Chapter 1

Scope and Challenges of International Marketing

Multiple Choice Questions

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. Multinational marketing
B. World trade
C. Corporate management
D. International marketing
E. Global trade

2. Which of the following is the 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. Which of the following is the reason why the international marketer's task is more
complicated than that of the domestic marketer?

A. Because the international marketer must change his marketing goals in the various
countries of operation.
B. Because the international marketer must deal with at least two levels of uncontrollable
uncertainty instead of one.
C. Because technological standardization could challenge effective customization in
different markets.
D. Because international trade regulations still do not allow free trade in most markets
across the globe.
E. Because lack of competent skills makes effective service a major challenge.
4. Which of the following is a controllable element for an international marketer?

A. Level of technology
B. Geography and infrastructure
C. Channels of distribution
D. Cultural forces
E. Structure of distribution

5. Which of the following is an uncontrollable element for an international marketer?

A. Structure of distribution
B. Promotion
C. Price
D. Research
E. Firm characteristics

6. For an international marketer, the _____ can be altered in the long run and, usually,
in the short run to adjust to changing market conditions, consumer tastes, or
corporate objectives.

A. competitive structure
B. economic climate
C. structure of distribution
D. environmental factors
E. controllable elements

7. Which of the following reflects the relation between international business and
domestic business?

A. Domestic economic climate does not normally impact international businesses.

B. Domestic businesses find it relatively easy to manage profits in the current scenario.
C. Most domestic businesses are the result of customization efforts of international
businesses.
D. The ability to invest abroad is to a large extent a function of domestic economic
vitality.
E. Domestic businesses are more viable as capital tends to move toward minimum use.
8. _____ 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 management
B. Global business
C. Marketing
D. International marketing
E. Global marketing concept

9. According to the text, the primary difference in the practice of marketing at the
domestic versus the international level is:

A. the environment within which the marketing plans must be implemented.

B. the cultural mix of the people working in the organization.
C. the level of investment required.
D. the level of management control.
E. the difference in the concepts of marketing.

10. All of the following would be considered to be controllable elements of marketing

decisions EXCEPT:

A. product.
B. price.
C. promotion.
D. research.
E. government regulations.

11. Considering the model of the international marketing task displayed in the text,
which of the following reasons demonstrates the most important difference between
the international marketer's task and that of the domestic marketer?

A. The international marketer must deal with at least two levels of uncontrollable
uncertainty instead of one.
B. The level of technology and cultural forces are controllable elements for the domestic
marketer.
C. The supply and distribution channels are uncontrollable elements for the international
marketer.
D. The competitive structure is one of the controllable factors for an international
marketer.
E. The international marketer is less concerned about geography and infrastructure than
the domestic marketer.
12. Compared to the foreign environment uncontrollable variables, which of the
following elements is excluded from the domestic marketer's list of uncontrollable
variables?

A. Political forces.
B. Competitive structure.
C. Economic climate.
D. Cultural forces.
E. Legal forces.

13. All of the following would be among the domestic marketer's controllable
environmental variables EXCEPT:

A. research.
B. price.
C. product.
D. channels of distribution.
E. competitive structure.

14. All of the following appear as a foreign environment uncontrollable variable in the
model of the international marketing task shown in the text EXCEPT:

A. economic forces.
B. competitive forces.
C. channels of distribution.
D. cultural forces.
E. political/legal forces.

15. A political decision involving _____ would most likely have a direct effect on a firm's
international marketing success.

A. domestic foreign policy

B. immigration reform
C. oil exploration policy
D. FCC satellite regulations
E. FAA airline regulations
 16. Ralph Waite has just been assigned the task of reviewing his company's international
investment opportunities. He knows that his view of the list of opportunities should be
tempered by foreign environment uncontrollables that might be encountered. Which of the
following would be the BEST illustration of a foreign environmental uncontrollable that
Mr. Waite should investigate?

A. A country's level of technology.

B. Pricing policies in the foreign country.
C. The ability to do research in the foreign country.
D. Manufacturing capabilities in the foreign country.
E. The ability to do advertising in the foreign country.

17. The _____ and 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.

A. structure of distribution
B. competitive forces
C. economic forces
D. political/legal forces
E. level of technology

18. Which of the following would be the BEST illustration of the "alien status" found in the
political and legal arena that sometimes cause problems for international marketers as they
attempt to doing business in foreign countries?

A. A company in the U.K. recently purchased Ben & Jerry's ice cream operations.
B. The Indian government told Coca-Cola that it must reveal its "secret formula" if it wished to
continue doing business in India.
C. Richard Branson's Virgin Cola was not widely accepted in the United States.
D. French Canadians prefer French to English when conducting business in Canada.
E. British Airlines and Japan Airlines join American Airlines to form OneWorld Alliance.

19. The task of _____ is the most challenging and important one confronting international
marketers.

A. caring for the environment

B. dealing with politics
C. international standardization
D. cultural adjustment
E. international branding
20. The primary obstacles to success in international marketing are a person's _____ and
an associated ethnocentrism.

A. regionalism
B. holism
C. self-reference criterion
D. segregation
E. integration

21. _____ is an unconscious reference to one's own cultural values, experiences, and
knowledge as a basis for decisions.

A. Regionalism
B. Holism
C. Self-reference criterion
D. Segregation
E. Xenophobia

22. In the United States, unrelated individuals keep a certain physical distance between
themselves and others when talking or in groups. We do not consciously think about that
distance; we just know what feels right without thinking. Someone from another culture
would not necessarily understand this and would apply their own rules for contact when
speaking. The preceding is an illustration of what is called applying a _____ when
reviewing the mentioned social custom of contact.

