International Business Operations
Chapter Exam Questions
Course Introduction
International Business Operations explores the complexities of conducting business across national borders, examining the strategies, structures, and processes that organizations use to operate effectively in the global marketplace. The course covers topics such as foreign market entry modes, cross-cultural management, international trade regulations, supply chain logistics, and risk assessment in different geopolitical contexts. Students will analyze real-world case studies to understand how multinational corporations adapt to diverse economic, legal, and cultural environments, while considering ethical and sustainable business practices in international contexts.
Recommended Textbook
International Marketing Asia Pacific 3rd Edition by Michael R. Czinkota
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Page 2
Chapter 1: Introduction to international marketing
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Q1) Generally, the strategic business unit (SBU)is the unit around which decisions are based.In practice, SBUs represent groupings organised around market similarities based on:
A)needs or wants to be met.
B)end-user customers to be targeted.
C)the product or service used to meet the needs of specific customers.
D)All of these choices
Answer: D
Q2) For a long time, _________, ________, ________, ________, and very occasionally Japan, have been the only serious builders in the world to produce large cruise ships.
A)Italy; France; Germany; Finland
B)Italy; Greece; Spain; Portugal
C)United States; Canada; Germany; Norway
D)Norway, Finland; Italy; France
Answer: A
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Chapter 2: The economic environment
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Q1) It is estimated that the total world population exceeded 15 billion people in 2012.
A)True
B)False
Answer: False
Q2) Purchasing power is a function of:
A)prices, income, fixed commitments and government credit policy.
B)prices, debt levels, income and fixed commitments.
C)income, credit availability, prices and debt levels.
D)income, prices, savings and credit availability.
Answer: D
Q3) According to the textbook, the newly industrialised countries (NICs)are:
A)Singapore, Malaysia, Thailand, Myanmar, Cambodia and the Philippines.
B)Singapore, Taiwan, Thailand, Korea, Chile and Mexico.
C)Singapore, Taiwan, Korea, Hong Kong, Bengali and Malacca.
D)Singapore, Taiwan, Korea, Hong Kong, Brazil and Mexico.
Answer: D
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4
Chapter 3: Trade institutions and trade policy
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Q1) The availability of a large US domestic market and the relative distance to foreign markets resulted in US manufacturers simply not feeling a compelling need to seek business beyond national borders.
A)True
B)False Answer: True
Q2) Successful foreign competitiveness in international trade has resulted in major trade deficits for Australia, New Zealand and the USA.
A)True
B)False Answer: True
Q3) Which of the following is not a reason why many countries provide export promotion assistance to their firms?
A)The national need to earn foreign currency
B)To encourage domestic employment
C)To increase domestic economic activity
D)The national need to import
Answer: D
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Chapter 4: The political and legal environment
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Q1) When the United Nations approves trade sanctions for a particular country, all countries must abide by this decision although permanent members of the Security Council can veto efforts to impose sanctions.
A)True
B)False
Q2) Which of the following is not a type of political risk?
A)Ownership risk
B)Operating risk
C)Transfer risk
D)Currency risk
Q3) There is no enforceable body of international law in existence.
A)True
B)False
Q4) Which of the following statements about climate change is correct?
A)There is not much controversy about the causes and effects of climate change.
B)Greenwash is a strategy used by company that truly cares for the environment.
C)Locavores are people who only eat local food.
D)The effect of this environment is obvious and predictable.
Q5) Explain the implications of climate change to international marketers.
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Chapter 5: The cultural environment
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Q1) Experimental information is obtained from others through communication, research and education.
A)True
B)False
Q2) Culture is primarily passed on by parents to their children, as well as by social organisations, special-interest groups, the government, schools and the church.
A)True
B)False
Q3) Which of the following is incorrect about language?
A)Since the territory's return to China in 1997, the Hong Kong government is promoting the use of Cantonese rather than English as the language of commerce.
B)Language also has to be understood in its historical context.
C)Language is only a communication medium.
D)All of these choices
Q4) Japan and Saudi Arabia are examples of high context cultures.
A)True
B)False
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Chapter 6: Building the knowledge base
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Q1) _________ research is essential for the formulation of __________ marketing plans.One particular area of research interest is international market ____________.
A)Primary; strategic; segmentation
B)Secondary strategic; segmentation
C)Primary; operational; identification
D)Primary; strategic; identification
Q2) Electronic information services save marketers three valuable commodities.Which of the following best describes these commodities?
A)Postal rates, mailing supplies and personnel options
B)Time, energy and money
C)Breakthrough rates, taxes and distribution costs
D)Positioning, rank and perception costs
Q3) Secondary data for international marketing research purposes are available from a limited number of sources.
A)True
B)False
Q4) Observation techniques (in research)can be obtrusive and personal.
A)True
B)False
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Chapter 7: Foreign market entry
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Q1) Which of the following is considered a proactive motivation to go international?
A)Competitive pressures
B)Unique products
C)Over-production
D)Excess capacity
Q2) Franchising is attractive to the governments of recipient countries because the outflow of foreign exchange is low.
A)True
B)False
Q3) In most cases today, a firm can enter the international market easily, and the process takes less time than participating in the domestic market.
