Marketing 263 - International Marketing

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Name _______________________________________ Date__________________________ 
MID-TERM EXAM - 033100 
Instructor, C. L. Perry, MPA 

Circle the correct responses for multiple choice questions and True or False, if that response is appropriate. 

1. International marketing has become more important to companies because 
a. Foreign markets are likely sources of low cost products, technology and capital 
b. Foreign competition is increasing 
c. Foreign markets account for a growing proportion of the total world market 
d. All of the above. 

2. The complexity of international marketing is due to two factors: 
a. The global village and global product. 
b. Global competition and global environment. 
c. Identifying and being better than your competition. 
d. Licensing and franchising overseas. 

3. Marketing requires a study of prospective buyers. This type of study includes: 
a. Identifying prospective buyers. 
b. Identifying the location of buyers. 
c. Identifying the factors important in the purchasing decision process. 
d. All of the above. 

4. Reasons to market internationally include 
a. The market potential of overseas markets. 
b. Reducing risk by diversifying geographically. 
c. Using up excess production capacity to make products for overseas markets 
d. All of the above. 

5. Large U. S. firms tend to market internationally through their foreign subsidiaries, rather than through exports because 
a. Their exports would be too high priced. 
b. It is more efficient to sell from their foreign manufacturing subsidiaries 
c. Their exports face government trade barriers 
d. All of the above. 




6. Countries relate to each other 
a. Economically 
b. Politically 
c. Culturally 
d. In all of the above ways. 

7. The following are examples of international trade: 
a. Goodyear sells tires to Honda, U.S., which in turn puts them on Accords which can be sold in America. 
b. Goodyear sells tires to General Motors, which in turn puts them on Buicks which are to be sold in France. 
c. Mazda hires an American manager to introduce a new model in the U.S. market. 
d. Chrysler buys a warehouse in France in which it plans to store spare tires. 

8. The following are decreasing as a way of economic life. 
a. Internationalization 
b. Isolationism 
c. Strategic alliance 
d. None of the above 

9. While economic factors are important in affecting trading relations among countries, is (are) not. 
a. The area, or size of the nations. 
b. The degree of similarity in cultures of the nations. 
c. The degree of similarity in political ideologies of the nations 
d. The balance of payments statement. 
e. The physical proximity of nations. 

10. Adam Smith said the wealth of a nation derives from 
a. Good government 
b. Specialization 
c. Democracy 
d. All of the above. 

11. The principle of comparative advantage helps to explain a nation=s 
a. Exports and imports 
b. Political systems 
c. Performance in the Olympics 
d. None of the above. 





12. The product life cycle in international trade suggests that 
a. Innovation is unimportant for trade 
b. Counterfeiting is important in world trade 
c. Comparative advantage in product moves from country to country 
d. All of the above. 

13. These are referred to as the Ainvisible tariffs@, 
a. Duties 
b. Quotes 
c. Exchange controls 
d. Administrative regulations 

14. A Quota is a 
a. Limit placed on the value of each of the goods or services traded 
b. Tool used to achieve better trading relations with others 
c. Type of tariff barrier 
d. A limit on the quantity of goods or services traded 

15. In selecting potential markets, market size indicators include population, population growth rates, and 
a. Income distribution 
b. Political distribution 
c. Area of the nation 
d. Population life cycle 

16. There are problems associated with per capita income comparisons among nations because: 
a. populations vary in size. 
b. the U.S. does not measure gross national product. 
c. general lack of data comparability. 
d. of political differences. 

17. A country's natural resources include: 
a. its transportation system. 
b. its cities. 
c. its educational system. 
d. its climate. 

18. The richer the country, 
a. The higher the percent of economic activity in agriculture. 
b. The lower the percent of urbanization. 
c. The lower percent of economic activity in agriculture. 
d. The percent of the population in agriculture is unrelated to the country=s wealth. 


19. The level of a nation=s urbanization has an impact on marketing practices. Generally, the more urban the nation, 

a. The more product adaptation required. 
b. The less sophisticated the communication media. 
c. The more tradition-oriented the consumers. 
d. The easier it is to reach the market. 

20. Culture is best described as: 

a. Higher education 
b. Aesthetic sensitivity 
c. Learned behavior 
d. None of the above 

21. Marketers act as change agents means that they: 
a. must adapt or change their products to meet local needs. 
b. sometimes introduce new ways of doing things into culture. 
c. will not affect promotion of products, but language differences will. 
d. may have an impact on the product, but will only involve minor changes. 

22. International marketers are concerned about the impact of language on their: 
a. production location. 
b. product policies. 
c. productive capacity. 
d. product complexity. 

