International Business Environment
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Course Introduction
International Business Environment examines the complex and dynamic factors that shape the global marketplace. The course explores economic, political, legal, cultural, and technological influences on international business operations, highlighting how companies adapt their strategies to diverse environments. Topics include globalization, cross-cultural management, international trade and investment theories, regional economic integration, risk analysis, and ethical considerations. Through real-world case studies and current issues, students gain a comprehensive understanding of the challenges and opportunities facing businesses operating across borders, preparing them to make informed decisions in an interconnected world.
Recommended Textbook
International Marketing 15th Edition by Philip; Gilly
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19 Chapters
1837 Verified Questions
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Page 2
Chapter 1: The Scope and Challenge of International Marketing
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Sample Questions
Q1) What is the impact of the "alien status" of a company?
Answer: Political and legal issues a business faces abroad are often amplified by the "alien status" of the company, which increases the difficulty of properly assessing and forecasting the dynamic international business climate. The alien status of a foreign business has two dimensions: It is alien in that foreigners control the business and in that the culture of the host country is alien to management. The alien status of a business means that, when viewed as an outsider, it can be seen as an exploiter and receive prejudiced or unfair treatment at the hands of politicians, legal authorities, or both. Political activists can rally support by advocating the expulsion of the "foreign exploiters," often with the open or tacit approval of authorities.
Q2) For a company at the _____ stage of internationalization, market segments are defined by income levels, usage patterns, or other factors that frequently span countries and regions.
A) domestic market extension
B) multidomestic market
C) global marketing
D) universal marketing
E) standardized marketing
Answer: C
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Chapter 2: The Dynamic Environment of International Trade
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Sample Questions
Q1) In general, tariffs restrict:
A) inflationary pressures.
B) special interests' privileges.
C) government control in economic matters.
D) the number of tariffs.
E) manufacturers' supply sources.
Answer: E
Q2) Which of the following were the original signatories to the General Agreement on Tariffs and Trade (GATT) shortly after World War II?
A) The United States, The United Kingdom, and Germany
B) The United States and 22 other countries
C) The United States, countries of Europe, and Japan
D) The United States and 6 other countries
E) The United States, France, Germany, The U.K., and Japan
Answer: B
Q3) Antidumping laws were designed to prevent foreign producers from "predatory pricing."
A)True
B)False
Answer: True
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Chapter 3: History and Geography: The Foundations of Culture
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Sample Questions
Q1) Larry Lam has the responsibility of doing a geographic appraisal for his company as it attempts to build a manufacturing facility in Borneo. Which of the following elements of geography would NOT be of particular interest to Mr. Lam as he prepares an appraisal of the feasibility of a venture in this tropical country?
A) Altitude
B) Humidity
C) Temperature extremes
D) Climate
E) Latitude.
Answer: E
Q2) Nowadays, geographical barriers within Europe, like the Alps, are seen as natural protection from potentially hostile neighbors.
A)True
B)False
Answer: False
Q3) The United States is now the world's top polluter.
A)True
B)False
Answer: False
Page 5
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Chapter 4: Cultural Dynamics in Assessing Global Markets
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Sample Questions
Q1) When a product or idea is innovative, the marketers involved act as agents of change.
A)True
B)False
Q2) Which of the following countries would have the most affinity (score highest) for collectivism (cohesive groups are honored and encouraged)?
A) Great Britain
B) Australia
C) Canada
D) France
E) Japan
Q3) According to the text, there is some good news about gender equality in recent years -- the _____ gap between the sexes is narrowing in many places around the world.
A) intelligence
B) biological
C) identity
D) education
E) language
Q4) Describe the relationship between UAI scores and stress.
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Chapter 5: Culture, Management Style, and Business Systems
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Sample Questions
Q1) Workers in countries higher in individualism show more commitment than workers in countries with lower individualism and higher power distance.
A)True
B)False
Q2) The majority of business customs fit into the cultural elective category.
A)True
B)False
Q3) Which of the following, according to data provided in Chapters 4 and 5, is more likely to exhibit higher levels of bribery?
A) Individualistic cultures
B) Countries with a strong culture of hierarchy
C) Nations with a communist path
D) Large countries, especially developed countries
E) Countries with low-power distance
Q4) Compared to low-context cultures, high-context cultures place great importance on the words used to express thoughts.
A)True
B)False
Page 7
Q5) Discuss the American manager's attitude toward objectivity in decisions.
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Chapter 6: The Political Environment: A Critical Concern
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Sample Questions
Q1) If there is a substantial amount of capital leaving the country, which of the following is the country likely to implement to control the situation?
A) Exchange controls
B) Local-content laws
C) Import restrictions
D) Tax controls
E) Price controls
Q2) While expanding the investment base of a company, which of the following can be used as a powerful ally in dealing with threats of government takeovers or harassment?
