Test bank for international marketing 10th edition

Test Bank for International Marketing 10th Edition True - False Questions International specialization and cross-sourcing have made production much more efficient True False Trade flows outnumber currency flows by 100 to 1 True False World trade has brought about a global reorientation of corporate processes True False The level of trade is now determined by exchange rates True False Market saturation can be avoided by lengthening or rejuvenating product life cycles in other countries True False Many firms not participate in the global market because their managers believe that international marketing should only be carried out by large multinational corporations True False Firms are fairly consistent in their international activities because of the similarities in their levels of experience, resources, and capabilities True False Currency flows and exchange rates have a greater effect on trade than government monetary policies True False World trade has assumed an importance heretofore unknown to the global community and as a result, many countries and firms have found it highly desirable to become major participants in international marketing True False International marketing is unable to retain the basic marketing tenets of value and exchange True False Policymakers restrict the impact of global trade and financial flows by eliminating tariffs and quotas True False The network of global linkages that bind us all as a result of world trade were first recognized during the rebuilding of Europe after WWII True False Due to ongoing global technological innovation in marketing, products are distributed at a higher cost True False Only those who participate in the transactions are exposed to international marketing and subject to its changing influences True False The role of government in the marketplace is decreasing dramatically True False It is in the domestic marketing field where one can observe most closely the role of marketing as a key agent of societal change True False The level of global investment has resulted in a decrease in international debt by governments True False To achieve success in the art of international marketing, it is necessary to be firmly grounded in its scientific aspects True False Constant rapid technological change and vast advances in communication permit firms and countries to quickly emulate innovation and counteract carefully designed plans True False Global investment strategies, coupled with production and distribution sharing, increase the challenge of staying in a leadership position True False Mutiple Choice Questions Which of the following has traditionally been a domestic issue and is now an international issue? a.Geographic boundaries of cities b.The flow of water through dam diversion tunnels c.Applications for government subsidies d.Agriculture and farm policies affecting imports and exports Measures such as quotas and import regulations have been restrained by international agreements that regulate trade restrictions, particularly through the _ a.World Bank b.United Nations Trade Mission c.World Trade Organization d.IMF The trading bloc NAFTA is located in _ a.Asia b.Europe c.South America d.North America The _, which was founded in 1944, has recently been assisting nations that used to be categorized as “wealthy.” a.International Monetary Fund b.World Trade Organization c.World Health Organization d.European Union By erecting barriers, designing quotas, and implementing other import regulations, governments have attempted to: a.prevent illegal trade across borders b.restrict the impact of global trade and financial flows c.increase the income of the government d.capitalize on technology and enforce worldwide standards As a result of the March 2011 earthquake and tsunami off the north eastern coast of Japan, the “just in time” supply chains of the _, semiconductor, smart phone, digital camera, and personal computer industries were immediately jeopardized around the world a.textile b.automotive c.healthcare d.cosmetic Which of the following statements is true about the role of international markets? a.Those who not participate in the transactions are not exposed to international marketing and are not subject to its changing influences b.International markets can become a source of needs satisfaction c.International markets cannot influence the quality of life of individuals d.International markets can simplify the process and eliminate complex business decisions Which of the following new technologies has allowed consumers to supply and receive products from across the world for personal use? a.Travelogues on cable television b.The Internet c.Automated pensions and individual retirement accounts d.Newly created niche markets One way to guard against market saturation of a product is to: a.lower interest rates b.delay introduction of a new product c.personalize the message to the customer d.lengthen or rejuvenate product life cycles in other countries The shifts in financial flows due to global investments have resulted in: a.more complex procedures to avail foreign capital b.more foreign-direct activities c.decreased international debts by governments d.increased rates of unemployment Which of the following is true regarding the domestic repercussions of global linkages? a.Policy makers find it easier to isolate domestic economic activity from international market events b.Governments have gained more power to implement effective policy measures c.Private-sector financial flows exceed the financial flows that can be marshaled by the government d.Policy makers have more effective tools but less responsibilities to carry out Which of the following is true about global investments? a.They have brought about interdependence between nations which is stable in nature b.They have made past trade orientations more relevant in today’s changing times 3 c.They have reduced the role of manufactured goods and services in the international market d.They have made it increasingly difficult to differentiate between “rich” and “poor.” Export-import trade, licensing, joint ventures, wholly owned subsidiaries, turnkey operations, and management contracts are examples of: a.global positioning systems b.outsourcing c.regional agreements d.international marketing Advances in technology have: a.complicated the distribution channel thereby making distribution a lengthy process b.allowed firms to separate their activities by content and context c.enabled firms to operate in a marketplace rather than a market space d.made the procurement of raw materials an expensive process Which of the following is true about closer global linkages and domestic policy makers? a.They have more effective tools to carry out their responsibilities b.They find themselves with decreasing responsibilities c.They find it easy to distinguish between domestic and international economic activities d.They have imposed import regulations to restrict the impact of global trade The trading bloc ASEAN is located in _ a.Asia b.Europe c.North America d.South America Which of the following best defines international marketing? a.It is the process of planning and conducting economic forecasting in developing countries b.It is the process of creating a subsidiary in a neighboring country c.It consists of the activity, institutions, and processes across national borders that create, communicate, deliver, and exchange offerings that have value for stakeholders and society d.It is the process of hiring employees from other countries to assist with advertising messages, public communication, and the building of overall awareness To regain some power to influence events, policymakers have sought to restrict the impact of global trade and financial flows by: a.minimizing barriers b.charging tariffs c.canceling import regulations d.limiting quotas Which of the following is true regarding technological innovation? a.Technological innovation has complicated the production process b.Technological innovation has increased demand, therefore products are distributed at a higher cost