International Business
Final Test Solutions
Course Introduction
International Business explores the dynamic environment of cross-border commerce by examining how businesses operate in diverse cultural, economic, and regulatory contexts. This course provides an overview of global trade theories, international market entry strategies, and the impact of globalization on organizations. Students will analyze issues such as foreign exchange risk, global supply chain management, and ethical challenges in international operations. Through case studies and real-world examples, learners gain an understanding of how multinational enterprises adapt their marketing, financial, and human resource strategies to succeed in the international marketplace.
Recommended Textbook
International Marketing An Asia Pacific Perspective 7th Edition by Richard Fletcher
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17 Chapters
1024 Verified Questions
1024 Flashcards
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Page 2
Chapter 1: Rationale for International Marketing
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60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/28499
Sample Questions
Q1) Advances in communications technology have revolutionised international marketing activities.
A)True
B)False
Answer: True
Q2) With the advent of the internet, firms do not have to internationalise by moving from elementary modes of international behaviour to more advanced modes of international behaviour to the same extent.
A)True
B)False
Answer: True
Q3) The product life cycle paradigm is a market-specific approach.
A)True
B)False
Answer: True
Q4) The small size of the domestic market is an example of a reactive-internal driver.
A)True
B)False Answer: False
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Chapter 2: Avoiding the Pitfalls of the International Political and Legal Environment
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60 Verified Questions
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Sample Questions
Q1) When targeting a foreign market, an export firm needs to be aware of those factors that indicate the level of political stability in that market. These factors include:
A) geographic character, extent of cultural or ethnic division, export performance and entrenchment of the current government.
B) degree of social unrest, language diversity, income distribution and export performance.
C) degree of social unrest, frequency of change in government, extent of cultural or ethnic division and language diversity.
D) social diversity, language diversity, religious diversity and income distribution.
E) none of the above options is correct.
Answer: C
Q2) A common legal problem in international business is deciding which country's laws will apply in the event of a dispute.
A)True
B)False
Answer: True
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Chapter 4: Catering for the Social and Cultural
Environment of International Marketing
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Sample Questions
Q1) Collectivism plays a greater role in decision making in Western countries compared with Asian countries.
A)True
B)False
Q2) The approach to measuring cultural differences based on the notion that underlying cultural differences between nations are a set of variables that can be applied uniformly and that cover all dimensions of difference is referred to as the ________ approach.
A) exogenous
B) emic
C) etic
D) ethnic
E) endogenous
Q3) In some cultures customs are specific and transparent while in others they are opaque, providing room to manoeuvre and repay favours. Discuss these different approaches in relation to the use of the internet in international business.
Q4) What is meant by high-context and low-context cultures? What are some of the issues that can arise for marketers in an international context when moving from one style of context to the other?
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Chapter 5: Technology Change and International Marketing
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) An international marketer must determine if the skill level and knowledge of the consumer supports the introduction of a high technology item.
A)True
B)False
Q2) The traditional diffusion of innovation model has, in order, the following categories:
A) innovators, early majority, late majority, mainstream and laggards.
B) innovators, early majority, late majority, maturity and laggards.
C) innovators, early adopters, early minority, early majority and decline.
D) innovators, early adopters, early majority, late majority and laggards.
E) innovators, early adopters, early majority, mainstream and decline.
Q3) The level of influence of the internet on attitudes and behaviours is a function of:
A) knowledge of the internet and the cost of buying goods online.
B) familiarity with the web and the cultural background of the consumer.
C) the time spent looking for information and the complexity of searching.
D) the time spent online and the importance of the web as an information source.
E) access to the internet and the time spent looking for information.
Q4) Explain the external and internal factors that influence how consumers behave online.
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Chapter 6: Contemporary Environmental Variables in International Marketing
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) According to the 2014 Corruption Perceptions Index, which of the following countries is perceived to have the lowest levels of corruption?
A) New Zealand
B) Australia
C) Japan
D) United States
E) Hong Kong
Q2) A universalist perspective of ethics in international marketing takes the view that what is ethical is determined by the host culture.
A)True
B)False
Q3) The belief that the world is becoming overpopulated can be refuted by statistics showing a decrease in the global birth rate. Amongst the problems that have been identified are:
A) a growing imbalance between developed and developing countries.
B) human movement from country to country.
C) more people living in rural than urban areas.
D) all of the above.
E) options A and B only.
