Most toy manufacturers would agree that toys cannot be marketed profitably in countries without commercial television advertising directed toward children. In this scenario, commercial television advertising exemplifies the availability of appropriate _____. A. demonstrations B. personal selling services C. direct mailing services D. financial aid E. communication channels E. communication
channels Integrated marketing communications are composed of all of the following EXCEPT: A. advertising. B. sales promotions. C. trade shows. D. public relations. E. political rallying. E. political rallying. _____ are the major components in the marketing communications mix for most companies. A. Public relations and advertising B. Direct selling and trade shows C. Advertising and personal selling D. Public relations and sales promotions E. Direct selling and sales promotions C. Advertising and personal selling Which of the following statements is true of sales promotions? A. They are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation. B. C. They are long-term efforts directed to a manufacturer or supplier. D. They primarily involve activities that encourage the press to cover positive stories about companies. E. They are ineffective in markets where consumers are hard to reach. F. They are the only element of the marketing mix that are affected by cultural differences among country markets. A. They are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation Sales promotions are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation. Sales promotions are short-term efforts directed to the consumer or retailer to achieve specific objectives such as: A. consumer product trial or immediate purchase. B. reducing promotional expenses. C. discouraging stores to stock a product. D. eliminating the need for retail point-of-purchase displays. E. long-term performance of a product. A. consumer product trial or immediate purchase. Sales promotions are short-term efforts directed to the consumer or retailer to achieve such specific objectives as consumer product trial or immediate purchase, consumer introduction to the store or brand, gaining retail point-of-purchase displays, encouraging stores to stock the product, and supporting and augmenting advertising and personal sales efforts. In-store demonstrations, samples, coupons, contests, and sweepstakes are examples of _____ devices. A. personal selling B. sales promotions C. content marketing D. direct selling E. public relations B. sales promotions Cents-off, in-store demonstrations, samples, coupons, gifts, product tie-ins, contests, sweepstakes, sponsorship of special events such as concerts, the Olympics, fairs, and point-of-purchase displays are types of sales promotion devices. All of the following are specific objectives of sales promotion EXCEPT: A. immediate purchase. B. consumer introduction to the store. C. gaining retail point-of-purchase displays. D. building brand loyalty. E. encouraging stores to stock the product. D. building brand loyalty. An especially effective promotional tool when a product concept is new or has a very small market share is _____. A. sponsorship B. sweepstakes C. product sampling D. contests E. product tie-ins C. product sampling An especially effective promotional tool when the product concept is new or has a very small market share is product sampling. In the context of integrated marketing communications, which of the following best defines public relations? A. It is the usage of funds collected from the common public for manufacturing a product in the inaccessible regions of a market. B. It is the direct sale of goods at discount rates to the public at trade fairs. C. It the creation of good relationships with popular press to help communicate messages to their customers, the general public, and governmental regulators. D. It is the distribution of samples and coupons directly to the public in the inaccessible regions of a market. E. It is the sale of goods to the public based on their credit ratings. C. It the creation of good relationships with popular press to help communicate messages to their customers, the general public, and governmental regulators. Creating good relationships with the popular press and other media to help companies communicate messages to their publics—customers, the general public, and governmental regulators—is the role of public relations. Which of the following elements of integrated marketing communications is related to encouraging the press to cover positive stories about companies and managing unfavorable rumors, stories, and events? A. Public relations B. Direct selling C. Trade shows D. Personal selling E. Sales promotion A. Public relations A public relations job consists of not only encouraging the press to cover positive stories about companies but also managing unfavorable rumors, stories, and events. _____ might be classified as an aspect of sales promotions or public relations, though their connections to advertising are also manifest. A. Corporate entrepreneurship B. Corporate sustainability C. Corporate governance D. Corporate espionage E. Corporate sponsorship E. Corporate sponsorship Which of the following is the last step in an international advertising campaign? A. Developing the most effective message(s) for the market segments selected B. Specifying the goals of the communication C. Selecting effective media D. Executing the campaign E. Evaluating the campaign relative to the goals specified E. Evaluating the campaign relative to the goals specified Of all the elements of the marketing mix, decisions involving _____ are those most often affected by cultural differences among country markets. A. direct selling B. public relations C. trade shows D. advertising E. sales promotion D. advertising Of all the elements of the marketing mix, decisions involving advertising are those most often affected by cultural differences among country markets. In the context of international advertising, it has been observed that advertising expenditures are generally _____. A. linear B. supplemental C. mutually reinforcing D. cyclical E. constrained D. cyclical While developing an international advertisement campaign, which of the following is the first step of the process? A. Compose and secure a budget based on what is required to meet goals. B. Specify the goals of the communication. C. Select effective media. D. Execute the campaign. E. Perform marketing research. E. Perform marketing research. Of all the elements of the marketing mix, decisions involving which of the following is most often affected by cultural differences among country markets? A. Price of the product B. Benefits offered by the product C. Services offered along with the product D. The place of offering the product E. Advertisement of the product E. Advertisement of the product Of the seven steps involved in international advertising, _____ almost always represents the most daunting task for international marketing managers. A. developing messages B. selecting effective media C. executing the campaign D. composing and securing a budget E. specifying