International Business Strategy
Pre-Test Questions
Course Introduction
International Business Strategy explores the frameworks, concepts, and tools that multinational organizations use to compete effectively in the global marketplace. The course examines how firms develop strategies for entering and operating in diverse international environments, analyze cross-border market opportunities and risks, and manage the complexities presented by foreign cultures, regulations, and economic systems. Topics include strategic planning, global competitive advantage, international market selection and entry modes, cross-cultural management, and the adaptation of products and marketing approaches for international success. Through case studies and practical applications, students gain critical insights into the challenges and opportunities of crafting and implementing strategies on a global scale.
Recommended Textbook
International Marketing 17th Edition by Philip Cateora
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Page 2
Chapter 1: The Scope and Challenge of International Marketing
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Q1) Which of the following is an essential requirement for already experienced as well as new firms to succeed in international markets?
A) Adhering strictly to their traditional methods of production and operations
B) Focusing primarily on their production to exclusively meet domestic demand
C) Venturing into multiple markets by investing in all of them at once
D) Committing themselves completely to foreign markets
E) Having beneficial relations with lobbyists of foreign markets
Answer: D
Q2) Companies in the regular foreign marketing stage:
A) fail to actively seek customers in international markets.
B) market their products in international markets only when there is an extensive demand.
C) do not, under any circumstance, adapt their products to meet the needs of individual foreign markets.
D) lack permanent productive capacity that is devoted for production of goods and services to be marketed in international markets.
E) primarily focus their operations and production to service domestic market needs.
Answer: E
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Chapter 2: The Dynamic Environment of International Trade
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Q1) Tall Pine Plywood Company has just received a notice that a shipment of plywood (2 metric tons) has been rejected by the customs administration of the recipient country because the knotholes commonly found on a plywood sheet are too large. Which of the following categories of nontariff barriers primarily uses such quality issues as a trade barrier?
A) Quotas
B) Licenses
C) Embargoes
D) Boycotts
E) Standards Answer: E
Q2) Quotas, boycotts, monetary barriers, and market barriers are examples of tariff barriers.
A)True
B)False
Answer: False
Q3) Quotas are more flexible than import licenses.
A)True
B)False
Answer: False
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Chapter 3: History and Geography: The Foundations of Culture
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Q1) Which of the following policies was used in the formation of a provisional government in Cuba in 1906?
A) The Manifest Destiny
B) The Hay Manifesto
C) The Wilson Mandate
D) The Roosevelt Corollary
E) The Gadsden Policy Position
Answer: D
Q2) _____ includes an understanding of how a society's culture and economy are affected as a nation struggles to supply its people's needs within the limits imposed by its physical makeup.
A) Remote sensing
B) Geography
C) Cartography
D) Demography
E) Geomatics
Answer: B
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Chapter 4: Cultural Dynamics in Assessing Global Markets
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Q1) In the context of the elements of culture, marriage ceremonies and funerals are good examples of rituals.
A)True
B)False
Q2) Discuss the illusion of similarities facing the international marketer.
Q3) Based on the metaphor for Richard Nisbett's views involving Confucius's worthy picture, what is his analysis regarding the thought process or perceptual process of Westerners?
A) Westerners can provide great details about central figures but see relatively little in the background.
B) Westerners observe things sequentially, thus fail to comprehend the larger picture.
C) Westerners are good at observing details but fail to comprehend the central message.
D) Westerners prefer larger than life figures to convey messages.
E) Westerners can report details about the background and foreground.
Q4) In the context of the elements of culture, illustrate the differences in "Asian and Western" thought as discussed by Richard Nisbett.
Q5) What is the effect of education on the culture of a country?
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Page 6
Chapter 5: Culture, Management Style, and Business Systems
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Q1) According to Lester Thurow, in the British-American "individualistic" kind of capitalism, relationships among government, management, and labor in business systems are
A) cooperative
B) commensalistic
C) synergistic
D) adversarial
E) conciliatory
Q2) In the context of authority and decision making, briefly describe the shift from centralized to decentralized decision making.
Q3) In the less individualistic cultures, labor and management are generally hostile. A)True
B)False
Q4) Discuss the American manager's attitude toward objectivity in decision making.
Q5) Distinguish between the two time systems in the world, as defined by Edward T. Hall.
Q6) Briefly describe the different types of business customs.
Q7) What is the fundamental notion of Western management practices? Is it universally acceptable?
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Chapter 6: The Political Environment: a Critical Concern
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Q1) Saudi Arabia permits women to vote if they are at least 18 years old and married or 21 years old if single.
A)True
B)False
Q2) In the context of international law, a _____ state is independent and free from all external control.
A) bounded
B) sovereign
C) legal
D) liberal
E) neutral
Q3) The Agency for International Development underwrites trade and investments for U.S. firms.