c.Technological innovation allows for customization in order to meet diverse clients’ needs d.Technological innovation enables greater access to raw materials around the world which in turn increases production costs The International Monetary Fund (IMF) was founded to: a.manage monetary policies around the world b.help restructure impoverished economies c.provide infrastructural and medical aid to developing countries d.provide financial assistance to developing countries for development programs Independent of trade, currency flows set _ rates, which are the values of currencies relative to each other a.prime lending b.interest c.discount d.exchange Which of the following is true of world trade? a.World trade has deeply affected domestic policy making b.World trade has led to an increase in the role of primary commodities in international trade c.World trade has decreased the challenge of companies to stay in leadership position d.World trade has resulted in the decrease of international debt by governments The trading bloc MERCOSUR is located in _ a.Europe b.Latin America c.North America d.Asia Which of the following is true of international marketing? a.The international marketer is faced with often inconsistent legal systems when it comes to monitoring environmental pollution b.International marketing does not retain the basic marketing tenets of value and exchange c.International marketing does not focus on stakeholders and society whose present positions are to be improved d.The international marketer is subject to the same set of macro-environmental factors as a domestic marketer The emergence of technology has created new markets for companies Which of the following represents an example of this new tendency? a.The construction of corner drugs tores that replace gas stations b.Listing of ingredients on the side panel labels of products distributed worldwide c.Newspapers being distributed online globally d.Storage facilities rented on a monthly basis Which of the following is true about the importance of world trade? a.World trade has deeply affected domestic policy making and has often resulted in the emergence of totally new threats to firms and individuals b.The growth of domestic economies has typically outperformed global growth of trade in the past few decades c.When firms invest on a global scale, it is difficult for entire industries to shift their locations d.Due to the severe recession that affected much of the world’s economy in 2008 and 2009, world trade could not rebound in 2010 Which of the following mistakes committed by firms leads to inefficiency, lack of consumer acceptance, and sometimes even corporate failure? a.Over budgeting the overhead costs in international markets b.Transferring knowledge around the globe c.Lengthening product life cycles in other countries d.Believing that international customers are just like the ones the firm deals with at home International marketing differs from domestic marketing in that international marketing has different: a.marketing principles b.tenets of value and exchange c.applications, complexity, and intensity d.social responsibilities Which of the following is a form of international marketing? a.Government-owned operations b.Inter-state trade c.Joint ventures d.Putting-out system Which of the following is true of an international marketer? a.An international marketer faces the same macro-environmental factors as a domestic marketer b.An international marketer and a domestic marketer are subject to a similar set of constraints c.An international marketer has to understand that basic marketing principles differ in different markets d.An international marketer needs to face conflicts resulting from different laws, cultures, and societies World trade has forged a network of global linkages that bind us all—countries, institutions, and individuals—much more closely than ever before These linkages were first widely recognized during the: a.worldwide oil crisis of 1970 b.Gulf War II c.1994 economic crisis d.financial crisis that was triggered in 2007 Which of the following is true of global linkages? a.Global linkages were first widely recognized during the 1994 economic crisis b.Global linkages led to the strengthening of the “just in time” supply chains around the world c.Global linkages have had no impact on far-away countries that consider themselves distant and independent of any particular economic event d.Global linkages have become more intense on an individual level Free Text Questions Why is international marketing important to the growth of global and domestic companies? Answer Given International marketing consists of the activity, institutions, and processes across national borders that create, communicate, deliver, and exchange offerings that have value for stakeholders and society Global linkages have made possible investment strategies and marketing alternatives that offer tremendous opportunities for companies To benefit from the opportunities and deal with the adversities of international trade, firms need to prepare themselves and develop active responses, envision new strategies, make new plans, and change the way of doing business The growth of global business activities offers increased opportunities By transferring knowledge around the globe, an international firm can build and strengthen its competitive position Firms that heavily depend on long production runs can expand their activities far beyond their domestic markets and benefit from reaching many more customers Market saturation can be avoided by lengthening or rejuvenating product life cycles in other countries Cooperative agreements can be formed that enable all parties to bring their major strengths to the table and emerge with better products, services, and ideas What are the opportunities that international marketing provides? Answer Given The growth of global business activities offers increased opportunities.Firms that heavily depend on long production runs can expand their activities far beyond their domestic markets and benefit from reaching many more customers Market saturation can be avoided by lengthening or rejuvenating product life cycles in other countries Production sites once were inflexible, but now plants can be shifted from one country to another, and suppliers can be found on every continent Cooperative agreements can be formed that enable all parties to bring their major strengths to the table and emerge with better products, services, and ideas than they could produce on their own What are the domestic policy repercussions of global linkages? Answer Given The effects of closer global linkages on the economics of countries have been dramatic Policymakers have increasingly come to recognize that it is very difficult to isolate domestic economic activity from international market events Constant rapid technological change and vast advances in communication permit firms and countries to quickly emulate innovation and counteract carefully designed plans As a result, governments are often powerless to implement effective policy measures even when they know what to Policymakers therefore find themselves with increasing responsibilities yet with fewer and less effective tools to carry out these responsibilities At the same time that more parts of a domestic economy are vulnerable to international shifts and changes, these parts are becoming less controllable The global market imposes increasingly tight limits on national economic regulation and sovereignty  ... just like the ones the firm deals with at home International marketing differs from domestic marketing in that international marketing has different: a .marketing principles b.tenets of value and... is true of international marketing? a.The international marketer is faced with often inconsistent legal systems when it comes to monitoring environmental pollution b .International marketing does... a form of international marketing? a.Government-owned operations b.Inter-state trade c.Joint ventures d.Putting-out system Which of the following is true of an international marketer? a.An international