the goals of the communication A. developing messages Of the seven steps in developing international advertising, developing messages almost always represents the most daunting task for international marketing managers. Which of the following is an example of the primary function of a product? A. The ability of a camera to take a picture B. The design and form factor of a phone C. The color of a laptop D. The prestige associated with driving a car E. The shape of speakers A. The ability of a camera to take a picture A market offering really is a bundle of satisfactions the buyer receives. This package of satisfactions, or utilities, includes the primary function of the product or service, along with many other benefits imputed by the values and customs of the culture. Due to differences in culture in different markets, standardized products that are marketed globally will most likely require: A. a different advertising appeal. B. a different primary function. C. consistent promotional messages. D. a standardized marketing strategy. E. standardized secondary attributes. A. a different advertising appeal. The emergence of pan-European communications media will most likely cause companies to: A. opt for localized promotional campaigns. B. opt for greater customization of promotional efforts. C. promote their products only in English. D. use only the Internet as their message channel. E. choose more standardized promotional efforts. E. choose more standardized promotional efforts. During which step of the international communications process does the receiver of the message interpret symbolism transmitted from an information source? A. Selecting a message B. Encoding C. Selecting a message channel D. Decoding E. Identifying the sources of noise D. Decoding The interpretation by the receiver of the symbolism transmitted from an information source is known as decoding. In the international communications process, during _____, the message from the source is converted into effective symbolism for transmission to a receiver. A. interpretation B. scrambling C. standardizing D. decoding E. encoding E. encoding In the international communications process, the sales force of a company that conveys the encoded content to the intended receiver acts as a(n) _____. A. decoder B. interpreter C. receiver D. message channel E. noise D. message channel In the international communications process, the sales force and/or advertising media convey the encoded message to the intended receiver and thus it acts as a message channel. In the international communications process, an international marketing executive with a product message to communicate specifically acts as a(n) _____. A. decoder B. information source C. receiver D. encoder E. noise source B. information source In the international communications process, _____ is defined as the interpretation by the receiver of the symbolism transmitted from an information source. A. encoding B. message selection C. decoding D. message channel selection E. feedback evaluation C. decoding Cremics, a multinational drug manufacturing company, used a saffron trident in a promotional campaign for one of its drugs in India. The saffron trident, a religious symbol in India, was meant to indicate the three levels of efficacy of the drug but mistakenly conveyed a religious message to Indians. This miscommunication indicates a problem associated with which of the following steps of an international communications process? A. Encoding B. Noise cancellation C. Media channel selection D. Message transmission E. Information source selection A. Encoding 56. Which of the following elements of the international communications process comprises of external influences such as competitive advertising, other sales personnel, and confusion at the receiving end that can detract from the ultimate effectiveness of the communication? A. Selecting a message source B. Encoding C. Selecting a message channel D. Decoding E. Noise E. Noise Janet works for a media agency based in Japan. Janet is helping the integrated marketing communications (IMC) manager of Siljure, a French cosmetics company, with the design and content to be used in an upcoming promotional campaign in Japan. The IMC manager knows what to convey but wants to advertise it in a culturally relevant manner. Which step of the international communications process is Janet helping Siljure with? A. Encoding of the message B. Choosing an appropriate channel for the message C. Decoding of the message D. Providing feedback from customers E. Reducing noise from competing ad campaigns A. Encoding of the message In the communications process in advertising, during the _____ stage, a consumer takes certain actions to respond to a decoded message. A. feedback B. receiver C. message channel selection D. encoding E. source identification B. receiver In the context of the communications process in advertising, problems of literacy, media availability, and types of media create challenges in the communications process at the _____ step. A. feedback B. decoding C. amplification D. encoding E. message selection D. encoding Using newspapers or magazine ads as a channel of communication when the majority of the intended users are illiterate is an example of ineffective _____ in the communications process. A. feedback B. media channel selection C. noise D. market selection E. message selection B. media channel selection In the context of the communication process in advertising, using the Internet as a medium when only a small percentage of an intended market has access to it is an example of an error related to: A. feedback. B. decoding. C. message channel selection. D. encoding. E. message selection. C. message channel selection. Meta Garbon, a manufacturer of sports bicycles, in a bid to tap the enormous market for bicycles in China promote their cycles as premium sporting and leisure bicycles. They use various cycling legends and sports celebrities as brand ambassadors and use television, radio, and newspapers as media. Bicycles in China are used mainly by the working class for commutation, and the main users of bicycles did not relate to Meta Garbon's products, and the promotional campaign was a failure. During which of the following steps of the international communications process did Meta Garbon most likely go wrong? A. Information source selection B. Selection of message channel C. Encoding D. Decoding E. Noise cancellation A. Information source selection The _____ step in the international communications process refers to the information about the effectiveness of the message that flows from the receiver (the intended target) back to the information source for evaluation of the effectiveness of the process. A. message channel selection B. interpretation C. encoding D. decoding E. feedback E. feedback Which of the following steps of the international communications process is important as a check on the effectiveness of the other steps? A. Selecting a proper message B. Encoding the message C. Selecting an appropriate channel of communication D. Decoding the message E. Feedback E.
