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WorksheetsInternational Marketing – Question Bank
Total questions: 80
Worksheet time: 3600secs
Which of the following is the best definition of International Marketing?
Trading goods between two neighbors in the same country
The performance of business activities designed to plan, price, promote, and direct the flow of a company’s goods and services to consumers in more than one nation for a profit
Only the export of raw materials to foreign factories
Managing a domestic brand without any foreign influence
What is the primary difference between domestic and international marketing?
The marketing mix (4Ps)
The company’s profit objectives
The environment (competition, legal restraints, culture, etc.) in which marketing plans must be implemented
The quality of the products being sold
“Risk diversification” as a motive for going international means:
Selling only one type of product to avoid losses
Offsetting weak performance in the home market with growth in foreign markets
Investing all capital in a single foreign market
Avoiding all types of market volatility
The “Self-Reference Criterion” (SRC) is defined as:
A tool to measure competitor prices
An unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions
A systematic way to analyze foreign legal systems
The belief that one’s own culture is superior to others
Which concept describes the blend of “Global brand, local fit”?
Standardization
Ethnocentrism
Glocalization
Diversification
A company that exports products without any adaptation to foreign consumer needs is following which orientation?
Polycentric orientation
Ethnocentric orientation
Regiocentric orientation
Geocentric orientation
In which stage of international marketing involvement does a firm see the world as one market and earn more than half its revenue from abroad?
No Direct Foreign Marketing
Infrequent Foreign Marketing
Regular Foreign Marketing
Global Marketing
The task of an international marketer includes uncontrollable elements in the foreign environment, such as:
Product, Price, and Promotion
Firm characteristics and Research
Political forces, cultural forces, and level of technology
Marketing channels and personnel
“Infrequent Foreign Marketing” is typically caused by:
A permanent commitment to international expansion
Temporary surpluses in production
High demand from domestic customers
A desire to build production facilities abroad
To avoid the SRC and Ethnocentrism, marketers should perform a:
Financial audit
Cross-Cultural Analysis
Simple demographic survey
Standardization test
In the PESTLE model, trade policies, sanctions, and political stability are parts of which factor?
Economic
Social
Political
Technological
A tariff is best described as:
A limit on the quantity of goods imported
A tax imposed by a government on goods entering at its borders
A ban on specific products from a country
A subsidy for local manufacturers
Exchange controls are used by governments to:
Increase the price of exports
Limit the amount of foreign currency available to importers
Promote free trade with all nations
Eliminate all tariffs
Which of the following is a non-tariff barrier?
Revenue tariffs
Protective tariffs
Quotas and monetary barriers
Value-added tax on domestic products
Governments promote international marketing transactions through:
Tariffs and quotas
Export promotion programs and intellectual property protection
Exchange controls
Protectionism
How can political forces affect price in the marketing mix?
Through product standards
Through advertising bans
Through tariffs and exchange rates
Through logistics and customs policies
Depopulation waves and changing consumer demographics are trends in which environment?
Legal
Technological
Social / Global
Economic
State trading occurs when:
Private firms trade without government interference
The government engages in commercial operations directly or through agencies
All international trade is banned
Only raw materials are exported
What is the first phase of the International Marketing Planning Process?
Developing the Marketing Plan
Preliminary Analysis and Screening
Implementation and Control
Defining Target Markets
In Phase 2 of the planning process, the main goal is to:
Decide on the brand name
Adapt the marketing mix to target markets
Sign a legal contract with a partner
Evaluate the financial audit of the home country
Piggybacking occurs when:
A company builds its own factory abroad
A company sells its products abroad using another company’s distribution facilities
Two companies create a third legal entity
A company buys a competitor in a foreign market
Which entry mode involves the lowest level of risk and financial commitment?
Joint Venture
Wholly-owned Subsidiary
Exporting
FDI
Licensing is a contractual agreement where the licensor provides an asset to a licensee in exchange for:
Fixed monthly salaries
Royalties or licensing fees
Ownership of the licensee’s company
Free advertising in the home country
Integrated Marketing Communications (IMC) includes which of the following?
Only television advertising and radio
Advertising, sales promotions, trade shows, personal selling, direct selling, and PR
Only the Product and Price of the 4Ps
Production logistics and warehousing
What is a primary objective of sales promotions?
Long-term brand building only
Short-term efforts to stimulate consumer purchase and improve middleman effectiveness
Creating a 10-year marketing plan
Avoiding all media channels
The role of international public relations (PR) is to:
Buy ad space in newspapers
Create good relationships with the press to manage rumors and cover positive stories
Sell products directly to the consumer
Fix the technical specifications of a product
In the communication process, encoding is:
The interpretation of symbols by the receiver
The conversion of a message into effective symbolism for transmission
The media channel used for the ad
The noise that disrupts the message
Noise in the international communication process refers to:
The volume of a television ad
Uncontrollable and unpredictable influences such as competitive activities and confusion
The language used in a survey
The cost of a marketing campaign
In the communication process, encoding is:
The interpretation of symbols by the receiver
The conversion of a message into effective symbolism for transmission
The media channel used for the ad
The noise that disrupts the message
Integrated Marketing Communications (IMC) includes which of the following?
