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Global Marketing Test Ch 1-5

Terms in this set (306)

____________ is a dynamic trend that is affecting the current global business strategies?
The trend toward the acceptance of the free market system among developing countries.
Companies from _____ lead in foreign investment in the United States.
United Kingdom
__________ is true regarding the impact of globalization on domestic markets in the United States?
Multinational manufacturing companies in all industries and sizes have outperformed their domestic counterparts.
______________ is an essential requirement for companies to succeed in international markets?
Committing themselves completely to foreign markets.
_____ 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.
International marketing
_______________ is the most critical difference between domestic marketing and international marketing?
The environment in which marketing plans must be implemented.
_____________ in the marketing environment poses a challenge to both domestic and international marketers due to its uncontrollable nature?
Political/legal forces
___________ is a controllable element for an international marketer?
Channels of distribution
is an uncontrollable element for an international marketer?
Level of technology
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.
controllable elements
_____________is an uncontrollable factor for a marketer in a domestic environment?
Competitive structure
_____________political actions is likely to favor international marketing?
Paraguay imposing low tariffs and tax rates for manufacturing industries.
_____________reflects the relationship between international business and domestic business?
The ability to invest abroad is to a large extent a function of domestic economic vitality.
_________is a possible outcome of the "alien status" of a company?
An increase in protectionist federal policies.
With respect to the environment in which a business operates, factors such as competition, political and legal forces, economic climate, would all be classified as ____________
uncontrollable elements.
_____ is a controllable element in both domestic and international marketing environments.
Price of products
The marketing tasks of an international marketer differs from that of a domestic marketer as _________
the structure of distribution is an uncontrollable element for the international marketer.
Robert Jonas is in charge of a new marketing effort directed toward Peru. _____________foreign environment uncontrollable variables would be a chief concern as Mr. Jonas devises his plan?
Geography and infrastructure
Compared to the foreign environment uncontrollable variables, which of the following elements is excluded from the domestic marketer's list of uncontrollable variables?
Cultural forces
Amy Sims has been assigned the task of preparing a marketing plan and knows that she should begin her plan by examining the variables that she has some control over. These controllable variables would include price, product, channels-of-distribution, and _____.
promotion
M&M focusing more on international operations until a German company in the same business entered its home market. The German company started selling good quality products at prices much lower than M&M's and affected its sales adversely. Which of the following elements in the marketing environment has affected the business of M&M in the above scenario?
Competition in the domestic market
Ralph reviews the marketing opportunities of his video game company in a foreign market. Which of the following uncontrollable elements is most likely to affect the company's business prospects in the foreign market?
The level of technology in the targeted market.
The _____ issues faced by a company are often amplified by the "alien status" of the company, which increases the difficulty of properly assessing and forecasting the dynamic international business climate.
political/legal
Which of the following best illustrates the political and legal issues faced by companies because of their "alien status" when they attempt to do business in foreign countries?
A company being forced by the local government to share its core competencies in order to continue doing business.
_____ is the conscious effort on the part of the international marketer to anticipate the influences of both the foreign and domestic uncontrollable factors on a marketing mix and then to adjust the marketing mix to minimize the effects.
Adaptation
The primary obstacles to success in international marketing are a person's _____ and an associated ethnocentrism.
self-reference criterion
_____ is an unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions.
Self-reference criterion
______________is closely related to the self-reference criterion?
Ethnocentrism
_____ impedes the ability of a person to assess a foreign market in its true light.
Ethnocentrism
The most effective way to control the influence of ethnocentrism and the SRC is to______________
recognize their effects on our behavior.
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 should be the first-step to avoid the aforementioned errors?
Defining the business problem or goal in home-country cultural traits, habits, or norms.
Understanding one's own culture requires additional study as____________
much of the cultural influence on market behavior is at the subconscious level.
________________types of nontariff barriers strictly falls under the category of specific limitations on trade?
Embargoes
_______________characterizes a globally aware manager?
Allowing others to be different and equal.
________________will aid a manager in understanding the way people of different countries think and act?
A historical perspective.
_____________is the most effective way to achieve organizational global awareness?
Having a culturally diverse senior executive staff or board of directors
Which of the following organizations seems better equipped for internationalization?
A firm that has a production capacity that is much greater than home market demand.
Which of the following firms has a better chance of accelerating the internationalization process?
International regulatory bodies set export/import limits.
Which of the following is true regarding the stages of international marketing involvement?
A firm may be in more than one stage simultaneously.
Which of the following best describes the stage of development where the company's products reach a foreign market without any conscious effort on the part of the marketer?
