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International Marketing Exam 2
Chapters 7-12
286
Marketing
Undergraduate 4
11/11/2015
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Term
Reject Protectionism
 Definition
What was the goal of the April 2009 agreement arrived at by the G20 nations, which required them to cede some sovereignty?
Term
Loss of some degree of national sovereignty
 Definition
Adherence to the WTO means:
Term
A country with a stable and friendly government
 Definition
The ideal political climate for a multinational firm is:
Term
Stability of prevailing government policies
 Definition
Which of the following is the top political issue concerning foreign businesses?
Term
Restrictions on imports
 Definition
Which of the following is an instance of how nationalism can be manifested?
Term
Nationalism
 Definition
With which of the following would the phrase "Buy American" be most closely associated?
Term
On nationalization
 Definition
When does an expropriated investment become a government-run entity?
Term
Domestication
 Definition
The government in Chile recently informed Clint Travis' company that his retail grocery chain in Chile would have to be gradually turned over to the people of Chile by the year 2050. Additionally, starting next year 50% of the board of directors of the Chilean operation of the company must be Chileans. Which of the following political risk actions is Mr. Travis' company facing in Chile?
Term
Nowadays, countries often require companies to become domesticated as a condition for investment
 Definition
Which of the following is true of domestication?
Term
Exchange controls
 Definition
If there is a substantial amount of capital leaving a country, which of the following is the country likely to implement to control the situation?
Term
Local-content laws
 Definition
In Thailand, it is required that any milk products sold in the country must contain at least 50% milk from Thai dairy farmers. Which of the following economic risks faced by international producers of milk is illustrated in this situation?
Term
Local-content laws
 Definition
The United States required that 50 percent of all parts used in an automobile constructed in the United States must contain parts that were manufactured in the United States. When Toyota Motor Company built automobile manufacturing plants in Tennessee and Ohio, it faced economic risks associated with _____.
Term
Political
 Definition
Taxes must be classified as a _____ risk when used as a means of controlling foreign investments.
Term
Tax controls
 Definition
Since the government of Nigeria is strapped for cash, it has decided to tax all foreign investments (such as oil production equipment) by up to forty percent of the appraised value. The Nigerian government has found that this is the handiest and quickest means of finding operating funds. The economic risk in discussion here is:
Term
control the cost of living
 Definition
Price controls are used during inflationary periods to:
Term
price controls
 Definition
In North Korea, foreign investors or producers are required to sell products at prices stated by the North Korean government rather than letting market value and demand, determine the prices. This implies that there is severe application of _____.
Term
Aspirin and antacids
 Definition
Which of the following is more likely to be subjected to price control?
Term
boycotting
 Definition
Stopping or refusing to trade with another nation for political reasons is called:
Term
Political sanctions are generally not very successful
 Definition
Which of the following statements is true of political sanctions?
Term
They are less well defended
 Definition
Why do terrorism experts predict multinational businesses will be targeted by terrorists more frequently?
Term
Viruses damaging the Internet
 Definition
“Slammer,” “Melissa,” and “Goner worm” are all examples of:
Term
The possibility of the government actually failing
 Definition
In terms of political risk, which of the following poses the greatest threat to international marketers?
Term
Brings capital, technology, and/or skills
 Definition
Relations between governments and MNCs are generally positive if the investment:
Term
A Meteora Inc. using their manufacturing unit as an export base
 Definition
Meteora Inc. is planning to enter the African market through its mobile phone manufacturing operations in Kenya. Which of the following could favor a positive relation with the host country?
Term
joint ventures
 Definition
Juliet is concerned with the potential for political harassment when her company enters a new international market. To reduce the risk of political harassment, she will consider using _____ to enter the market.
Term
Licensing
 Definition
Which of the following is a strategy that multinational corporations use to minimize political (p. 181) vulnerability and risk?
Term
Expanding the investment base
 Definition
Which of the following strategies can be effective in forestalling or minimizing the effect of a total takeover of a multinational corporation’s holdings by a foreign government?
Term
Expanding the investment base
 Definition
Which of the following strategies to minimize political vulnerability and risk has the advantage of engaging the power of several investors and banks in the host country whenever any kind of government takeover or harassment is threatened?
Term
Licensing
 Definition
Which of the following strategies minimizes political risks for a multinational corporation in situations in which the technology is unique and the risk is high?
Term
planned domestication
 Definition
The most effective solution to a situation where a foreign government is demanding local participation in a multinational corporation’s business activities in the host country is:
Term
Banks lending to the host government
 Definition
While expanding the investment base of a company, which of the following can be used as a powerful ally in dealing with threats of government takeovers or harassment?
Term
Political payoff
 Definition
An attempt to lessen political risks by paying those in power to intervene on behalf of the multinational company is referred to as a _____.
Term
It is illegal for a US citizen to pay a bribe
 Definition
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?
Term
Department of Commerce
 Definition
Which of the following is the principle U.S. agency that supports U.S. business abroad?
Term
The evaluation of a company's contribution to the nation's interest
 Definition
Within the same country, some foreign businesses may fall prey to politically induced harassment, while others may be placed under a government umbrella of protection and preferential treatment. What explains this difference?
Term
Accelerate the development of an economy
 Definition
Which of the following is the most important reason to encourage foreign investment?
Term
Export-Import Bank
 Definition
Which of the following agencies underwrites trade and investments for U.S. firms?