Page 7
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Chapter 7: Research in International Markets
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62 Verified Questions
62 Flashcards
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Sample Questions
Q1) On the internet, consumers are faced with a truncated set of cues and absence of sensory cues, which leads to a greater reliance on objective cues such as price and product information.
A)True
B)False
Q2) Specific areas of concern when undertaking international marketing research online include:
A) more difficult to assess the objectivity or biases of the presenter of the information.
B) greater scope for misinterpretation and miscommunication.
C) the predominant use of English on the internet.
D) all of the above.
E) options A and B only.
Q3) A test market should be ________ of the larger market.
A) a microcosm
B) reflective
C) divergent
D) all of the above
E) options A and B only
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8
Chapter 8: International Market Selection and Entry
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) List the approaches to international market selection. Describe advantages and disadvantages of each approach.
Q2) The entry mode of companies that are 'born global' is often dictated by the circumstances of the industry to which they belong.
A)True
B)False
Q3) When assessing the competitive environment in international markets, the more expensive and time-consuming elements of evaluation should be applied when evaluating all potential targeted countries.
A)True
B)False
Q4) Which of the following is NOT a theoretical explanation underlying strategic alliances?
A) resource dependence
B) transaction costs
C) strategic behaviour
D) relationship marketing
E) none of the above
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Page 9
Chapter 9: International Competitive Strategy
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59 Verified Questions
59 Flashcards
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Sample Questions
Q1) Within the value chain analysis, the work done by the firm's manufacturing arm would be regarded as being a ________ activity.
A) secondary
B) competitive
C) augmented
D) primary
E) none of the above
Q2) Michael Porter (1980) suggests that the threat of competition can come from any one of five different areas. These include:
A) disposable products, new entrants and the rivalry of competitors.
B) new entrants, existing competitors and information technology.
C) substitute products, new entrants and the rivalry of competitors.
D) new entrants, substitute products and information technology.
E) none of the above.
Q3) Explain the STP approach and list its six steps.
Q4) Discuss the trade-offs between standardisation and adaptation.
Q5) Discuss some criticisms/shortcomings of Porter's approach to the competitive advantage of nations model.
Q6) What is the purpose of value chain analysis? List its components.
Page 10
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Chapter 10: Internationalization, Relationships and Networks
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) In the learning approach to internationalisation firms evaluate and respond to opportunities as they occur regardless of psychic distance.
A)True
B)False
Q2) ________ and ________ are examples of sequential approaches to internationalisation.
A)Linear; stages
B)Learning; contingency
C)Contingency; stages
D)Linear; contingency
E)Learning; stages
Q3) The ________ approach to internationalisation is the only one with the capacity to cater for more advanced forms of international market entry
A)Contingency
B)Stages
C)Learning
D)Network
E)All are able to cater for advanced forms of international entry
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Chapter 11: Globalization
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Sample Questions
Q1) Globalisation strategy is multidimensional, requiring choices along at least five strategic dimensions. Which of the following is NOT a strategic dimension of globalisation strategy?
A)The location of value-adding activities
B)The use of worldwide brand names
C)The customisation of the product or service
D)The use of global competitive strategies
E)The standardisation of the product or service
Q2) Globalisation overcomes the problem of different product standards in different countries.
A)True
B)False
Q3) Which of the following is NOT a benefit of global strategy?
A)Cost reduction
B)Improved product quality
C)Management and co-ordination costs
D)Increased competitive leverage
E)Enhanced customer preference
Q4) Discuss the drivers and consequences of market globalisation.
Q5) Discuss the relationship between globalism and glocalisation.
Page 12
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Chapter 12: Planning for Effective International Marketing
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58 Verified Questions
58 Flashcards
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Sample Questions
Q1) When considering inputs for a firm entering the international market there are three major areas to consider. These are:
A) resources of the firm, the firm's environment and the implementation.
B) the planning process, the performance monitoring and the firm's environment.
C) the planning process, the firm's environment and the resources of the firm.
D) resources of the firm, the planning process and the firm's environment.
E) the firm's environment, the implementation and the planning process.
Q2) The personal attributes of a business organisation's senior executives are often able to influence the objectives and direction of the business. These attributes can include their:
A) aspirations.
B) attitudes.
C) expectations.
D) all of the above.
E) none of the above.
Q3) In relation to market segmentation, few business organisations have the resources to operate in all countries around the world.
