International Marketing Exam Preparation Guide
Course Introduction
International Marketing explores the strategies and techniques companies use to identify, enter, and compete in global markets. The course examines the dynamics of international marketing environments, including cultural, economic, legal, and political factors that affect marketing decisions across borders. Students learn about global market research, segmentation, targeting, and positioning, as well as how to adapt the marketing mix (product, price, place, and promotion) for diverse international audiences. Case studies and practical projects enable students to develop skills in creating and managing effective marketing campaigns that respond to the complexities of the global marketplace.
Recommended Textbook
International Business Competing in the Global Marketplace 11th Edition by Charles W. L. Hill
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20 Chapters
2183 Verified Questions
2183 Flashcards
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Chapter 1: Globalization
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115 Verified Questions
115 Flashcards
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Sample Questions
Q1) Which of the following is true of the IMF?
A) It is often seen as the lender of first choice to nation-states whose economies are in turmoil.
B) Its loans come with no strings attached.
C) It is the less controversial of the two sister institutions, the IMF and the World Bank.
D) It has emerged as a significant player in the global economy.
Answer: D
Q2) The growth of international trade in services has been driven by advances in:
A) communications.
B) transportation.
C) agriculture.
D) energy.
Answer: A
Q3) Evidence suggests that technological change has had a bigger impact than globalization on the declining share of national income enjoyed by labor.
A)True
B)False
Answer: True
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3
Chapter 2: National Differences in Political Economy, and Legal Systems
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108 Verified Questions
108 Flashcards
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Sample Questions
Q1) The Trade-Related Aspects of Intellectual Property Rights, attempts to reduce intellectual property protections to enhance trade.
A)True
B)False
Answer: False
Q2) Private action refers to:
A) public officials extorting income, resources, or the property itself from property holders.
B) bribing government officials in foreign countries in an attempt to win lucrative contracts.
C) theft, piracy, blackmail, and the like by private individuals or groups.
D) violations of intellectual property rights.
Answer: C
Q3) Which of the following is an example of intellectual property?
A) A music score
B) A lazer-tag game
C) A software business
D) A theater
Answer: A
Page 4
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Chapter 3: National Differences in Economic Development
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105 Verified Questions
105 Flashcards
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Sample Questions
Q1) In many countries entrepreneurs and other business leaders, eager to protect their property rights and ensure the dispassionate enforcement of contracts, had pushed for _____. This contributed to a wave of democratic revolutions during the late 1980s and early 1990s.
A) state ownership of productive resources
B) regulated markets
C) democratic reforms
D) planned economies
Answer: C
Q2) A change in political regime in a country can result in laws that _____ to international businesses.
A) are more favorable
B) are less favorable
C) provide less incentives
D) provide more incentives
Answer: B
Q3) GNI allows a more direct comparison of living standards in different countries.
A)True
B)False
Answer: False
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Chapter 4: Differences in Culture
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110 Flashcards
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Sample Questions
Q1) Which of the following statements about the use of spoken language is true?
A) The nature of a language has no effect on the way we perceive the world.
B) The language of a society does not direct the attention of its members to certain features of the world rather than others.
C) Countries with more than one language often only have one culture.
D) Most people prefer to converse in their own language rather than English.
Q2) According to _____, suffering originates in people's desires for pleasure.
A) Hinduism
B) Protestantism
C) Buddhism
D) Judaism
Q3) The connection between _____ and _____ has important implications for the choice of countries in which to locate production facilities and do business.
A) culture; competitive advantage
B) moral principles; values
C) class system; society
D) values; norms
Q4) Describe the four dimensions of culture as identified by Geert Hofstede.
Q5) Discuss the relationship between culture and national competitive advantage?
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Chapter 5: Ethics, Corporate Social Responsibility, and Sustainability
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110 Verified Questions
110 Flashcards
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Sample Questions
Q1) _____ are the accepted principles of right or wrong governing the conduct of businesspeople.
A) Sustainable strategies
B) Business ethics
C) Moral worth of actions
D) Ethical strategies
Q2) Which of the following persons believed that people should be treated as ends and never purely as means to the ends of others?
