, they are as follows: Utilitarian ethics: Does the action optimize the "common good" or benefits of all constituencies? And who are the pertinent constituencies? Rights of the parties: Does the action respect the rights of the individuals involved? Justice or fairness: Does the action respect the canons of justice or fairness to all parties involved? 14. What is the characteristic emphasis of the fourth kind of capitalism mentioned in the text (omitted by Thurow and others)? A) Focus on community building B) Management by the trade unions 18
C) State capitalism D) Feudal-capitalist nexus E) Network of personal connections Difficulty Level: Hard Page: 153 Explanation: Thurow and others writing in this area omitted a fourth kind of capitalism-that common in Chinese cultures. Its distinguishing characteristics are a more entrepreneurial approach and an emphasis on guanxi (one's network of personal connections) as the coordinating principle among firms. 15. Which of the following orientations (synthesis) of culture would be described by a culture that is low-context, has individualism, low power distance, and uses monochromic time? A) Information-oriented B) Relationship-oriented C) Hierarchy-oriented D) Power-oriented E) Task-oriented Difficulty Level: Medium Page: 153 Explanation: For example, American culture is low context, individualistic (IDV), low power distance (PDI), obviously close to English, monochronic time-oriented, linguisticall y direct, and foreground focused, and it achieves efficiency through competition; therefore, it is categorized hereafter in this book as an information-oriented culture. Also refer Exhibit 5.7 - Dimensions of Culture: A Synthesis ----------------------------------------------------------
Chapter 6: The Political Environment: A Critical Concern 1. _____ refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members. A) Sovereignty B) Self governance C) Ethnocentrism D) Autocracy E) Non-interventionism Difficulty Level: Easy Page: 160 Explanation: Sovereignty refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members. 2. All of the following are political causes of instability in international markets EXCEPT: A) inherently unstable governments. B) changes in political parties having major effects on trade conditions. C) global focus. D) animosity targeted toward specific countries. E) trade disputes. Difficulty Level: Hard Page: 161 Explanation: There are five main political causes of instability in international markets: (1) some forms of government seem to be inherently unstable, (2) changes in political parties
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during elections can have major effects on trade conditions, (3) nationalism, (4) animosit y targeted toward specific countries, and (5) trade disputes themselves. 3. Which of the following is the top political issue concerning foreign businesses? A) Demographic profile of political leaders B) Government policies on infrastructure C) Economic awareness of political leaders D) Stability of prevailing government policies E) Membership of governments in trade treaties Difficulty Level: Hard Page: 162 Explanation: At the top of the list of political issues concerning foreign businesses is the stability or instability of prevailing government policies. 4. Which of the following is NOT true of nationalism? A) Economic nationalism has as one of its central aims the preservation of national economic autonomy. B) A call to "buy our country's products only is one form of manifestation of national feelings. C) Nationalist feelings may lead to control over foreign investment. D) The more a country's domestic economy declines, the more nationalistic it becomes. E) Nationalistic feelings are not prevalent in economically prosperous countries. Difficulty Level: Hard Page: 167 Explanation: Although militant economic nationalism has subsided, nationalistic feelings can be found even in the most economically prosperous countries. 5. With respect to political risk that can be faced by a company seeking to invest abroad, which of the following presents the most severe political risk? A) Confiscation B) Expropriation C) Domestication D) Exchange controls E) Local-content laws Difficulty Level: Medium Page: 168 Explanation: The most severe political risk is confiscation , that is, the seizing of a company's assets without payment. Confiscation was most prevalent in the 1950s and 1960s when many underdeveloped countries saw confiscation, albeit ineffective, as a means of economic growth. 6. Often an expropriated investment becomes _____ (i.e., it becomes a government-run entity). A) democratized B) domesticated C) nationalized D) prioritized E) socialized Difficulty Level: Medium Page: 168 20
