International Marketing Study Guide Questions
Course Introduction
International Marketing explores strategies and practices for marketing goods and services across national borders. The course examines how cultural, economic, political, and legal differences impact marketing decisions and consumer behavior in global markets. Students will learn to analyze global market environments, develop entry strategies, adapt marketing mixes (product, price, place, and promotion) for international audiences, and navigate ethical and sustainability considerations. Through case studies and real-world examples, the course prepares students to design and implement effective marketing plans in diverse international contexts.
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) What is the most profound change for firms at the global marketing stage of internationalization?
A) More than half of the multinational firm's revenue is generated from domestic markets.
B) Sales to foreign markets are made as and when goods become available.
C) Temporary surpluses marketed in foreign markets is the only element of internationalization.
D) Companies treat the world, along with home market, as one market.
E) Domestic demand always exceeds the firm's production capacity.
Answer: D
Q2) For companies today, becoming international is a luxury only some can afford. A)True
B)False
Answer: False
Q3) To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that emphasizes the need for ethnocentrism.
A)True
B)False
Answer: False
Page 3
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Chapter 2: The Dynamic Environment of International Trade
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Q1) The system of accounts that records a nation's international financial transactions is most accurately called its:
A) supply chain management system.
B) gross domestic product system.
C) net domestic product payments.
D) balance of payments.
E) net national product systems.
Answer: D
Q2) What are the arguments in favor of protectionism? Which of them are generally recognized as valid by economists?
Answer: Arguments espoused by protectionists to maintain government restrictions on trade can be classified as follows: (1) protection of an infant industry, (2) protection of the home market, (3) need to keep money at home, (4) encouragement of capital accumulation, (5) maintenance of the standard of living and real wages, (6) conservation of natural resources, (7) industrialization of a low-wage nation, (8) maintenance of employment and reduction of unemployment, (9) national defense, (10) enhancement of business size, and (11) retaliation and bargaining. Economists in general recognize as valid only the arguments regarding infant industry, national defense, and industrialization of underdeveloped countries.
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Page 4
Chapter 3: History and Geography: The Foundations of Culture
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Q1) In the context of U.S. foreign policy in the 19<sup>th</sup> and the 20<sup>th</sup> centuries, _____, in its broadest interpretation, meant that Americans were a chosen people ordained by God to create a model society.
A) Roosevelt Corollary
B) Monroe Doctrine
C) Hays Corollary
D) Grant Mandate
E) Manifest Destiny
Answer: E
Q2) In 1600, Japan began trading _____ for foreign goods.
A) diamonds
B) gold
C) platinum
D) copper
E) silver
Answer: E
Q3) The United States is a major exporter of petroleum products.
A)True
B)False
Answer: False
Page 5
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Chapter 4: Cultural Dynamics in Assessing Global Markets
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Q1) One of the advantages of the emergence of gender equality is the _____ gap between the sexes being narrowed in many places around the world.
A) emotional
B) biological
C) identity
D) education
E) language
Q2) Which of the following social institutions has comparatively the least impact on culture?
A) The media
B) School
C) The government
D) Family
E) Religion
Q3) According to the World Bank, no country with less than 50 percent literacy has succeeded economically.
A)True
B)False
Q4) How does cultural sensitivity lead to successful foreign marketing?
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Chapter 5: Culture, Management Style, and Business Systems
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Q1) According to Lester Thurow, a(n) _____ form of capitalism is practiced in Japan and Germany typified by cooperation among government, management, and labor.
A) atypical
B) individualistic
C) communitarian
D) independent
E) adversarial
Q2) Which of the following could be the least acceptable behavior in a business setting, especially in a cross-cultural scenario?
A) Correcting someone in public
B) Staying away from greeting another man with a kiss (a custom in some countries)
C) Refusing to eat foods that disagree with one's palate
D) Refusing to drink alcoholic beverages for personal reasons
E) Not raising one's voice in an argument
Q3) In the less individualistic cultures, labor and management are generally hostile.
A)True
B)False
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Page 7
Chapter 6: The Political Environment: a Critical Concern
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Q1) A single company can directly control or alter the political environment of the country within which it operates.
A)True
B)False
Q2) Licensing is least effective in situations where the technology is unique and the risk is high.
A)True
B)False
Q3) Which of the following is a common term for a form of government in use today?
A) Protectionism
B) Duopoly
C) Oligopoly
D) Capitalism
E) Oligarchy
Q4) The ultimate goal of domestication is to force foreign investors to share more of the ownership, management, and profits with nationals than was the case before domestication.
A)True
B)False
Q5) Describe the concept of nationalism and list some of the ways it manifests.
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Chapter 7: The International Legal Environment: Playing by the Rules
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Q1) Disputes relating to commercial transactions must be settled in courts and cannot be settled informally.
A)True
B)False
Q2) Which of the following laws is primarily found in the United States, England, Canada, and other countries once under English influence?
A) Code law
B) Common law
C) Religious law
D) Civil law
E) Universal law
Q3) Briefly describe the Canadian legal process to determine whether a representation is false or misleading.