23. In dealing with language problems abroad, the marketer may: 
a. find that it is best to rely on a domestic advertising agency to get their message across to foreign customers. 
b. find that as long as the consumers in the foreign market speak the same language, there won't by any problems. 
c. find that it is best to rely on a local distributor to help them communicate. 
d. find they have no language problems as long as they are only marketing industrial products. 



24. The following attitudes(s) is (are) important for marketing: 
a. attitude toward aesthetics. 
b. attitude towards change. 
c. attitude towards language. 
d. attitude towards design. 

25. People's attitudes towards risk can affect marketing strategies. A marketer can best reduce product risk by: 
a. adding more colors to products choices. 
b. adding more products to the product lines. 
c. adding better warranties to the products. 
d. adding more features, even if it means raising prices. 

26. Social organization revolves around common territories such as: 
a. Neighborhoods and tribes 
b. Association and castes 
c. Neighborhoods and the role of women 
d. Political parties and religious groups 

27. Different economic roles for women internationally impact on marketing through changes in 
a. Household income 
b. Caste system 
c. Common territory 
d. Nationalistic attitudes 

28. The political environment of international marketing include 
a. The home country's political environment 
b. The host country's political environment 
c. The global political environment 
d. The home country, the host country, and the international political environment 

29. In looking at the political environment, the manager is concerned about 
a. The form of government 
b. Political Risk 
c. Private Ownership 
d. Government Ownership 

30. Reasons cited in the text for politically motivated activities which may affect marketing included national sovereignty, 
a. Elections, national security, and a country=s prestige. 
b. Elections, national security, and special interest groups. 
c. Patriotism, national security, and economic welfare. 
d. Patriotism., elections, and special interest groups. 

31. In localizing operations abroad, a firm might 
a. Sell more stock (shares) in the home country 
b. Use more local (home) suppliers 
c. Sell more stock shares in the host country 
d. Import more supplies. 

32. U.S. political directives may restrict U. S. firms abroad in: 
a. Both the products they sell and the countries they sell to. 
b. Neither the products they sell or the countries they sell to. 
c. The products they sell, but not the countries they sell to. 
d. The countries they sell to, but not the product they sell. 

33. U.S. export controls are imposed 
a. For antitrust reasons. 
b. To protect U.S. security 
c. To maintain U.S. employment 
d. All of the above are true. 

34. The three major legal systems in the world are: 
a. common law, civil-code law, Hindu law 
b. common law, civil-code law, Islamic Law. 
c. common law, civil-code law, Confucian law. 
d. common law, civil-code law, Shinto law. 

35. Foreign laws apply to all but which one of the following marketing function? 
a. Price 
b. Promotion 
c. Distribution 
d. Foreign laws cover all marketing functions. 

36. Foreign laws on products may govern: 
a. Packaging, labeling, and ingredients 
b. Warranty, physical aspects, and performance 
c. Names, descriptions, and measurements. 
d. All of these aspects. 

37. A global industry 
a. Is one in which all the firms in the industry market their products world wide. 
b. Is one in which the firm=s competitive position in one country is affected by its position in other countries 
c. Is an industry dominated by multinationals that trade globally. 
d. Does not exist, except in the cases of the automobile, computer, and textile industries. 

38. Activities such as technology development manufacturing, logistics, marketing, and after- sales service can be together described
as constituting 
a. The value-added chain 
b. Comparative advantage 
c. A firms=s global strategy 
d. The implementation of a firm=s strategy 

39. Competing with a differentiated product does not include 
a. Selling a product with a superior design 
b. Offering better after-sales service than the competition 
c. Gaining market share by cutting prices 
d. Creating a luxury image for the product 

40. A high degree of adaptation is likely when: 
a. Cultural differences among buyers is low 
b. There are infrastructure differences fro country-to-country 
c. The firm's target market consists of industrial buyers. 
d. The similarities in dustribution networks are high from country-to-country 

TRUE (T) OR FALSE (F). Please place the correct letter on the blank line to the left of the question. 
41. Lack of knowledge of world markets is a barrier to be overcome in international marketing. 

42. International marketing research consists of identifying and measuring market potential in foreign markets. 

43. In researching international competition, we need to be concerned solely with the competition in each market. 

44. Secondary data is easily available for most foreign markets as it is for the United States. 

45. In developed countries, primary data is easily obtained in larger libraries reference sections. 

46. Economies of scale refers to production or manufacturing costs, not to research and development, though. 

47. Production adaptation is likely to occur if the product meets different needs. Standardization is likely to occur if the product is used
differently, but meets the same needs from market-to-market. 

48. The emergence of an alternative technology can compress the international product life-cycle for a product. 

49. Performing a competitive audit is the first step in developing the IPLC. 

50. A variable used in identifying potential R&D sites is the number and sophistication of local universities.