Discuss argument against standardized advertising

Question

Assignment: Management Multiple Choice Questions Set

Part1

Question 1. A push strategy is emphasized when:
distribution channels are short.
sufficient print and electronic media are available to carry the marketing message.
consumers have a low level of literacy.
the products being sold are consumer goods.
professional services are being offered.

Question 2. Which of the following is an argument against standardized advertising?
One large effort to develop a campaign fails to produce better results than 40 or 50 smaller efforts.
It fails to make use of local talent available in other cultures.
Cultural diversity makes it extremely difficult to develop a single advertising theme that is effective worldwide.
Royalties make it the most expensive form of advertising.
It increases the costs of value creation.

Question 3. Which of the following is a drawback of adopting the euro?
Loss of control over national monetary policy
Increase in the cost of capital
Reduction in the liquidity of capital markets
Reduction of price differentials within the euro zone
Loss of investment options open to both individuals and institutions

Question 4. Which of the following principles did the Single European Act propose to apply to product standards?
The principle of "mutual recognition"
The principle of "quid pro quo"
The materiality principle
The principle of "market-to-market"
The elimination principle

Question 5. Spring, an American firm, recently acquired another company known as Tazel Inc. in Indonesia. The high-level managers at Tazel Inc. quit because they could not cope with the domineering and straightforward approach of their American counterparts. This illustrates how acquisitions may fail because:
managers overestimate their ability to create value from an acquisition.
integration of operations between the two firms takes longer than forecasted.
there is a clash between the cultures of the acquired and the acquiring firm.
an acquiring firm overpays for the assets of an acquired firm.
inadequate pre-acquisition screening has been done.

Question 6. Which of the following modes of entry into foreign markets have the advantage of being characterized by low development costs and risks?
Exporting
Licensing
A greenfield investment
A wholly owned subsidiary
A joint venture

Question 7. The term _____ refers to cooperative agreements between potential or actual competitors.
tactical union
strategic alliance
political affiliation
economic association
nationalization

Question 8. Why do firms pursuing global standardization or transnational strategies tend to prefer establishing wholly owned subsidiaries?
It gives firms sound knowledge of the local markets, culture, and the political environment.
It helps protect competitive advantages based on technology.
It allows firms to use the profits generated in one market to improve its competitive position in another market.
It is the most politically accepted mode of entry into foreign markets.
It has the least costs and risks associated with developing a foreign market.

Question 9. Which of the following modes of entry is suitable for service firms where the risk of losing control over the management skills or technological know-how is not much of a concern, and where the firms' valuable asset is their brand name?
Exporting
Franchising
Licensing
Turnkey projects
Cross-licensing

Question 10. Which of the following is true of market segmentation?
An important market segment in a foreign country always has a parallel in a firm's home country.
Markets can be segmented only on the basis of geography and demography.
The structure of market segments is quite similar across various countries.
Since market segments are similar across various countries, firms can pursue a global marketing strategy without varying the marketing mix.
For a segment to transcend national borders, consumers in that segment must have some compelling similarities along important dimensions.

Question 11. The Andean Community now operates as a _____.
common market
economic union
customs union
command economy
political union

Question 12. The elasticity of demand for a product in a given country is determined by a number of factors, of which income level and competitive conditions are the two most important.
True
False

Question 13. The European Community became the European Union in 1993 following the ratification of the _____.
Maastricht Treaty
Warsaw Pact
Treaty of Rome
Single European Act
Lisbon Treaty

Question 14. In international business, an advantage of being a late entrant in a foreign market is the ability to:
create switching costs that tie customers into products or services.
capture demand by establishing a strong brand name.
build sales volume and ride down the experience curve before early entrants.
ride on an early entrant's investments in learning and customer education.
create a cost advantage over first-movers.

Question 15. The amount of value a firm creates is measured by:
the difference between the previous year's profitability and the current year's profitability.
dividing the market price of its products by the price that customers are actually willing to pay.
the difference between its costs of production and the value that consumers perceive in its products.
dividing the net profits of the firm by total invested capital.
the sum of the profitability of the last two fiscal years.

Question 16. Which of the following statements is true about an international strategy?
International strategy typically involves taking products first produced for foreign markets and then customizing them for domestic markets.
International strategy should be pursued by a firm if it manufactures a product that satisfies local, rather than universal, needs.
When a firm pursues an international strategy, the head office of the firm retains fairly tight control over marketing and product strategy.
Firms pursuing the international strategy tend to outsource their development functions such as R&D.
International strategy should be pursued by a firm only if it faces strong competition in foreign markets.

Question 17. In terms of licensing, which of the following is an intangible property?
Infrastructure
Machinery
Leased equipment
Advanced computing systems
Patent

Question 18. When a firm's competitive advantage is based on technological competence, a joint venture is the preferred mode of entry into a foreign market because it reduces the risk of losing control over that competence.
True
False

Question 19. The most significant impact of the North American Free Trade Agreement has not been to create the background for increased political stability in Mexico.
True
False

Question 20. Which of the following is a major obstacle to the establishment of the Free Trade Area of the Americas?
The United States wants its southern neighbors to agree to tougher enforcement of intellectual property rights, which they do not want to embrace.
Some constituent nations insist on a common currency, an initiative that has not found support among many nations.
Brazil and Argentina want the United States to open up critical industries such as telecom and airlines.
The major trading blocks in the region, NAFTA and Mercosur, have opposed its establishment.
There is no consensus on trade policies between Brazil and Argentina.

Question 21. Three countries enter into an agreement to remove all tariffs and trade barriers between them. They decide on a common trade policy with regard to nonmembers. Faced with political backlash, the countries stop short of allowing mobility of factors of production such as labor and capital. Which of the following levels of economic integration best describes this arrangement?
Political union
Customs union
Common market
Economic union
Political union

Question 22. Which of the following is true of the provisions of the North American Free Trade Agreement?
It does not allow financial institutions unrestricted access to the Mexican market.
It abolishes special treatment (protection) given to Mexican energy and railway industries.
It allows lowering of national environmental standards to lure investment.
It seeks the removal of most barriers on the cross-border flow of services.
It does not deal with the protection of intellectual property rights.