Term
an all-inclusive system of written rules of law
 Definition
Code law is based upon _____.
Term
Code law
 Definition
Under _____, the legal system is generally divided into three separate codes: commercial, civil, and criminal.
Term
Intellectual property
 Definition
Laws governing _____ offer the most striking differences between common-law and code-law systems.
Term
use
 Definition
Under common law, the ownership of intellectual property is established by _____.
Term
Code law
 Definition
_____ is considered complete as a result of catchall provisions found in most of this type of law systems.
Term
Evaluating the performance of a contract
 Definition
Apart from intellectual property laws, another illustration of how fundamental differences in the common and code systems can cause difficulty is in the performance of a contract.
Term
They sometimes fail to consider agreements to be enforceable unless properly notarized or registered
 Definition
Which of the following is true of code-law systems? (p. 187)
Term
Marxist-socialist tenets
 Definition
Under _____, the legal system is subordinate to prevailing economic conditions.
Term
Russia
 Definition
Because of political changes in the late twentieth century, which of the following countries has had to build from scratch an entire commercial legal system?
Term
Conciliation
 Definition
Which of the following methods is considered most effective while resolving disputes with Chinese business partners?
Term
Conciliation
 Definition
Jimmy’s foods, a popular food company in the United States is trying to resolve a dispute with a local company in New Zealand which has been operating under the same name in their country. All the attempts by the company to settle the issue in a friendly manner have failed. The directors at Jimmy’s want to retain their trade name in the country and have decided to settle the dispute with the local company by appointing a mediator. They also want the sessions to be private because of the fear of creating a poor public image. Which of the following dispute resolution methods is best suited for the above situation?
Term
Arbitration
 Definition
Ralph Richards has been attempting to solve a problem that his company has with a contract (p. 191) default by the Dutch government. He has tried conciliation but the two parties could never find any common ground on which they could begin a fruitful negotiation for settlement. Which of the following is likely to be the course of action that both the parties will try next?
Term
Conciliation
 Definition
When formal arbitration organizations receive requests for arbitration, they initially attempt to resolve the issue by:
Term
Arbitration
 Definition
A textile manufacturing company is trying to solve a dispute with one of its raw material suppliers over a breach of contract. After the initial attempts to solve the dispute in a friendly informal manner failed, the companies have approached an international commission to appoint an informed party to act as a referee and make a judgment that both parties will honor. Which of the following dispute resolution methods is being used by the companies in the above scenario?
Term
The plaintiff and the defendant select a person each to present their case
 Definition
In the case of arbitration:
Term
The place of arbitration and the language used in the arbitration process
 Definition
Which of the following is usually placed in the arbitration clause that is becoming standard in (p. 193) many international contracts?
Term
To abide by the awards resulting from the arbitration
 Definition
Arbitration clauses require agreement wherein the concerned parties agree:
Term
Placating the injured party
 Definition
Which of the following should ideally be the first step in the settlement of a dispute?
Term
Collusion between contract manufacturers and illegitimate sellers
 Definition
Which of the following poses a major challenge to international marketers while dealing with counterfeiting?
Term
United States
 Definition
In which of the following countries is the ownership of IP rights established by prior use?
Term
Must establish first use of a trademark
 Definition
In a common-law country, ownership of intellectual property rights is established by “prior use (p. 196) versus registration” which implies that to claim the ownership of a trademark, an individual:
Term
The Paris Convention
 Definition
Which of the following international conventions was established to recognize intellectual property rights?
Term
The World Intellectual Property Organization
 Definition
Which of the following conventions is responsible for the promotion of the protection of intellectual property rights among all the member countries of the UN?
Term
Trade-Related Aspects of Intellectual Property Rights
 Definition
Which of the following is the most comprehensive multilateral agreement on intellectual property to date and covers a full range of rights that are embodied in current international agreements?
Term
Charging what the market will bear
 Definition
Which of the following is an effective approach to prevent Chinese consumers from creatively copying foreign intellectual property?
Term
Credulous person standard
 Definition
According to Canadian law, what is the standard expected by courts in Canada to determine whether a representation is false or misleading?
Term
Germany
 Definition
Which of the following countries has enacted the most stringent green marketing laws that regulate the management and recycling of packaging waste?
Term
Objective theory of jurisdiction
 Definition
The question of jurisdiction of U.S. law over acts committed outside the territorial limits of the country has been settled by the courts through application of a long-established principle of international law called the:
Term
Foreign Corrupt Practices Act
 Definition
The _____ of the United States makes it illegal for companies to pay bribes to foreign officials, candidates, or political parties.
Term
Antitrust laws
 Definition
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. _____ are being discussed in this scenario.
Term
Department of Justice
 Definition
Which of the following U.S. government agencies oversees antitrust enforcement in international commerce?
Term
The boycott of Israel by the Arab League
 Definition
Under the Antiboycott Law, U.S. companies are forbidden to participate in any unauthorized foreign boycott. Which of the following situations brought about the Antiboycott Law in the U.S.?
Term
The national security of the US
 Definition
U.S. firms, their foreign subsidiaries, or foreign firms that are licensees of U.S. technology cannot sell a product to a country in which the sale is considered by the U.S. government to affect:
Term
Export Administration Regulations
 Definition
The revised set of export regulations published by the Department Of Commerce to alleviate many of the problems and confusions of exporting and to expedite the process is called _____.