Explanation: When the expropriated investment is nationalized, it becomes a governmentrun entity. 7. Which of the following is true regarding confiscation, expropriation, and domestication? A) The ultimate goal of domestication is to force domestic investors to share more of the profits with the government. B) Risks of confiscation and expropriation appear to have increased over the last two decades. C) Expropriation and nationalization have led to technologically advanced and competitive businesses. D) Nowadays, companies have to become domesticated as a condition for investment. E) Nowadays, confiscation is viewed as a means of economic growth. Difficulty Level: Hard Page: 168 Explanation: Today, countries often require prospective investors to agree to share ownership, use local content, enter into labor and management agreements, and share participation in export sales as a condition of entry; in effect, the company has to become domesticated as a condition for investment. 8. If there is a substantial amount of capital leaving the country, which of the following is the country likely to implement to control the situation? A) Exchange controls B) Local-content laws C) Import restrictions D) Tax controls E) price controls Difficulty Level: Hard Page: 168-169 Explanation: Exchange controls stem from shortages of foreign exchange held by a country. When a nation faces shortages of foreign exchange and/or a substantial amount of capital is leaving the country, controls may be levied over all movements of capital or selectivel y against the most politically vulnerable companies to conserve the supply of foreign exchange for the most essential uses. 9. Price controls are used during inflationary periods to: A) control the cost of living. B) restrict exports to foreign countries. C) negotiate trade contracts favoring the host country. D) encourage imports. E) avoid tax burden on essential items. Difficulty Level: Hard Page: 169 Explanation: Essential products that command considerable public interest, such as pharmaceuticals, food, gasoline, and cars, are often subjected to price controls. Such controls applied during inflationary periods can be used to control the cost of living. 10. Which of the following is more likely to be subjected to price control? A) Leather garments B) Mobile phone accessories C) Aspirin and antacids D) Handycams and lenses 21
E) Ceramic tiles Difficulty Level: Hard Page: 169 Explanation: Essential products that command considerable public interest, such as pharmaceuticals, food, gasoline, and cars, are often subjected to price controls. Such controls applied during inflationary periods can be used to control the cost of living. 11. Which of the following represents a new and powerful tool of PSAs? A) International funds B) National governments backing their causes C) The Internet D) The United Nations and its affiliated bodies E) Private companies providing technical support Difficulty Level: Easy Page: 174 Explanation: The Internet has become an effective tool of PSAs to spread the word about whatever cause they sponsor. 12. The newest form of terrorism directed toward a peaceful world is: A) germ warfare. B) nuclear warfare. C) cyberterrorism. D) hate crimes. E) extortion. Difficulty Level: Medium Page: 177 Explanation: Cyberterrorism and cybercrime is still in its infancy, and the Internet provides a vehicle for terrorist and criminal attacks by foreign and domestic antagonists wishing to inflict damage on a company with little chance of being caught. 13. Relations between governments and MNCs are generally positive if the investment leads to all of the following EXCEPT: A) reduces the balance of payments. B) uses locally produced resources. C) transfers capital, technology, and/or skills. D) creates jobs. E) makes tax contributions. Difficulty Level: Hard Page: 180 Explanation: Relations between governments and MNCs are generally positive if the investment (1) improves the balance of payments by increasing exports or reducing imports through import substitution; (2) uses locally produced resources; (3) transfers capital, technology, and/or skills; (4) creates jobs; and/or (5) makes tax contributions. 14. Which of the following strategies minimizes political risks for the multinational corporation in situations in which the technology is unique and the risk is high? A) Joint ventures B) Licensing C) Expanding the investment base D) Planned domestication E) Multi-facilities Difficulty Level: Hard 22
Page: 181 Explanation: A strategy that some firms find eliminates almost all risks is to license technology for a fee. Licensing can be effective in situations in which the technology is unique and the risk is high. Of course, there is some risk assumed, because the licensee can refuse to pay the required fees while continuing to use the technology. 15. Which of the following best describes the U.S. government's policy toward multinational corporations that are confronted with situations where bribery is an issue? A) A bribe may be paid as long as it is not a domestic situation. B) A bribe is justified is if is the documented traditional practice in a country. C) A bribe may be paid in a foreign country if there is a tie to national security. D) It is illegal for a U.S. citizen to pay a bribe--period. E) The issue revolves around the customs of the country and each issue is decided separately. Difficulty Level: Medium Page: 182 Explanation: Bribery poses problems for the marketer at home and abroad, because it is illegal for U.S. citizens to pay a bribe even if it is a common practice in the host country. ----------------------------------------