A) John Stuart Mill
B) Immanuel Kant
C) Milton Friedman
D) David Hume
Q3) Establishing _____ involves a business to resolve to place moral concerns ahead of other concerns in cases where either the fundamental rights of stakeholders or key moral principles have been violated.
A) a veil of ignorance
B) a difference principle
C) moral imagination
D) moral intent
Page 7
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Chapter 6: International Trade Theory
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Sample Questions
Q1) New trade theorists stress the role of luck in giving a firm first-mover advantages.
A)True
B)False
Q2) When a country runs a current account deficit, what happens to the money that flows to other countries?
A) It is used to buy assets in the deficit country.
B) It is put into the receiving country's infrastructure.
C) It is converted to securities.
D) It is used to pay for social programs in the receiving country.
Q3) A capital intensive country exports products that are capital intensive. Which theory is this an example of?
A) New trade
B) Leontief Paradox
C) Porter Diamond Model
D) Heckscher-Ohlin
Q4) The simple model of free trade assumed away transportation costs between countries.
A)True
B)False
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Chapter 7: Government Policy and International Trade
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111 Verified Questions
111 Flashcards
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Sample Questions
Q1) _____ are the highest rate that can be charged, which is often, but not always, the rate that is charged.
A) Ad valorem tariff rates
B) Tariff rents
C) Specific tariff rates
D) Bound tariff rates
Q2) The World Trade Organization was created as part of the Uruguay Round.
A)True
B)False
Q3) According to the infant industry argument, many developing countries have a potential _____ in manufacturing, but new manufacturing industries cannot initially compete with established industries in developed countries.
A) absolute advantage
B) comparative advantage
C) opportunity cost
D) competitive advantage
Q4) The WTO does not have the power to impose trade sanctions.
A)True
B)False
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Chapter 8: Foreign Direct Investment
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106 Verified Questions
106 Flashcards
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Sample Questions
Q1) Which political view allows FDI so long as the benefits outweigh the costs?
A) The traditional view
B) The pragmatic nationalist view
C) The radical view
D) The free market view
Q2) Offshore production refers to FDI undertaken to serve the host market.
A)True
B)False
Q3) Which of the following summarizes the total amount of resources invested in factories, stores, office buildings, and the like?
A) Gross capital index
B) Gross fixed capital formation
C) Gross domestic product
D) Gross national product
Q4) The _____ of FDI refers to the amount of FDI undertaken over a year.
A) stock
B) net value
C) accumulated value
D) flow
Q5) Discuss the reasons for the growth in FDI over the last 30 years.
Page 10
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Chapter 9: Regional Trade Pacts Give the Mexican Auto
Industry an Edge
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110 Flashcards
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Sample Questions
Q1) Linking neighboring countries economically and making them interdependent:
A) increases the potential for violent conflict.
B) creates increased political tensions.
C) leads to dilution of cultures.
D) creates incentives to increase political cooperation as well.
Q2) Compare and contrast a free trade area and a common market. Provide examples.
Q3) Which of the following associations accounts for about 55 percent of the world's GNP and 49 percent of world trade?
A) NAFTA
B) APEC
C) ASEAN
D) EFTA
Q4) A(n) _____ requires a common currency, harmonization of the member countries' tax rates, and a common monetary and fiscal policy.
A) full political union
B) common market
C) economic union
D) customs union
Q5) What are impediments to countries integrating?
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Chapter 10: The Foreign Exchange Market
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Sample Questions
Q1) _____ refers to a range of barter-like agreements by which goods and services can be traded for other goods and services.
A) Countertrade
B) Carry trade
C) Dumping
D) Capital flight
Q2) Compare and contrast the Fisher Effect and the International Fisher Effect.
Q3) What are the main uses of foreign exchange markets for international business?
Q4) Which term refers to the rate at which one currency is converted into another?
A) Basis point
B) Spread
C) Exchange rate
D) Interchange rate
Q5) The foreign exchange market is a market for converting the currency of one country into that of another country.
A)True
B)False
Q6) Discuss how firms can reduce their economic exposure.
Q7) Discuss the two schools of thought on exchange rate forecasting.
Q8) What is the law of one price?