Term
General or a validated license
 Definition
Which of the following are the licenses required for products exported from the United States?
Term
Export Control Classification Number
 Definition
The exporter is responsible for selecting the _____ which leads to a description in the Commerce Control List (CCL), which indicates the exportability status of the item.
Term
Commerce Control List
 Definition
Which of the following indicates the exportability status of the item based on the ECCN?
Term
Submit license applications via the Internet for all commodities except supercomputers to all free-world destinations
 Definition
The Export License Application and Information Network is an electronic service that enables exporters to:
Term
Define the research problem and establish research objectives
 Definition
Bert Wong has decided to pursue a marketing research effort to acquire information before his (p. 222) company makes a strategic relocation move to the West Coast. Which of the following marketing research process steps would be the first step that Bert's company (and marketing researchers) should take as it embarks on the research effort?
Term
Define the research problem and establish research objectives
 Definition
Which of the following is the first step of a market research process and most difficult/important?
Term
Effectively communicate the results to decision makers
 Definition
Harry and his team have undertaken a marketing research study to help their company expand in the Eastern European region. Which of the following marketing research process steps is Harry likely to end his research efforts with?
Term
Effectively communicate the results to decision makers
 Definition
Which of the following is the last step of a market research process?
Term
Determine the sources of information to fulfill the research objectives
 Definition
Once the researcher has defined the research problem and established research objectives, the researcher must next:
Term
Official statistics are sometimes too optimistic, reflecting national pride rather than practical reality
 Definition
Which of the following reasons best describes why much of the data provided by foreign governments is suspected with respect to reliability?
Term
Quantitative
 Definition
Before launching its latest line of environment-friendly and child-friendly wooden toys, a toy manufacturer gave samples of those toys to a large and culturally diverse set of families. It then conducted a survey where the parents were asked to rate the toys on a step-wise scale of “not satisfied” to “extremely pleased.” This is an example of _____ research.
Term
Qualitative
 Definition
Before launching its latest line of health drinks, a beverage manufacturer provided free samples of the health drinks to a large and culturally diverse set of families. It then conducted a survey where the participants were asked about their first impression about the drinks. This is an example of _____ research.
Term
It includes recording consumers' first impression about products
 Definition
Which of the following statements is true about qualitative research?
Term
It studies the dynamic interplay of peoples' feelings and ideas
 Definition
Which of the following statements is true about qualitative research?
Term
It is generally associated with survey research that involves "yes" or "no" questions
 Definition
Which of the following statements is true about quantitative research?
Term
Qualitative
 Definition
Mary Hills would like to ask respondents a series of open-ended questions that will help explain the respondents' feelings and thoughts on the subject of child labor. Mary Hills is carrying out a _____ research.
Term
The lack of adequate demographic data from which meaningful samples can be drawn
 Definition
In the international arena, the greatest problem in sampling stems from:
Term
The sampling process
 Definition
In many Asian cities, there are no street maps, some streets are not identified, and some houses are not numbered. Which of the following aspects of market research is this situation most likely to affect?
Term
A convenience sample
 Definition
Which of the following types of samples should be used when detailed and accurate information is not available for a sampling universe?
Term
Parallel translation
 Definition
Back translations may not always ensure an accurate translation because of commonly used idioms in both languages. Which of the following types of translation is used to overcome this problem?
Term
Back
 Definition
In _____ translation, the questionnaire is translated from one language to another, and then a second party translates it again into the original, and the two original language versions are compared.
Term
Improper colloquialisms or slang
 Definition
Mark Bressler is having great difficulties with his company's advertising in Japan. As a representative of Jerry Motors, he believes that it is entirely proper to use American campaigns in the Japanese market. He was surprised to learn that a slogan "Body by Arnold" (the company that makes external structures for Jerry Motors) loosely translated in Japanese to mean "Corpse by Arnold." Which of the following problems did Mr. Bressler experience with his company's advertising in this scenario?
Term
A sample universe composed solely of Internet respondents represents a potential bias
 Definition
Which of the following represents a severe limitation when the Internet is used for primary (p. 236) research?
Term
Ability to easily access volumes of secondary data
 Definition
According to the text, today the real power of the Internet for international marketing research is the:
Term
Analogy
 Definition
A toy manufacturer has excellent sales figures for its toys in country P but inadequate figures in the neighboring country R. In country P, per capita consumption is known to increase at a predictable ratio as per capita gross domestic product (GDP) increases. If per capita GDP is known for country R, per capita demand for the toys can be estimated using the relationships established in country R. Which of the following methods of forecasting does this example illustrate?
Term
Creative talent for adapting research methods
 Definition
To deal with problems in analyzing and interpreting research information in the international marketplace, the marketing researcher must possess three talents. Which of the following is one of those talents?
Term
Large-market studies may dominate decisions about global standardization
 Definition
Which of the following is a disadvantage of decentralized research management?
Term
It is hard for those lower in the hierarchy to question their superiors
 Definition
In Japanese corporate culture, which of the following constitutes a typical significant impediment to averting and responding to a crisis?
Term
The focus on consensus and group makes it hard to challenge what has been decided
 Definition
Which of the following statements is true regarding the Japanese corporate culture?