No direct foreign marketing
Jefferson's is a firm that specializes in dog food and grooming products. The company does not actively sell its products outside national borders but provides goods to customers who contact them directly or place orders with them through the Internet. Jefferson's is currently in the _____ stage of international marketing involvement.
no direct foreign marketing
If a marketer is motivated to initiate an international marketing effort mainly because of temporary surpluses in the domestic market, which of the following stages best characterizes the stage of international marketing involvement for this marketer?
Infrequent foreign marketing
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?
International marketing
Market segmentation decisions no longer focus on national borders. Instead, market segments are defined by income levels, usage patterns, and other factors that span countries and regions. Which of the following stages best characterizes the stage of international marketing involvement for Ms. Peron's company?
Global marketing
Ajax Corporation has decided to enter the international marketing arena by marketing its products on a country-by-country basis, with separate marketing strategies for each country. The company is using which of the following concepts to formulate its international policies and strategies?
Multidomestic market concept
Regular foreign marketing stage differs from the international marketing stage as companies at the regular foreign marketing stage:
focus all their operations and production to service the domestic market needs even though they are interested in foreign markets.
Which of the following is true of firms in the first two stages of international marketing involvement—no direct foreign marketing and infrequent foreign marketing?
They are more reactive in nature and embark on internationalization without planning.
In which of the following stages of international marketing involvement, companies primarily focus all their operations and production to service domestic market needs, even though they have a permanent productive capacity devoted to the production of goods to be marketed in foreign markets?
Regular foreign marketing
The firms at the stage of regular foreign marketing of international marketing involvement:
primarily focus all their operations and production to service domestic market needs.
Which of the following is true of firms at the international marketing stage of marketing involvement?
Planning generally entails production of goods outside the home market.
What is the most profound change for firms at the global marketing stage of internationalization?
Companies treat the world, along with home market, as one market
Which of the following firms/products reflects a global marketing orientation?
A firm producing highly cost-effective and durable computers.
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.
global marketing
After World War II, the United States led efforts like the Marshall Plan to assist in rebuilding Europe, financial and industrial development assistance to rebuild Japan, and funds channeled to foster economic growth in the underdeveloped world. These efforts were primarily aimed at:
dampening the spread of communism.
After World War II, the United States set out to infuse the ideal of capitalism throughout as much of the world as possible. The _____, aimed at assisting in rebuilding Europe, is the plan most closely associated with this endeavor.
Marshall Plan
What was the most apparent reciprocal impact of the foreign economic assistance given by the United States?
Purchases of U.S. agricultural products, manufactured goods, and services by the recipient countries increased.
Which of the following factors was primarily responsible for the excess production capacity in the U.S. in the first half of the twentieth century?
Swelling labor supply of returning military after World War II.
Which of the following was the most significant move of the 1980s that contributed toward international cooperation among trading nations?
Negotiation of the General Agreement on Tariffs and Trade.
Which of the following acronyms refers to the international forum that was created for member countries to engage in the negotiation of tariffs and other barriers to trade?
GATT
What was the outcome for the GATT after the ratification of the Uruguay Round agreements?
It became part of the World Trade Organization.
The rapid growth of war-torn economies and previously underdeveloped countries, coupled with large-scale economic cooperation and assistance that followed World War II led to:
the rise of new global marketing opportunities.
Which were the two major challenges faced by U.S. multinational corporations at the close of the 1960s?
Resistance to direct investment and increasing competition in export markets.
Post World War II, it was noticed that there was worldwide economic growth and countries once classified as less developed were reclassified as _____.
newly industrialized countries
Which of the following presents the correct picture of the outcome of increased world trade after the 1950s, contrary to Servan-Schreiber's prediction?
Economic power and potential became more evenly distributed among the countries of the world.
Which of the following is the major reason behind the failure of American MNCs to completely dominate the European markets as predicted by Servan-Schreiber?
The resurgence of competition worldwide.
Which of the following strategies was employed by the US to regain its lost market share for capital goods by the late 1990s?
Restructuring its industries to be more lean and mean.
By the year 1971, the United States was witnessing:
a huge trade deficit.
In the late 1990s, most of the countries of the world saw a slow down in the unprecedented and precipitous growth of their economies. However, _____ remained unaffected by this trend.
China
The World Bank estimates that five countries whose share of world trade is barely one-third that of the European Union will, by 2020, have a 50 percent higher share than that of the European Union. _____ is one of the countries included in this list.
Indonesia
The system of accounts that records a nation's international financial transactions is most accurately called its:
balance of payments
Which of the following ensures that balance-of-payments records are always in balance?
the double-entry bookkeeping system
Which of the following is true regarding the balance-of-payments records?
The fact that assets and liabilities balance does not essentially mean that a nation is in a particularly good financial condition.
Which of the following is a defining characteristic of a balance-of-payments statement?
It records all financial transactions between the residents of a country and those of the rest of the world.
Which of the following falls on the plus side of the U.S. balance of payments?
Payments to the United States for insurance.