Feedback Which of the following statements about advertising laws around the world is correct? A. Advertising of pharmaceuticals is unrestricted in most countries. B. Toy, tobacco, and liquor advertising is restricted in numerous countries. C. Advertising on television is unregulated in most countries. D. The Internet is the only medium where no restrictions exist in any country. E. Television ads are exempted from tax in all countries. B. Toy, tobacco, and liquor advertising is restricted in numerous countries. Which of the following is an example of comparative advertising? A. An ad using a scantily clad model to promote a soft drink B. An ad showing a celebrity smoking his preferred brand of cigarettes C. An ad showing a dog choosing one brand of dog food over another D. An ad showing the superiority of synthetic materials used in its products as compared to cotton E. An ad using shocking or taboo material to promote a product C. An ad showing a dog choosing one brand of dog food over another Which of the following is especially vulnerable as EU member states decide which area of regulation should apply to these services? A. Newspaper advertising B. Radio advertising C. Outdoor services D. Personal selling E. Internet services E. Internet services Companies that rely on television infomercials and television shopping are restricted by the limitations placed on the _____ of television commercials permitted when their programs are classified as advertisements. A. length and number B. religious content C. subliminal messaging D. superlative description E. ethnic derision A. length and number _____ in countries can distort media choice by changing the cost ratios of various media. A. Advertising taxation B. Language C. Power distance D. Cultural traits E. Dialect A. Advertising taxation The only way to avoid linguistic problems in advertising communication is by: A. creating an entirely new advertisement for the new market. B. using only English in all media promotions. C. developing a new version of the product for the new market. D. in-country testing with the target consumer group. E. using facial expressions and physical gestures in the advertisement. D. in-country testing with the target consumer group. With respect to advertising, _____ is especially important when a budget is small or where there are severe production limitations. A. class distinction B. politicization C. inventory analysis D. creativity E. following a formula D. creativity Certain advertising media are forbidden by government edict to accept some advertising materials. Such restrictions are most prevalent in: A. the Internet forums. B. personal selling initiatives. C. radio and television broadcasting. D. trade shows and exhibitions. E. direct selling and sales promotions. C. radio and television broadcasting. Which of the following is true of the newspaper industry around the world? A. In many countries, newspapers hardly have any trouble achieving complete market coverage. B. Most U.S. cities have just one or two major daily newspapers. C. In many countries, advertisements can be run in a newspaper without any time lag. D. Since there is an indication that the space for advertising is paid for, it is easy to tell exactly how much advertising appears in a given newspaper. E. Japan has more than 15 national daily newspapers, but the circulation numbers are the lowest. B. Most U.S. cities have just one or two major daily newspapers. _____ are considered to be major communications media in most countries due to their inherent entertainment value. A. Newspapers and magazines B. Radio and television C. Newspapers and billboards D. Billboards and television E. Radio and newspapers B. Radio and television One of the drawbacks of satellites, which is also their strength, is: A. the cost of creating a high quality ad for satellite television. B. the limited market penetration of satellite television. C. the number of intermediaries required for satellite service transmission. D. the government regulations placed on satellite advertising. E. their ability to span a wide geographical region. E. their ability to span a wide geographical region. _____ allows ESPN to fill visual real estate—blank walls, streets, stadium sidings—with computer-generated visuals that look like they belong in the scene. A. Self-extracting archive B. Princeton Video Imaging C. High Definition Television D. HighMAT (High Performance Media Access Technologies) E. Conditional Access System B. Princeton Video Imaging Direct mail is an unpopular medium in Chile because: A. the literacy level in Chile is extremely low. B. the letter carrier must collect additional postage for every item delivered. C. it uses paper; hence, it is considered as a threat to the environment. D. its reach is extremely limited. E. it is subject to complicated government regulations. B. the letter carrier must collect additional postage for every item delivered. In Chile, direct mail is virtually eliminated as an effective medium because the sender pays only part of the mailing fee; the letter carrier must collect additional postage for every item delivered. Obviously, advertisers cannot afford to alienate customers by forcing them to pay for unsolicited advertisements. _____ suffer(s) from issues such as difficulty in assessing taxes, unfair competition, import duties, and privacy. A. The radio B. Direct mail C. Magazines D. Newspapers E. The Internet E. The Internet In the context of consumer products, which of the following is the major limitation of the Internet? A. Knowledge of how to use the Internet B. Coverage of the Internet C. Government regulations on the use of the Internet D. Difficulty in tracking the effectiveness of advertisements on the Internet E. Cost of using the Internet B. Coverage of the Internet Which of the following countries has the most egregious control over advertising, where each medium has its own censorship board that passes judgment on any advertising even before it is submitted for approval by the Ministry of Information. A. Germany B. France C. Myanmar D. Australia E. Argentina C. Myanmar Blogs, virtual worlds, and video sharing are examples of media commonly known as _____. A. global media B. local media C. social media D. Texas Visual Imaging E. widespread media C. social media _____ spend more time on social media sites than any users in any other country. A. Mexicans B. Americans C. Israelis D. Spaniards E. Italians C. Israelis In the context of media planning and analysis, billboards are especially useful in countries: A. with high income levels. B. where the laws governing the Internet are very complicated. C. with high illiteracy rates. D. where sales promotions are ineffective. E. where people prefer buying in small quantities. C. with high illiteracy rates. In the context of international advertising, _____ is the neon capital of the world. A. Paris B. Hong Kong C. London D. Sydney E. Brasília B. Hong Kong In Spain, a new medium for advertising called Publicoche includes: A. lasers projected onto clouds. B. private cars that are painted with advertisements. C. buses fitted with television sets showing promotional messages. D. financing of popular sporting and entertainment events. E. hot air balloons printed with promotional messages. B. private cars that are painted with advertisements. In the context of international advertising, companies are moving from the commission system to a _____ system. A. tactical B. standardized C. reward-by-results