Chapter 7: The International Legal Environment: Playing by the Rules 1. Under common law, ownership is established by _____; under code law, ownership is determined by _____. A) heredity; shareholding B) use; registration C) tradition; legal right D) legal right; patent E) shareholding; use Difficulty Level: Hard Page: 187 Explanation: Under common law, ownership is established by use; under code law, ownership is determined by registration. 2. Islamic law is known as the _____. A) Ulema B) Jihad C) Fatwa D) Shari'ah E) Barakah Difficulty Level: Easy Page: 188 Explanation: The basis for the Shari'ah (Islamic law) is interpretation of the Koran. 3. Under _____, the legal system is subordinate to prevailing economic conditions. A) common law B) code law C) Islamic law D) Marxist-socialist tenets E) legal tradition Difficulty Level: Medium Page: 189
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Explanation: Socialist economies like the former Soviet Union and China built up entire commercial legal system under the premise that law, according to Marxist-socialist tenets , is strictly subordinate to prevailing economic conditions, such fundamental propositions as private ownership, contracts, due process, and other legal mechanisms have had to be developed. 4. The World Court can adjudicate disputes between which of the following? A) disputes between governments B) disputes between a company and a government C) disputes between two companies D) disputes between a private citizen and a government E) disputes between trade bodies of various countries Difficulty Level: Hard Page: 190 Explanation: The World Court can adjudicate disputes between governments, whereas the other two situations must be handled in the courts of the country of one of the parties involved or through arbitration. 5. A nonbonding agreement between parties to resolve disputes by asking a third party to mediate differences is called: A) litigation. B) informal settlement. C) arbitration. D) conciliation. E) coercion. Difficulty Level: Easy Page: 191 Explanation: Conciliation (also known as mediation) is a nonbinding agreement between parties to resolve disputes by asking a third party to mediate differences. 6. When all else fails in an international commercial dispute, the final step is: A) conciliation. B) to encourage one's government to force the other party to comply. C) to find fault or wrong doing as a public relations device. D) litigation. E) coercion. Difficulty Level: Medium Page: 193 Explanation: When all else fails, the final step to solve a dispute is litigation. 7. One authority suggests that settlement of every dispute should follow four steps. Which of the following is considered to be the first step in this process? A) conciliate B) arbitrate C) coerce D) try to placate the injured party E) litigate Difficulty Level: Medium Page: 194 Explanation: One authority suggests that the settlement of every dispute should follow four steps: first, try to placate the injured party; if this does not work, conciliate, arbitrate, and, finally, litigate. 24
8. In a common-law country, ownership of intellectual property rights is established by "prior use versus registration." What does the phrase "prior use versus registration" mean? A) One must register a trademark to gain rightful ownership of it. B) One must pay for the right to own a trademark. C) Whoever can establish first use of a trademark is typically considered the rightful owner. D) Ownership of a trademark can only be established in a court of law. E) Ownership of a trademark is global and is established by the United Nations. Difficulty Level: Medium Page: 197 Explanation: In the United States, a common-law country, ownership of IP rights is established by prior use — whoever can establish first use is typically considered the rightful owner. 9. Which of the following is the most comprehensive multilateral agreement on intellectual property to date? A) World Intellectual Property Organization Charter B) Trade-Related Aspects of Intellectual Property Rights C) Inter-American Convention Agreement D) The Madrid Arrangement E) Paris Agreement for the Protection of Industrial Property Difficulty Level: Hard Page: 198 Explanation: The Trade-Related Aspects of Intellectual Property Rights (TRIPs) agreement, a major provision of the World Trade Organization, is the most comprehensive multilateral agreement on intellectual property to date. 10. _____ buy and register descriptive nouns, geographic names, names of ethnic groups and pharmaceutical substances, and other similar descriptors and hold them until they can be sold at an inflated price. A) Patent trolls B) Server farms C) Domain name registries D) Cybersquatters E) Universal resource locators Difficulty Level: Medium Page: 201 Explanation: Cybersquatters buy and register descriptive nouns, geographic names, names of ethnic groups and pharmaceutical substances, and other similar descriptors and hold them until they can be sold at an inflated price. 11. According to Canadian law, what is the standard expected by courts in Canada in determining whether a representation is false or misleading? A) De Novo standard B) Credulous person standard C) Clearly Erroneous standard D) Arbitrary and Capricious standard E) Discretionary standard Difficulty Level: Hard Page: 206