Q4) If conciliation is not used to settle a difference in an international business dispute or an agreement cannot be reached, the next step is litigation.
A)True
B)False
Q5) Briefly describe the modus operandi of cybersquatters.
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Chapter 8: Developing a Global Vision Through Marketing Research
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Q1) Given the greater uncertainties and data limitations associated with foreign markets, two methods of forecasting demand are particularly suitable for international marketers. Which of the following is one of those methods?
A) Probabilistic forecasting
B) Expert opinion
C) Simulation
D) Extrapolation
E) Scenario building
Q2) In the context of sources of data, commercial sources, trade associations, management groups, and state and local governments are examples of _____.
A) first-hand data
B) secondary data
C) primary data
D) personal data
E) direct data
Q3) Write a short note highlighting the key features of quantitative research.
Q4) List the various uses of the Internet in international marketing research.
Q5) Compare and contrast back translation and parallel translation.
Q6) List the six steps in the research process.
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Chapter 9: Economic Development and the Americas
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Q1) According to the United Nations' stages of economic development for classifying countries with respect to levels of industrialization, Canada falls under the category of
A) Third World countries
B) least-developed countries
C) more-developed countries
D) less-developed countries
E) pre-emerging countries
Q2) According to the evolution of the marketing process, when the only marketing functions performed are demand creation, physical distribution, and market information analysis, the marketing process is in the _____ substage.
A) mass production
B) commercial-transition
C) self-sufficient
D) surplus commodity product
E) small scale
Q3) The newly industrialized countries have per capita incomes lower than LDCs.
A)True
B)False
Q4) Explain the impact of the Internet on the economic development.
Page 11
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Chapter 10: Europe, Africa, and the Middle East
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Q1) List the opportunities offered by economic integration.
Q2) The decisions of the European Court of Justice can be appealed in national courts.
A)True
B)False
Q3) Which of the following is a long-term challenge that the European Union is facing?
A) Eliminating all tariffs on internal trade amongst member nations
B) Establishing a common currency for the Union
C) Including Asia into the Union
D) Limiting the political aspects of the Union
E) Finding ways to contract the Union
Q4) Which of the following is true of large multinational markets?
A) They lead to negligible marketing efficiencies.
B) They are incapable of achieving economies of scale.
C) They are particularly important to businesses not accustomed to mass production.
D) They result in decreased purchasing power.
E) They employ coordinated programs to foster economic growth.
Q5) Write a short note on the Maastricht Treaty.
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Page 12
Chapter 11: The Asia Pacific Region
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Q1) Given the rampant corruption in India, describe the attitude of investors toward India.
Q2) What are BOPMs? According to C. K. Prahalad and his associates introduced a new concept into the discussion of developing countries and markets-bottom-of-the-pyramid markets (BOPMs)-consisting of the 4 billion people across the globe with annual incomes of less than $1,200. These markets are not necessarily defined by national borders but rather by the pockets of poverty across countries. These 4 billion consumers are, of course, concentrated in the LDCs and LLDCs, as defined in the U.N. classification scheme, particularly in South Asia and sub-Sahara Africa. Prahalad's basic point is that these consumers have been relatively ignored by international marketers because of misconceptions about their lack of resources, both in terms of money and technology, and the lack of appropriateness of products and services usually developed for more affluent consumers.
C. K. Prahalad, why have they been ignored by international marketers?
Q3) The Hong Kong dollar is freely convertible.
A)True
B)False
Q4) Elaborate on the two major events of 2000 that had a major impact on China's economy.
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Chapter 12: Global Marketing Management: Planning and Organization
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Q1) In the context of foreign market entry, _____ requires no equity investment and thus has a low risk, low rate of return, and little control.
A) licensing
B) indirect exporting
C) a strategic alliance
D) a joint venture
E) franchising
Q2) Joint ventures are similar in structure and organization to minority holdings by a multinational company (MNC) in a local firm.
A)True
B)False
Q3) You have just been hired as a consultant by Orange Mobility to advise them on how to enter the South African market. You have decided that direct foreign investment would be the best mode for Orange Mobility to follow at this point in time. Write a one-paragraph memo that outlines the benefits of direct foreign investment in a country.
Q4) In the context of organizing for global competition, what are the different patterns that are found in multinational firms?
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Chapter 13: Products and Services for Consumers
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Q1) She Tales, a women's clothing company based in Singapore, had to modify its clothes before introducing them in markets in Iran to suit the needs of the women in that country who are generally expected to cover themselves completely as per societal norms. To adapt its clothes to Iranian markets, She Tales had to mostly use opaque material and provided accessories like scarves. Which of the following factors has dictated She Tales' product adaptation in this scenario?
A) Legal requirements
B) Cultural requirements
C) Technological requirements
D) Economic requirements
E) Climatic requirements
Q2) An important first step in adapting a product to a foreign market is to determine the degree of newness as perceived by the intended market.
A)True
B)False
Q3) What are the various factors that influence product adaptation in new markets?