D. self-regulation E. business-to-business C. reward-by-results The assault on advertising of _____ is escalating, as evidenced by the World Health Organization launching a global campaign against it. A. trans fat B. alcohol C. tobacco D. pharmaceuticals E. animal-derived products C. tobacco Which of the following is true of advertising agencies for international advertising? A. The cross-cultural communication between a foreign client and a local agency can be problematic. B. A multinational agency always has the best feel for a market. C. Only a multinational agency can provide the best cultural interpretation in a situation in which local modification is required. D. Only a local domestic agency can provide a company with a high level of sophistication. E. Agency commission patterns are consistent throughout the world. A. The cross-cultural communication between a foreign client and a local agency can be problematic. _____ in advertising is a thorny issue, because most member countries of the European Commission have different interpretations of what constitutes a misleading advertisement. A. Discrimination B. Endorsement C. Deception D. Plagiarism E. Fear mongering C. Deception 32. Which of the following is the final link in the culmination of a company's marketing and sales efforts? A. Chairperson B. Marketing manager C. Sales representative D. General manager E. Accountant Sales representative 33. In the context of designing an international sales force, which of the following is true of information-oriented cultures? A. They require the most complete local knowledge possessed only by natives. B. Personal selling has to be localized for even the most global of corporations. C. People belonging to such cultures are hostile toward third-country nationals. D. Such cultures allow for greater use of expatriates in the sales force. E. Virtual expatriates are more efficient in selling consulting services in these countries. Such cultures allow for greater use of expatriates in the sales force. 34. Countries such as Germany allow for greater use of expatriates in international sales forces. Which of the following is most likely to be the reason for this? A. Germany is a member of the World Trade Organization. B. Germany is a relationship-oriented culture. C. The German language is easy to master. D. Germany is an information-oriented culture. E. Germany is a member of the European Union. Germany is an information-oriented culture. 35. In the context of designing an international sales force, which of the following is true of Japan? A. Japan has an information-oriented culture. B. Japan allows for greater use of expatriates. C. In Japan, personal selling need not be localized. D. Japan is not a member of World Trade Organization. E. In Japan, complete local knowledge is important for salespeople. In Japan, complete local knowledge is important for salespeople. 36. In countries like Japan, a sales force is likely to be most effective if it consists mostly of: A. professional expatriates. B. local nationals. C. virtual expatriates. D. third world nationals. E. expatriates from Asian countries. local nationals. 37. A multinational company, with its headquarters in the U.S., wants to sell a new high-technology product in foreign markets. For effective selling, the sales force for this company should consist mostly of: A. local nationals. B. college recruits. C. temporary personnel. D. American expatriates. E. veterans. American expatriates. 38. The largest personnel requirement for international marketing for most companies is in the: A. management team. B. finance department. C. information technology team. D. advertising department. E. sales force. sales force. 39. Which of the following is true of an expatriate sales force? A. In relationship-based cultures, an expatriate sales force proves to be most efficient. B. An expatriate sales force is unsuitable when a company wants to sell high-technology products. C. An expatriate sales force is found to be lacking in knowledge regarding the product line of the company. D. Information-oriented cultures do not respond favorably to an expatriate sales force. E. When selling requires an extensive background of information, an expatriate sales force is the best choice. When selling requires an extensive background of information, an expatriate sales force is the best choice.
40. In which of the following situations is an expatriate sales force most likely to have an advantage over a native sales force? A. When selling consulting services. B. When selling in relationship-oriented countries. C. When the product caters to a niche market. D. When the product is highly technical. E. When the product is global in nature. When the product is highly technical.
41. Which of the following is one of the advantages of a sales force consisting of expatriate sales representatives? A. They possess greater technical training. B. They transcend cultural and legal barriers. C. They cost less to maintain in a foreign location. D. The cultural gap can be easily narrowed. E. They have a better understanding of distribution channels. They possess greater technical training. 42. Which of the following is a disadvantage associated with a sales force comprising expatriate salespeople? A. Adverse effect on the prestige of the product. B. Deterioration of product quality. C. Lack of technological expertise. D. Inadequate knowledge of the company. E. Large cultural barriers. Large cultural barriers. 43. Why are third-country nationals sought by American companies for their international sales forces? A. They transcend legal and cultural barriers. B. They are knowledgeable about a country's business structure. C. They are able to speak several languages. D. They cost less to maintain than a staff of expatriates. E. They can lead a company better through unfamiliar referral networks. They are able to speak several languages. 44. Which of the following is a strategy that international companies use to encourage sales personnel to accept foreign assignments? A. International experience is considered important to join top management. B. It is made mandatory for all sales personnel to take up expatriate positions. C. A part of the headquarters of the company is set up at the foreign location. D. A support team along with the expatriate manager is shifted to the foreign location. E. Legal obligations are imposed on the expatriate sales representatives. International experience is considered important to join top management. 45. Which of the following is a characteristic of a professional expatriate? A. They work abroad for a period of one month and then return to the home office. B. They work for a foreign company in a third country for a short period. C. They work abroad in country after country for the greater part of their careers. D. They work in their home branches for most of their careers. E. They manage operations in other countries but do not move there. They work abroad in country after country for the greater part of their careers. 46. Norman, a German national, works as a sales manager for Black Oil Corporation in the Middle-East. Given the benefits associated with the job, he works on one foreign assignment after another and rarely returns to the headquarters in Germany. In view of the given information we can say that Norman is a: A. virtual manager. B. virtual expatriate. C. third-country national. D. professional expatriate. E. native salesperson. professional expatriate.
