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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