Term
Company-agency-local agency-customers
 Definition
The text describes four kinds of company—agency—customer relationships that might be used to bridge the cultural barrier that is present in most international marketing research. Which of the following is deemed to be best suited for managing the cultural barrier across the chain of communication?
Term
TRUE
 Definition
Economic development means rapid economic growth and increases in consumer demand. (T/F)
Term
FALSE
 Definition
According to the UN classification, industrially developing countries just entering world trade with relatively low per capita incomes are referred to as least-developed countries.(T/F)
Term
FALSE
 Definition
High transaction costs associated with the use of the Internet prevents smaller firms in emerging countries from selling into a global market. (T/F)
Term
TRUE
 Definition
The trend toward privatization is currently a major economic phenomenon in industrialized as well as in developing countries. 
(T/F)
Term
FALSE
 Definition
The more developed an economy, the lesser the variety of marketing functions demanded. (T/F)
Term
FALSE
 Definition
The United States-Canada Free Trade Area (CFTA) was a customs union like the European Community. (T/F)
Term
The expansion of military interventions around the world
 Definition
Which of the following is NOT one of the factors changing the way countries trade and prosper in the twenty-first century?
Term
Have rapidly changing consumption patterns
 Definition
Dynamic economies differ from static economies in that dynamic economies:
Term
These countries have high per capita incomes
 Definition
Which of the following statements is true regarding MDCs (more-developed countries)?
Term
No longer seems relevant in the rapidly industrializing world
 Definition
The United Nations’ classification of stages of economic development has been criticized because it:
Term
Have moved away from restrictive trade practices and instituted significant free market reforms
 Definition
Newly industrialized countries (NICs) differ from less-developed countries in that NICs:
Term
Attracted both trade and foreign direct investment
 Definition
Most newly industrialized countries (NICs) have moved away from restrictive trade practices and instituted significant free market reforms. As a result these countries have:
Term
Release of capital to invest elsewhere
 Definition
When countries sell off state-owned enterprises, it usually results in a(n): (p. 254)
Term
The release of capital to invest in strategic areas
 Definition
Privatization of state-owned enterprises results in _____.
Term
It often leads to modernization
 Definition
Which of the following is true about privatization of state-owned enterprises?
Term
The Internet enables smaller firms in emerging economies to sell into a global market
 Definition
Which of the following statements is true regarding the Internet?
Term
Foreign investors are seen as vital partners in economic development
 Definition
Which of the following is true about the present state of foreign businesses in most developing countries?
Term
Coexistence of three distinct kinds of markets in each country
 Definition
Estimating market potential in less-developed countries involves additional challenges, but most of the difficulty arises from the _____.
Term
Consists of population that moves from the country to the large cities
 Definition
The transitional sector differs from the modern urban sector in that the transitional sector:
Term
They import less than smaller markets
 Definition
All of the following are traits of big emerging markets (BEMs) EXCEPT:
Term
Europe after WWII
 Definition
What is happening in BEMs today is analogous to what happened in:
Term
It provided only for the elimination of tariffs and other trade barriers between the US and Canada
 Definition
Which of the following is true of the CFTA?
Term
Rules of origin
 Definition
Which key provision of NAFTA restricts Japan from assembling autos in Mexico and avoiding U.S. or Canadian tariffs and quotas, unless the auto had a specific percentage of Mexican (i.e., North American) content?
Term
it has 3 members: Canada, South Africa, and the US
 Definition
Which of the following statements is true regarding NAFTA?
Term
Is a comprehensive trade agreement that addresses and improves all aspects of doing business within North America
 Definition
NAFTA differs from Mercosur in that NAFTA:
Term
Moving goods from Mexico to the US is cheaper and faster than moving them from Sri Lanka
 Definition
Given the fact that NAFTA is now effective among the U.S., Mexico and Canada, an American company which has its production plant in Sri Lanka will be willing to relocate its production plant to Mexico mostly because
Term
Inflated public-sector bureaucracies
 Definition
Which of the following is a result of state ownership?
Term
Germany is a member of Mercosur
 Definition
All of the following statements are true regarding Mercosur EXCEPT that:
Term
Agricultural and agro-industrial products
 Definition
Which of the following accounts for the lion’s share of Mercosur exports to Europe?
Term
State ownership has resulted in complicated and unpredictable regulatory environments
 Definition
Which of the following is true about state-owned enterprises (SOEs)?