Question 23. Which of the following is true with regard to an economic union?
There are restrictions on immigration, emigration, or cross-border flows of capital among member-countries.
It entails less economic integration and cooperation than a common market.
It involves the free flow of products and factors of production among member-countries.
It is defined as a central political apparatus coordinates the economic, social, and foreign policy of the member states.
It does not adopt a common external trade policy.

Question 24. The appropriateness of the strategy that a firm chooses to use in an international market varies with the extent of pressures for _____ and _____.
quality improvement; product standardization
customer surplus; quality improvements
customer surplus; product standardization
cost reductions; local responsiveness
product standardization; cost reductions

Question 25. A(n) _____ is defined as a group of countries committed to removing all barriers to the free flow of goods and services between each other, but pursuing independent external trade policies.
free trade area
command economy
efficient market
foreign exchange market
location economy

Part 2

1. In terms of channel length, the more fragmented the retail system, the less expensive it is for a firm to make contact with each individual retailer.
True
False

Question 2. Which of the following is true of choosing a distribution strategy?
The optimal distribution strategy is determined by the relative costs and benefits of each alternative, which vary from country to country.
A choice of distribution strategy does not determine which channel the firm will use to reach potential consumers.
The channel length, the final selling price, and the firm's profit margin are completely independent of each other.
The longer a distribution channel, the lower the aggregate markup.
The longer a distribution channel, the lower the price that consumers are charged for the final product.

Question 3. Economic theories suggest that free trade and investment is a positive-sum game, in which all participating countries stand to gain.
True
False

Question 4. Large-scale entry allows an international firm to learn about a foreign market while limiting the firm's exposure to that market.
True
False

Question 5. According to Michael Porter, _____ and _____ are the two basic strategies for improving creating value and attaining a competitive advantage in an industry.
differentiation; low-cost
value creation; generalization
one-size-fits-all; zero-sum
comparison; standardization
profitability; strategic fit

Question 6. Which of the following is a major obstacle to the establishment of the Free Trade Area of the Americas?
The United States wants its southern neighbors to agree to tougher enforcement of intellectual property rights, which they do not want to embrace.
Some constituent nations insist on a common currency, an initiative that has not found support among many nations.
Brazil and Argentina want the United States to open up critical industries such as telecom and airlines.
The major trading blocks in the region, NAFTA and Mercosur, have opposed its establishment.
There is no consensus on trade policies between Brazil and Argentina.

Question 7. Which of the following factors limits a firm's ability to use the same marketing message?
Channel exclusivity
Channel quality
Cultural differences
Concentrated retail systems
Fragmented retail systems

Question 8. For an international business, which of the following is most likely to be an outcome of protectionism and nationalism in a host-country?
Increase in the attractiveness of location economies
Pressure for localization of production
Requirement of standardization of products or services
Pressure for cost reduction
Decrease in the significance of local responsiveness

Question 9. Which of the following is a benefit of adopting the euro?
The adoption of a common currency makes it easier to compare prices across Europe.
The adoption of a common currency makes Europe an optimal currency area.
The introduction of a common currency increases the range of investment options open only to institutions.
The introduction of a common currency leads to higher prices which translate into substantial gains for European producers.
The introduction of a common currency decreases competition because it has become easier for consumers to shop around.

Question 10. A(n) _____ has no barriers to trade between member countries, includes a common external trade policy, and allows factors of production to move freely between members.
command economy
customs union
common market
efficient market
free trade area

Question 11. Which of the following is true of market segmentation?
An important market segment in a foreign country always has a parallel in a firm's home country.
Markets can be segmented only on the basis of geography and demography.
The structure of market segments is quite similar across various countries.
Since market segments are similar across various countries, firms can pursue a global marketing strategy without varying the marketing mix.
For a segment to transcend national borders, consumers in that segment must have some compelling similarities along important dimensions.

Question 12. Pressures for local responsiveness imply that it may not be possible to leverage skills and products associated with a firm's core competencies wholesale from one nation to another.
True
False

Question 13. Which of the following is true of international firms considering foreign expansion?
The timing and scale of entry of foreign expansion are minor details in comparison with the choice of foreign market.
The long-run economic benefits of doing business in a country are solely a function of the country's population size.
If the firm's core competence is based on proprietary technology, entering a joint venture might risk losing control of that technology to the joint-venture partner.
The costs and risks associated with foreign expansion are higher in economically advanced nations.
Politically unstable and less developed nations offer favorable benefit-cost-risk trade-off conditions.

Question 14. Which of the following is a drawback of adopting the euro?
Loss of control over national monetary policy
Increase in the cost of capital
Reduction in the liquidity of capital markets
Reduction of price differentials within the euro zone
Loss of investment options open to both individuals and institutions

Question 15. The Andean Community now operates as a _____.
common market
economic union
customs union
command economy
political union

Question 16. Which of the following is an argument against standardized advertising?
One large effort to develop a campaign fails to produce better results than 40 or 50 smaller efforts.
It fails to make use of local talent available in other cultures.
Cultural diversity makes it extremely difficult to develop a single advertising theme that is effective worldwide.
Royalties make it the most expensive form of advertising.
It increases the costs of value creation.

