International Business Fundamentals: Questions 18-28

Geert Hofstede analyzed variations in:

• International trade laws

• Agricultural output levels

• National cultural values

• Regional climate patterns

Countries with aging populations usually experience higher demand for:

• Educational toys for children

• Premium fashion items

• Luxury entertainment products

• Healthcare and medical services

A country's ability to innovate is commonly evaluated using:

• Research and development activity

• Population density statistics

• Average annual rainfall

• Number of tourist visits

Indirect exporting refers to selling goods abroad through:

• Manufacturing plants located overseas

• Strategic alliances between firms

• Domestic intermediaries or trading companies

• Foreign government agencies

In franchising, the franchisor normally supplies:

• A brand name and a complete operating system

• Government permits and licenses

• Local staff for the franchise location

• Raw materials and production machinery

Price escalation in international markets means:

• Export prices rise due to added costs such as tariffs and transportation

• Trade barriers are eliminated

• Wages fall in overseas markets

• Exchange rates remain stable during trade

Freight forwarders are mainly responsible for:

• Providing corporate banking services

• Developing global advertising strategies

• Producing products for export

• Coordinating international transportation and shipment of goods

International marketing refers to:

• Domestic advertising campaigns only

• Marketing activities conducted across national borders

• Selling products only in the domestic market

• Government trade policy decisions

One factor that increases complexity in global marketing environments is:

• Operating under a single legal system

• Dealing with multiple cultures

• Using one global currency

• Serving only one market

Which of the following represents a method of entering foreign markets?

• Exporting goods to another country

• Printing national currency

• Implementing local tax systems

• Setting import quotas