47. Which of the following best defines a virtual expatriate? A. They can easily transcend the legal and cultural barriers of the assignment country. B. They lack an understanding of how home-office politics influences decision making. C. They work abroad in one country after another for the greater part of their career. D. They are expatriates from their own countries working for a foreign company in a third country. E. They manage operations in foreign countries but do not move there. They manage operations in foreign countries but do not move there. 48. George, an American citizen, works as the sales manager at Blue Inc. He is posted at the company headquarters in the U.S. and manages operations in China. He makes long visits to conduct business meetings with his colleagues working in China. George may be considered to be a: A. repatriate. B. virtual expatriate. C. third-country national. D. professional expatriate. E. local sales manager. virtual expatriate 49. Which of the following is true of virtual expatriates? A. They stay in hotels, make long visits to the foreign country to which they have been assigned, and maintain their families at home. B. They are expatriates working in a foreign country for a short period of a year. C. They are expatriates from their own countries working for a foreign company in a third country. D. They are essentially professional expatriates, working abroad in country after country. E. They are usually more knowledgeable about the foreign country's business structure and systems. They stay in hotels, make long visits to the foreign country to which they have been assigned, and maintain their families at home. 50. Which of the following is an advantage of virtual expatriates? A. They can bond well and work better with their subordinates in the foreign country. B. They can establish closer relationships with their customers in the foreign country. C. Their families do not have to be uprooted from their home country. D. They possess complete local knowledge about cultural practices in the foreign country. E. They can avoid cross-cultural communications problems with their foreign colleagues. Their families do not have to be uprooted from their home country. 51. From an international firm's perspective, which of the following is an advantage associated with virtual assignments? A. Sales personnel can avoid health risks involved in flying frequently to foreign countries. B. Customer relationship structures may be improved due to direct customer interaction. C. The extra expense involved in an actual executive move may be avoided. D. Problems related to low morale of personnel due to living in hotels can be avoided. E. Misunderstandings due to lack of cultural skills may be avoided. The extra expense involved in an actual executive move may be avoided. 52. Which of the following is a disadvantage of teams managed by virtual expatriates? A. It is difficult to build a close contact with subordinates and customers. B. The cost involved in an actual executive move is excessive. C. The risk of losing visibility at corporate headquarters is very high. D. Virtual expatriates lack the understanding of how home-office politics influence decisions. E. The personnel at the headquarters tend to ignore the advice of the virtual expatriates. It is difficult to build a close contact with subordinates and customers. 53. The difference between professional expatriates and virtual expatriates is that: A. professional expatriates can avoid misunderstandings that arise from cross-cultural communications. B. for virtual expatriates, building a close contact with customers is much easier. C. professional expatriates do not incur any extra expense to the company. D. for virtual expatriates, establishing a good working relationship with subordinates is much easier. E. virtual expatriates work from their home branch and do not relocate to the assignment country. virtual expatriates work from their home branch and do not relocate to the assignment country. 54. In the context of recruiting sales and marketing personnel for an international sales force, there is a clear biased in favor of the locals. The reason for this is most likely that: A. they transcend both cultural and legal barriers. B. they have greater technological expertise than expatriates. C. they are more knowledgeable and experienced as compared to expatriates. D. they have a better understanding of home-office politics. E. they are less likely to accept bribes as compared to expatriates. they transcend both cultural and legal barriers. 55. Which of the following is an advantage of hiring local nationals in the sales force? A. They are more efficient in communicating with and influencing headquarters' personnel. B. They are more knowledgeable about a country's business structure and systems. C. They are more knowledgeable of the company and its product line. D. They are likely to have superior technical expertise. E. They are less likely to accept any form of bribe. They are more knowledgeable about a country's business structure and systems. 56. Which of the following is an advantage that a sales force consisting of local nationals is likely to have over a sales force of expatriates? A. They are more efficient in communicating with and influencing headquarters' personnel. B. They cost the firm less with respect to maintenance. C. They are more knowledgeable about the company and its product line. D. They have greater technical expertise. E. They are less likely to accept any form of bribe. They cost the firm less with respect to maintenance. 57. Which of the following is the main disadvantage of hiring local nationals in the sales force? A. Headquarters personnel tend to ignore the advice of local nationals. B. Most local nationals turn out to be costlier in the long run. C. Poaching of experienced personnel by competitor companies increases. D. Cultural differences lead to communication issues. E. National interests conflict with the corporate strategy. Headquarters personnel tend to ignore the advice of local nationals. 58. A disadvantage of hiring local nationals is the tendency of headquarters personnel to ignore their advice. Which of the following is most likely to be the reason for this tendency? A. Foreign nationals are not keen on keeping relationships at the home office cordial. B. Foreign nationals lack the understanding of how home-office politics work. C. Foreign nationals have a good grasp of the local culture and prevalent practices. D. Foreign nationals cannot build a close contact with subordinates and customers. E. Foreign nationals have superior technical expertise which makes people at the headquarters insecure. Foreign nationals lack the understanding of how home-office politics work. 59. In the context of recruiting marketing and sales personnel, which of the following is true of local nationals? A. They are not keen on maintaining a cordial relationship at the home office. B. They lack the knowledge of local culture and prevalent practices. C. They are better able to lead a company through the maze of unfamiliar referral networks. D. They do not communicate with subordinates and customers directly. E. They are expatriates from their own countries working for a foreign company in a third country. They are better able to lead a company through the maze of unfamiliar referral networks. 60. In relationship-oriented cultures such as France, Mexico, and Japan, sales representatives: A. are available only during the peak hiring season. B. tend to be on the bottom rung of the social ladder. C. are better paid than their U.S. counterparts. D. lack proper knowledge of their culture. E. are respected and held in high esteem. tend to be on the bottom rung of the social ladder. 61. Which of the following is considered to be the most common job in the United States despite being viewed negatively? A. Construction worker B. Truck driver C. Office manager D. Personal selling E. Teaching Personal selling 62. _____ are expatriates from their own countries working for a foreign company in another country. A. Long-term virtual expatriates B. Native salespeople C. Third-country nationals D. Short-term virtual expatriates E. Local nationals Third-country nationals 63. David is a Canadian national who works for a U.S. company in Japan. David may be considered to be a _____. A. long-term virtual expatriate B. native salesperson C. third-country national D. short-term virtual expatriate E. local national third-country national 64. Which of the following is true of third country-nationals? A. U.S. firms have to pay double tax when hiring them. B. They are local nationals who work for a foreign company. C. They work at the company's headquarters and are located in their home country. D. They manage their foreign offices from their home country. E. Their nationality has little to do with where they work or for whom. Their nationality has little to do with where they work or for whom 65. Which of the following is the most important quality that a recruiter should consider while hiring marketing personnel? A. They should have little cultural empathy as this might distract them from their main purpose. B. When working in a foreign country, they must be capable of taking decisions that are not influenced by the habits of the market. C. They should be able to represent a culturally superior image of their country and its products. D. They should be hypersensitive to the behavioral variations in different countries. E. They should possess a considerable breadth of knowledge of many subjects both on and off the job. They should possess a considerable breadth of knowledge of many subjects both on and off the job. 66. The marketer who expects to be effective in the international marketplace should: A. be antagonistic toward other cultures. B. not let the local culture influence their decisions. C. practice cultural chauvinism. D. not let market behavior influence their decisions. E. have a positive outlook on an international assignment.