Term
To establish a Latin American common market
 Definition
The long-term goal of the LAIA (Latin American Integration Association), better known by its Spanish acronym, ALADI, is:
Term
The differential treatment of member countries according to their level of economic development
 Definition
One of the most important aspects of LAIA that differs from LAFTA, its predecessor, is:
Term
TRUE
 Definition
An important objective of the member states of the United Nations is bringing about mutual economic development. (T/F)
Term
FALSE
 Definition
Nations with complementary economic bases are most likely to encounter frictions in the development and operation of a common market unit.(T/F)
Term
FALSE
 Definition
The importance of political unity to fully achieve all the benefits of economic integration has driven European countries to form the World Trade organization (WTO). (T/F)
Term
FALSE
 Definition
The most basic level of economic integration and cooperation is geographical local federation (GLF).(T/F)
Term
TRUE
 Definition
At the most general level, the WTO represents the most important and comprehensive trade (p. 279) agreement in history.(T/F)
Term
FALSE
 Definition
The European Union is a good example of a free trade area(T/F)
Term
TRUE
 Definition
The blueprint for the European Union began with the Treaty of Rome in 1957.(T/F)
Term
TRUE
 Definition
The European Union was created when the 12 nations of the European Community ratified the Maastricht Treaty.(T/F)
Term
FALSE
 Definition
The Commonwealth of Independent States (CIS) was formed by Britain because it did not want to join the European Economic Community (EEC). (T/F)
Term
FALSE
 Definition
One of the chief features of Maastricht Treaty (1992) was that 12 members of the European community agreed to an economic but not political integration. (T/F)
Term
TRUE
 Definition
Ten new countries joined the European Union in 2004 followed by Bulgaria and Romania in 2007(T/F)
Term
FALSE
 Definition
The Council of ministers of the European Union can enact into law all proposals by unanimous vote.(T/F)
Term
TRUE
 Definition
In the Treaty of Amsterdam (1977), the European Union agreed to accommodate the changes brought about by the monetary union and the admission of new members.(T/F)
Term
TRUE
 Definition
Iran, Pakistan, and Turkey, formerly the Regional Cooperation for Development (RCD),have renamed their regional group the Economic Cooperation Organization (ECO). (T/F)
Term
FALSE
 Definition
The Baltic States had a history of a free trade regime.(T/F)
Term
FALSE
 Definition
Europe and Asia had a trade group that emerged and persisted since the dissolution of the Soviet Union called the Newly Independent States. (T/F)
Term
TRUE
 Definition
The Commonwealth of Independent States is a loose economic and political alliance with open borders but no central government. (T/F)
Term
TRUE
 Definition
The first Soviet republics to declare independence were the Baltic States
Term
TRUE
 Definition
The most advanced and viable of Africa’s regional organizations is called the Southern African Development Community.
Term
TRUE
 Definition
The initial aim of a multinational market is to protect businesses that operate within its borders.
Term
TRUE
 Definition
With the adoption of the euro, price differentials are much easier to spot, and the consumer can search for the best bargains in brand-name products more easily.
Term
The European Economic Community
 Definition
It was not until this single market was established that the United States, Japan, and other countries gave serious thought to creating other alliances. Which of the following is being referred to here?
Term
Making trade among nations more efficient
 Definition
The World Trade Organization is wholly dedicated to ____.
Term
Preferential tariff treatment for participating members
 Definition
Every type of economic union shares the development and enlargement of market opportunities as a basic orientation. Which of the following best describes the primary way market opportunities are enlarged by economic unions?
Term
A long-established Christian heritage
 Definition
Similarity of cultures can make or break an economic union. Although there is great cultural diversity in the European Union, key members share _____ and are commonly aware of being European
Term
A well-developed transportation network
 Definition
One of the first factors that gave the European Union an edge over others in the process of (p. 279) becoming a common market was:
Term
WTO
 Definition
At the most general level, the _____ represents the most important and comprehensive trade agreement in history.
Term
Free-trade area (FTA)
 Definition
A _____ is an agreement between two or more countries to reduce or eliminate customs duties and nontariff trade barriers among partner countries while members maintain individual tariff schedules for external countries
Term
A mass market without barriers among partner countries
 Definition
Essentially, a free trade area (FTA) provides its members with:
Term
Customs union
 Definition
The _____ has reduced or eliminated internal tariffs and adds a common external tariff on products imported from countries outside the group.
Term
Customs union
 Definition
A _____ is the intermediate step in the transition from a free trade area to a common market.
Term
The European Union
 Definition
Which of the following was a customs union before becoming a common market?
Term
Paris
 Definition
A _____ agreement eliminates all tariffs and other restrictions on internal trade, adopts a set of common external tariffs, and removes all restrictions on the free flow of capital and labor among member nations.
Term
Common market
 Definition
Which of these levels of economic integration lacks only political unity to become a political union?
Term
Political union
 Definition
The most fully integrated form of regional cooperation is called a:
Term
Political union
 Definition
A _____ involves complete political and economic integration, either voluntary or enforced.
Term
COMECON
 Definition
Though now disbanded, which of the following was considered to be the most notable enforced political union of the last forty years?
Term
Commonwealth
 Definition
A _____ of nations is a voluntary organization providing for the loosest possible relationship that can be classified as economic integration.
Term
European Union
 Definition
Of all the multinational market groups, none has been more secure in its cooperation or more important economically than the:
Term
Cultural; legal; social
 Definition
Many international trade experts have marveled at how members of the European Union have overcome _____, _____, and _____ differences.
Term
The European Parliament
 Definition
Which of the following European Union institutions originally had only a consultative role, but can now amend and adopt legislation?
Term
Federal
 Definition
The institutions of the European Union form a _____ pattern.
Term
European Union
 Definition
The European Commission, the Council of Ministers, the European Parliament, and the Court of Justice are institutions of the _____.
Term
European Commission
 Definition
The _____ initiates policy and supervises its observance by member states, and it proposes and supervises execution of laws and policies.
Term
Council of Ministers
 Definition
The _____ is the decision-making body of the European Union and can enact into law all proposals by majority vote except for changes in tax rates on products and services, which require unanimous vote.
Term
Directives
 Definition
The European Community uses several forms of legal instruments.
Term
The European Commission of the European Union
 Definition
Which of the following established the parameters of the creation of a common currency for the (p. 285) European Union?