Which of the following falls on the minus side of the U.S. balance of payments?
Spending by American tourists overseas.
A balance-of-payments statement includes three accounts. Two of those accounts are the current account and the capital account. What is the third account found on the balance-of-payments statement?
Reserves account
The _____ of the balance-of-payments statement is most likely to record all merchandise exports, imports, and services plus unilateral transfers of funds.
current account
Which of the following sections of the balance-of-payments statement is a record of the direct investment, portfolio investment, and short-term movement of cash and technology to and from countries?
capital account
The _____ account of the balance-of-payments statement is most likely to record all exports and imports of gold, increases or decreases in foreign exchange, and increases or decreases in liabilities to foreign central banks.
reserves
Which of the following arguments regarding the need for protectionism is recognized by economists as valid?
Protection of an infant industry
The cell-phone manufacturing industry has just started in U.K and Smithe-Jones' company is one of the first to try its hand at cell-phone manufacturing. Which of the following would probably be the argument that Smithe-Jones would use to persuade his government representatives that protectionism is still needed in the U.K.?
Protection of an infant industry
A tax imposed by a government on goods entering at its borders is most accurately termed as a(n) _____.
tariff
In general, tariffs weaken:
balance of payments positions
Which of the following is true of tariffs?
They increase special interests' privileges.
In general, tariffs restrict:
manufacturers' supply sources
A specific unit or dollar limit applied to a particular type of good is called a(n):
quota
Which of the following is an example of a nontariff trade barrier?
administrative fees
Which of the following types of nontariff barriers strictly falls under the category of specific limitations on trade?
Embargoes
In the context of nontariff barriers, antidumping practices fall under the category of:
customs and administrative entry procedures.
The fundamental difference between quotas and import licenses is that:
import licenses have greater flexibility than quotas.
Exporting countries primarily agree to voluntary export restraints (VERs) to
avoid the chances of stiffer quotas and tariffs.
An agreement signed willingly between the importing country and the exporting country for a restriction on the volume of exports is called a:
voluntary export restraint.
Which of the following is a defining characteristic of VERs?
The exporting country sets the limits on the quantity it will export.
The marketing manager for Grand Products wants to export the company's range of beer products to a Gulf country. However, he discovers that there is a complete restriction on the import of any form of liquor into that country. This is an accurate example of _____.
boycotts
When the United States refuses to sell goods to Iran because of the perception that the country harbors radicals and terrorists, the refusal is most accurately referred to as a(n):
embargo
Blockage is ideally accomplished:
when a country refuses to allow an importer to exchange its national currency for the seller's currency.
In order to effectively secure foreign exchange, which of the following is most likely to be used by countries experiencing severe shortages of foreign exchange?
Government approval
Which of the following trade policy tools makes it mandatory for its importers who want to buy a foreign good to apply for an exchange permit?
government approval
The exchange permit can stipulate
the number of times one party can avail of exchange permits.
Tall Pine Plywood Company has just received a notice that a shipment of plywood (2 metric tons) has been rejected by Japanese customs because the knotholes commonly found on a plywood sheet are too large. Which of the following categories of nontariff barriers primarily checks such quality issues?
standards
The United States and other countries require some products (automobiles in particular) to contain a percentage of "local content" to gain admission to their markets. This is an example of the stringent usage of _____ to restrict trade.
standards
_____ 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.
predatory pricing
_____ is a new nontariff barrier that was designed to prevent foreign producers from using predatory pricing.
anti-dumping law
Which of the following trading partners of the U.S. became its topmost "trade problem" at the beginning of the 21st century?
China
Which of the following was designed to primarily deal with trade deficits, protectionism, and the overall fairness of the U.S. trading partners?
The Omnibus Trade and Competitiveness Act of 1988.
Which of the following is an area that is considered critical in improving U.S. trade in the context of the Omnibus Trade and Competitiveness Act?
Market access
The Foreign Corrupt Practices Act (FCPA) is specifically addressed in the _____ section of the Omnibus Trade and Competitiveness act.
export expansion
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?
The import relief section.
Which of the following is one of the four ongoing forces supporting the growth of international trade?
International Monetary Fund
Which of the following is true of the GATT?
It created an agency to serve as watchdog over world trade
As an outcome of the Uruguay Round of intergovernmental tariff negotiations on the GATT platform, the first multilateral, legally enforceable agreement covering trade and investment in the services sector was formulated, termed the _____.
General Agreement on Trade in Services (GATS)
Which of the following agreements makes it possible for firms to challenge the restrictions in Indonesia that prohibit foreign firms from opening their own wholesale or retail distribution?
Trade-Related Investment Measures (TRIMs)
Which of the following emerged as a successor to the GATT following the Uruguay Round of GATT negotiations?