A. self-space
B. segregation
C. integration
D. space command theory
E. self-reference criterion (SRC)

23. Your _____ can prevent you from being aware that there are cultural differences or
from recognizing the importance of those differences.

A. self-space
B. personality
C. demographic character
D. self-reference criterion (SRC)
E. concept of integration
24. 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.

25. To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis

that isolates the self-reference criterion influences. Which of the following would be the
first-step to take to avoid the aforementioned errors?

A. Redefine the problem without the SRC influence.

B. Solve the problem for the optimum business goal situation.
C. Isolate the SRC influence in the problem and examine it carefully to see how it complicates
the problem.
D. Define the business problem or goal in home-country cultural traits, habits, or norms.
E. Define the business problem or goal in foreign-country cultural traits, habits, or norms
through consultation with natives of the target country.

26. To be globally aware, an international marketer must have all the following EXCEPT:

A. a tolerance of cultural differences.

B. a knowledge of cultures.
C. a knowledge of history.
D. a knowledge of microeconomics.
E. a knowledge of world market potential.

27. Which of the following BEST exemplifies the tolerance of a globally aware manager?

A. You should be familiar with the leading cultural trends in the world.
B. You have to accept as your own the cultural ways of another.
C. You must allow others to be different and equal.
D. You must be aware of globally accepted culturally standards.
E. You must have undertaken courses in cultural differences.

28. Which of the following is an obvious strategy organizations should use to build global
awareness into organizations?

A. Establish subsidiaries in culturally diverse countries, thus leading to inter-cultural

communication.
B. Select individual managers specifically for their demonstrated global awareness.
C. Recruit managers from other nations to increase diversity.
D. Organize foreign trips for managers to improve their understanding.
E. Increase mix of diversity in the employee profile of the organization.
29. Which of the following is the most effective way to achieve organizational global
awareness?

A. Establish regular awareness campaigns across the organization.

B. Organize employee trips to foreign cultures to increase their sensitivity.
C. Increase the diversity mix of the employee profile.
D. Have a culturally diverse senior executive staff or board of directors.
E. Promote social networking as a means to improve inter-cultural communication.

30. Which of the following organizations seem better equipped for internationalization?

A. A firm that has more than two liaison offices in foreign countries
B. A firm that has a production capacity that is much greater than home market demand
C. A firm that has more than three production facilities in the home market
D. A firm that has a culturally diverse employee profile
E. A firm that has experienced increased profits in home market for three consecutive years

31. Which of the following is NOT one of the stages of international marketing
involvement?

A. Indirect Foreign Marketing

B. Infrequent Foreign Marketing
C. Regular Foreign Marketing
D. International Marketing
E. Global Marketing

32. Which of the following is TRUE regarding the stages of international marketing
involvement?

A. A firm progresses through the stages in a linear order

B. The stages do not overlap
C. A firm begins its international involvement at the second stage
D. A firm may be in more than one stage simultaneously
E. The first stage of the process is ‘No Foreign Marketing'

33. There are a variety of stages in the process of becoming involved in international
marketing. Which of the following best describes the stage of development where the
company's products reach a foreign market through no conscious effort on the part of the
marketer?

A. Infrequent foreign marketing

B. Regular foreign marketing
C. No direct foreign marketing
D. International marketing
E. Global marketing
34. James Bright's company seeks markets all over the world and attempts to sell products
that are a result of planned production for markets in various countries. Which of the
following stages BEST characterizes the stage of international marketing involvement for
Mr. Bright's company?

A. Infrequent foreign marketing

B. Regular foreign marketing
C. No direct foreign marketing
D. International marketing
E. Global marketing

35. Which of the following is true of the first two stages of international marketing
involvement—no direct foreign marketing and infrequent foreign marketing?

A. Firms may not begin internationalization at these stages

B. They represent careful strategic thinking about international expansion
C. They are more reactive in nature
D. Firms cannot be at both the stages simultaneously
E. They are sequential in the process of internationalization

36. At which stage is the primary focus of operations and production to service domestic
market needs while the firm has permanent productive capacity devoted to the production
of goods and services to be marketed in foreign markets?

A. No direct foreign marketing

B. Infrequent foreign marketing
C. Regular foreign marketing
D. International marketing
E. Global marketing

37. Which of the following is NOT a feature of firms at the internationalization stage of
regular foreign marketing?

A. Permanent productive capacity devoted to the production of goods to be marketed in foreign

markets.
B. The primary focus of operations and production is to service foreign market needs.
C. The firm may employ foreign or domestic overseas intermediaries.
D. The firm may have its own sales force or sales subsidiaries in important foreign markets.
E. Profit expectations from foreign markets are initially seen as a bonus in addition to regular
domestic profits.
38. Which of the following firms/products reflects a global marketing orientation?

A. A skin-lightening cream aimed at African American women

B. A company promoting Latino jazz musicals
C. A firm producing high-end sailing yachts
D. A fast-food company selling beef burgers
E. A Japanese to English translating software

39. What is the most profound change for firms at the global marketing stage of
internationalization?

A. Companies treat the world, along with home market, as one market
B. Sales to foreign markets are made as and when goods become available
C. Temporary surpluses are marketed in foreign markets
D. Planning involves production of goods outside the home market
E. Production capacity exceeds domestic demand

40. For a company at the _____ stage of internationalization, market segments are defined
by income levels, usage patterns, or other factors that frequently span countries and
regions.

A. domestic market extension

B. multidomestic market
C. global marketing
D. universal marketing
E. standardized marketing