A) Lender banks to host government
B) World Trade Organization
C) International Labour Organization
D) Regional trade blocs
E) Opposing political parties
Q3) At the top of the list of political issues concerning foreign businesses is the issue of taxation and tariffs.
A)True
B)False
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8
Chapter 7: The International Legal Environment: Playing by the Rules
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Sample Questions
Q1) Which of the following U.S. government agencies oversees antitrust enforcement in international commerce?
A) Department of State
B) Department of Justice
C) Department of Commerce
D) Department of Defense
E) Department of Home Land Security
Q2) Under ___, the legal system is subordinate to prevailing economic conditions.
A) common law
B) code law
C) Islamic law
D) Marxist-socialist tenets
E) legal tradition
Q3) Another term for code law is:
A) business law.
B) common law.
C) religious law.
D) civil law.
E) universal law.
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Q4) Will leaving the country make an American businessman immune to U.S. laws?
Chapter 8: Developing a Global Vision Through Marketing Research
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Sample Questions
Q1) There are two primary differences between international marketing research and domestic research. One of these differences is that international marketing research is always more expensive to conduct.
A)True
B)False
Q2) List the six steps in a research process.
Q3) Bert Wong has decided to pursue a marketing research effort to acquire information before his company makes a strategic relocation move to the West Coast. Which of the following marketing research process steps would be the first step that Bert's company (and marketing researchers) should take as it embarks on the research effort?
A) Define the research problem and establish research objectives.
B) Analyze, interpret, and summarize the results.
C) Determine the sources of information to fulfill the research objectives.
D) Consider the costs and benefits of the research effort.
E) Gather relevant data from secondary or primary sources, or both.
Q4) Consumers in America tend to respond to rating scales more conservatively than Japanese.
A)True
B)False
Page 10
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Chapter 9: Economic Development and the Americas
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Sample Questions
Q1) Economic growth is measured not solely in economic goals but also in social achievements.
A)True
B)False
Q2) Explain the significance of infrastructure in economic development.
Q3) One analyst suggests that as a country passes the _____ per capita GNP level, people become more brand conscious and forgo many local brands to seek out foreign brands they recognize.
A) $1000
B) $2000
C) $5000
D) $7000
E) $8000
Q4) What are the various marketing functions performed when the marketing process in a country is in the commercial-transition substage?
Q5) Economic development, as commonly defined today, tends to mean economic development, achieved "in centuries rather than decades."
A)True
B)False
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Chapter 10: Europe, Africa, and the Middle East
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Sample Questions
Q1) Groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers are called:
A) multilateral economic associations.
B) cartels.
C) multinational market regions.
D) trade associations.
E) political and cultural associations.
Q2) The most basic level of economic integration and cooperation is geographical local federation (GLF).
A)True
B)False
Q3) Describe the European Union today.
Q4) The institutions of the European Union form a _____ pattern.
A) bilateral
B) unitary
C) federal
D) provincial
E) autonomous
Q5) What is a commonwealth? Discuss the features of this form of economic integration.
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Chapter 11: The Asia Pacific Region
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Sample Questions
Q1) Owing to the deeply corrupt system, most of the foreign investors in India are leaving for other countries or pulling the money back to their home country.
A)True
B)False
Q2) Who are the Asian Tigers?
Q3) As they were the closest to foreign influences, negotiators in Taiwan are considered to be the most liberal.
A)True
B)False
Q4) The central government spends almost 50 percent of its budget for the rural poor who amount to almost three-fourths of the Chinese population.
A)True
B)False
Q5) One of Japan's advantages over other countries is its language; the syntax of the Japanese language is similar to that of certain programming languages.
A)True
B)False
Q6) Describe the events that have had major impact on China's economy.
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Chapter 12: Global Marketing Management: Planning and Organization
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Sample Questions
Q1) For which of the following products is it advisable that a company have a direct sales force in the country where sales are to occur?
A) Big ticket industrial products
B) Computer accessories
C) Automobiles
D) Cosmetics
E) None of the above
Q2) All of the following are benefits of global marketing EXCEPT:
A) access to the toughest customers.
B) economies of scale.
C) transfer of experience and know-how.
D) financial benefits.
E) international travel benefits.
Q3) Strategic planning is conducted at the highest levels of management and deals with product, capital, and research, and long-term and short-term goals of the company.
A)True
B)False
Q4) Briefly, explain the benefits of global marketing.
Q5) List the four phases of the international planning process.
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Chapter 13: Products and Services for Consumers
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Sample Questions
Q1) Discuss the two dimensions of quality.
Q2) The packaging component of the product component model contains the physical product and all its design and functional features.
A)True
B)False
Q3) _____ is a term used to identify concern with the environmental consequences of a variety of marketing activities.
A) Green marketing
B) Hybrid business
C) Greenfield business
D) Greenhouse business
E) Alternative marketing
Q4) Most of the new ideas associated with the Internet are being produced in Europe because of the number of Internet users on the continent.
A)True
B)False
Q5) Discuss how can company stereotyping be overcome?