Question 17. If an international firm's core competence is based on proprietary technology, entering a joint venture might risk losing control of that technology to the joint-venture partner.
True
False

Question 18. Jupiter Systems is a high-tech firm looking to set up operations in a foreign country to profit from its technological know-how which is its core competency. Which of the following modes of entry would be most favorable to the firm if it wants to keep a tight control over its technology?
Wholly owned subsidiary
Joint venture
Franchising
Licensing
Turnkey project

Question 19. Three countries enter into an agreement to remove all tariffs and trade barriers between them. They decide on a common trade policy with regard to nonmembers. Faced with political backlash, the countries stop short of allowing mobility of factors of production such as labor and capital. Which of the following levels of economic integration best describes this arrangement?
Political union
Customs union
Common market
Economic union
Political union

Question 20. Differences in government-mandated product standards can rule out mass production and marketing of a standardized product.
True
False

Question 21. _____ refers to agreements among countries in a geographic region to reduce and ultimately remove tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other.
Regional economic integration
Cross-cultural integration
Zoning agreement
Administrative trade policies
Balance-of-trade equilibrium

Question 22. In international marketing, a message that means one thing in one country may mean something quite different in another due to cultural differences.
True
False

Question 23. Which of the following is an element of a firm's marketing mix?
Product attributes
Employee management
Customer service
Population demographics
Domestic competition

Question 24. The elasticity of demand for a product in a given country is determined by a number of factors, of which income level and competitive conditions are the two most important.
True
False

Question 25. In terms of licensing, which of the following is an intangible property?
Infrastructure
Machinery
Leased equipment
Advanced computing systems
Patent

Part.3

1._____ refers to agreements among countries in a geographic region to reduce and ultimately remove tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other.
Regional economic integration
Cross-cultural integration
Zoning agreement
Administrative trade policies
Balance-of-trade equilibrium

Question 2. Which of the following is an argument against standardized advertising?
One large effort to develop a campaign fails to produce better results than 40 or 50 smaller efforts.
It fails to make use of local talent available in other cultures.
Cultural diversity makes it extremely difficult to develop a single advertising theme that is effective worldwide.
Royalties make it the most expensive form of advertising.
It increases the costs of value creation.

Question 3. Which of the following modes of entry into foreign markets has the ability to realize location and experience curve economies?
Turnkey projects
Joint ventures
Licensing
Exporting
Franchising

Question 4. Which of the following is true of choosing a distribution strategy?
The optimal distribution strategy is determined by the relative costs and benefits of each alternative, which vary from country to country.
A choice of distribution strategy does not determine which channel the firm will use to reach potential consumers.
The channel length, the final selling price, and the firm's profit margin are completely independent of each other.
The longer a distribution channel, the lower the aggregate markup.
The longer a distribution channel, the lower the price that consumers are charged for the final product.

Question 5. In terms of channel length, the more fragmented the retail system, the less expensive it is for a firm to make contact with each individual retailer.
True
False

Question 6. The stated aim of the Asia-Pacific Economic Cooperation is to increase multilateral cooperation in view of the economic rise of the Pacific nations and the growing interdependence within the region.
True
False

Question 7. In the context of barriers to international communication, _____ refer(s) to the amount of other messages competing for a potential consumer's attention.
alternative signals
source effects
noise
channel effects
country of origin effects

Question 8. Which of the following statements is true about an international strategy?
International strategy typically involves taking products first produced for foreign markets and then customizing them for domestic markets.
International strategy should be pursued by a firm if it manufactures a product that satisfies local, rather than universal, needs.
When a firm pursues an international strategy, the head office of the firm retains fairly tight control over marketing and product strategy.
Firms pursuing the international strategy tend to outsource their development functions such as R&D.
International strategy should be pursued by a firm only if it faces strong competition in foreign markets.

Question 9. Which of the following is a threat facing the emergence of single markets?
Threat of getting engulfed in a trade war
Increased price competition throughout the European Union
Increase in price differentials across nations
Reduced environmental standards in order to lure investments
Threat of greenfield investments

Question 10. Which of the following is true of a product?
A product can be viewed as the focal point of a marketing mix.
A product can be viewed as the center of market segmentation.
A product can be viewed as a bundle of attributes.
A product can be viewed as a forced need or want.
A product can be viewed as an object that transcends customer behavior.

Question 11. Pull strategies tend to be emphasized:
for complex new products
for consumer goods
for industrial goods
when distribution channels are short.
when few print or electronic media are available.

Question 12. Which of the following is true of the factors regarding the selection of a foreign market?
All nation states in the world hold the same profit potential for a firm contemplating foreign expansion.
The long-run economic benefits of foreign expansion are a function of factors such as the likely future wealth of consumers.
Less populous nations have a higher potential for economic growth.
Politically unstable nations by virtue of their higher potential for growth are the best foreign markets.
The attractiveness of a country as a potential market for an international business depends only on its geographical location.

Question 13. Economic theories suggest that free trade and investment is a positive-sum game, in which all participating countries stand to gain.
True
False

Question 14. Responding to pressures for cost reduction requires a firm to try to lower the costs of value creation.
True
False

Question 15. The most significant impact of the North American Free Trade Agreement has not been to create the background for increased political stability in Mexico.
True
False

Question 16. A push strategy is emphasized when:
distribution channels are short.
sufficient print and electronic media are available to carry the marketing message.
consumers have a low level of literacy.
the products being sold are consumer goods.
professional services are being offered.

Question 17. The amount of value a firm creates is measured by:
the difference between the previous year's profitability and the current year's profitability.
dividing the market price of its products by the price that customers are actually willing to pay.
the difference between its costs of production and the value that consumers perceive in its products.
dividing the net profits of the firm by total invested capital.
the sum of the profitability of the last two fiscal years.

Question 18. Which of the following strategies is a firm most likely to pursue when it simultaneously faces both strong cost pressures and strong pressures for local responsiveness?
Global standardization strategy
Localization strategy
International strategy
Transnational strategy
Nationalization strategy

Question 19. Which of the following strategies focuses on increasing profitability by customizing the firm's goods or services so that they provide a good match to tastes and preferences in different national markets?
International strategy
Global standardization strategy
Localization strategy
Transnational strategy
Nationalization strategy

Question 20. Which of the following principles did the Single European Act propose to apply to product standards?
The principle of "mutual recognition"
The principle of "quid pro quo"
The materiality principle
The principle of "market-to-market"
The elimination principle

Question 21. Which of the following is a major obstacle to the establishment of the Free Trade Area of the Americas?
The United States wants its southern neighbors to agree to tougher enforcement of intellectual property rights, which they do not want to embrace.
Some constituent nations insist on a common currency, an initiative that has not found support among many nations.
Brazil and Argentina want the United States to open up critical industries such as telecom and airlines.
The major trading blocks in the region, NAFTA and Mercosur, have opposed its establishment.
There is no consensus on trade policies between Brazil and Argentina.