Q4) Brand image is at the very core of business identity and strategy.
A)True
B)False
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Chapter 14: Products and Services for Businesses
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Q1) Discuss the price-quality relationship.
Q2) Country X is most likely to be in the age of mass consumption according to Rostow's five-stage model of economic development if:
A) its economy is primarily driven by natural resource extraction.
B) the economy is moving away from agriculture and toward manufacturing.
C) the economy is driven by low-cost manufacturing.
D) it is primarily a service economy.
E) its economy is primarily agrarian.
Q3) Trade shows are the most important channel of advertising for consumer goods. A)True B)False
Q4) What has become the primary vehicle for doing business in many foreign countries? Explain and justify your answer.
Q5) Derived demand can be defined as demand dependent on another source. A)True B)False
Q6) Explain the concept of derived demand. Provide an illustration.
Q7) What are the trends that spur demand for technologically advanced products?
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Q8) Which are the stages of Rostow's five-stage model of economic development?
Chapter 15: International Marketing Channels
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Q1) The distribution channel process includes all activities, beginning with the manufacturer and ending with the retailer.
A)True
B)False
Q2) In the context of distribution structures, one of Walmart's strengths is its ability to influence foreign governments.
A)True
B)False
Q3) In a _____ distribution structure, an importer controls a fixed supply of goods and the marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers.
A) domestic
B) traditional
C) manufacturer-oriented
D) service
E) customer-oriented
Q4) What is a foreign sales corporation?
Q5) What are the various techniques that can be used to motivate middlemen?
Q6) What is complementary marketing?
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Chapter 16: Integrated Marketing Communications and International Advertising
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Q1) Cremics, a multinational drug manufacturing company, used a saffron trident in a promotional campaign for one of its drugs in India. The saffron trident, a religious symbol in India, was meant to indicate the three levels of efficacy of the drug but mistakenly conveyed a religious message to Indians. This miscommunication indicates a problem associated with which of the following steps of an international communications process?
A) Encoding
B) Noise cancellation
C) Media channel selection
D) Message transmission
E) Information source selection
Q2) In the context of international advertising, search engines have now become crucial directors of Internet users' attention.
A)True
B)False
Q3) Errors at the receiver end of the international communications process can be avoided if the message is encoded properly.
A)True
B)False
Page 18
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Chapter 17: Personal Selling and Sales Management
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Q1) A disadvantage of hiring local nationals is the tendency of headquarters personnel to ignore their advice. Which of the following is most likely to be the reason for this tendency?
A) Foreign nationals are not keen on keeping relationships at the home office cordial.
B) Foreign nationals lack the understanding of how home-office politics work.
C) Foreign nationals have a good grasp of the local culture and prevalent practices.
D) Foreign nationals cannot build close contact with subordinates and customers.
E) Foreign nationals have superior technical expertise, which makes people at the headquarters insecure.
Q2) Which of the following is a disadvantage of working as virtual expatriates?
A) They find it difficult to build close contact with subordinates and customers.
B) Their families need to be uprooted.
C) The risk of losing out on promotions at corporate headquarters is very high.
D) They lack the understanding of how home-office politics influence decisions.
E) The top personnel at the headquarters tend to ignore their advice.
Q3) Discuss how compensation plans of American companies vary substantially around the globe.
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Page 19
Chapter 18: Pricing for International Markets
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Q1) Which of the following is true of countertrading?
A) Frequently there is inadequate time to conduct a market analysis in a countertrade negotiation.
B) Identifying countries that have a history of countertrading is the biggest problem with countertrading.
C) The use of countertrading to sell a product implies that the demand for the product is highly elastic.
D) Countertrading does not benefit countries that face a shortage of hard currencies with which to trade.
E) The U.S. dollar is the reserve currency that is used in countertrades.
Q2) What is the difference between variable-cost pricing and full-cost pricing?
Q3) With _____, the seller assumes all risk until the actual dollars are received.
A) open accounts
B) irrevocable letters of credit
C) bills of exchange
D) factoring agreements
E) forfaiting contracts
Q4) Explain the two different views of what constitutes price decisions.
Q5) What are the essential features required while making price quotations?
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Chapter 19: Inventive Negotiations With International
Customers, Partners, and Regulators
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Q1) Which of the following factors often gets in the way of American team negotiations?
A) Cultural heritage of interdependence and collectivism
B) Emphasis on careful note taking and training via observation
C) Compensation schemes overly emphasizing individual performance
D) Preference for split commissions for negotiation teams
E) Hierarchical structures of American organizations
Q2) How should American businessmen approach the decision-making process in negotiations with their Asian counterparts? What are the important signals of progress in a business negotiation?
Q3) Give a brief description of the styles of negotiation of the Japanese, the Koreans, and the French.
Q4) International business negotiations are conducted keeping national stereotypes in mind.
A)True
B)False
Q5) Explain the importance of follow-up communications and procedures in international business negotiations.
Page 21
Q6) What are the criteria for selecting international business negotiators?
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