MAR4156 final exam

Question 1

For companies seeking entrance into the complicated Japanese distribution system, _____ offer one of the easiest routes to success because they virtually control distribution through all levels of channels in Japan.

		trade representatives
		trading companies
		brokers
		export management companies
		complementary marketers

Question 2

_____ has long been considered the most effective nontariff barrier to the Japanese market.

		The Japanese population
		The Japanese distribution structure
		Japanese culture
		The Japanese import and export procedure
		Intense competition in Japan

Question 3

In the context of the Internet in international marketing channels, technically, e-commerce is a form of _____ selling.

		direct
		parallel
		dual
		mass
		targeted

Question 4

Which of the following is a critical element associated with using a particular type of middleman?

		Knowledge of the culture of the target market.
		Number of employees.
		Mode of transportation for moving goods.
		Influence over the target market.
		Cash-flow patterns.

Question 5

In the context of distribution patterns, the rate of change in retailing around the world appears to be directly related to the _____.

		literacy rate
		rate of inflation
		population growth
		speed of economic development
		currency exchange rate

Question 6

With _____, the seller assumes all risk until the actual dollars are received.

		open accounts
		irrevocable letters of credit
		dollar drafts
		factoring
		forfaiting

Question 7

When the value of the dollar is weak relative to the buyer's currency, sellers generally employ _____ pricing.

		competition-based
		demand-based
		premium
		psychological
		cost-plus Question 8 _____ are the primary outside source of aid for companies beset by the uncertainty of a countertrade. Trade unions Barter houses Industry associations Swap centers Satellite towns 3.33333 points

Question 9

Which of the following is true of free trade zones (FTZs)?

		In an FTZ, payment of import duties is postponed until the product leaves the FTZ area and enters the country.
		FTZs operate throughout the world, replacing imported goods with domestic goods.
		An FTZ is, in essence, a taxable enclave and considered part of the country as far as import regulations are concerned.
		An FTZ benefits export companies but does not offer any advantages to an importer.
		The creation of FTZs typically increases taxes, duties, surcharges, and freight charges on imported goods.

Question 10

Since it encourages retailers to stock large assortments of a product, the practice of _____ distribution often creates a favorable condition for parallel importing.

		exclusive
		selective
		intensive
		global
		dual

3.33333 points

Question 11

In the international communications process, _____ is defined as the interpretation by the receiver of the symbolism transmitted from the information source.

		encoding
		message selection
		decoding
		message channel selection
		feedback evaluation

Question 12

Janet works for a media agency based in Japan. Janet is helping the IMC manager of Siljure, a French cosmetics company, with the design and language to be used in an upcoming promotional campaign in Japan. The IMC manager knows what to convey but wants to advertise it in a culturally relevant manner. Which step of the IMC process is Janet helping Siljure with?

		Encoding of the message.
		Choosing an appropriate channel for the message.
		Decoding of the message.
		Providing feedback from customers.
		Reducing noise from competing ad campaigns.

Question 13

Of the seven steps involved in international advertising, _____ almost always represents the most daunting task for international marketing managers.

		developing messages
		selecting effective media
		executing the campaign
		composing and securing a budget
		specifying the goals of the communication

Question 14

Which of the following elements of the international communications process comprises external influences, such as competitive advertising, other sales personnel, and confusion at the receiving end that can detract from the ultimate effectiveness of the communication?

		Selecting a message source
		Encoding
		Selecting a message channel
		Decoding
		Noise

Question 15

Cremics, a multinational drug manufacturing company, used a saffron trident in a promotional campaign for one of their drugs in India. The saffron trident, a religious symbol in India was meant to indicate the three levels of efficacy of the drug, but mistakenly conveyed a religious message to Indians. This miscommunication indicates a problem associated with which of the following steps of an international communications process?