Term
European Court of Justice
 Definition
The _____ is the European Union’s Supreme Court.
Term
European Parliament
 Definition
The _____ originally had only a consultative role that passed on most European Union legislation but now has the power to amend and adopt legislation.
Term
Amsterdam Treaty
 Definition
The _____ increases the authority of the institutions of the European Union and is designed to accommodate the changes brought about by the monetary union and the admission of new members.
Term
The prospect of illegal immigrants from the former Soviet Union
 Definition
The European Union is anxious to admit new members; however, there have been problems. Which of the following problems has been deemed to be the most significant regarding new member admission?
Term
A flood of cheap labor into their countries
 Definition
With the expansion of the European Union, existing members fear:
Term
Deciding on how to limit the political aspects of union
 Definition
One of the challenges facing the European Union in the next 50 years is:
Term
European Union
 Definition
Improving economic performance, deciding how to limit political aspects, and deciding about further enlargement are all the long-term challenges faced by the _____.
Term
Capitalism
 Definition
Eastern Europe and the Baltic states, satellite nations of the former Soviet Union, have moved steadily toward adopting aspects of _____.
Term
New business opportunities emerge in this region
 Definition
Eastern Europe and the Baltic states, satellite nations of the former Soviet Union, have moved steadily toward establishing post communist market reforms. This implies that:
Term
OECD
 Definition
The Czech Republic, Hungary, the Slovak Republic, and Poland have become members of the _____.
Term
Africa
 Definition
Most eastern European countries are privatizing state-owned enterprises, establishing free market pricing systems, and:
Term
Ethnic divisions
 Definition
Yugoslavia has been facing internal strife due to:
Term
Baltic States
 Definition
The first Soviet republics to declare independence from the Soviet Union were the _____.
Term
The Commonwealth of Independent States
 Definition
Which is the trade group that is part of Europe and Asia and has emerged and persisted since the dissolution of the Soviet Union comprising of all the republics save the Baltic States?
Term
To keep the ruble but allow new currencies
 Definition
Which of the following is a provision of the commonwealth agreement?
Term
Commonwealth of Independent States
 Definition
When the Soviet Union dissolved, the _____ emerged and had 12 members that agreed to a loose economic and political alliance with open borders but no central government
Term
Former Soviet membership
 Definition
The ties that bind members of the Commonwealth of Independent States stem mainly from their:
Term
The South African market's developed infrastructure
 Definition
Which of the following makes the South African market an important base for serving nearby African markets that are too small to be considered individually?
Term
Its industrial base
 Definition
South Africa is most likely to experience rapid economic growth in as few as 10 years owing to:
Term
The emphasis placed on education and healthcare
 Definition
Which of the following is the reason for East Asia’s economic success?
Term
An increased regulation of business activities
 Definition
The formation of multinational market groups has resulted in:
Term
They employ coordinated programs to foster economic growth
 Definition
Which of the following is true of large multinational markets?
Term
Easily recognizable price differentials
 Definition
The adoption of the euro has facilitated which of the following?
Term
TRUE
 Definition
In view of China’s size, diversity, and political organization, it is not possible to have one- growth strategy for China. (T/F)
Term
TRUE
 Definition
The Japanese have an affinity for united effort(T/F)
Term
FALSE
 Definition
Owing to the deeply corrupt system, most of the U.S. manufacturers in India are leaving for other countries or pulling their money back home. (T/F)
Term
FALSE
 Definition
is a body formed by the major governments of the Asian countries with the primary purpose of protecting their local industries against the market domination by their western counterparts.(T/F)
Term
Increase in direct trade
 Definition
Which of the following was primarily instrumental in decreasing the historical tension between People’s Republic of China (PRC) and the Republic of China (ROC)?
Term
Ability to deregulate industry
 Definition
Most analysts predict that China would see an 8 to 10 percent average GNP growth in the next 10 to 15 years. All of this growth is primarily dependent on China’s:
Term
Improving human rights and reforming the legal system
 Definition
Which of the following are the two most important steps China has to take to ensure that the road to economic growth is smooth?
Term
Each region in China at a different stage economically
 Definition
Which of the following is one of the important reasons behind the fact that there is no one- growth strategy for China?
Term
Economic volatility that accompanies fast growth
 Definition
Which of the following is the biggest threat to the fast pace of growth China is experiencing?
Term
Inept political apparatus
 Definition
Which of the following is one of the primary reasons behind the persistence of economic stagnation in Japan in the 1990s?
Term
The complex Japanese language
 Definition
Which of the following was the greatest hindrance to the development of software innovations appropriate for world markets in Japan?
Term
Qualified labor is cheap, and the market potential is massive
 Definition
A survey of U.S. manufacturers shows that 95 percent of respondents with Indian operations plan on expanding, and none say they are leaving. Which of the following is primarily behind this new trend?
Term
They were among the first countries in Asia to move from a status of developing countries to newly industrialized countries
 Definition
What is common among the Asian countries Hong Kong, South Korea, Singapore, and Taiwan?
Term
Encouraging entrepreneurial activities that are networked
 Definition
Which of the following is the best way to stimulate economic development and growth from within developing countries?
Term
The ASEAN governments' commitment to deregulation, liberalization, and privatization of their economies
 Definition
Which of the following is one of the major events that account for the vigorous economic growth of the ASEAN countries and their transformation from cheap-labor havens to industrialized nations?