have a positive outlook on an international assignment. 67. Cultural empathy involves: A. being subservient to a superior culture. B. the ability to understand another culture and not be antagonistic. C. the belief that the people of inferior cultures should be enlightened. D. the attitude that one's own culture is superior to others. E. being hostile to one's own culture and adopting a new culture. the ability to understand another culture and not be antagonistic. 68. When hiring new personnel for international marketing, which of the following is considered to be the best way to assess the traits necessary for success? A. Paper-and-pencil ability tests. B. Interviews and role-playing exercises. C. Biographical information. D. Checking references. E. Handwriting analysis. Interviews and role-playing exercises. 69. Japanese sales representatives are most satisfied with their jobs when: A. their values are consistent with those of their company. B. they receive high salaries and many perks. C. they are better educated than their colleagues. D. their technological knowledge is superior to that of others. E. they do not have to travel too much. their values are consistent with those of their company. 70. Which of the following is the reason for the fact that continual training is more important in foreign markets than in domestic ones? A. Slow adaptation of foreign markets to innovative products. B. Technological inferiority of domestic cultures. C. The need to establish the superiority of domestic cultures. D. Lack of technical knowledge among foreign salespersons. E. Lack of routine contact with the parent company. Lack of routine contact with the parent company. 71. The training of foreign employees is likely to be most effective when: A. a standard method is used to ensure uniformity. B. it is tailored to the recipients' ways of learning. C. national differences are ignored during motivational sessions. D. the superiority of their culture is emphasized over others. E. it is different from the familiar ways of communication. it is tailored to the recipients' ways of learning. 72. Which of the following is likely to be most effective in making home-office personnel aware of the problems of foreign operations? A. Cross-cultural training. B. Global selling techniques. C. Advanced technical skills. D. Telecommuting and teleconferencing. E. Email etiquettes. Cross-cultural training. 73. In the context of the rewards from work, Japanese and American salespersons are similar barring one aspect which the Japanese rate as more important than their American counterparts. Identify this aspect. A. Job security B. Promotion C. Accomplishments D. Social recognition E. Personal growth and development Social recognition 74. Considering the specific characteristics of Japan's culture, which of the following strategies would be most successful in motivating employees in Japanese organizations? A. Individual commission systems B. Group bonus schemes C. Company cars D. Birthday gift vouchers E. Best employee awards Group bonus schemes 75. Which of the following is the main reason for the failure of individual incentives to motivate employees in Japan? A. Emphasis on paternalism. B. High corruption levels. C. Practice of cultural chauvinism. D. Democratic form of government. E. Encouraging individualism. Emphasis on paternalism. 76. Nontaxable perks such as a company vehicle given to an expatriate is an example of a(n): A. overseas premium. B. family compensation. C. displacement allowance. D. fringe benefit. E. separation allowance. fringe benefit. 77. Overseas premiums that are paid to the family of expatriates during short-term assignments if they do not relocate to the foreign country are called: A. resettlement claims. B. pension plans. C. displacement reserves. D. official benefits. E. separation allowances. separation allowances. 78. Which of the following agencies or bodies is actively involved in setting rules about compensation companywide in Europe? A. Pension committees. B. Work council. C. The World Health Organization. D. The European Union. E. The World Trade Organization. Work council. 79. In the context of designing compensation systems, the program element most often determined at the global level is: A. Program Design Principles B. Pay Mix C. Job Grades D. Formula Mechanics E. Performance Measures Program Design Principles
80. Which of the following is true of sales compensation practices across the globe? A. Most companies in Japan have adopted the U.S. system with its emphasis on commissions based on individual performance. B. Government intervention in pay determination aimed at leveling pay scales, is gaining popularity in European countries. C. Most multinational companies describe their sales compensation plans as global in nature. D. The International Labor Organization plays a key role in determining compensation practices worldwide. E. Most companies establish sales compensation practices locally either at the country or regional levels. Most companies establish sales compensation practices locally either at the country or regional levels. 81. In the context of global compensation, which of the following strategies should be practiced? A. A similar framework should be created for jobs with different responsibilities. B. The support of senior sales executives need not be sought before taking action. C. Local managers should not decide the mix between base and incentive pay. D. Consistent communication and training themes should be used worldwide. E. The incentive plan should be designed centrally and dictated to local offices. Consistent communication and training themes should be used worldwide. 82. Unlike the Japanese, the American sales managers do not have to worry about the problem of motivating poor performers. Which of the following is the reason for this situation? A. The group incentive system balances pay differences and thus is motivating enough. B. Companies are more focused on long-term loyalty and are willing to compromise on performance initially. C. Sales personnel are shifted to areas where their performance levels can meet expectations. D. The system of peer-mentoring takes care of the progress of low performers. E. The team usually does not have any low performers as they either quit or are fired. The team usually does not have any low performers as they either quit or are fired. 83. Which of the following practices, with respect to motivating sales personnel, is most common in relationship-oriented countries like Japan? A. Companies lay greater emphasis on incentives that are based on individual performance. B. Companies do not allow local managers to decide the mix between base and incentive pay. C. Commissions are measured by sales revenues generated by each employee. D. Companies are not very tolerant of poor performers and fire them immediately. E. Companies motivate sales representatives through frequent interaction with supervisors. Companies motivate sales representatives through frequent interaction with supervisors. 84. In the context of evaluating and controlling sales representative, the primary control tool used by American sales managers is the: A. threat of termination. B. quota system. C. incentive system. D. attraction of a foreign assignment. E. threat of foreign postings. incentive system. 