A)True
B)False
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Page 13
Chapter 13: Modifying Products for International Markets
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Sample Questions
Q1) Discuss the basic stages in the international product life cycle.
Q2) Which of the following statements is true?
A) Customers around the world have different needs and will perceive products as satisfying these needs to differing degrees.
B) Modifications to products may be driven by competitive or cultural reasons.
C) Modifications to products may be driven by external factors such as the legal and political climate.
D) Products may need to be modified at the core, basic, expected, augmented or potential product level for sale in international markets.
E) All of the above.
Q3) When entering the overseas market with a particular product it is necessary, at times, to change the brand name. Which of the following is a reason a company may decide on this change?
A) Transparency
B) Transculture
C) Translation
D) Transliteration
E) All of the above
Q4) How might a firm redefine its business when entering international markets?
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Chapter 14: International Pricing for Profit
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58 Flashcards
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Sample Questions
Q1) When determining the final price in international marketing, which of the following needs to be factored in?
A) terms of sales
B) terms of payment
C) consistency with other elements of the marketing mix
D) all of the above
E) options B and C only
Q2) Restrictive trade practices that affect pricing in an overseas market can take various forms. These include:
A) mergers and consolidations.
B) monopolies.
C) export and import cartels.
D) vertical price setting.
E) all of the above.
Q3) The shipment on consignment terms of payment method presents the HIGHEST level of risk for the overseas buyer.
A)True
B)False
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Chapter 15: Promotion in International Marketing
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61 Verified Questions
61 Flashcards
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Sample Questions
Q1) When communicating in high-context cultures, the marketing company should place less emphasis on information regarding the company and its management.
A)True
B)False
Q2) Although organisers of trade shows can promise an audience and have a publicity campaign to attract one, it is often desirable for the exporting firm to supplement this with its own campaign. This campaign could include:
A)Advertising in the trade catalogue
B)Conducting a technical seminar
C)Publicising a competition in advance, where entry to the competition requires a visit to the firm's stand at the trade show
D)Sponsoring a trade show dinner or cocktail party
E)All of the above
Q3) International marketing communications should not only take the target country's needs into consideration but should also ensure that the message is appropriate to adjacent countries particularly in Europe.
A)True
B)False
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16
Chapter 16: Effective International Distribution
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62 Verified Questions
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Sample Questions
Q1) When selecting and managing a channel intermediary in another country, there are several guidelines a company should consider. Which of the below is NOT one of these guidelines?
A)Maintain control over the marketing strategy for your product
B)Select distributors rather than them selecting you
C)Look for distributors with a track record of developing markets rather than those with a few good contacts
D)Treat local distributors as short-term vehicles of convenience
E)Create links between each of your national distributors
Q2) In emerging markets, retail chains only account for 15 to 20% of total retail turnover. A)True
B)False
Q3) Decisions on price setting in the international market involve establishing the minimum price the exporter is prepared to accept together with the maximum price the market is prepared to pay. What strategies could be used for determining this price?
Q4) Outline the key issues in global distribution. Give examples of how these impact the international distribution practices of Australian and New Zealand firms.
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17
Chapter 17: Marketing Services and Projects Overseas
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64 Verified Questions
64 Flashcards
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Sample Questions
Q1) In the marketing and business management services sub-sector Australia's exports almost always exceed imports
A)True
B)False
Q2) The SERVQUAL model has five elements of service quality, which of the following is NOT one of them?
A)Reliability
B)Assurance
C)Tangibles
D)Consumption
E)Empathy
Q3) Developing countries are very influential in determining the nature of the aid offered by multilateral aid agencies.
A)True
B)False
Q4) Patterson and Cici (1995) developed an alternative classification framework for firms involved in the classification of service. How would this framework apply to a newly opened organic spa resort which also provided an online range of products?
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Chapter 18: International Marketing in the Decade Ahead
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60 Verified Questions
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Sample Questions
Q1) In Africa, the use of road shows as a promotional tool has become widespread as a vehicle for firms to reach out to BOP markets.
A)True
B)False
Q2) Emerging market consumers are exposed to a variety of environmental challenges that influence their purchase decision which include:
A)Corruption
B)Unemployment
C)Lack of income
D)All of the above
E)Options A and C only
Q3) Laws governing intellectual property protection are lacking and unenforced in developing countries.
A)True
B)False
Q4) At least 15-25 % of the population in Russia is now considered to be middle class.
A)True
B)False
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Page 19