Only television advertising and radio
Advertising, sales promotions, trade shows, personal selling, direct selling, and PR
Only the Product and Price of the 4Ps
Production logistics and warehousing
Which of the following elements in the marketing environment poses a challenge to both domestic and international marketers due to its dominantly uncontrollable nature?
Price
Promotion
Research activities
Political/legal forces
Which of the following is a controllable element for an international marketer?
Level of technology
Channels of distribution
Geography and infrastructure
Cultural forces
Which of the following is an uncontrollable element for an international marketer?
Firm characteristics
Channels of distribution
Level of technology
Research
Compared to the foreign environment variables, which of the following uncontrollable variables is least likely to affect a domestic marketer?
Political forces
Competitive structure
Legal forces
Cultural forces
Which of the following best defines adaptation on the part of an international marketer?
It is a conscious effort to make themselves aware of the home cultural reference in their analyses
and decision making.
It is a conscious effort to anticipate the influences of both the foreign and domestic uncontrollable
factors on a marketing mix and then to adjust the marketing mix to minimize the effects.
It is the process of identifying the similarities that exist between the domestic and foreign markets.
It is an unconscious reference to one’s own cultural values, experiences, and knowledge as a basis
for decisions and then to adjust the marketing mix in order to closely reflect these decisions.
The primary obstacles to success in international marketing are a person’s _____ and an
associated ethnocentrism.
Conscious regionalism
Self-reference criterion
Moral relativism
Holism
_____ is an unconscious reference to one’s own cultural values, experiences, and knowledge
as a basis for decisions.
Xenocentrism
Segregation
Ethnocentrism
Self-reference criterion
Which of the following is true regarding the stages of international marketing involvement?
A firm essentially progresses through the stages in a linear order.
The international marketing stage is a direct result of temporary surpluses caused by variations in
production levels or demand
A larger home market with a smaller production base favors internationalization.
A firm may be in more than one stage simultaneously.
In the context of stages of international marketing involvement, a company’s products reach
a foreign market without any conscious effort on the part of a marketer during the _____
Infrequent foreign marketing stage
Regular foreign marketing stage
No direct foreign marketing stage
International marketing stage
In the context of stages of international marketing involvement, if a marketer is motivated to
initiate an international marketing effort mainly because of temporary surpluses in the domestic
market, then the marketer is most likely to be in the _____
Infrequent foreign marketing stage
Regular foreign marketing stage
No direct foreign marketing stage
International marketing stage
The biggest or greatest amount of involvement in a foreign market comes throughwhich of the following?
Exporting
Joint venturing
Licensing
FDI
Sellers that handle their own exports are engaged in
Direct Exporting
Indirect Exporting
Licensing
Contract manufacturing
If a company's objective were to reach masses of buyers that were geographically dispersed at a low cost per exposure, the company would likely choose which of thefollowing promotion forms?
Advertising
Personal selling
Public relations
Sales promotion
________ is the process of evaluating each market segment's attractivenessand selecting one or more segments to enter.
Mass marketing
Market segmentation
Market targeting
Market positioning
What is the mode to enter foreign market without any additional investment?
Exporting
Contract manufacturing
Strategic alliances
Franchising
Joining with foreign companies to produce or market products and services is called:
Direct exporting
Indirect Exporting
Licensing
Joint venturing
Non-tarrif barriers can control ___ as well as ___ of the impoted goods
Price - Quantity
Price - Quality
Promotion - Quantity
Promotion - Price
Customization of product according to the needs of overseas market is called
Adaption
Standardisation
Adoption
Penetration
Ethnocentrism can simply be defined as:
Developing a simple diverse strategy for new markets
Develop one strategy for all countries worldwide
Use everywhere the same strategy as at home
Being ethnically centred on a global scale
Competitive advertising may impair the effectiveness of the message due to the fact that it may:
not reach the intended recipient.
reach the intended recipient but is misunderstood.
reach the intended recipient and is understood, but the recipient may fail to take action.
get distorted by noise.
Integrated Marketing Communications (IMC) includes:
Only television advertising
Advertising, sales promotions, PR, trade shows, and personal selling
Only digital marketing
The 4Ps of marketing
A "Wholly-owned Subsidiary through Greenfield growth" means
Buying an existing company
Building entirely new production facilities from scratch
Partnering with a local firm
Using an agent to sell goods
"Market Spreading" is most suitable when
Marketing costs are high
Products are highly standardized and market risk is high
Intensive product adaptation is required
A company wants a large share in one specific country
Which of the following is a "Legal Constraint" on advertising?
High production costs.
