International Business Strategy
Exam Answer Key
Course Introduction
International Business Strategy explores the frameworks, tools, and decision-making processes guiding firms operating in the global marketplace. The course examines how companies analyze international environments, assess global competitive dynamics, and formulate strategies for entry, growth, and competitive advantage across borders. Topics include cross-cultural management, global market selection, international alliances and joint ventures, adaptation versus standardization of products and services, and the management of global risks. Through case studies and real-world examples, students gain practical insights into the complexities of global strategy implementation and the role of innovation and ethics in international business success.
Recommended Textbook
International Marketing Asia Pacific 3rd Edition by Michael R. Czinkota
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14 Chapters
804 Verified Questions
804 Flashcards
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Chapter 1: Introduction to international marketing
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Sample Questions
Q1) Which of the following has traditionally been a domestic issue and is now an international issue?
A)Geographic boundaries of cities
B)The flow of water through dam diversion tunnels
C)Applications for government subsidies
D)Agriculture and farm policies affecting imports and exports
Answer: D
Q2) What types of hydrology affect terrain?
A)Rainfall, snowfall and hail
B)Rivers, lakes and other bodies of water
C)Canals, sewer systems and reservoirs
D)Precipitation, weather and climate
Answer: B
Q3) Merchandise trade statistics, in particular, overemphasise production and understate intellectual property from design to brand.
A)True
B)False
Answer: True
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Chapter 2: The economic environment
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Sample Questions
Q1) 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
Q2) Which of the following indicators relates to the overall industrialisation of the market and can be used effectively by suppliers of industrial products and services?
A)Steel consumption, cement production and electricity production
B)Steel production, cement consumption and electricity consumption
C)Steel consumption, gold production and electricity production
D)Steel production, gold consumption and electricity consumption
Answer: A
Q3) One factor behind the overall growth in households, and the subsequent decline in their average size, has been the increase in the numbers of divorced and sole survivor households.
A)True
B)False
Answer: True
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Page 4
Chapter 3: Trade institutions and trade policy
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Sample Questions
Q1) An economic bloc is:
A)an integration of the economic and political activities of member nations.
B)a global cartel of nations enforcing economic rules among member states.
C)all of the competing nations in the same marketplace.
D)the goal of a global marketplace.
Answer: A
Q2) The World Bank has had its effectiveness questioned because:
A)of a lack of global interest, inadequacy of information and ignorance of where and how to market internationally.
B)it has not provided stability for the international monetary framework.
C)it has not played an important role in the stability of exchange rates.
D)All of these choices
Answer: A
Q3) The foreign direct investment level:
A)by the US is still the highest of any country.
B)by China became the highest of any country after 2004.
C)into the US is low compared with the flow into China.
D)None of the above
Answer: A
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Page 5
Chapter 4: The political and legal environment
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Sample Questions
Q1) One thorny issue that can cause difficulties for companies seeking to utilise FTAs is ___________.These are a crucial aspect of FTAs, because they determine what products are covered.
A)Rules of imports
B)Rules of origin
C)Rules of destination
D)Rules of law
Q2) Which of the following is not a problem with the unilateral imposition of sanctions?
A)Typically they are unsuccessful in producing the desired result.
B)Sanctions make it more difficult or expensive for the sanctioned country to obtain goods, yet the purported objective is almost never achieved.
C)The USA can apply diplomatic or commercial pressure to produce compliance by foreign countries and companies.
D)In order to work, sanctions need to be imposed multilaterally.
Q3) There is no enforceable body of international law in existence.
A)True
B)False
Q4) Explain the implications of climate change to international marketers.
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Chapter 5: The cultural environment
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Sample Questions
Q1) Japan and Saudi Arabia are examples of high context cultures.
A)True
B)False
Q2) Verbal language is much more relevant for an international marketer than non-verbal language.
A)True
B)False
Q3) Education, either formal or informal, plays a major role in the passing on and sharing of culture.
A)True
B)False
Q4) The textbook provided five key areas of non-verbal language.These do not include:
A)Language
B)Time and space
C)Material possessions
D)Friendship patterns
Q5) What are the six rules which serve as a summary of how culture and its appreciation may serve as a tool to ensure marketing success?
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Chapter 6: Building the knowledge base
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Sample Questions
Q1) Scenario analysis is a research technique that looks at different configurations of key variables in the international market.
A)True
B)False
Q2) The American Marketing Association (AMA)defines marketing research as 'the function that links the consumer, customer, and public to the marketer through information'.
A)True
B)False
Q3) Even though most managers recognise the need for domestic marketing research, the single most important cause for failure in the international marketplace is insufficient ___________and _______________ .
A)research; adaptation
B)preparation; information
C)localisation; standardisation
D)competitive advantage; cultural information
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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Sample Questions
Q1) Explain the three major types of foreign investment that governments offer to FDI.
Q2) Conditions used to be such that the first entrant into a foreign market could count on being the leader for years, but in today's marketplace, the competitive edge is not as great because:
A)of competing technology and frequent lack of intellectual property rights protection.
B)competing domestic firms were there first.
C)globalisation and the internet do not allow there to be a 'first firm'.
D)most countries do not allow the first entrant to be a foreign firm.
