Business Customs in Global Marketing Cateora by kbw76083

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									Midterm Examination Key


1. (p. 87, Exhibit 4.4) According to the text, culture can trace its origins to geography, history, technology and political
economy, and social institutions.

TRUE


Cateora - Chapter 04 #6
Difficulty: Moderate
Type: Fact



2. (p. 94-95) The Individualism/Collectivism Index measures the tolerance of social inequality.

FALSE


Cateora - Chapter 04 #11
Difficulty: Moderate
Type: Definition



3. (p. 101) The type of knowledge about a culture that is usually obvious and must be learned is designated as
being interpretative knowledge.

FALSE


Cateora - Chapter 04 #17
Difficulty: Moderate
Type: Definition



4. (p. 112) The key to adaptation is to try not to be American and to teach your international business colleagues
about U.S. management methods.

FALSE


Cateora - Chapter 05 #3
Difficulty: Easy
Type: Comprehension
5. (p. 114) Cultural imperatives are those customs or behavior patterns reserved exclusively for the locals and from
which the foreigner is barred.

TRUE


Cateora - Chapter 05 #6
Difficulty: Moderate
Type: Definition



6. (p. 123, Exhibit 5.2) With respect to contextual background among countries, Japan would be a good illustration of a
country that has a low context explicit background.

FALSE


Cateora - Chapter 05 #11
Difficulty: Hard
Type: Fact



7. (p. 146) Adherence to World Trade Organization (WTO) rules means a loss of sovereignty to its member
nations.

TRUE


Cateora - Chapter 06 #4
Difficulty: Moderate
Type: Comprehension



8. (p. 150) Knowledge of the philosophies of all major political parties within a country is important to
international marketers.

TRUE


Cateora - Chapter 06 #7
Difficulty: Moderate
Type: Fact
9. (p. 154) Expropriation occurs when a host country gradually cause the transfer of foreign investment to national
control and ownership through a series of government decrees by mandating local ownership and greater
national involvement in a company's management.

FALSE


Cateora - Chapter 06 #14
Difficulty: Hard
Type: Definition



10. (p. 165) One of the methods for reducing political vulnerability and risk is to license products, services, or
technology.

TRUE


Cateora - Chapter 06 #24
Difficulty: Moderate
Type: Fact and Application



11. (p. 56) If a marketer is to interpret a culture's behavior and attitudes, it is essential to have some idea of a
country's history and geography.

TRUE


Cateora - Chapter 03 #2
Difficulty: Easy
Type: Comprehension



12. (p. 58) With respect to Latin America, citizens of the United States think that they have been good neighbors
and that the Monroe Doctrine has been used to protect the various Latin American states from European
interests.

TRUE


Cateora - Chapter 03 #6
Difficulty: Hard
Type: Application and Comprehension
13. (p. 46) The overall purpose of the Omnibus Trade and Competitiveness Act of 1988 was to deal with trade
deficits, protectionism, and overall fairness of our trading partners.

TRUE


Cateora - Chapter 02 #18
Difficulty: Hard
Type: Definition and Comprehension



14. (p. 46 (Timeline)) The GATT (General Agreement on Tariffs and Trade) was set up as a successor to the WTO
(World Trade Organization).

FALSE


Cateora - Chapter 02 #19
Difficulty: Moderate
Type: Fact



15. (p. 5) One event that will shape international business as the future unfolds is the rapid growth of the World
Trade Organization, NAFTA, and the European Union.

TRUE


Cateora - Chapter 01 #4
Difficulty: Moderate
Type: Comprehension



16. (p. 147, Global Perspective) When the United States and the European Union get into trade disputes, where do both
sides go to settle the matter?

a. The United Nations
b. The World Court
c. The Organization of American States
D. The World Trade Organization
e. none of the above


Cateora - Chapter 06 #26
Difficulty: Moderate
Type: Comprehension and Application
17. (p. 149) Which of the following is NOT one of the common forms of government?

a. democracy
b. aristocracy
C. oligopoly
d. monarchy
e. dictatorship


Cateora - Chapter 06 #34
Difficulty: Hard
Type: Fact



18. (p. 165) The most effective solution to a situation where a foreign government is demanding local participation
in a multinational corporation's business activities in the host country is:

a. joint ventures.
b. licensing.
c. expanding the investment base.
D. planned domestication.
e. political payoffs.


Cateora - Chapter 06 #72
Difficulty: Moderate
Type: Comprehension



19. (p. 155) In Thailand, it is required that any milk sold in the country must contain at least 50 percent milk from
Thai dairy farmers. This would be an illustration of which of the following economic risks faced by
international producers of milk?

a. exchange controls
B. local-content laws
c. import restrictions
d. tax controls
e. price controls


Cateora - Chapter 06 #50
Difficulty: Easy
Type: Application and Definition
20. (p. 113) ___________ is a key concept in international marketing because it is required on small matters as
well as large ones.

a. Profit perception
B. Adaptation
c. Standardization
d. Correlation
e. Individualization


Cateora - Chapter 05 #28
Difficulty: Moderate
Type: Definition and Comprehension



21. (p. 115) With respect to business customs, customs in which the outsider must not participate are called:

a. imperatives.
b. electives.
C. exclusives.
d. non-traditional.
e. standardized.