A)True
B)False
Q4) The most severe political risk is domestication.
A)True
B)False
Q5) Discuss the terms confiscation, expropriation, and domestication.
Q6) Discuss the threats posed by cyberterrorism or cyberattacks with an example.
Page 8
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Chapter 7: The International Legal Environment: Playing by the Rules
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Q1) In the United States, ownership of intellectual property rights is established by "prior use versus registration" which implies that to claim the ownership of a trademark, an individual must:
A) be recognized by the United Nations trademark protection agency.
B) pay for the right to own a trademark.
C) establish first use of a trademark.
D) prove the ownership of a trademark in a court of law.
E) register a trademark only in his home country.
Q2) Which of the following commonly counterfeited products has the potential for doing the greatest harm to the consuming public?
A) Toys
B) CDs
C) Pharmaceuticals
D) Software
E) Clothing
Q3) The laws regulating direct selling in China are unusually detailed compared to others around the world.
A)True
B)False
Page 9
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Chapter 8: Developing a Global Vision Through Marketing Research
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Q1) It is helpful for a foreign market researcher to have a skeptical attitude in handling both primary and secondary data.
A)True
B)False
Q2) Unisys Corporation's international marketing research calls for collecting and assessing various types of information. Which of the following types of information is Unisys Corporation most likely to be interested in if it gathers information related to ecology, safety, and leisure time and their potential impacts on the division's business?
A) Economic and demographic data
B) Cultural, sociological, and political climate
C) Overview of market conditions
D) Summary of the technological environment
E) Competitive situation
Q3) Most problems in collecting primary data in international marketing research stem from the excessive cost of primary research in these markets.
A)True
B)False
Q4) Write a short note on the analogy method of demand forecasting.
Page 10
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Chapter 9: Economic Development and the Americas
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Q1) _____ is a free trade group formed by Argentina, Brazil, Paraguay, and Uruguay.
A) NAFTA
B) Caricom
C) Mercosur
D) SACU
E) DR-CAFTA
Q2) Paved roads, railroads, seaports, communication networks, and financial networks are illustrations of _____.
A) environmental resources
B) inventory
C) infrastructure
D) factors of production
E) freight claims
Q3) Which of the following is the second-largest common-market agreement in the Americas?
A) CFTA
B) NAFTA
C) Mercosur
D) DR-CAFTA
E) SAFTA
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Chapter 10: Europe, Africa, and the Middle East
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Q1) All three Baltic states started off with the same legacy of efficient industry and American-style capitalist economies.
A)True
B)False
Q2) The institutions of the European Union form a(n) _____ pattern.
A) bilateral
B) unitary
C) federal
D) provincial E) autarchic
Q3) The importance of political unity to fully achieve all the benefits of economic integration has driven European countries to form the World Trade organization (WTO).
A)True
B)False
Q4) The European Union is most accurately described as a free trade area.
A)True
B)False
Q5) Briefly explain the concept of a multinational market region.
Q6) Write a short note on the Commonwealth of Independent States.
Page 12
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Chapter 11: The Asia Pacific Region
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Sample Questions
Q1) Grameen Bank is a private commercial enterprise in _____.
A) Bangladesh
B) China
C) Japan
D) Sri Lanka
E) South Korea
Q2) C. K. Prahalad has cited two primary misconceptions behind the international marketers ignoring the bottom-of-the-pyramid markets. One of the reasons is that the products and services developed for more affluent consumers are not appropriate for these markets. Which of the following is the other misconception?
A) Unwillingness of consumers in the bottom-of-the-pyramid markets to buy international products.
B) The lack of uniformity in bottom-of-the-pyramid markets.
C) The heavy taxation system in bottom-of-the-pyramid markets allows little profit.
D) Consumers in the bottom-of-the-pyramid markets lack both money and technology.
E) Consumers in the bottom-of-the-pyramid markets are characterized by conservative traditions and culture.
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Page 13
Chapter 12: Global Marketing Management: Planning and Organization
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Q1) Which of the following relationship skills is necessary during the interfacing activity of building a strategic alliance?
A) Trust building
B) Creating intimacy
C) Good relationship self-awareness
D) Commitment
E) Partnering
Q2) Assume that you are a consultant for a telecom giant based in the United States that wishes to create a joint venture with a Japanese electronics company. The joint venture is expected to enter and compete in the Scandinavian market. Suggest an organizational structure that would be most suitable for this joint venture. Also, comment on why the structure might be a good one to use.
Q3) Joint ventures are similar in structure and organization to minority holdings by a multinational company (MNC) in a local firm.
A)True
B)False
Q4) A company has a choice of four different modes of foreign market entry. Briefly describe each of these modes.
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Chapter 13: Products and Services for Consumers
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Q1) Carolyn, who is interested in marketing her company's diet products in Asia, studies the acceptable behavior, norms, and values in Asian markets. In this scenario, Carolyn studies her product's _____ in the Asian markets.