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Explanation: Courts have been directed by Canadian law to take into account, in determining whether a representation is false or misleading, the "general impression" conveyed by the representation as well as its literal meaning. The courts are expected to apply the "credulous person standard," which means that if any reasonable person could possibly misunderstand the representation, the representation is misleading. 12. Which of the following countries has enacted the most stringent green marketing laws that regulate the management and recycling of packaging waste? A) Britain B) France C) Germany D) United States E) Japan Difficulty Level: Medium Page: 207 Explanation: Germany has passed the most stringent green marketing laws that regulate the management and recycling of packaging waste. 13. The first objective of these laws is to protect American consumers by ensuring that they benefit from products and ideas produced by foreign competitors as well as by domestic competitors. Which law is in discussion? A) Incorporation laws B) Intellectual property laws C) Antitrust laws D) Incorporation laws E) Monopoly laws Difficulty Level: Medium Page: 212 Explanation: Antitrust enforcement has two purposes in international commerce. The first is to protect American consumers by ensuring that they benefit from products and ideas produced by foreign competitors as well as by domestic competitors. The second purpose of antitrust legislation is to protect American export and investment opportunities against any privately imposed restrictions. 14. Which of the following are the licenses required for products exported from the Unit ed States? A) International or bilateral license B) General or a validated license C) Single or multiple license D) Exporter or third-party license E) Shipment license or agent license Difficulty Level: Hard Page: 214 Explanation: Products exported from the United States require a general or a validated export license, depending on the product, where it is going, the end use, and the final user. 15. Which of the following indicates the exportability status of the item based on the ECCN? A) Commerce Control List B) Entity List C) Common List D) Priority Export List 26
E) International Trade List Difficulty Level: Hard Page: 215 Explanation: The ECCN leads to a description in the Commerce Control List (CCL), which indicates the exportability status of the item. ----------------------------------------------
Chapter 8: Developing a Global Vision through Marketing Research 1.Robert is a citizen of the United States and works there as a market researcher. Soon he will be conducting a marketing research in Japan for one of his clients situated in the United States who wants to expand its operations in Japan. Robert will most likely experience which of the following differences between domestic and foreign marketing research? A) the cost of foreign market research. B) the willingness of the respondents to give information. C) the accuracy levels of the foreign market research. D) the complexity of the rules governing the foreign market research. E) the ability to get accurate pricing data from foreign markets. Difficulty Level: Medium Page: 221 Explanation: The basic difference between domestic and foreign market research is the broader scope needed for foreign research, necessitated by higher levels of uncertainty. 2. Which of the following is most likely to be the first step of a marketing research process? A) Define the research problem and establish research objectives. B) Analyze, interpret, and summarize the results. C) Determine the sources of information to fulfill the research objectives. D) Consider the costs and benefits of the research effort. E) Gather relevant data from secondary or primary sources, or both. Difficulty Level: Medium Page: 222 Explanation: The first step of a market research process is to define the research problem and establish research objectives. 3. Mike is conducting a marketing research. He has defined the research problem and has established research objectives so his next task is to: A) effectively communicate the problem and objectives to decision makers. B) analyze, interpret, and summarize the results. C) determine the sources of information to fulfill the research objectives. D) determine which statistical methods should be used for analyzing the data. E) evaluate the cost and benefits of the research effort. Difficulty Level: Medium Page: 222 Explanation: Once the problem is adequately defined and research objectives established, the researcher must determine the availability of the information needed. 4. If you conduct a marketing research with the help of some information which is already collected for some other project then such a marketing research is known as _____. A) primary research B) secondary research C) tertiary research D) parallel research E) simplistic research 27