Question 22. The Andean Community now operates as a _____.
common market
economic union
customs union
command economy
political union

Question 23. If an international firm's core competence is based on proprietary technology, entering a joint venture might risk losing control of that technology to the joint-venture partner.
True
False

Question 24. The _____ industry is often thought of as one in which global standardization of the marketing mix is the norm.
electronics
retail
pharmaceutical
financial services
heavy machinery

Question 25. Which of the following can be used to overcome quality control problems associated with franchising as a mode of entry into foreign markets?
Licensing agreements
Subsidiaries
Turnkey projects
Export licenses
Cross-licensing agreements

Part.4

1.Three countries enter into an agreement to remove all tariffs and trade barriers between them. They decide on a common trade policy with regard to nonmembers. Faced with political backlash, the countries stop short of allowing mobility of factors of production such as labor and capital. Which of the following levels of economic integration best describes this arrangement?
Political union
Customs union
Common market
Economic union
Political union

Question 2. A push strategy is emphasized when:
distribution channels are short.
sufficient print and electronic media are available to carry the marketing message.
consumers have a low level of literacy.
the products being sold are consumer goods.
professional services are being offered.

Question 3. Which of the following is an important attribute for a product development team to function effectively and meet all of its development milestones?
It should be led by a "heavyweight" project manager who has high status within the organization.
The team members should always be physically in diverse locations in order to cover multiple bases.
It should have preset processes for communication and conflict resolution that are developed by top management.
It should have at least three members from each key function included.
Its team members should be a part of more than two cross-functional teams.

Question 4. The Andean Community now operates as a _____.
common market
economic union
customs union
command economy
political union

Question 5. A(n) _____ is defined as a group of countries committed to removing all barriers to the free flow of goods and services between each other, but pursuing independent external trade policies.
free trade area
command economy
efficient market
foreign exchange market
location economy

Question 6. Which of the following is a threat facing the emergence of single markets?
Threat of getting engulfed in a trade war
Increased price competition throughout the European Union
Increase in price differentials across nations
Reduced environmental standards in order to lure investments
Threat of greenfield investments

Question 7. Which of the following terms best represents the norms and value systems that are shared among the employees of an organization?
Process scenario
Organizational structure
Business structure
Organizational culture
Management structure

Question 8. Which of the following is true of international firms considering foreign expansion?
The timing and scale of entry of foreign expansion are minor details in comparison with the choice of foreign market.
The long-run economic benefits of doing business in a country are solely a function of the country's population size.
If the firm's core competence is based on proprietary technology, entering a joint venture might risk losing control of that technology to the joint-venture partner.
The costs and risks associated with foreign expansion are higher in economically advanced nations.
Politically unstable and less developed nations offer favorable benefit-cost-risk trade-off conditions.

Question 9. The European Community became the European Union in 1993 following the ratification of the _____.
Maastricht Treaty
Warsaw Pact
Treaty of Rome
Single European Act
Lisbon Treaty

Question 10. In theory, the World Trade Organization rules should ensure that a free trade agreement results in trade diversion.
True
False

Question 11. The emphasis of the European Free Trade Association has been on free trade in consumer goods.
True
False

Question 12. An international firm that enters into a turnkey deal has a long-term interest in the foreign country.
True
False

Question 13. Which of the following is the aim of the Central America Free Trade Agreement?
Lowering of trade barriers between the United States and the Central American Common Market countries
Elimination of trade barriers between the CARICOM and Central American Common Market countries
Reduction of trade barriers between Caribbean Single Market and Economy nations and Central American Common Market countries
Introduction of a common currency for Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua
Reductions in tariffs and quotas between Costa Rica, Dominican Republic, and Nicaragua

Question 14. Successful global expansion requires the transfer of core competencies to foreign markets where indigenous competitors lack them.
True
False

Question 15. Which of the following is a disadvantage of greenfield ventures as a mode of entering foreign markets?
Greenfield ventures have a higher potential for throwing up unpleasant surprises.
It is much more difficult to build an organizational culture from scratch than to change the culture of an existing unit.
Companies find it difficult to avoid the hubris hypothesis of acquisitions.
There is a possibility of being preempted by aggressive global competitors who enter via acquisitions.
A firm does not have the freedom to build the kind of subsidiary that it wants.

Question 16. Which of the following modes of entry into foreign markets has the ability to realize location and experience curve economies?
Turnkey projects
Joint ventures
Licensing
Exporting
Franchising

Question 17. In international marketing, a message that means one thing in one country may mean something quite different in another due to cultural differences.
True
False

Question 18. According to Michael Porter, _____ and _____ are the two basic strategies for improving creating value and attaining a competitive advantage in an industry.
differentiation; low-cost
value creation; generalization
one-size-fits-all; zero-sum
comparison; standardization
profitability; strategic fit

Question 19. Which of the following is an advantage of acquisitions as a means of entry into foreign markets?
When a firm makes an acquisition, it buys a set of assets that are producing a known revenue.
Acquiring firms underpay for the assets of the acquired firm.
After an acquisition, many acquired companies face a rise in recruitments.
Integrating the operations of the acquired and acquiring entities often takes a short period of time.
Most acquisitions succeed due to detailed pre-acquisition screening.

Question 20. The amount of value a firm creates is measured by:
the difference between the previous year's profitability and the current year's profitability.
dividing the market price of its products by the price that customers are actually willing to pay.
the difference between its costs of production and the value that consumers perceive in its products.
dividing the net profits of the firm by total invested capital.
the sum of the profitability of the last two fiscal years.