85. Qualified and ambitious sales personnel refuse to take up foreign assignments for fear of hampering their career development. This "out of sight, out of mind" fear is most closely linked to the problems of: A. conflict of interests. B. acculturation. C. skill redundancy. D. variable compensation. E. repatriation. repatriation. 86. Which of the following is the single most important reason for expatriate dissatisfaction? A. Unsuccessful family adjustment. B. Cultural conflict in the foreign country. C. Non-cooperation of foreign colleagues. D. Communication issues with home-country headquarters. E. Redundant skills in a foreign country. Unsuccessful family adjustment. 87. Which of the following is a reason for an expatriate's failure to function effectively in a foreign assignment? A. Differing customer expectations on product features. B. Lack of personal career planning. C. Reduced compensation and benefits. D. Unsuccessful family adjustment. E. Interference from work councils. Unsuccessful family adjustment. 88. Which of the following factors differentiates companies with the least amount of returnee attrition from those with the highest attrition? A. Specialized expatriate department. B. Personal career planning for expatriates. C. Continued cultural training. D. Increased compensation. E. Family migration planning. Personal career planning for expatriates 89. In the context of international marketing, most expatriate failures are caused by a lack of: A. management skills. B. technical skills. C. an understanding of cultural differences. D. knowledge of the product line. E. knowledge of the company. an understanding of cultural differences. 90. Which of the following is a trait of a person with good cultural skills? A. They have a clear set of principles and do not tolerate ambiguity. B. They are proud of their culture and practice cultural chauvinism. C. They monitor the behavior of their employees and remain judgmental. D. They convey a sincere interest in people and their culture. E. They do not allow their culture and values to influence one's judgment. They convey a sincere interest in people and their culture. Assuming that an international marketer has produced the right product, used the proper channel of distribution, and promoted the goods correctly, the effort is most likely to fail if the international marketer fails to: A. inform the host government about all its marketing objectives. B. set the right price for the goods or services. C. set the import tariff for the goods or services. D. form a joint venture in order to sell the product. E. work on a franchise basis in the country. B. set the right price for the goods or services. In general, price decisions are viewed in two ways. Which of the following is one of them? A. Pricing entirely depends on factors that are often beyond the control of a company. B. Pricing is more a phenomenon of luck than planning. C. Pricing is an active instrument of accomplishing marketing objectives. D. The less control a company has over the final selling price of a product, the better it is able to achieve its marketing goals. E. The broader a company's product line, the less complex is the process of controlling prices to the end user. C. Pricing is an active instrument of accomplishing marketing objectives Which of the following is most likely to be true of a company that views prices as an active instrument of accomplishing marketing objectives? A. The company sets prices to achieve specific objectives. B. The company follows market prices to achieve specific objectives. C. The company exports only excess inventory. D. The company views its export sales as an insignificant source of revenue. E. The company places a low priority on foreign business. A. The company sets prices to achieve specific objectives. A company that views pricing as a static element in a business decision most probably: A. places a high priority on foreign business. B. sets prices to achieve specific objectives such as targeted return on profit. C. views export sales as active contributions to sales volume. D. views domestic sales as an insignificant source of revenue. E. exports only excess inventory. E. exports only excess inventory. The company that follows pricing as a static element, probably exports only excess inventory, places a low priority on foreign business, and views its export sales as passive contributions to sales volume. Floral Group Inc., an importing organization in New York, buys perfumes from GS Inc. in France for $13 a unit. Unknown to GS, Floral Group sells this product in the United States for $15 a unit. This leads to a loss of revenue for GS Inc. as it also sells its perfume in the United States but for a higher price of $18. Which of the following best describes the above scenario? A. Black-listed importing B. Direct importing C. Circular importing D. Co-mingled importing E. Parallel importing E. Parallel importing _____, a practice often used by companies to maintain high retail margins to encourage retailers to maintain the exclusive-quality image of a product, can create a favorable condition for parallel importing. A. Exclusive distribution B. Speculative distribution C. Intensive distribution D. Lateral distribution E. Dual distribution A. Exclusive distribution Firms that are unfamiliar with overseas marketing and firms that produce industrial goods orient their pricing solely on the basis of: A. cultural differences in perceptions of pricing. B. market segmentation from market to market. C. the costs of production of the goods. D. market segmentation from country to country. E. competitive pricing in the market. C. the costs of production of the goods. In _____, a firm is concerned only with the marginal or incremental cost of producing goods to be sold in overseas markets. A. full-cost pricing B. C. fixed-cost pricing D. variable-cost pricing E. demand-based pricing F. premium pricing D. variable-cost pricing Which of the following characterizes the variable-cost pricing approach? A. In this approach, prices are often set on a cost-plus basis, that is, total costs plus a profit margin. B. This approach insists that no unit of a similar product is different from any other unit in terms of cost. C. This approach insists that each unit must bear its full share of the total fixed and variable cost. D. This approach is suitable when a company has high variable costs relative to its fixed costs. E. In this approach, any contribution to fixed cost after variable costs are covered is profit to the company. E. In this approach, any contribution to fixed cost after variable costs are covered is