World Trade Organization
One of the basic elements of the General Agreement on Tariffs and Trade (GATT) is that:
trade shall be conducted on a nondiscriminatory basis
Which of the following is the most popular way to circumvent WTO guidelines and impose new duties?
Anti-dumping duties
Several nations are frustrated with the slow progress of the most recent round of WTO trade negotiations. To vent their frustration, several countries are:
negotiating bilateral trade agreements.
_____ and the World Bank Group are two global institutions created primarily to assist nations in becoming and remaining economically viable.
The International Monetary Fund
To overcome the problems of inadequate monetary reserves and unstable currencies that plagued international trading before World War II, the _____ was formed.
International Monetary Fund
Developed by the IMF to cope with universally floating exchange rates, _____ represent(s) an average base of value derived from the value of a group of major currencies.
special drawing rights
Another term for IMF special drawing rights (SDRs) is:
paper gold
Which of the following is a criticism associated with the global financial institutions?
They failed to foresee and counter the unintended effects of globalizations like pollution, exploitation, and cultural exploitation.
Which of the following is an adverse consequence of globalization?
Worker exploitation and domestic job losses
Which of the following statements is true with regard to the status of protests against global financial institutions?
The "antisweatshop" campaigns by students in America have translated into changes in policy.
Which of the following is true of culture?
It is a society's accepted basis for responding to external and internal events.
In 1066, William the Conqueror defeated Harold II in the Battle of Hastings, establishing Norman rule in _____.
England
The _____ was a political protest against the British prohibition of Yankee traders from dealing directly with merchants in Canton.
Boston Tea Party
Which of the following commodities dominated the trade between Britain and China during the early 1800s?
Tea
Which of the following commodities helped Britain erase the tea-caused trade deficit with China during the 1800s?
opium
Which of the following events caused the Chinese to cede Hong Kong to the British?
The First Opium War
The opium wars resulted in a loss of confidence in the Chinese government. Which of the following events was caused by the resulting disorder?
The Taiping Rebellion
Which of the following events is one of the pivotal factors behind the wariness of the Chinese leadership toward foreign influences in general, and religious movements in particular, even today?
The Taiping Rebellion
Which of the following events in the history of China has made the country wary of foreign influences?
The Opium Wars
Japan was an isolated country before the arrival of _____ in 1853.
Commodore Perry
Which of the following may best explain why the Japanese have such strong loyalty toward their companies?
Confucian philosophy
Which of the following events occurred during the Mexican Revolution?
Expulsion of North American businessmen
In the context of the Mexican-American War, the president of Mexico, the cabinet, and the diplomatic corps assemble at the Mexico City fortress every September 13 to recall the defeat that led to the _____.
"despojo territorial"
Which of the following events, leading to the overthrowing of the dictator Díaz, is particularly remembered for the expulsion of foreigners—most notably North American businessmen who were the most visible of the wealthy and influential entrepreneurs?
The Mexican Revolution
In 1450, the _____ was the first book printed with movable type.
Gutenberg Bible
Which of the following statements most accurately reflects the feelings of most Mexicans toward the United States?
Mexicans see the United States as a threat to their political, economic, and cultural independence.
In 1531, the _____ stock exchange was the first exchange to move into its own building, signifying its importance in financing commercial enterprises throughout Europe
Antwerp
In 1561, _____ came to Europe from the Near East, via the Dutch traders, for the first time.
tulips
In 1425, the Hanseatic city of _____ became the first Atlantic seaport to be a major trading center.
Brugge
What was the overall end result of the Mexican War of 1846-1848?
Mexico was forced to cede California to the U.S.
The idea of Manifest Destiny was used to justify the U.S. annexation of ____________
California
In 1464, the French royal mail service was established by _____.
Louis XI
Manifest Destiny and the _____ were accepted as the basis for U.S. foreign policy during much of the 19th and 20th centuries.
Monroe Doctrine
In 1600, _____ were brought from South America to Europe, where they quickly spread to the rest of world and become a staple of agricultural production.
potatoes
In the context of U.S. foreign policy in the 19th and the 20th centuries, _____, in its broadest interpretation, meant that Americans were a chosen people ordained by God to create a model society.
Manifest Destiny
The Manifest Destiny specifically referred to the:
territorial expansion of the United States from the Atlantic to the Pacific
In 1600, Japan began trading _____ for foreign goods.
silver
Abstention of the United States from European political affairs was one of the three basic dicta of the _____.
Monroe Doctrine
Which of the following policies was used in the formation of a provisional government in Cuba in 1906?
The Roosevelt Corollary
The _____, a cornerstone of early U.S. foreign policy, dictated that no further European colonization in the New World would be accepted.
Monroe Doctrine
Which of the following U.S. foreign policies was applied in 1905 when the Dominican Republic was forced to accept the appointment of an American economic adviser?