Cateora - Chapter 05 #33
Difficulty: Moderate
Type: Definition



22. (p. 135) A finance minister in a third-world country demands a heavy payment be made to him or he will stall
or veto a multi-million dollar contract that is on his desk. This practice would be called:

A. extortion.
b. subordination.
c. lubrication.
d. agent's fees.
e. bribery.


Cateora - Chapter 05 #71
Difficulty: Easy
Type: Definition
23. (p. 91) The family, religion, schools, the media, government, and corporations are all illustrations of what are
called:

A. social institutions.
b. cultural icons.
c. internal variables.
d. external variables.
e. demographic variables.


Cateora - Chapter 04 #38
Difficulty: Moderate
Type: Definition



24. (p. 101) _____________ knowledge about a culture is an ability to understand and to appreciate fully the
nuances of different cultural traits and patterns.

a. Factual
B. Interpretative
c. Virtual
d. Historical
e. Superstitious


Cateora - Chapter 04 #59
Difficulty: Moderate
Type: Definition



25. (p. 107) The Westernized diet has caused many Japanese to become overweight. This would be an illustration
of which of the following forms of change?

A. unplanned change
b. planned change
c. parallel change
d. syncopated change
e. synergistic change


Cateora - Chapter 04 #72
Difficulty: Moderate
Type: Application and Definition
26. (p. 94) The Uncertainty Avoidance Index measure the tolerance of ___________ and __________among
members of a society.

a. social equality and inequality
b. self-interest and collective interest
C. uncertainty and ambiguity
d. primary and secondary language tolerance
e. ritual and dislocation


Cateora - Chapter 04 #47
Difficulty: Moderate
Type: Comprehension



27. (p. 22-23) A company using the ________________ views an entire set of country markets as a unit,
identifying groups of prospective buyers with similar needs as an opportunity market segment and develops a
marketing plan that strives for standardization wherever it is cost and culturally effective.

a. domestic market extension concept
b. multidomestic market concept
C. global marketing concept
d. universal marketing concept
e. standardized marketing concept


Cateora - Chapter 01 #75
Difficulty: Hard
Type: Comprehension



28. (p. 22-23) The Ajax Corporation has decided to enter the international marketing arena by marketing its
products on a country-by-country basis, with separate marketing strategies for each country. The company is
using which of the following concepts to formulate its international policies and strategies?

a. Domestic market extension concept
B. Multidomestic market concept
c. Global marketing concept
d. Universal marketing concept
e. Standardized marketing concept


Cateora - Chapter 01 #74
Difficulty: Moderate
Type: Comprehension
29. (p. 29-30) For every dollar the United States invested in the economic development and rebuilding of other
countries after World War II, hundreds of dollars returned in the form of purchases of U.S. goods and services.
The primary plan after World War II used to rebuild and reinvigorate war ravaged countries was the:

a. Eisenhower Plan
B. Marshall Plan
c. Bradley Plan
d. Roosevelt Plan
e. Truman Plan


Cateora - Chapter 02 #27
Difficulty: Hard
Type: Fact and Application



30. (p. 58) Which of the following is the most accurate description of how U.S. citizens see the Monroe Doctrine?

a. The Monroe Doctrine justifies U.S. expansion into Latin America.
b. The Monroe Doctrine guarantees that communism cannot enter into Latin America.
c. The Monroe Doctrine is rather useless in expanding or protecting U.S. policies toward Latin America.
d. The Monroe Doctrine is so dated that became ineffective as a policy in the 1890s.
E. The Monroe Doctrine was seen as protection for Latin America from European colonization and the
intervention of Europe in the governments of the Western Hemisphere.



III. Questions

     1. China
     2. International marketing is the performance of business activities designed to plan, price, promote, and
         direct the flow of a company’s goods and services to consumers or users in more than one nation for a
         profit. OR The process of planning and conducting transactions across national borders to create
         exchanges that satisfy the objectives of individuals and organizations (Czinkota, p. 4).
     3. Domestic market orientation, Multidomestic market orientation, Global market orientation
     4. A system of accounts that records a nation’s international finance transactions
     5. Current account, Capital account, Reserves account
     6. China
     7. Manifest Destiny
     8. Climate and topography, Nature and economic growth, Social responsibility and environmental
         management, Resources
     9. Factual, interpretive, and experiential
     10. Geography, History, Political economy, Technology, Social institutions (Family, Religion, School,
         Media, Government, Corporations)
     11. Rituals
     12. China
     13. Imperatives, Electives, and Exclusives
     14. Bribery and Extortion, Subornation and Lubrication, Agent’s Fees
     15. Japan
     16. Extortion
     17. Forms of government, Political parties, Nationalism, Targeted fear/animosity, Trade disputes
   18. Good Corporate Citizenship, Managing External Affairs, Strategies to Lessen Political Risk (Joint
       Ventures, Expanding the Investment Base, Marketing and Distribution, Licensing, Planned
       Domestication), Political Payoffs
   19. Nationalism
   20. Licensing

IV. Match the following

   3, 9, 8, 1, 7, 2, 5, 10, 4, 6.

								
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