Q&A
Int.marketing
• For companies today, becoming international is a luxury only some
can afford.
True False
• International marketing involves selling of a company's goods and
services to consumers or users in more than one nation for a profit.
True False
1) FALSE
For a growing number of companies, being international is no longer a
luxury but a necessity for economic survival.
2) TRUE
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.
• The foreign policies of a country have a direct effect on a firm's
international marketing success.
True False
• The global marketing concept views the marketplace as consisting of
one primary domestic market that is complimented by several smaller
regional markets.
True False
1) TRUE
Domestic environment uncontrollable include home-country elements that
can have a direct effect on the success of a foreign venture: political and
legal forces, economic climate, and competition. A political decision involving
foreign policy can have a direct effect on a firm's international marketing
success.
2) FALSE
At the global marketing stage of international marketing involvement,
companies treat the world, including their home market, as one market.
• Protection of an infant industry is recognized by economists as a valid
argument in favor of protectionism.
True False
• A government boycott is a partial restriction against the purchase and
importation of certain goods and/or services from other countries.
True False
1) TRUE
Economists in general recognize only the arguments regarding infant
industry, national defense, and industrialization of underdeveloped countries
in favor of protectionism.
2) FALSE
A government boycott is an absolute restriction against the purchase and
importation of certain goods and/or services from other countries. This
restriction can even include travel bans, like the one once in place for
Chinese tourists; the Beijing government refused to designate Canada as an
approved tourism destination.
• The World Intellectual Property Organization was formed with the
primary objective of overcoming inadequate monetary reserves and
dealing with unstable currencies which were particularly vexing
problems in global trade.
True False
• The decisions taken by the World Trade Organization in solving trade
disputes among members are binding ones.
True False
1) FALSE
The International Monetary Fund (IMF) was formed to overcome
international market barriers such as inadequate monetary reserves
and unstable currencies which are particularly vexing problems in
global trade.
2) TRUE
The World Trade Organization sets many rules governing trade among
its 160 members, provides a panel of experts to hear and rule on trade
disputes among members, and, unlike GATT, issues binding decisions.
• When marketers introduce an innovative product or idea, they act as
agents of change.
True False
• For a marketer, one's own religion is most often the best guide to
another's beliefs.
True False
1) TRUE
Marketers are constantly adjusting their efforts to cultural demands of
the market, but they also are acting as agents of change whenever the
product or idea being marketed is innovative.
2) FALSE
One's own religion is often not a reliable guide to another's beliefs.
Most people do not understand religions other than their own, and/or
what is "known" about other religions is often incorrect.
• The Uncertainty Avoidance Index (UAI), one of the four dimensions of
culture identified by Geert Hofstede, focuses on assertiveness and
achievement.
True False
• The Power Distance dimension of culture, identified by Geert
Hofstede, has proven to be the most useful of the four dimensions.
True False
1) FALSE
The Uncertainty Avoidance Index (UAI) focuses on risk orientation and
the Masculinity/Femininity Index (MAS) focuses on assertiveness and
achievement
2) FALSE
The Individualism/Collectivism dimension of culture, identified by
Geert Hofstede, has proven the most useful of the four dimensions,
justifying entire books on the subject.
• Cultural imperatives are business customs that need not be
recognized and accommodated.
True False
• The idea of wide sharing in decision making is consistent with the
views that one controls one's own destiny and that business
advancement is based on merit.
True False
1) FALSE
Imperatives are business customs that must be recognized and
accommodated. Apart from imperatives, business customs can be grouped
into electives, customs to which adaptation is helpful but not necessary; and
exclusives, customs in which an outsider must not participate.
2) TRUE
Compatible with the views that one controls one's own destiny and that
advancement is based on merit is the prevailing idea of wide sharing in
decision making.
• High Power Distance Index countries are more egalitarian than low
Power Distance Index countries.
True False
• High-context cultures place great importance on the verbal aspects of
communication.
True False
1) FALSE
In high Power Distance Index (PDI) countries such as Mexico and
Malaysia, understanding the rank and status of clients and business
partners is much more important than in more egalitarian (low PDI)
societies such as Denmark and Israel.
2) FALSE
Communication in a high-context culture depends heavily on the
contextual (who says it, when it is said, how it is said) or nonverbal
aspects of communication, whereas the low-context culture depends
more on explicit, verbally expressed communications.
• Sovereignty refers to both the powers exercised by a state in relation
to other countries and the supreme powers exercised over its own
members.
True False
• As a result of the General Agreement on Tariffs and Trade, foreign
businesses no longer need to be concerned about the stability or
instability of prevailing government policies.
True False
1) TRUE
Sovereignty refers to both the powers exercised by a state in relation to
other countries and the supreme powers exercised over its own
members. A state sets requirements for citizenship, defines
geographical boundaries, and controls trade and the movement of
people and goods across its borders.
2) FALSE
At the top of the list of political issues concerning foreign businesses is
the stability or instability of prevailing government policies
• Nationalistic feelings are directly proportional to the growth of
domestic economy.
True False
• Expropriation and nationalization have often led to nationalized
businesses that were efficient, technologically strong, and
competitive in world markets.
True False
1) FALSE
Generally, the more a country feels threatened by some outside force
or the domestic economy declines, the more nationalistic it becomes in
protecting itself against intrusions.
2) FALSE
Expropriation and nationalization have often led to nationalized
businesses that were inefficient, technologically weak, and
noncompetitive in world markets