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Chapter 11: The International Monetary System
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107 Flashcards
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Sample Questions
Q1) Explain the events that led to the failure of the Bretton Woods system.
Q2) The gold standard called for fixed exchange rates against the U.S. dollar.
A)True
B)False
Q3) Do you think businesses can influence government policies? Explain your answer.
Q4) Which of the following statements is true of pegged exchange rates?
A) A pegged exchange rate allows a country's currency to be determined by market forces.
B) A pegged exchange rate weakens the monetary discipline of a country.
C) Pegged exchange rates are popular among many of the world's smaller nations.
D) Adopting a pegged exchange rate regime increases inflationary pressures in a country.
Q5) Prior to the introduction of the euro, many EU countries participated in a _____.
A) floating exchange rate system
B) currency board system
C) fixed exchange rate system
D) pegged exchange rate system
Q6) Discuss the significance of the Jamaica Agreement.
Q7) What is gold standard? What was the major advantage of the system?
Page 13
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Chapter 12: The Global Capital Market
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108 Flashcards
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Sample Questions
Q1) When an investor purchases a corporate bond, he purchases the right to receive a:
A) share of the overall revenues that the company generates.
B) part of the title for the assets that the corporate holds.
C) specified fixed stream of income from the corporation.
D) share of the profits that the company generates through operations.
Q2) Which of the following is a drawback of the Eurocurrency market?
A) Borrowing funds within their home country can expose a company to foreign exchange risk.
B) The probability of a bank failure that would cause depositors to lose their money is greater.
C) The system is over-regulated and, therefore, more costly.
D) The higher interest rate received on home-country deposits reflects the costs of insuring against bank failure.
Q3) Financial services is an information-intensive industry.
A)True
B)False
Q4) How does the growth in the global capital markets affect investing firms?
Q5) Briefly describe the trends observed in the global deregulation of financial services.
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Page 14
Chapter 13: The Strategy of International Business
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106 Flashcards
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Sample Questions
Q1) Location economies are the economies that arise from performing a _____ activity in the optimal location for that activity.
A) universal need
B) core competence
C) value creation
D) localization strategy
Q2) For firms that are selling a product that serves universal needs, and that do not face significant competition, a(n) _____ strategy makes sense.
A) localization
B) international
C) transnational
D) global standardization
Q3) How can firms successfully leverage the skills developed at the subsidiary level?
Q4) The efficiency frontier has a convex shape because of _____.
A) consumer surplus
B) diminishing returns
C) profitability
D) differentiation strategy
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Page 15
Chapter 14: The Organization of International Business
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Sample Questions
Q1) Which of the following is a problem that arises due to an international division structure?
A) In an international division structure, a firm's international division tends to be organized on products.
B) The heads of domestic functions are presumed to be able to represent the interests of all countries to headquarters.
C) The heads of foreign subsidiaries are not given as much voice in the organization as the heads of domestic functions or divisions.
D) The dual-hierarchy structure can lead to conflict and perpetual power struggles between the areas and the product divisions.
Q2) In practice, the dual-hierarchy in a global matrix structure:
A) lessens all forms of conflict.
B) makes it easy to ascertain accountability.
C) results in extremely quick decision making.
D) can lead to perpetual power struggles.
Q3) Discuss the issues involved in refreezing an organization.
Q4) Explain organizational structure.
Q5) What is a knowledge network? What is the advantage of such a system?
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Chapter 15: Entry Strategy and Strategic Alliances
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) Switching costs:
A) drive early entrants out of the market.
B) make it easy for later entrants to win business.
C) make it difficult for later entrants to win business.
D) give later entrants a cost advantage over early entrants.
Q2) Discuss the advantage of establishing a greenfield venture in a foreign country.
Q3) Which of the following is one of the reasons why acquisitions fail?
A) There is a clash between the cultures of the acquired and the acquiring firms.
B) The acquired firm often overpays for the assets of the acquiring firm.
C) The synergies of the two firms happens quickly and neither acquired nor acquiring firm are prepared for full integration.
D) Despite adequate pre-acquisition screening, the entities encounter unexpected governmental involvement.
Q4) Consider why a firm should enter a market via a wholly owned subsidiary. What are the advantages and disadvantages of this type of strategy?