Question 21. Which of the following strategies is most likely to be pursued by a firm when there are strong pressures for cost reductions and demands for local responsiveness are minimal?
Domestic strategy
Global standardization strategy
International strategy
Transnational strategy
Nationalization strategy

Question 22. Which of the following is an argument against standardized advertising?
One large effort to develop a campaign fails to produce better results than 40 or 50 smaller efforts.
It fails to make use of local talent available in other cultures.
Cultural diversity makes it extremely difficult to develop a single advertising theme that is effective worldwide.
Royalties make it the most expensive form of advertising.
It increases the costs of value creation.

Question 23. The term _____ refers to cooperative agreements between potential or actual competitors.
tactical union
strategic alliance
political affiliation
economic association
nationalization

Question 24. The two phenomena that help explain the experience curve are:
learning effects and economies of scale.
technology inputs and wealth transfer.
leveraging subsidiary and local responsiveness.
standardized manufacturing and global web.
efficiency frontier and location economies

Question 25. Which of the following is true of choosing a distribution strategy?
The optimal distribution strategy is determined by the relative costs and benefits of each alternative, which vary from country to country.
A choice of distribution strategy does not determine which channel the firm will use to reach potential consumers.
The channel length, the final selling price, and the firm's profit margin are completely independent of each other.
The longer a distribution channel, the lower the aggregate markup.
The longer a distribution channel, the lower the price that consumers are charged for the final product.
Comments:

Grading Summary
These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the "Details" section below. Date Taken: 1/5/2015
Time Spent: 24 min , 56 secs
Points Received: 24 / 25 (96%)
Question Type: # Of Questions: # Correct:
True/False 6 6
Multiple Choice 19 18
Grade Details - All Questions
Page: 1 2

Part.5

Question 1. In terms of licensing, which of the following is an intangible property?
Infrastructure
Machinery
Leased equipment
Advanced computing systems
Patent

Question 2. When a firm's competitive advantage is based on technological competence, a joint venture is the preferred mode of entry into a foreign market because it reduces the risk of losing control over that competence.
True
False

Question 3. _____ refers to the pact among Argentina, Brazil, Paraguay, and Uruguay that originated in 1988 to establish a free trade area.
ASEAN
NAFTA
Mercosur
CARICOM
CAFTA

Question 4. Which of the following is true of price discrimination as a part of international pricing strategy?
The more competitors there are, the lesser consumers' bargaining power will be.
The more competitors there are, the less likely consumers will be to buy from the firm that charges the lowest price.
A firm may charge a higher price for its product in a country where competition is limited than in one where competition is intense.
Many competitors cause low elasticity of demand.
If a firm raises its prices above those of its competitors, consumers will refuse to switch to the competitors' products.

Question 5. Why do firms pursuing global standardization or transnational strategies tend to prefer establishing wholly owned subsidiaries?
It gives firms sound knowledge of the local markets, culture, and the political environment.
It helps protect competitive advantages based on technology.
It allows firms to use the profits generated in one market to improve its competitive position in another market.
It is the most politically accepted mode of entry into foreign markets.
It has the least costs and risks associated with developing a foreign market.

Question 6. In theory, the World Trade Organization rules should ensure that a free trade agreement results in trade diversion.
True
False

Question 7. Successful global expansion requires the transfer of core competencies to foreign markets where indigenous competitors lack them.
True
False

Question 8. According to Michael Porter, _____ and _____ are the two basic strategies for improving creating value and attaining a competitive advantage in an industry.
differentiation; low-cost
value creation; generalization
one-size-fits-all; zero-sum
comparison; standardization
profitability; strategic fit

Question 9. The term _____ refers to cooperative agreements between potential or actual competitors.
tactical union
strategic alliance
political affiliation
economic association
nationalization

Question 10. Which of the following is the aim of the Central America Free Trade Agreement?
Lowering of trade barriers between the United States and the Central American Common Market countries
Elimination of trade barriers between the CARICOM and Central American Common Market countries
Reduction of trade barriers between Caribbean Single Market and Economy nations and Central American Common Market countries
Introduction of a common currency for Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua
Reductions in tariffs and quotas between Costa Rica, Dominican Republic, and Nicaragua

Question 11. The appropriateness of the strategy that a firm chooses to use in an international market varies with the extent of pressures for _____ and _____.
quality improvement; product standardization
customer surplus; quality improvements
customer surplus; product standardization
cost reductions; local responsiveness
product standardization; cost reductions

Question 12. Three countries enter into an agreement to remove all tariffs and trade barriers between them. They decide on a common trade policy with regard to nonmembers. Faced with political backlash, the countries stop short of allowing mobility of factors of production such as labor and capital. Which of the following levels of economic integration best describes this arrangement?
Political union
Customs union
Common market
Economic union
Political union

Question 13. The most significant impact of the North American Free Trade Agreement has not been to create the background for increased political stability in Mexico.
True
False

Question 14. In terms of channel length, the more fragmented the retail system, the less expensive it is for a firm to make contact with each individual retailer.
True
False

Question 15. Which of the following is true of international firms considering foreign expansion?
The timing and scale of entry of foreign expansion are minor details in comparison with the choice of foreign market.
The long-run economic benefits of doing business in a country are solely a function of the country's population size.
If the firm's core competence is based on proprietary technology, entering a joint venture might risk losing control of that technology to the joint-venture partner.
The costs and risks associated with foreign expansion are higher in economically advanced nations.
Politically unstable and less developed nations offer favorable benefit-cost-risk trade-off conditions.