The Roosevelt Corollary
The manner in which the United States acquired land for the Panama Canal Zone typifies a U.S. foreign policy, _____, —whatever is good for the United States is justifiable.
Roosevelt Corollary
_____ is the study of the earth's surface, climate, continents, countries, peoples, industries, and resources.
Geography
_____ includes an understanding of how a society's culture and economy are affected as a nation struggles to supply its people's needs within the limits imposed by its physical makeup.
geography
Which of the following best describes the current perception of geographical features such as mountains in the context of economic growth in Europe?
They are impediments to efficient trade and communication.
In the context of social responsibility and environmental management, which of the following is a byproduct of pollution controls?
The disposal of hazardous waste.
Which of the following countries is the world's top polluter, at present, in almost all respects?
China
Which of the following treaties was revised to include a total ban on the export of hazardous wastes by developed nations?
The Basel Convention
_____ development is a joint approach among those who seek economic growth with "wise resource management, equitable distribution of benefits and reduction of negative effects on people and the environment from the process of economic growth."
Sustainable
Which of the following sources of energy provides the preponderance of energy in much of the underdeveloped world?
Human labor
Which of the following sources of energy dominates the world's energy usage?
Petroleum products
Which of the following best explains why petroleum-related products continue to dominate energy usage?
It is easy to store and transport.
Which of the following statements is true about the consumption of petroleum products by the United States?
The U.S. has become a major importer of petroleum products
Which of the following countries is considered to be the world's most efficient user of energy?
Japan
Which of the following countries has an inefficient oil usage pattern chiefly due to outdated technology?
China
Which of the following sources of energy has a greater emphasis in North America?
oil
Which of the following is true with respect to the dynamics of global population trends?
The existence of sheer numbers of people is significant in appraising potential consumer markets.
Which of the following statements is true with respect to the economic effects of controlling population growth?
A decline in fertility rate is a function of economic prosperity.
Which of the following is true of the industrialized world's population?
It is in decline and rapidly aging
The part of the world with the largest portion of people over 65 years is also the part of the world with the fewest number of people under age 15 years. Which of the following is most likely to be a possible result of this disparity?
A heavy tax burden on future workers.
Which of the following factors will ameliorate explosive population expansion in less developed countries?
Free flow of immigration.
Which of the following is the most universal means used by governments to control birthrates?
Family planning
Which of the following is considered to be the most important deterrent to population control?
Cultural attitudes that favor large families
In the context of global population trends, a nation needs a fertility rate of about 2.1 children per woman to be able to:
maintain its population
Which of the following regions of the world is most affected by aging and thus by a steadily decreasing worker-to-retiree ratio?
Europe
Countries like _____ and the U.S. epitomize the problems caused by an increasing percentage of elderly people who must be supported by a declining number of skilled workers.
Japan
_____ represent(s) the attempts of countries to overcome economic and social imbalances created in part by the influence of geography.
Trade routes
Which of the following was the earliest trade route?
land routes
An underpinning of all commerce is _____—knowledge of where goods and services exist and where they are needed.
effective communications
The sum total of knowledge, beliefs, art, morals, laws, customs, and any other capabilities and habits acquired by humans as members of society is called _____.
culture
When designing a product, the style, uses, and other related marketing activities must be made _____ if they are to be operative and meaningful.
culturally accepted
When marketers first introduced the personal digital assistant (PDA) to the American consumer, they performed the role of being _____ because the cultural impact of the product became widespread.
agents of change
In the context of culture's pervasive impact, which of the following is true about birthrates?
Government policies and birth control technologies have caused a decline in birthrates.
Which of the following actions is important for foreign marketers in order to be effective in a foreign market?
Learning to appreciate the intricacies of cultures different from their own.
According to Dutch management professor Geert Hofstede, culture is referred to as the:
"software of the mind."
Which of the following reflects Dutch management professor Geert Hofstede's perception of culture?
It is a problem-solving tool.
James Day Hodgson, former U.S. ambassador to Japan, describes culture as a(n) _____, which according to him is tough to get through, but with effort and patience could often lead to success.
thicket
According to Edward Hall's comments on culture, which of the following could hurt companies and careers in foreign markets?
Ignorance of cultural differences in the foreign market
The process of adjusting to a new culture is known as:
acculturation
Which of the following is a way individuals learn culture from social institutions
Socialization
Most traditional definitions of _____ center around the notion that it is the sum of the values, rituals, symbols, beliefs, and thought processes that are learned, shared by a group of people, and transmitted from generation to generation.
culture
Mike grew up learning a great deal about his culture from his school, the church, the mass media, and his family. This kind of learning of culture is called:
socialization
Mervin is excited about his new home in the Philippines. Though native of Los Angeles, he has been given the opportunity to learn about a new culture, form new friendships, and capitalize on opportunities that were not available in his previous home or workplace. He will go through what is known as _____ as he adjusts to living in the Philippines.
acculturation
Family, religion, schools, the media, government, and corporations are all examples of a(n
social institution.