Difficulty Level: Easy Page: 223 Explanation: Secondary research uses data that is already collected for some other purpose. 5. Most likely, much of secondary research provided by foreign governments is suspect with respect to reliability because: A) the data in foreign countries is usually written in a foreign language and there are translation difficulties that are often insurmountable. B) the size of the sample and the technique used for sampling may be faulty. C) official statistics are sometimes too optimistic, reflecting national pride rather than practical reality. D) an outdated technology could have been used for processing the data. E) the data tend to be incomplete, and outdated. Difficulty Level: Medium Page: 223 Explanation: Available data may not have the level of reliability necessary for confident decision making for many reasons. Official statistics are sometimes too optimistic, reflecting national pride rather than practical realit y, while tax structures and fear of the tax collector often adversely affect data. 6. Samantha is carrying out a marketing research. Even after seeking all reasonable secondary data sources, research questions are still not adequately answered. In such a situation Samantha must collect _____. A) parallel data B) tertiary data C) logical data D) primary data E) advanced data Difficulty Level: Easy Page: 226 Explanation: seeking all reasonable secondary data sources, research questions are still not adequately answered, the market researcher must collect primary data — that is, data collected specifically for the particular research project at hand. 7. In this research method usually a large number of respondents are asked to reply either verbally or in writing to structured questions using a specific response format or to select a response from a set of choices. Identify the research method in discussion. A) Quantitative B) Qualitative C) Descriptive D) Secondary E) Explanatory Difficulty Level: Easy Page: 226 Explanation: In quantitative research , usuall y a large number of respondents are asked to reply either verbally or in writing to structured questions using a specific response format (such as yes/no) or to select a response from a set of choices. 8. Which of the following research techniques is most likely to be used for conducting a quantitative research? A) Focus group B) Interview 28
C) Survey D) Observation E) Data gathering with the help of mechanical devices Difficulty Level: Medium Page: 227 Explanation: Survey research is generally associated with quantitative research, and the typical instrument used is a questionnaire administered by personal interview, mail, telephone, and, most recently, over the Internet. 9. A lot of international consumers are unwilling or unable to respond to research surveys mainly due to the _____. A) fear of government reprisals B) lack of incentives C) inability to use the Internet D) lack of interest E) cultural differences Difficulty Level: Medium Page: 228 Explanation: Cultural differences offer the best explanation for the unwillingness or the inability of many to respond to research surveys. The role of the male, the suitability of personal gender-based inquiries, and other gender-related issues can affect willingness to respond. 10. A _____ sample is used when detailed and accurate information for a sampling universe is not available. A) simple random sample B) cluster sample C) convenience sample D) systematic random sample E) stratified sample Difficulty Level: Hard Page: 230 Explanation: A lack of detailed information, however, does not prevent the use of sampling; it simply makes it more difficult. In place of probability techniques, many researchers in such situations rely on convenience samples taken in marketplaces and other public gathering places. 11. In an international arena, the greatest problem in sampling stems from: A) the lack of adequate demographic data and available lists from which to draw meaningful samples. B) the lack of expertise in how to design samples. C) government intervention in the sampling process. D) an inability to speak foreign languages. E) the difficulty in determining adequate sample size. Difficulty Level: Hard Page: 230 Explanation: The greatest problem in sampling stems from the lack of adequate demographic data and available lists from which to draw meaningful samples. If current, reliable lists are not available, sampling becomes more complex and generally less reliable.
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