Question 16. Which of the following strategies focuses on increasing profitability by customizing the firm's goods or services so that they provide a good match to tastes and preferences in different national markets?
International strategy
Global standardization strategy
Localization strategy
Transnational strategy
Nationalization strategy

Question 17. The value creation activities of a firm are categorized as _____ and _____.
primary activities; support activities
strategic activities; functional activities
ancillary functions; tertiary functions
primary activities; core activities
goal-oriented activities; organizational activities

Question 18. Differences in government-mandated product standards can rule out mass production and marketing of a standardized product.
True
False

Question 19. Which of the following strategies is a firm most likely to pursue when it simultaneously faces both strong cost pressures and strong pressures for local responsiveness?
Global standardization strategy
Localization strategy
International strategy
Transnational strategy
Nationalization strategy

Question 20. A push strategy is emphasized when:
distribution channels are short.
sufficient print and electronic media are available to carry the marketing message.
consumers have a low level of literacy.
the products being sold are consumer goods.
professional services are being offered.

Question 21. Which of the following is true of the provisions of the North American Free Trade Agreement?
It does not allow financial institutions unrestricted access to the Mexican market.
It abolishes special treatment (protection) given to Mexican energy and railway industries.
It allows lowering of national environmental standards to lure investment.
It seeks the removal of most barriers on the cross-border flow of services.
It does not deal with the protection of intellectual property rights.

Question 22. Which of the following is true with regard to an economic union?
There are restrictions on immigration, emigration, or cross-border flows of capital among member-countries.
It entails less economic integration and cooperation than a common market.
It involves the free flow of products and factors of production among member-countries.
It is defined as a central political apparatus coordinates the economic, social, and foreign policy of the member states.
It does not adopt a common external trade policy.

Question 23. Which of the following is true of a product?
A product can be viewed as the focal point of a marketing mix.
A product can be viewed as the center of market segmentation.
A product can be viewed as a bundle of attributes.
A product can be viewed as a forced need or want.
A product can be viewed as an object that transcends customer behavior.

Question 24. Which of the following modes of entry into foreign markets has the ability to realize location and experience curve economies?
Turnkey projects
Joint ventures
Licensing
Exporting
Franchising

Question 25. For an international business, which of the following is most likely to be an outcome of protectionism and nationalism in a host-country?
Increase in the attractiveness of location economies
Pressure for localization of production
Requirement of standardization of products or services
Pressure for cost reduction
Decrease in the significance of local responsiveness

Part: 6

* Times are displayed in (GMT-05:00) Eastern Time (US & Canada)
1. Firms that pursue a localization strategy try to create value by:
emphasizing local responsiveness.
encouraging a global staffing approach.
emphasizing transnational strategies.
building an informal management network.
transferring products and competencies overseas.

Question 2. _____ refers to a strategy that is concerned with the selection of employees for particular jobs.
Compensation policy
Staffing policy
Performance appraisal policy
Training policy
Management development policy

Question 3. From a strategic perspective, the key issue in international labor relations is:
dealing with multiple business units.
the degree to which organized labor can limit the choices of an international business.
whether to hire parent-country nationals, host-country nationals, or third-country nationals.
helping expatriates cope with new role demands.
the extent to which a reciprocal tax treaty can be brought into effect.

Question 4. International businesses pursuing a(n) _____ strategy are increasingly using management development as a strategic tool as they need a strong unifying corporate culture and informal management networks to assist in coordination and control.
localization
international
transnational
global standardization
ethnocentric

Question 5. Broadly speaking, a(n) _____ staffing approach is compatible with an international strategy.
ethnocentric
geocentric
polycentric
transnational
ethical

Question 6. Megan, a U.S. citizen, is the operations manager at the Middle East office of HS Constructions Inc., an American firm. In this situation, she is an example of a(n) _____ manager.
immigrant
host-country
inpatriate
expatriate
virtual

Question 7. During performance appraisals, two groups evaluate the performance of expatriate managers-host-nation managers and home-office managers. This is aimed at avoiding the problem of _____.
cultural conflict
unintentional bias
operational errors
central tendency
culture shock

Question 8. A concern of organized labor is that an international business keeps highly skilled tasks in its home country and farm out low-skilled tasks to foreign plants.
True
False

Question 9. Which of the following is an advantage of adopting a polycentric staffing approach?
It is less expensive to implement as compared to other staffing approaches.
It gives host-country nationals unlimited opportunities to gain experience outside their own country.
It increases career mobility.
It increases interaction between the headquarters of a firm and its foreign subsidiaries.
It bridges the gap between host-country managers and parent-country managers.

Question 10. Transnational firm managers need not be able to detect pressures for local responsiveness because it is not part of their skill set.
True
False

Question 11. Organizational architecture refers to an organization's norms and value systems.
True
False

Question 12. If a firm tries to create value by transferring core competencies to a foreign operation and, therefore, transfers parent-country nationals who have knowledge of that competency to the foreign operation, it pursues a(n) _____ staffing policy.
ethnocentric
polycentric
geocentric
eurocentric
transnational

Question 13. In international businesses, a geocentric staffing policy is one in which all key management positions are filled by parent-country nationals.
True
False

Question 14. It is important that the spouse of an expatriate manager, and perhaps the whole family, be included in cultural training programs.
True
False

Question 15. A firm's failure to understand host-country cultural differences that require different approaches to marketing and management is referred to as _____.
cultural parity
cultural myopia
power distance
cultural toughness
cultural polarization

Question 16. Which of the following steps is true of bias in performance evaluations?
More weight should be given to an off-site manager's appraisal than an on-site manager's appraisal.
Cultural bias increases when the on-site manager is of the same nationality as the expatriate.
Home-office managers should write performance evaluations without consulting on-site managers to avoid bias.
Due to proximity, an on-site manager is more likely to evaluate the soft variables that are important aspects of an expatriate's performance.
A performance appraisal is invalid when the on-site manager is of the same nationality as the expatriate manager.

Question 17. Unless a host country has a reciprocal tax treaty with the expatriate's home country, an expatriate must pay income tax to both the home- and host-country governments.
True
False

Question 18. An expatriate manager refers to:
a citizen of one country who is working abroad in one of the firm's subsidiaries.
a parent-country national who works in the parent country.
a host-country national who works in the host country.
any person who lives in a foreign country.
a person willing to work in different departments of a foreign firm.