Which of the following is true with respect to Professor Jared Diamond's ideas regarding the influence of geography on history and cultural values?
Historically, innovations spread faster east to west than north to south.
Which of the following thinkers is famous for his statement on the deep influence of geography on history, economics, and consumer behavior?
Philip Parker
New cola alternatives (Mecca Cola, Muslim Up, Arab Cola, and ColaTurka) sprang up after the military conflicts in the Middle East in 2003. This is an example that shows how:
specific events in history can influence consumer behavior.
Which of the following technological innovations has had a great impact on the gender-based determining of responsibilities and roles?
Birth control pills
The _____ in India is a social institution that influences the roles and status positions found within Indian society.
caste system
One of the advantages of the emergence of gender equality is the _____ gap between the sexes being narrowed in many places around the world.
education
In most cultures, the first social institution infants are exposed to outside the home takes the form of a:
religious institution
Numerous studies indicate a direct link between the literacy rate of a country and its
capability for rapid economic growth
What has been the impact on American culture, of women joining the workforce in growing numbers for the past thirty years?
A reduction in the influence of family in the American culture
Which of the following social institutions is considered to have had a detrimental effect on American culture?
media
Which of the following social institutions that influence culture has comparatively the least impact on culture?
Government
Governments influence thinking and behavior through the
enforcement of a variety of laws affecting consumption and marketing behaviors.
Which of the following social institutions introduce innovations to society?
corporations
Which of the following is the main reason for corporations being the forerunners of innovations in society?
The access they have to ideas from around the world
The most useful information on how cultural values influence various types of business and market behavior comes from work done by:
Geert Hofstede
In the context of linguistic distance, which of the following languages is the most distant from English?
Thai
In the context cultural values, the _____ Index refers to the preference for behavior that promotes one's self-interest.
Individualism/Collectivism
The Uncertainty Avoidance Index measures the tolerance of uncertainty and _____ among members of a society.
ambiguity
On the basis of Hofstede's four dimensions, cultures with high Power Distance Index (PDI) scores tend to be:
hierarchical.
Wayne is working at the overseas branch of his organization. He needs some clarification about a project. He approaches a senior manager thinking he would get a good explanation. However, he is instructed to follow protocol and sent away. Also, he is informed that only team leads are allowed to approach senior managers. This implies that the organization has a ______ score.
high Power Distance Index
People from which of the following cultures are more likely to have a general distrust of others (not those in their groups) because power is seen to rest with individuals and is coercive rather than legitimate?
Cultures with a high Power Distance Index score.
Cultures with high _____ scores tend to have a high level of anxiety and stress and a concern with security and rule following.
Uncertainty Avoidance Index
Cultures which are low in Uncertainty Avoidance index:
take a more empirical approach to understanding and knowledge
For a culture, a low score in the _____ reflects more egalitarian views.
Power Distance Index
Which of the following terms pertains to societies in which people from birth onward are integrated into strong, cohesive groups?
Collectivism
Cultural values can predict such consumer behaviors as _____ and impulsive buying
word-of-mouth communications
Based on the Individualism/Collectivism Index, in which of the following cultures will the "virtual social" activity of online chatting be most acceptable?
One in which individualism reigns supreme
Hofstede's data on cultural values suggest that:
diffusion of innovations will be slower in countries that are low on individualism and high on uncertainty avoidance
In the context of the elements of culture, rituals are patterns of behavior and interaction that are:
learned and repeated.
The anthropologist, Edward T. Hall tells us that culture is:
communication
In some parts of the world, language is itself thought of as a social institution, often with political importance. Which of the following countries best exemplifies the above statement?
France
In the context of the relationship between language and international marketing, recent studies indicate that a new concept, _____, is proving useful to marketing researchers in market segmentation and strategic entry decisions.
linguistic distance
Linguistic distance is an important factor that helps in determining differences in values across countries and the amount of trade between countries because:
crossing "wider" language differences increases transaction costs.
The aesthetics of a culture must be taken into account by marketers when:
styling the product and its packaging.
Feng shui is a Chinese ____, considered to be the process that links humans and the universe to ch'i, the energy that sustains life and flows through our bodies and surroundings, in and around our homes and workplaces.
belief
Based on Richard Nisbett's metaphor involving Confucius's worthy picture, what is his analysis regarding the thought process or perceptual process of Westerners?
Westerners can provide great details about central figures but see relatively little in the background.
_____ refers to being attuned to the nuances of culture so that a new culture can be viewed objectively, evaluated, and appreciated.