Q5) Discuss the three primary characteristics of a good ally.
Q6) Explain the relationship between first-mover disadvantages and pioneering costs.
Q7) Compare and contrast licensing agreements and franchising agreements.
Page 17
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Chapter 16: Exporting, Importing, and Countertrade
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Sample Questions
Q1) _____ can avail loans from Ex-Im Bank to pay U.S. suppliers.
A) Foreign borrowers
B) Individuals
C) Domestic borrowers
D) U.S.-based corporations
Q2) _____ is an alternative means of structuring an international sale when conventional means of payment are difficult, costly, or nonexistent.
A) Floating exchange system
B) Countertrade
C) Letter of credit trade
D) Fixed exchange system
Q3) A _____ is issued to the exporter by the common carrier transporting the merchandise.
A) bill of lading
B) sight draft
C) time draft
D) letter of credit
Q4) Discuss the importance of the Export-Import Bank, its goals, and its operations.
Q5) Compare and contrast time drafts and sight drafts.
Q6) Describe a typical international trade transaction.
Page 18
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Chapter 17: Global Production and Supply Chain Management
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Sample Questions
Q1) Flexible manufacturing technology is also known as _____.
A) Six Sigma production
B) line production
C) standardization
D) lean production
Q2) Before a firm is allowed access to the European marketplace, the European Union requires that the quality of the firm's manufacturing processes and products be certified under a quality standard known as _____.
A) Six Sigma
B) ISO 9000
C) Kaizen
D) total quality management
Q3) Buying a product from external vendors is highly appropriate when a firm intends to protect proprietary technology.
A)True
B)False
Q4) Discuss the effect of country factors on the decision of where to locate production?
Q5) Explain make-or-buy decisions with an example.
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Chapter 18: Global Marketing and RD
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120 Verified Questions
120 Flashcards
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Sample Questions
Q1) The probability of effective communications is reduced by:
A) noise.
B) location effects.
C) country of origin effects.
D) source effects.
Q2) The way a product is delivered is determined by the _____.
A) firm's entry strategy
B) firm's product positioning
C) target market
D) market segments
Q3) The continuing persistence of _____ differences between nations acts as a major brake on any trend toward global consumer tastes and preferences.
A) technological and industrial
B) institutional and political
C) cultural and economic
D) GNP level and growth rate
Q4) Discuss the notion of cross-functional teams and their role in cross-functional integration. What are the attributes that make a product development team successful?
Q5) Explain briefly the regulatory influences on pricing.
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Chapter 19: Global Human Resource Management
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Sample Questions
Q1) Broadly speaking, a geocentric approach is compatible with:
A) an international strategy.
B) both global standardization and transnational strategies.
C) a localization strategy.
D) both an international and a localization strategy.
Q2) What is the difference between an ethnocentric and a polycentric staffing approach?
A) An ethnocentric staffing approach alleviates cultural myopia, while a polycentric staffing approach can lead to cultural myopia.
B) An ethnocentric staffing approach is more expensive compared to a polycentric staffing approach.
C) An ethnocentric staffing approach seeks host-country nationals for all key positions, while a polycentric staffing approach seeks the best people for key jobs regardless of nationality.
D) An ethnocentric staffing approach is now used in most international businesses, while the polycentric staffing approach is on the wane.
Q3) Should a firm pay executives in different countries according to the prevailing standards in each country, or should it equalize pay on a global basis?
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Chapter 20: Accounting and Finance in the International Business
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Sample Questions
Q1) The standards of U.S. Financial Accounting Standards Board and IASB are vastly different.
A)True
B)False
Q2) Firms use fronting loans to:
A) avoid host-country restrictions on the remittance of funds from a foreign subsidiary.
B) implement a cost-based and fair pricing policy across an international business.
C) increase the profit center revenue of a subsidiary functioning in another country.
D) implement a market-driven and fair pricing policy across an international business.
Q3) According to Lessard-Lorange model, _____ rate refers to the spot exchange rate when the budget is adopted.
A) ending
B) initial
C) ideal
D) projected
Q4) Describe the problem of blocked earnings.
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