A) partibility
B) compatibility
C) dissidence
D) billability
E) docibility
Q2) Fiona's company wants to launch a new product in Madrid. Fiona requests her product manager to distribute some samples to potential customers there so that she can gauge the consumer preferences prevalent there before introducing the product. Here, Fiona tires to reduce the degree of economic and social risks, also known as _____, associated with product use.
A) billability
B) docibility
C) invincibility
D) trialability
E) partibility
Q3) In the context of product adaptation, what is product homologation?
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Page 15
Chapter 14: Products and Services for Businesses
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Q1) Restrictions on cross-border data flows are potentially the most damaging to industries that:
A) are fragmented.
B) focus on domestic production.
C) generate revenue from the sale of physical products across borders.
D) rely on information transfers across countries.
E) are concentrated in nature.
Q2) Which of the following is characteristic of Stage 2 of Rostow's five-stage model of economic growth?
A) Industrial demand is mainly associated with natural resources extraction.
B) The goods demanded relate to equipment and supplies to support manufacturing.
C) The focus is more on low-cost manufacturing of a variety of consumer and some industrial goods.
D) The focus is on design activities and the development of manufacturing techniques.
E) Infrastructure development is the primary requirement in the economy.
Q3) A product that exceeds performance expectations can also be considered to be of poor quality.
A)True
B)False
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Chapter 15: International Marketing Channels
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Q1) _____ is often the approach of choice in markets with insufficient or underdeveloped distribution systems.
A) Direct marketing
B) A big wholesale store
C) Internet selling
D) A discount house
E) Television advertising
Q2) Domestic middlemen offer many advantages for companies with large international sales volume.
A)True
B)False
Q3) Export management companies work under their own names.
A)True
B)False
Q4) Traditional channels in developing countries evolved from economies with a strong dependence on imported manufactured goods.
A)True
B)False
Q5) What is complementary marketing?
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Chapter 16: Integrated Marketing Communications and International Advertising
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Q1) The encoding step causes problems even with a "proper" message. Explain with an example.
Q2) An especially effective promotional tool when a product concept is new or has a very small market share is _____.
A) sponsorship
B) sweepstakes
C) product sampling
D) contests
E) product tie-ins
Q3) During which step of the international communications process does the receiver of the message interpret symbolism transmitted from an information source?
A) Selecting a message
B) Encoding
C) Selecting a message channel
D) Decoding
E) Identifying the sources of noise
Q4) Describe the role of public relations (PR).
Q5) Describe the essential elements of an international communications process.
Q6) Explain the significance of social media as a marketing tool.
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Chapter 17: Personal Selling and Sales Management
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Q1) Which of the following is the main reason for the failure of individual incentives to motivate employees in Japan?
A) An emphasis on paternalism
B) High corruption levels
C) Practice of cultural chauvinism
D) A democratic form of government
E) Encouragement of individualism
Q2) In the context of evaluating and controlling sales representatives, the primary control tool used by American sales managers is the incentive system.
A)True
B)False
Q3) Which of the following is a characteristic of a professional expatriate?
A) They work abroad for a period of one month and then return to the home office.
B) They work for a foreign company in a third country for a short period.
C) They work abroad in country after country for the greater part of their careers.
D) They work in their home branches for most of their careers.
E) They manage operations in other countries but do not move there.
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Chapter 18: Pricing for International Markets
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Q1) Sales on open accounts are recommended when shipping is hazardous.
A)True
B)False
Q2) Domestic cartelization is legal in the United States.
A)True
B)False
Q3) The international marketer must rely on experience and marketing research to ascertain middleman costs because no convenient source of data on middleman costs is available.
A)True
B)False
Q4) A _____ policy is used to stimulate market and sales growth by deliberately offering products at low prices.
A) penetration pricing
B) variable-cost pricing
C) premium pricing
D) price skimming
E) full-cost pricing
Q5) What is the difference between variable-cost pricing and full-cost pricing?
Q6) What is the difference between forfaiting and factoring?
Page 20
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Chapter 19: Inventive Negotiations With International
Customers, Partners, and Regulators
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Q1) The single most important activity of international business negotiations is oration.
A)True
B)False
Q2) In the context of the four stages of business negotiations, _____ includes all those activities that might be described as establishing rapport, but it does not include information related to the "business" of a meeting.
A) persuasion
B) concessions and agreement
C) negotiation setting
D) task-related exchange of information
E) nontask sounding
Q3) Due to the great differences in the roles played by women across cultures, gender should be used as a selection criterion for international negotiation teams.
A)True
B)False
Q4) How do approaches to complex negotiation tasks differ between Westerners and Asians?
Q5) What are the criteria for selecting international business negotiators?
Page 21
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