Cultural sensitivity
_____ is a responsible effort to learn from others' cultural ways in the quest for better solutions to a society's particular problems.
Cultural borrowing
To the foreign marketer, the similar-but-different feature of cultures has important meaning in gaining cultural _____.
empathy
Which of the following is the most important factor in determining what kind and how much of an innovation will be accepted by a culture?
The degree of interest in the particular subject.
With regard to resistance to change, observations indicate that those innovations most readily accepted are those that:
hold the greatest interest within the society and those that are least disruptive.
Modern medicine has thrived in the United States together with the use of herbal remedies from South America. This is an example of:
cultural borrowing
_____ refers to a strategy that involves marketing products similar to ones already on the market thereby minimizing resistance.
Cultural congruence
The strategy of _____ deliberately sets out to change those aspects of the culture offering resistance to predetermined marketing goals.
planned change
Marketing strategy is judged culturally in terms of _____.
acceptance, resistance, or rejection
The first step in bringing about planned change in a society is to:
determine which cultural factors conflict with an innovation
Morton Foods has decided to introduce a new line of turkey products to the American consumer. Turkey steaks resemble beefsteak in taste but are made from turkey meat, and are leaner and healthier for a variety of reasons. However, the company is concerned that the product will not be accepted in America. If Morton Foods follows a strategy of _____, they are more likely to have a successful introduction of the new product.
cultural congruence
Nexar Energy is advocating the use of solar power to replace all petroleum-based energy sources. The company holds demonstrations to show how solar power could be used in all major petroleum-based products—automobiles, power sources, and heating and cooling. Nexar Energy is employing a strategy of _____, a deliberate attempt to change the way we do things with respect to energy sources.
planned change
The Westernized diet has caused many Japanese to become overweight. This is an example of _____ change.
unplanned
Which of the following is a criterion for adaptation when dealing with individuals, firms, or authorities in foreign countries?
flexibility
Which of the following is true of adaptation in international marketing?
Willingness to adapt is a crucial attitude in international marketing.
Business customs can be grouped into:
imperatives, electives, and exclusives.
_____ are the business customs and expectations that must be met and conformed to or avoided if relationships are to be successful.
Cultural imperatives
Business customs that must be recognized and accommodated are called
imperatives
Business customs to which adaptation is helpful but not necessary are called
electives
Business customs in which an outsider must not participate are called
exclusives
Which of the following would most likely be characterized as being an imperative business custom in many cultures?
Establishing friendships.
Simon Peters, a senior manager at Celise Export Logistics, goes for a meeting in France to negotiate a deal with the company's French partners. He dresses casually in a t-shirt and jeans. His French counterparts call off the meeting and accuse him of taking a casual attitude toward negotiations. In the context of this scenario, dressing formally during business meetings is probably a cultural _____ for the French.
imperative
Betty Roberts became an embarrassment to her company when she joked about the ruling monarchy in England in front of a group of visiting English businesspeople. She should have known that political ridicule by a foreigner is rarely accepted. Ms. Roberts has violated what is known as a cultural _____.
exclusive
Which of the following could be the least acceptable behavior in a business setting, especially in a cross-cultural scenario?
Correcting someone in public
Which of the following views is consistent with normative U.S. cultural concepts
Independent enterprise is an instrument for social action
Which philosophy of U.S. management recognizes that people influence the future to a large extent and that they control their own fates?
Master of destiny" viewpoint
There is a very strong belief in the United States that business decisions must be supported and based on accurate and relevant information. Which of the following best describes this approach?
Objective analysis
Which of the following is consistent with the American view of the independent enterprise?
A corporation is an entity that has rules and continuity of existence
The recognition of U.S. corporations as entities that have rules and continuity of existence and are separate, vital social institutions can result in:
feelings of obligation among employees to serve the company.
Adam Smith in his Wealth of Nations stated, "By pursuing his own interest he frequently promotes that of the society more effectually than when he really intended to promote it." What behavior does this notion attempt to justify?
Competitiveness
The notion that _____ is crucial for efficiency, improvement, and regeneration is fundamental to Western management practices.
competition
In _____ decision making, participation by middle management tends to be deemphasized.
top-level management
As businesses grow and professional management develops, there is a shift toward:
decentralized management decision making
A characteristic of committee decision making is that it is:
by group or consensus.
Which of the following forms of business decision making is predominant in most Asian countries?
Group
In _____ decision making, title or position generally takes precedence over the individual holding the job.
decentralized
Companies in _____ countries have a strong paternalistic orientation, and assume that individuals will work for one company for the majority of their lives.
more hierarchical
In the context of management objectives and aspirations, which of the following is true of an employee's personal life?
To the Japanese, personal life is company life.
Research has shown that commitment of workers to their companies tended to be higher in countries:
higher in individualism and lower in power distance.