Question 19. A(n) _____ staffing policy is one in which all key management positions are filled by parent-country nationals.
ethnocentric
global
polycentric
geocentric
transnational

Question 20. International firms try to create value by:
transferring products and competencies overseas.
following a local staffing policy.
focusing on local responsiveness.
emphasizing a localization strategy.
adopting an ethnocentric staffing approach.

Question 21. Which of the following is the most common approach to expatriate pay which equalizes purchasing power across countries so employees can enjoy the same living standard in their foreign posting that they enjoyed at home?
Merit approach
Correspondence approach
Balance sheet approach
Parity approach
Perceptual approach

Question 22. An expatriate manager is a citizen of one country who is working abroad in one of the firm's subsidiaries.
True
False

Question 23. In international businesses, firms pursue a polycentric staffing policy because they see it as the best way to maintain a unified corporate culture.
True
False

Question 24. A polycentric staffing approach is effective for firms pursuing a(n) _____ strategy.
international
localization
global
transnational
regional

Question 25. The _____ function of an international business is typically responsible for international labor relations.
public relations
human resource management
finance and accounting
legal
logistics
Comments:

Part.7

Question 1. According to R. L. Tung's study, which of the following is the most important reason for expatriate failures for U.S. multinationals?
Inability of the spouse to adjust
Difficulties with the new environment
Insufficient pay
Personal or emotional problems
Lack of technical competence

Question 2. What is the advantage of a geocentric staffing policy?
It requires firms to provide little or no documentation to hire a foreign national.
It enables firms to build a cadre of international executives who feel at home working in a number of cultures.
It is inexpensive to implement the policy in a firm.
It allows all key management positions of the firms and their subsidiaries to be filled by parent-country nationals.
It helps firms to follow a localization strategy.

Question 3. If a firm tries to create value by transferring core competencies to a foreign operation and, therefore, transfers parent-country nationals who have knowledge of that competency to the foreign operation, it pursues a(n) _____ staffing policy.
ethnocentric
polycentric
geocentric
eurocentric
transnational

Question 4. A firm's failure to understand host-country cultural differences that require different approaches to marketing and management is referred to as _____.
cultural parity
cultural myopia
power distance
cultural toughness
cultural polarization

Question 5. Organizational architecture refers to an organization's norms and value systems.
True
False

Question 6. International firms try to create value by:
transferring products and competencies overseas.
following a local staffing policy.
focusing on local responsiveness.
emphasizing a localization strategy.
adopting an ethnocentric staffing approach.

Question 7. Organized labor responds to the increased bargaining power of multinational corporations by:
trying to impose regulations on multinationals through organizations such as GATT.
trying to achieve international regulations on multinationals through the United Nations.
trying to establish regional boards.
lobbying for multinational corporations to restrict their global reach to three or fewer foreign countries.
trying to develop a local trade forum.

Question 8. According to Mendenhall and Oddou, what is the major problem in the selection of appropriate candidates for overseas assignments in many firms?
Lack of technical abilities
Equating domestic performance with overseas performance potential
Lack of communication between line managers and HR managers
A geocentric staffing policy
A polycentric staffing policy

Question 9. The _____ function of an international business is typically responsible for international labor relations.
public relations
human resource management
finance and accounting
legal
logistics

Question 10. With regard to the types of allowances often included in an expatriate's compensation package, a(n) _____ allowance is paid when the expatriate is being sent to a difficult location.
education
housing
hardship
cost-of-living
reciprocal

Question 11. The norms and value systems of an organization constitute its _____.
corporate social responsibility
cultural toughness
cultural sensitivity
corporate culture
perceptual ability

Question 12. A(n) _____ staffing policy is one in which all key management positions are filled by parent-country nationals.
ethnocentric
global
polycentric
geocentric
transnational

Question 13. Which of the following strategies is compatible with a geocentric staffing policy?
Global standardization strategy
Localization strategy
International strategy
Ethical strategy
Global strategy

Question 14. During performance appraisals, two groups evaluate the performance of expatriate managers-host-nation managers and home-office managers. This is aimed at avoiding the problem of _____.
cultural conflict
unintentional bias
operational errors
central tendency
culture shock

Question 15. Repatriation refers to:
sending expatriate managers to a new host country.
training expatriate managers to adjust to the new environment of the host country.
reentry of expatriate managers into their home-country organization.
helping expatriate managers build rapport with local employees.
the process of increasing expatriate managers' effectiveness in dealing with host-country nationals.

Question 16. According to Mendenhall and Oddou's dimensions that predict success in a foreign posting, which of the following is a result of the attribute of others-orientation?
The expatriate has high self-esteem.
The expatriate empathizes with the host-country nationals.
The expatriate speaks to the host-country nationals in the local language.
The expatriate adjusts to the inhospitable climate of the host country.
The expatriate is comfortable working in a male-dominated environment.

Question 17. An expatriate manager is a citizen of one country who is working abroad in one of the firm's subsidiaries.
True
False

Question 18. Transnational firm managers need not be able to detect pressures for local responsiveness because it is not part of their skill set.
True
False

Question 19. Unless a host country has a reciprocal tax treaty with the expatriate's home country, an expatriate must pay income tax to both the home- and host-country governments.
True
False

Question 20. A(n) _____ staffing policy seeks the best people for key jobs throughout the organization, regardless of nationality.
global
ethnocentric
geocentric
polycentric
transnational

Question 21. Broadly speaking, a(n) _____ staffing approach is compatible with an international strategy.
ethnocentric
geocentric
polycentric
transnational
ethical

Question 22. International businesses pursuing a(n) _____ strategy are increasingly using management development as a strategic tool as they need a strong unifying corporate culture and informal management networks to assist in coordination and control.
localization
international
transnational
global standardization
ethnocentric

Question 23. From a strategic perspective, the key issue in international labor relations is:
dealing with multiple business units.
the degree to which organized labor can limit the choices of an international business.
whether to hire parent-country nationals, host-country nationals, or third-country nationals.
helping expatriates cope with new role demands.
the extent to which a reciprocal tax treaty can be brought into effect.