		Encoding
		Decoding
		Media channel selection
		Message transmission
		Information source selection

Question 16

The U.S. Congress and businesses have been resisting conversion to the metric system because they fear:

		market competition from international firms already using the metric system.
		consumer backlash and the substitution of international products.
		that it will promote standardization.
		that workers will not understand the system.
		that it will be too costly to implement.

Question 17

Why are German and Japanese firms generally better at managing market volatility than American firms?

		Their emphasis is on beating competitors.
		They value employees highly and eschew layoffs.
		They maintain limited product lines.
		They reduce prices faster and raise advertising expenditures during booms.
		They consider market share to be a strategic goal.

Question 18

Which of the following are driving a strong level of interest in the ISO 9000 certification?

		Government regulations
		Marketplace requirements
		Market consolidation
		Free trade
		Protectionism

Question 19

What is the most serious threat to the continued expansion of international services trade?

		Free trade
		Capitalism
		Globalization
		Foreign trade zones (FTZs)
		Protectionism

Question 20

Industrial goods differ from consumer goods in that:

		sales of consumer goods are highly responsive to changes in price.
		industrial goods are highly customized.
		the demand for industrial goods is largely derived demand.
		sales of industrial goods are stable and do not fluctuate.
		consumer goods are traded in the international market.

Question 21

Which of the following is the most important quality that a recruiter should consider while hiring marketing personnel?

		They should have little cultural empathy as this might distract them from their main purpose.
		When working in a foreign country, they must be capable of taking decisions that are not influenced by the habits of the market.
		They should be able to represent a culturally superior image of their country and its products.
		They should be hypersensitive to the behavioral variations in different countries.
		They should possess a considerable breadth of knowledge of many subjects both on and off the job.

Question 22

Norman, a German national, works as a sales manager for Black Oil Corporation in the Middle-East. Given the benefits associated with the job, he works on one foreign assignment after another and rarely returns to the headquarters in Germany. In view of the given information we can say that Norman is a:

		virtual manager.
		virtual expatriate.
		third-country national.
		professional expatriate.
		native salesperson.

Question 23

The training of foreign employees is likely to be most effective when:

		a standard method is used to ensure uniformity.
		it is tailored to the recipients' ways of learning.
		national differences are ignored during motivational sessions.
		the superiority of their culture is emphasized over others.
		it is different from the familiar ways of communication.

Question 24

In the context of international marketing, most expatriate failures are caused by a lack of:

		management skills.
		technical skills.
		an understanding of cultural differences.
		knowledge of the product line.
		knowledge of the company.

Question 25

In the context of designing compensation systems, the program element most often determined at the global level is:

		Program Design Principles
		Pay Mix
		Job Grades
		Formula Mechanics
		Performance Measures

Question 26

How do the vast majority of services enter a foreign market?

		Exporting.
		Importing.
		Licensing, franchising, or direct investment.
		Through brokers.
		Through agent intermediaries.

Question 27

A European chocolate manufacturer received several complaints from customers about the quality of its product when it began selling them in a tropical country. The firm had to re-package its chocolate bars in an extra plastic wrapper to protect it from the heat and dust. Which of the following factors in the local market dictated product adaptation in the current scenario?

		Legal requirements.
		Economic requirements.
		Political requirements.
		Climatic requirements.
		Technological requirements.

Question 28

Because a service is individually produced and is virtually unique, the service is said to have _____.

		intangibility
		inseparability
		profitability
		heterogeneity
		perishability

Question 29

Adore cosmetics had to increase the SPF value of their sunscreen lotions marketed in the Middle East to provide more protection against UV radiation. Which of the following factors is dictating product adaptation in the above scenario?

		Legal requirements.
		Cultural requirements.
		Economic requirements.
		Climatic requirements.
		Political requirements.

Question 30

Which of the following factors is mainly responsible for a perceptual bias when interpreting the characteristics of a product?

		Poor product knowledge.
		Noise in the communication channel.
		Market analyst's self-reference criterion.
		Multitude of competing products.
		Market analyst's intelligence quotient.