A)True
B)False
Q4) Which of the following is not a reactive reason why firms go international?
A)Managerial urge
B)Overproduction
C)Excess capacity
D)Proximity to customers and ports
Q5) Why is licensing so popular with many potential international marketers?
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Chapter 8: Channels of distribution and logistics
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Q1) Channel configuration of services and consumers goods is practically the same.
A)True
B)False
Q2) According to the textbook, globalisation in the distribution function is taking place in two significant ways.Distribution formats are crossing borders, especially to newly emerging markets.The second trend is:
A)that intensive and selective coverage both call for longer channels using different types of intermediaries.
B)the globalisation of consumers themselves, either independently or through strategic alliances.
C)the globalisation of retailers themselves, either independently or through strategic alliances.
D)the globalisation of intermediaries themselves, either independently or through strategic alliances.
Q3) Because only a few products are sold directly to ultimate users, an international marketer has to decide on alternative ways to move products to chosen markets.
A)True
B)False
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Chapter 9: Product policy and adaptation in international markets
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Q1) Packaging serves which three major functions?
A)Protection, promotion and user convenience
B)Promotion, user information and branding
C)Convenience, brand promotion and adherence to government regulations
D)Brand promotion, user convenience and labelling
Q2) To avoid problems with brand names, several approaches have been suggested.Which of the following is not an approach?
A)Translation
B)Transliteration
C)Transculture.
D)Transcendence
Q3) Backward innovation is when a company produces a drastically simplified version of a product due to lack of purchasing power or usage conditions.
A)True
B)False
Q4) Often, no concrete product changes are needed, only a change in the product's positioning.
A)True
B)False
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Chapter 10: Product and brand management in international markets
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Q1) Which of the following statements about global product launch is correct?
A)The global product launch is overrated.
B)It means introducing the products at absolutely all countries at once.
C)A simultaneous worldwide introduction solves the 'lame duck'.
D)None of the above.
Q2) Which of the following is not one of the managing unit's responsibilities in a global marketing organisation's product development process?
A)Single-point worldwide technical development and design
B)Other activities to plan, develop, manufacture, introduce and support the product
C)Integration and coordination of all global program activities
D)Localisation of the product to incorporate the product goals
Q3) Many new commercially important products are initially thought of and even prototyped by users rather than manufacturers.
A)True
B)False
Q4) Apple has been the most valuable global brand since 2011.
A)True
B)False
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Chapter 11: Services marketing
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Q1) What is the best description of data collected on service transactions?
A)The data are quite poor.
B)The data are nonexistent.
C)Information on services is more extensive than that on products.
D)Product data are self-reported, whereas service data are government reported.
Q2) When services are clear, comparable and available to all interested parties, this is known as market transparency.
A)True
B)False
Q3) Which of the following is not cited as a way that global demand for education has been answered with new technology?
A)Video conferencing
B)Email office hours
C)Online grading
D)Internet-related teaching materials
Q4) What is true about the distribution of international services?
A)The channels are short and direct.
B)The channels are long and indirect.
C)The channels are long and direct.
D)The channels are short and indirect.
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Chapter 12: Pricing in international markets
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Q1) For new products and technologies, firms will increasingly be forced to engage in ___________ by distributing development costs over the anticipated volume of sales.
A)Forward pricing
B)Fair pricing
C)Strategic pricing
D)Backward pricing
Q2) Which of the following does not apply to freight forwarders?
A)They can take care of the marketer's duty drawback receivables.
B)Rates for freight and insurance may be far more economical compared with an individual exporter.
C)They pay for the shipping and absorb the costs.
D)They are useful facilitators and advisors.
Q3) Price escalation is often compounded by environmental constraints imposed by government regulations or the demands of ever more environmentally conscious consumers.
A)True
B)False
Q4) What is the process of setting an export price?
Q5) What factors should be considered when assessing a foreign private buyer?
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Chapter 13: International marketing communications
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Q1) Why do international marketers use advertising agencies?
Q2) To formulate marketing communications strategy involves five steps, one of which is not:
A)assessing marketing communications opportunities.
B)analysing the resources available.
C)determining marketing communications objectives.
D)determining the competitor's response.
Q3) Creating brand awareness by arranging to have a product shown or used in a visual medium - such as films, television, games or websites - is known as:
A)movie marketing.
B)out takes.
C)intakes.
D)product placement.
Q4) Which country is not a leading location in Europe for call centres?
A)Switzerland
B)Belgium
C)Holland
D)Portugal
Q5) What is harmonisation of strategy?
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Chapter 14: Social Networking and Communications
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Q1) Online marketing requires minimum commitment of time and resources.
A)True
B)False
Q2) Which of the following is a major benefit that firms obtain by using social media in their international marketing activities?
A)They require minimum commitment of time and resources.
B)It is easier to measure the effectiveness of social media over traditional media.
C)They provide myriad opportunities to develop and maintain awareness of the firm's brands.
D)Internationally, all people and organisations, including those in poor countries, have ready access to social media.
Q3) Which of the following countries has the most internet users?
A)China
B)USA
C)Brazil
D)India
Q4) Discuss any one major benefit that firms obtain by using social media in their international marketing activities.
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