Question 24. A concern of organized labor is that an international business keeps highly skilled tasks in its home country and farm out low-skilled tasks to foreign plants.
True
False

Question 25. A(n) _____ staffing policy requires host-country nationals to be recruited to manage subsidiaries, while parent-country nationals occupy key positions at corporate headquarters.
geocentric
polycentric
ethnocentric
global
transnational
International firms pursuing an ethnocentric staffing policy may be better able to create value from the pursuit of experience curve and location economies than firms pursuing other staffing policies.
True
False

Part.8

1. International firms pursuing an ethnocentric staffing policy may be better able to create value from the pursuit of experience curve and location economies than firms pursuing other staffing policies.
True
False

Question 2. In international businesses, firms pursue a polycentric staffing policy because they see it as the best way to maintain a unified corporate culture.
True
False

Question 3. According to Mendenhall and Oddou's dimensions that predict success in a foreign posting, which of the following is a result of the attribute of others-orientation?
The expatriate has high self-esteem.
The expatriate empathizes with the host-country nationals.
The expatriate speaks to the host-country nationals in the local language.
The expatriate adjusts to the inhospitable climate of the host country.
The expatriate is comfortable working in a male-dominated environment.

Question 4. A(n) _____ refers to extra pay the expatriate receives for working outside his or her country of origin.
parity adjustment
special bonus
foreign service premium
expat allowance
benefit

Question 5. According to Mendenhall and Oddou, the attribute of _____ provides an expatriate the ability to understand why people of other countries behave the way they do.
cultural toughness
perceptual ability
self-orientation
others-orientation
willingness to communicate

Question 6. It is important that the spouse of an expatriate manager, and perhaps the whole family, be included in cultural training programs.
True
False

Question 7. Which of the following is the most common approach to expatriate pay which equalizes purchasing power across countries so employees can enjoy the same living standard in their foreign posting that they enjoyed at home?
Merit approach
Correspondence approach
Balance sheet approach
Parity approach
Perceptual approach

Question 8. The norms and value systems of an organization constitute its _____.
corporate social responsibility
cultural toughness
cultural sensitivity
corporate culture
perceptual ability

Question 9. A concern of organized labor is that an international business keeps highly skilled tasks in its home country and farm out low-skilled tasks to foreign plants.
True
False

Question 10. From a strategic perspective, the key issue in international labor relations is:
dealing with multiple business units.
the degree to which organized labor can limit the choices of an international business.
whether to hire parent-country nationals, host-country nationals, or third-country nationals.
helping expatriates cope with new role demands.
the extent to which a reciprocal tax treaty can be brought into effect.

Question 11. A(n) _____ staffing policy seeks the best people for key jobs throughout the organization, regardless of nationality.
global
ethnocentric
geocentric
polycentric
transnational

Question 12. In international businesses, a geocentric staffing policy is one in which all key management positions are filled by parent-country nationals.
True
False

Question 13. A(n) _____ staffing policy is one in which all key management positions are filled by parent-country nationals.
ethnocentric
global
polycentric
geocentric
transnational

Question 14. Which of the following steps is true of bias in performance evaluations?
More weight should be given to an off-site manager's appraisal than an on-site manager's appraisal.
Cultural bias increases when the on-site manager is of the same nationality as the expatriate.
Home-office managers should write performance evaluations without consulting on-site managers to avoid bias.
Due to proximity, an on-site manager is more likely to evaluate the soft variables that are important aspects of an expatriate's performance.
A performance appraisal is invalid when the on-site manager is of the same nationality as the expatriate manager.

Question 15. Historically, most international businesses have been more concerned with management development than with training.
True
False

Question 16. With regard to the types of allowances often included in an expatriate's compensation package, a(n) _____ allowance is paid when the expatriate is being sent to a difficult location.
education
housing
hardship
cost-of-living
reciprocal

Question 17. Organizational architecture refers to an organization's norms and value systems.
True
False

Question 18. During performance appraisals, two groups evaluate the performance of expatriate managers-host-nation managers and home-office managers. This is aimed at avoiding the problem of _____.
cultural conflict
unintentional bias
operational errors
central tendency
culture shock

Question 19. Which of the following is an advantage of adopting a polycentric staffing approach?
It is less expensive to implement as compared to other staffing approaches.
It gives host-country nationals unlimited opportunities to gain experience outside their own country.
It increases career mobility.
It increases interaction between the headquarters of a firm and its foreign subsidiaries.
It bridges the gap between host-country managers and parent-country managers.

Question 20. The _____ function of an international business is typically responsible for international labor relations.
public relations
human resource management
finance and accounting
legal
logistics

Question 21. A polycentric staffing approach is effective for firms pursuing a(n) _____ strategy.
international
localization
global
transnational
regional

Question 22. What is the advantage of a geocentric staffing policy?
It requires firms to provide little or no documentation to hire a foreign national.
It enables firms to build a cadre of international executives who feel at home working in a number of cultures.
It is inexpensive to implement the policy in a firm.
It allows all key management positions of the firms and their subsidiaries to be filled by parent-country nationals.
It helps firms to follow a localization strategy.

Question 23. If a firm tries to create value by transferring core competencies to a foreign operation and, therefore, transfers parent-country nationals who have knowledge of that competency to the foreign operation, it pursues a(n) _____ staffing policy.
ethnocentric
polycentric
geocentric
eurocentric
transnational

Question 24. Which of the following strategies is compatible with a geocentric staffing policy?
Global standardization strategy
Localization strategy
International strategy
Ethical strategy
Global strategy

Question 25. Unless a host country has a reciprocal tax treaty with the expatriate's home country, an expatriate must pay income tax to both the home- and host-country governments.
True
False.