Q6) Define a global brand. How important are global brands?
Q7) Draw and correctly label the product component model shown in the text.
Page 15
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Chapter 14: Products and Services for Businesses
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Sample Questions
Q1) With respect to industrial demand, which of the following best characterizes the "traditional society" described in Stage 1 of Rostow's five-stage model of economic development?
A) A service economy is on the horizon.
B) The important industrial demand is associated with natural resources extraction.
C) Primary needs are related to infrastructure development.
D) Manufacturing of both semidurable and nondurable consumer goods begins.
E) The focus in on low-cost manufacturing of a variety of consumer and some industrial goods.
Q2) Discuss the price-quality relationship.
Q3) Explain the concept of derived demand. Provide an illustration.
Q4) For many industrial products, the revenue from associated services exceeds the revenue from the products themselves.
A)True
B)False
Q5) Describe the most advanced stage of Rostow's economic development model.
Q6) Describe the two basic factors that account for greater market similarities among industrial goods customers than among consumer goods customers.
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Chapter 15: International Marketing Channels
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Sample Questions
Q1) Specialization of this type of middleman in a given field often enables it to offer a level of service that could not be attained by the manufacturer without years of groundwork. This middleman acts under the name of the manufacturer as an independent marketing department. Identify the middleman in the discussion.
A) Webb-Pomerene export association
B) trading company
C) export management company
D) export agency
E) foreign sales corporation
Q2) Discuss the distinguishing features of the Japanese distribution structure.
Q3) Discuss the continuity problem associated with a channel of distribution.
Q4) Using foreign-country middlemen moves the manufacturer away from the market and the company becomes less involved with problems of language, physical distribution, communications, and financing.
A)True
B)False
Q5) Discuss the export trading company act (ETC) and its effects on businesses in the U.S.
Q6) What is secondary wholesaling?
17
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Chapter 16: Integrated Marketing Communications and International Advertising
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Sample Questions
Q1) Of all the elements of the marketing mix, decisions involving advertising are those most often affected by cultural differences among country markets.
A)True
B)False
Q2) List the seven steps in creating an international advertising campaign.
Q3) While developing an international advertisement campaign, the first step of the process is selecting effective media.
A)True
B)False
Q4) Which of the following statements about comparative advertising laws is most correct?
A) There really are no laws governing comparative advertising in the international arena.
B) Almost all laws governing this behavior are essentially the same.
C) There are laws in the Western nations governing this behavior and not in most other countries.
D) Laws vary from country to country with respect to the subject.
E) There are no laws governing comparative advertising in any country.
Q5) Define sales promotion.
18
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Chapter 17: Personal Selling and Sales Management
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Sample Questions
Q1) According to studies, most chief executives had an HR background.
A)True
B)False
Q2) The historical preference for expatriate managers and salespeople from the home country is giving way to a preference for:
A) outsourcers from the home country.
B) virtual managers and salespeople.
C) virtual expatriates.
D) local nationals.
E) visionary expatriates.
Q3) Describe virtual expatriates.
Q4) Why do companies favor third-country nationals for overseas assignments?
Q5) Personal career planning for the expatriate is the significant strategy that leads to higher retention of returnee expatriates.
A)True
B)False
Q6) Expatriate managers are still the preferred workforce for foreign assignments.
A)True
B)False
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Chapter 18: Pricing for International Markets
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Sample Questions
Q1) _____ by business is not viewed as an acceptable practice, but when governments enter the field of price administration, they presume to do it for the general welfare to lessen the effects of "destructive" competition.
A) Product bundling
B) Exclusive dealing
C) Predatory pricing
D) Price fixing
E) Monopolization
Q2) In ____, a company has an ongoing relationship with a bank that routinely buys its short-term accounts receivable at a discount.
A) forfaiting
B) factoring
C) using bills of exchange
D) using cash-in-advance
E) open accounts
Q3) Discuss the meaning of and nature of cartels. Are these groups beneficial or not? Create an example to illustrate your stance.
Q4) Explain the two distinct views of what constitutes dumping.
Q5) What is a countertrade? What are the problems of countertrading?
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Chapter 19: Negotiating With International Customers,
Partners, and Regulators
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Sample Questions
Q1) The concepts of objectivity and meritoriousness form the basis of commercial interactions in countries such as China, Mexico, Spain, and the Philippines.
A)True
B)False
Q2) In most countries, other than the U.S. and particularly the relationship-oriented ones, legal systems are not depended upon to settle disputes.
A)True
B)False
Q3) Which of the following statements about buyer-seller relationships is true?
A) American sellers tend to treat American buyers more as equals.
B) Japanese ideals dictate that buyers give complete deference to the wishes and needs of sellers.
C) American buyers will generally "take care of" American sellers or Japanese sellers more than any others do.
D) Most Americans will, by nature, treat Japanese buyers less frequently as equals.
E) Americans score the lowest among all the cultural groups on the individualism scale.
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