According to Max Weber, at least part of the standard of living in the United States today can be attributed to the:
hard-working Protestant ethic.
Which of the following aspects of communication is more important in a low-context culture
Explicit communication
According to the high-context/low-context continuum identified by Edward T. Hall, communication in a low-context culture depends on:
the verbal expression
Fredrick Keeble, an American manager, took his Swiss client out for a traditional American dinner. The client did not seem to enjoy the food and left most of it untouched. After dinner, he asked his client if he had enjoyed the dinner. Which of the following responses would indicate that the client comes from a low-context culture?
No, I did not like the food.
Which of the following is the best means of solving the problem of language on the Internet
Having country-specific websites so that everyone can communicate in their own language
France is higher on Hofstede's Power Distance Index (PDI) than the United States and formality still reigns in France. Which of the following American business practices would be most unacceptable to the French?
Using first names in business encounters.
_____ is probably the most common mistake of North Americans attempting to trade in the Middle East.
Impatience
Western cultures like most North Americans, Swiss, Germans, and Scandinavians tend to concentrate on one thing at a time and are typified by _____ time.
monochronic
_____ is more dominant in high-context cultures, where the completion of a human transaction is emphasized more than holding to schedules.
Polychronic time
Kan is a customer relations manager with a leading multinational firm. He has managed various operations and deals with numerous domestic and international clients everyday. Despite his hectic schedule, Kan never cuts a meeting short with anyone and frequently postpones subsequent meetings in order to devote ample time to each of his clients. Which of the following countries is he most probably from?
Japan
People in Brazil describe themselves as late arrivers, allow greater flexibility in defining early and late, are less concerned about being late, and are more likely to blame external factors for their lateness. Which system of time do the Brazilian people most likely operate on?
Polychronic time
When compared to people operating on P-time, people operating on M-time
tend to concentrate on one thing at a time.
A firm whose marketing orientation is based on the belief that consumers and businesses alike will not buy enough without prodding is _____ oriented.
selling
Which of the following is true of the effect of differences in culture in business negotiations
The risk of misunderstanding increases when negotiating with someone from a different
Which of the following is true of P-time and M-time?
As global markets expand, more businesspeople from P-time cultures are adapting to M-time
Which of the following best explains the low percentage of women chosen for international assignments in the United States?
There is a wide spread belief that roles of women in male-dominated societies precludes women from being successful in these societies.
In the context of business ethics, which of the following factors kept the American economy afloat at the turn of the century?
Rampant consumerism
In the context of business ethics, many people in sub-Saharan Africa view Western _____ as a kind of exploitation that prevents treatment of AIDS for millions.
intellectual property laws
Which organization conducts an international survey of businesspeople, political analysts, and the general public on corruption and compiles the Corruption Perception Index (CPI)?
Transparency International (TI).
Which of the following is true of the findings of Transparency International's Corruption Perception Index?
Higher levels of bribery have been found in low-income nations.
Which of the following is true of the business community's view about payoffs?
Many global competitors perceive payoffs as a necessary means to accomplish business goals.
Academic studies of the causes and consequences of bribery, conducted by Transparency International (TI), indicate corruption is greater in:
collectivistic nations.
Which aspect of Japanese culture, predicted by many to favor bribery, makes Japan's success in reducing corruption more remarkable?
Relationship-orientation
Which of the following countries is more likely to exhibit higher levels of bribery?
Nations with a communist past.
_____ occurs when payments are extracted under duress by someone in authority from a person seeking only what he or she is lawfully entitled to.
Extortion
_____ involves a relatively small sum of cash, a gift, or a service that is intended to facilitate or expedite the normal, lawful performance of a duty by an official.
Lubrication
The finance minister of a developing country demands a heavy payment for approval of a multi-million dollar contract with a foreign company. This practice would be called _____.
extortion
_____ generally involves giving large sums of money—frequently not properly accounted for—designed to entice an official to commit an illegal act on behalf of the one offering the bribe.
Subornation
A manager hires an agent to obtain a license to build a warehouse in an industrial district. The agent was caught offering a bribe to a government official for issue of the license. Which of the following describes the manager's liabilities?
The manager is liable if he was aware of the fact that part of the agent's fee would be used as a bribe.
Which of the following ethical principles tries to optimize the "common good" or benefits of all constituencies?
Utilitarian ethics
According to Lester Thurow, a(n) _____ form of capitalism is practiced in Japan and Germany typified by cooperation among government, management, and labor
communitarian
According to Lester Thurow, in the British-American "individualistic" kind of capitalism relationships among government, management, and labor in business systems are _____.
adversarial
A culture that is low context, individualistic, low power distance, and uses monochromic time is _____.
information-oriented
A culture that is high context, has collectivism, high power distance, and uses polychronic time is _____.
relationship-oriented
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