Lack of market data
Restrictions on comparative advertising and specific products
Poor quality paper for magazines
The role of "International Public Relations" (PR) is to
Buy ad space in newspapers
Create good relationships with the press to manage rumors and cover positive stories
Sell products directly to the consumer
Fix the technical specs of a product
What is a primary objective of "Sales Promotions"?
Long-term brand building only
Creating a 10-year marketing plan
Avoiding all media channels
Short-term efforts to stimulate consumer purchase and improve middleman effectiveness
Licensing is a contractual agreement where the licensor provides an asset to a licensee in exchange for:
Fixed monthly salaries
Free advertising in the home country
Ownership of the licensee’s company
Royalties or licensing fees
An "International Joint Venture" (IJV) is characterized by:
One company buying another completely
Two or more companies creating a separate legal entity with shared ownership
A temporary agreement to share a warehouse
An informal handshake between managers
"Risk diversification" as a motive for going international means
Selling only one type of product to avoid losses
Offsetting weak performance in the home market with growth in foreign markets
Investing all capital in a single foreign market
Avoiding all types of market volatility
"Decoding" errors usually result from
Improper messages due to incorrect knowledge of use patterns or inaccurate interpretation by the receiver
Using the internet for B2B communications
Too much budget for the campaign
A very short distribution channel
In the infrequent foreign marketing stage of international marketing involvement, firms:
Have no intention of maintaining continuous market representation in foreign markets.
Have a global perspective and view the entire world as one market.
Have more than half their sales revenues coming from international markets.
Sell products that are a result of planned production in markets in various countries.
What is the degree of standardization in a polycentric orientation?
Very high
Medium
Very low
High with minor local adjustments
_____ is a controllable element in both domestic and international marketing environments.
Price of products
Economic climate
Political force
Foreign policy
What is the most basic and overarching difference between domestic marketing and international marketing?
Environment
Profit objectives
Company products and services
Business activities (planning, pricing, promotion)
A company only sells abroad when there is a temporary surplus of goods due to fluctuations in production or a decrease in domestic demand. What stage is this company in?
No Direct Foreign Marketing
Regular Foreign Marketing
Infrequent Foreign Marketing
Global Marketing
Which type of government barrier limits the absolute amount of goods that can be imported into a country?
Absolute Quotas
Exchange Controls
Tariffs
Tariff Quotas
Which of the following is NOT one of the main motivations for firms to enter international markets as mentioned in the document?
Expanding markets and increasing revenues
Reducing domestic competition
Diversifying risks
Access to low-cost resources
Which of the following actions can governments take to "impede" international marketing transactions?
Imposing quotas
Protecting intellectual property (IP)
Export promotion programs
Liberating trade
What is the definition of Tariffs?
A tax imposed by a government on goods as they enter its borders.
A quality standard that imported goods must meet.
A tax levied on domestically produced products to raise revenue.
A limit on the quantity of goods that can be imported during a period of time.
What is the basic difference between "protective tariffs" and "revenue tariffs"?
Protective tariffs are voluntary, while revenue tariffs are compulsory.
Protective tariffs are high to protect domestic industries, while revenue tariffs are low to generate maximum revenue for the government.
Protective tariffs are high to generate revenue, while revenue tariffs are low to protect domestic industries.
Protective tariffs are applied to exports, while revenue tariffs are applied to imports.
Which government control limits the amount of foreign currency an importer can pay for purchased goods?
Quotas
Exchange Controls
State Trading
Tariffs
Which element of the marketing mix (4P) do political factors such as tariffs and exchange rates most directly affect?
Place
Price
Promotion
Product
Why is it important for exporting businesses to understand the international environment?
To have complete control over factors such as politics and economics in foreign markets.
To ensure that all markets have the same marketing strategy.
To comply with international financial reporting requirements.
To guide appropriate strategies, avoid risks and identify opportunities.
Which of the following attitudes or actions should an international marketer take when faced with an unfamiliar environment?
Ignore global trends because they change too quickly.
Always scan the market continuously and rely on objective knowledge.
Assume that foreign markets operate the same as domestic markets.
Rely solely on experience from the domestic market to make decisions.
In the "Market Portfolio" evaluation, a market with "High Attractiveness" but "Low Competitive Strength" suggests which strategy?
Invest
Export
Joint Venture
Divest
An "International Joint Venture" (IJV) is characterized by:
One company buying another completely
Two or more companies creating a separate legal entity with shared ownership
A temporary agreement to share a warehouse
An informal handshake between managers
A major disadvantage of "Licensing" is
High capital investment
Difficulty in controlling quality and risk of creating future competitors
High import taxes
Need for local production facilities
"Franchising" is a form of licensing where the franchisor provides:
Only the raw materials.
A standard package of products, systems, and management services
100% of the capital for the franchisee
Only the labor force
Which environmental factor involves "Digital infrastructure" and "Cybersecurity"?
Economic
Technological
Legal
Environmental
What is an "Absolute Quota"?
A low tax rate for a specific amount of goods
A restriction that limits absolutely the amount that can be imported
A voluntary agreement to limit exports
A tax on foreign exchange