Q3) Sometimes cultural variables, legal factors and other societal norms make a foreign market that is geographically close seem psychologically distant.
A)True
B)False
Q4) Firms can become unplanned participants in the international market because of: A)a salesperson's decision.
B)management's gamble on a new market segment.
C)government mandate.
D)growth of corporate websites.
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Chapter 8: Channels of distribution and logistics
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Sample Questions
Q1) Which of the following is a criterion for selecting intermediaries?
A)Reputation
B)Profitability
C)Organisation type
D)Profitability and organisation type
Q2) What are the three different approaches for coverage that are available to the international marketer?
Q3) Which of the following statements about transportation modes is correct?
A)Merchandise shipped via air is likely to suffer less loss and damage from exposure of the cargo to movement.
B)High-value items are more likely to be shipped by air, particularly if they have a high density.
C)Water transportation is a key mode for international freight movements.
D)All of these choices
Q4) Channel configuration of services and consumers goods is practically the same.
A)True
B)False
Q5) Pirates no longer exist.
A)True
B)False
10
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Chapter 9: Product policy and adaptation in international markets
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Sample Questions
Q1) Non-tariff barriers:
A)are usually in place to keep foreign products out of a market.
B)are usually designed to protect domestic producers.
C)are usually designed to make domestic producers more efficient.
D)are usually in place to keep foreign products out of a market and are usually designed to protect domestic producers.
Q2) Government regulations often present the most stringent requirements.
A)True
B)False
Q3) Studies on product adaptation show that a minority of products have to be modified for the international marketplace in one way or another.
A)True
B)False
Q4) 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
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Chapter 10: Product and brand management in international markets
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Sample Questions
Q1) According to the textbook, which of the following is false?
A)Brazil is a test market used by Procter & Gamble.
B)Thailand is a test market for Unilever.
C)Australia is a test market for Harvey Milk.
D)Singapore is a test market for Coca Cola.
Q2) Which of the following is not a brand's benefit to the customer?
A)Simplifying everyday choices
B)Reducing the risk of complicated buying decisions
C)Extending the user's self-image
D)Offering a sense of community
Q3) Which of the followings statements does not represent an advantage of the product portfolio approach?
A)A global view of the competitive structure
B)A guide for formulating a global marketing strategy based on the suggested allocation of scarce resources between product lines
C)A convenient visual communication goal, achieved by integrating a substantial amount of information in an appealingly simple format, including assessment of interlinkages between units and products
D)All of these choices
Page 12
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Chapter 11: Services marketing
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Sample Questions
Q1) Which of the following is not a unique characteristic of services?
A)Intangibility
B)Homogeneity
C)Perishability
D)Inseparability
Q2) Many service industries that do market abroad, especially Indian ones, have at their disposal large organisations, specialised technology or advanced professional expertise.
A)True
B)False
Q3) Even though the intangibility of services is a primary differentiating criterion, it is not always present.
A)True
B)False
Q4) Explain the two major types of typical obstacles to service trade.
Q5) The issue of quality control for international services may be much more difficult to deal with due to different service uses, changing expectations and varying national regulations.
A)True
B)False
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Chapter 12: Pricing in international markets
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Q1) Which of the following is not included in export-related costs?
A)The cost of modifying the product for foreign markets
B)Operational costs of the export operation
C)Costs incurred in entering the foreign market
D)The cost of modifying marketing communications
Q2) The International Chamber of Commerce accepted standard definition for terms of sale in 1936 and revised them in 2000 to assist buyers and sellers in the international marketplace.What are these standard definitions called?
A)Encoterm
B)Inchaco terms
C)ICC terms
D)Incoterms
Q3) Financing arrangements for export transactions are critical to secure sales and to combat various types of risk.
A)True
B)False
Q4) A letter of credit is an instrument issued by a bank at the request of a buyer.
A)True
B)False
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Chapter 13: International marketing communications
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Sample Questions
Q1) A customer's motivations to purchase a product vary, depending on the:
A)diffusion of the product or service.
B)product's position.
C)criteria on which the customer will evaluate the product.
D)All of these choices
Q2) The planning for promotional campaigns consists of seven stages.Which of the following is not one of the stages?
A)Determine the geographical market.
B)Determine specific campaign objectives.
C)Determine the message.
D)Determine campaign effectiveness.
Q3) The choice between media vehicles and the development of a media schedule is formed on the basis of target audience characteristics, campaign objectives and media availability.
A)True
B)False
Q4) Why do international marketers use advertising agencies?
Q5) What is harmonisation of strategy?
Q6) How does having an internet presence support the exporter's marketing communications effort?
Page 15
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Chapter 14: Social Networking and Communications
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Sample Questions
Q1) Which of the following is a drawback of using social media?
A)They involve campaigns that are static, with a limited life.
B)They lack the means to engage target markets more efficiently.
C)They restrict viral marketing.
D)Many people around the world lack access to social media.
Q2) When a social network converges around shared interests, goals, values or attitudes, it fosters a common identity among its members.This is called:
A)a social community.
B)social loafing.
C)a social contagion.
D)social marketing.
Q3) Measuring the effectiveness of social media is always easy.
A)True
B)False
Q4) Offering coupons online increases the costs of development, distribution and database creation.
A)True
B)False
Q5) What are blogs, wikis, forums and podcasts?
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