Term
It promotes economic cooperation
 Definition
Which of the following is true of the APEC?
Term
Lack of common language
 Definition
Which of the following is most likely to cause the biggest problems for television and radio advertisers in China?
Term
D Liaoning
 Definition
The three contiguous provinces in Northeast China _____, Jilin, and Heilongjiang have long represented a cohesive unit in terms of culture and the political economy and are referred to as “dongbei”, meaning Northeast, or “dong sansheng”, meaning Northeastern Three Provinces.
Term
Its juxtaposition with China's most important industrial neighbors
 Definition
The most important advantage of Northeast China that mainly contributed toward its being the industrial and technological center of the country in the 1970s and 1980s is:
Term
Beijing-Tianjin
 Definition
This region in China is the political and R&D center of China. The 75-mile corridor in this region hosts some 5,000 Chinese high-tech companies, and more than 1,000 international IT companies. Perhaps the key to this region is the quality of its higher education. Identify the region in discussion.
Term
The distribution network is poor or absent
 Definition
Which of the following is the primary reason behind the inaccessibility of most of the 1.3 billion potential consumers?
Term
FALSE
 Definition
Tactical planning is essentially long term, incorporating generalized goals for the enterprise as a whole. (T/F)
Term
TRUE
 Definition
Strategic planning is conducted at the highest levels of management and deals with products, capital, research, and long-term and short-term goals of the company. 
(T/F)
Term
FALSE
 Definition
The first phase of the international planning process is to adapt the marketing mix to target markets(T/F)
Term
TRUE
 Definition
Incorrect decisions taken in Phase 2 of the international planning process lead to products inappropriate for the intended market or costly mistakes in pricing, advertising, and promotion. (T/F)
Term
TRUE
 Definition
In Phase 2 of the international planning process, the results of the analysis frequently indicates that the marketing mix would require such a drastic adaptation that a decision not to enter a particular market is made. (T/F)
Term
TRUE
 Definition
The Phase 3 of the international planning process involves developing a marketing plan and devising budgets and profit expectations. 
(T/F)
Term
TRUE
 Definition
With respect to the international planning process, the marketing plan begins with a situation analysis and culminates in the selection of an entry mode and a specific action program for the market. (T/F)
Term
FALSE
 Definition
With indirect exporting, the company sells to a customer in another country(T/F)
Term
TRUE
 Definition
A French company sells its products to a large retailer in France, who in turn sells those products all over Europe and Asia. This is an example of indirect exporting.(T/F)
Term
TRUE
 Definition
Exporting is a common approach of market entry for mature international companies with strong marketing and relational capabilities. (T/F)
Term
TRUE
 Definition
patent rights, trademark rights, and the rights to use technological processes are granted in foreign licensing. (T/F)
Term
FALSE
 Definition
Licensing is a form of exporting.(T/F)
Term
TRUE
 Definition
A business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective is called a strategic international alliance (SIA). (T/F)
Term
FALSE
 Definition
Joint ventures are similar in structure and organization to minority holdings by a multinational company (MNC) in a local firm. (T/F)
Term
TRUE
 Definition
Building a strategic international alliance (SIA) takes several steps to be successful. The first step in building strategic alliances is called “dating.” (T/F)
Term
TRUE
 Definition
Harry Jordan’s company has just entered into an agreement with a German firm that will create a separate legal entity. This new firm will be allowed to conduct business and actively compete in the European Union’s various markets. A good description of the new company is a “joint venture.” (T/F)
Term
FALSE
 Definition
Where unfamiliar legal and cultural barriers exist, it is preferable to buy an existing business than to enter into a joint venture. 
(T/F)
Term
TRUE
 Definition
Ten high-technology companies joined forces to produce and market their products in China. By joining together, these companies were able to enter the Chinese market for the first time. A good name for this type of arrangement is a consortium. 
(T/F)
Term
FALSE
 Definition
A Korean television manufacturer recently invested in a new television tube plant in Mexico. This form of international business is aptly named international licensing. (T/F)
Term
TRUE
 Definition
The growth of free trade areas that are tariff-free among members but have a common tariff for nonmembers creates an opportunity that can be capitalized on by direct investment. (T/F)
Term
TRUE
 Definition
An advantage of a matrix organization structure in international business is that it permits management to respond to the conflicts that arise among functional activity, product, and geography. (T/F)
Term
FALSE
 Definition
If a product is culturally sensitive, then decisions related to the product are more likely to be centralized. (T/F)
Term
Localization
 Definition
KFC sells Youtiao, a kind of Chinese doughnut, at its outlets in China. The Youtiao is considered an important part of a Chinese breakfast menu. In marketing terms, KFC is practicing a _____ strategy.
Term
It is essentially long-term in nature
 Definition
Which of the following is true about international corporate planning?
Term
It incorporates generalized goals for the enterprise as a whole
 Definition
Which of the following is true about international corporate planning?
Term
It is conducted at the highest levels of management
 Definition
Which of the following is true about strategic planning?
Term
It refers to the plans that are made at the local level
 Definition
Which of the following is true about tactical planning?
Term
Matching company and country needs
 Definition
Which of the following is most likely to be the first phase in the international planning process?
Term
Developing the marketing plan
 Definition
At which stage of the international planning process would a marketing manager conduct situation analysis and make decisions involving objectives and goals, budgets, and action programs
Term
Product adaption
 Definition
Analysis of which of the following factors is carried out in Phase 2 of the international planning process?