profit to the company. _____ is a practical approach to pricing when a company has high fixed costs and unused production capacity. A. Full-cost pricing B. Cost-plus pricing C. Marginal-cost pricing D. Demand-based pricing E. Premium pricing C. Marginal-cost pricing Companies following the _____ philosophy insist that no unit of a similar product is different from any other unit in terms of cost and that each unit must bear its full share of the total fixed and variable cost. A. full-cost pricing B. fixed-cost pricing C. variable-cost pricing D. demand-based pricing E. premium pricing A. full-cost pricing Which of the following approaches to pricing is most suitable when a company has high variable costs relative to its fixed costs? A. Full-cost pricing B. Marginal-cost pricing C. Variable-cost pricing D. Demand-based pricing E. Premium pricing A. Full-cost pricing Which of the following is true of the full-cost pricing approach? A. In this approach, firms regard foreign sales as bonus sales and assume that there will be no return over their variable costs. B. In this approach, firms are concerned only with the marginal or incremental cost of producing goods to be sold in overseas markets. C. In this approach, prices are often set on a cost-plus basis, that is, total costs plus a profit margin. D. This approach is a practical approach to pricing when a company has high fixed costs and unused production capacity. E. This approach insists that each unit of a similar product is treated differently in terms of cost. C. In this approach, prices are often set on a cost-plus basis, that is, total costs plus a profit margin. A company uses _____ when the objective is to reach a segment of the market that is relatively price insensitive and thus willing to pay a premium price for the value received. A. penetration pricing B. everyday low pricing C. predatory pricing D. price skimming E. psychological pricing D. price skimming If the supply of a product in a market is limited, a company may follow a _____ approach to maximize revenue and to match demand to supply. A. penetration pricing B. psychological pricing C. variable-cost pricing D. predatory pricing E. price skimming E. price skimming A _____ policy is used to stimulate market and sales growth by deliberately offering products at low prices. A. penetration pricing B. variable-cost pricing C. premium pricing D. price skimming E. full-cost pricing A. penetration pricing Lush Cosmetics Corp., a U.S.-based firm, has recently started exporting cosmetics to India. Lush has introduced a new range of mineral-based makeup products for the first time in the Indian market. As Lush has no competitors in this segment of the Indian cosmetics market, it has set a very high price for its products in order to reach the premium, price insensitive segment of the market. This is an example of _____. A. penetration pricing policy B. psychological pricing policy C. bundling D. price skimming E. cost-based pricing policy D. price skimming In most cases, the reason why products cost relatively little in one country and cost more in another is: A. the profiteering measures taken by exporting companies. B. the consistency in perception of quality in all countries. C. the inelastic demand of most consumer goods. D. the requirement that all export goods must use set skimmed price. E. the higher costs of exporting. E. the higher costs of exporting. _____ results from the added costs incurred as a result of exporting products from one country to another. A. Price deflation B. Penetration pricing C. Price escalation D. Price gouging E. Predatory pricing C. Price escalation Price escalation is the added costs incurred as a result of exporting products from one country to another. A(n) _____ is a flat charge per physical unit imported. A. ad valorem duty B. compound duty C. prohibitive duty D. alternative duty E. specific duty E. specific duty _____ are levied as a percentage of the value of the goods imported. A. Specific duties B. Protective duties C. Prohibitive duties D. Ad valorem duties E. Compound duties D. Ad valorem duties _____ are the primary discriminatory tax that must be taken into account in reckoning with foreign competition. A. Transfer taxes B. Tariffs C. Tolls D. Excise taxes E. Inflation taxes B. Tariffs are the primary discriminatory tax that must be taken into account in reckoning with foreign competition In a deflationary market, in order to win the trust of consumers, it is essential for a company to: A. engage in forfaiting agreements with consumers. B. spend more on advertising and stall the production of products. C. allow prices to escalate and target the price insensitive segment of the market. D. keep prices low and raise brand value. E. form a cartel to control the dynamics of the market. D. keep prices low and raise brand value. Which of the following is true of international currencies? A. Exchange rate volatility index can be used to accurately predict the value of any currency. B. The value of all currencies is set by the World Trade Organization. C. All major currencies are floating freely relative to one another. D. All currencies are fully backed by gold reserves. E. The World Bank mandates a fixed exchange rate regime. C. All major currencies are floating freely relative to one another. Now that all major currencies are floating freely relative to one another, no one is quite sure of the future value of any currency. When the value of the dollar is weak relative to the buyer's currency, sellers generally employ _____. A. competition-based pricing B. demand-based pricing C. premium pricing D. psychological pricing E. cost-plus pricing E. cost-plus pricing When the Indian rupee depreciated against the U.S. dollar, PC manufacturers who were dependent on imported components had to either absorb the increased cost or _____. A. raise the quantity of inputs they used in production B. give discounts to their customers C. increase the wages that they paid to labor D. increase the production of PCs E. raise the price of PCs E. raise the price of PCs When a company exports a product from the United States to another country, the company is most likely to be unable to determine the ultimate price of a product if: A. the channels of distribution are short. B. the number of middlemen in its distribution channels is low. C. large orders are placed by retailers. D. marketing and distribution channel infrastructures are well developed. E. the middleman markups are not standardized. E. the middleman markups are not standardized. Which of the following is the most probable reason a manufacturer would choose to conduct its manufacturing operations in a third country? A. To standardize middlemen margins B. To reduce the credit risk of the seller C. To increase the capital-labor ratio D. To avoid antidumping duties E. To reduce manufacturing costs E. To reduce manufacturing costs Lower prices to the buyer may also mean lower tariffs, because most tariffs are levied on a(n) _____ basis. A. specific B. alternative C. accrual D. shorter, lower E. ad valorem E. ad valorem The creation of a free trade zone leads to: A. a decline in exports. B. an increase in taxes and duties levied on a product. C. a reduction in the price escalation. D. a decline in imports. E. an increase in labor costs and overheads. C. a reduction in the price escalation. Drew's company imports materials and parts into a free trade zone (FTZ) within the United States and then has the finished products imported into the United States. Her company will most likely: A. incur higher labor costs than other domestic companies. B. not be able to store finished goods in the FTZ. C. have to pay tariffs based on the value of both the parts and the materials. D. have to pay tariffs based on the value of the raw materials when they leave the country. E. not have to pay tariffs on the products while they are in the FTZ. ... |
What is the most probable reason a manufacturer would choose to conduct its manufacturing operations in a third country quizlet?
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