Term
Pricing
 Definition
Analysis of which of the following factors is carried out in Phase 2 of the international planning process?
Term
Advertising
 Definition
Analysis of which of the following factors is carried out in Phase 2 of the international planning process?
Term
Distribution
 Definition
Analysis of which of the following factors is carried out in Phase 2 of the international planning process?
Term
Decide on a marketing mix according to the market segments
 Definition
The primary goal of Phase 2 of the international planning process is to:
Term
Adapt the marketing mix to target markets
 Definition
Big Donuts has already examined a series of environmental factors, reviewed its company’s character, and established screening criteria. What should Big Donuts do next as it proceeds with the international planning process?
Term
Are there identifiable market segments that allow for common marketing mix tactics across countries?
 Definition
The answers to which of the following questions is generated in Phase 2 of the international marketing process?
Term
Conducting a situation analysis
 Definition
Which of the following actions does the marketing plan in the Phase 3 of the international planning process begin with?
Term
Phase 3
 Definition
The Harry Johnson Tractor Company has just completed a marketing plan for entering South Africa. Included in this plan are budgets, and sales and profit expectations. Which of the following phases of the international planning process has the Harry Johnson Tractor Company just completed?
Term
Phase 4
 Definition
The Harry Johnson Tractor Company wishes to expand its presence in the Eastern European countries. Toward that end, it has selected the countries where it will market its products. It has also selected a mode of entry. It is now in the process of implementing specific plans. Which of the following phases of the international planning process is the Harry Johnson Tractor Company currently in?
Term
Developing the marketing plan
 Definition
Pizza Hearth is in the process of deciding on the mode of entry into the Eastern European countries. Which phase of the international planning process is Pizza Hearth currently in?
Term
The implementation and control phase
 Definition
Which of the following is most likely to occur next in the international planning process, once a “go” decision in Phase 3 has been taken?
Term
The mode of entry
 Definition
Which of the following subjects is explored after developing information in the international planning process?
Term
Exporting
 Definition
Which of the following modes of entry is a company most likely to use if it would “just like to get its feet wet” in the international marketing arena?
Term
Direct foreign investment
 Definition
Which of the following modes of foreign market entry requires the most amount of equity and therefore, creates the greatest risk?
Term
Direct foreign investment
 Definition
Which of the following modes of foreign market entry offers the most control and the highest potential return for a company?
Term
Indirect exporting
 Definition
Pots and Pans Unlimited, a large U.S. kitchenware distributor, sells its inventory twice a year to the American branch of CookWell, a large Vietnamese kitchen retailer. CookWell, in turn, sells those products through its retail stores in Vietnam and Thailand. Which of the following best describes the form of exporting that Pots and Pans Unlimited is engaged in?
Term
Direct exporting
 Definition
Pots and Pans Unlimited, a large U.S. kitchenware distributor, takes a selection of its inventory twice a year to Vietnam and sells it to CookWell, a large Vietnam-based kitchen retailer. CookWell, in turn, sells those products through its retail stores in Vietnam and Thailand. Which of the following best describes the form of exporting that Pots and Pans Unlimited is engaged in?
Term
Indirect exporting
 Definition
_____ requires no equity investment and thus has a low risk, low rate of return, and little control.
Term
Internet marketing
 Definition
Which of the following is the simplest and the cheapest method to enter a foreign market?
Term
Corporate jets
 Definition
For which of the following products is it advisable for a company to have a direct sales force in the country where it intends to sell its products?
Term
The franchisee provides market knowledge, capital, and personal involvement in management
 Definition
Which of the following is true of franchising?
Term
Foreign laws and regulations are friendly toward franchising
 Definition
Which of the following is true of franchising?
Term
Strategic international alliance
 Definition
A _____ is a business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective without forming a separate legal entity.
Term
Dating
 Definition
The first relationship activity in building a strategic alliance where senior executives leverage their personal networks is labeled as _____.
Term
Imaging
 Definition
Which of the following primary relationship activities in building strategic alliances involves seeing the reality in possibilities of an alliance, creating a shared vision from being together, and involving trusted senior managers?
Term
Initiating
 Definition
Which of the following primary relationship activities in building strategic alliances involves bringing key executives into action and creating trust through face-to-face time?
Term
Interfacing
 Definition
Which of the following primary relationship activities in building strategic alliances involves facilitating the creation of personal relationships at many levels, traveling to partner facilities and engaging in technical conversations, and blending social and business time?
Term
Creating intimacy
 Definition
Which of the following relationship skills is necessary during the imaging activity stage of building a strategic alliance?
Term
Trust building
 Definition
Which of the following relationship skills is necessary during the initiating activity stage of building a strategic alliance?
Term
Partnering
 Definition
Which of the following relationship skills is necessary during the interfacing activity stage of building a strategic alliance?
Term
Joint venture
 Definition
Which of the following refers to two or more participating companies joining forces to create a separate legal entity to facilitate doing business in the international arena?
Term
A global product division structure
 Definition
MedUmbrella provides a broad and diverse range of services for the healthcare industry. It also manufactures a wide variety of hospital equipments. It wants to experience rapid growth and wishes to organize better for global competition. Which of the following organizational structures will suit MedUmbrella best?
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