11.Political and legal forces, economic climate, and competition are some of the domestic environment’s controllable factors.
FALSE
Domestic environment uncontrollables include home-country elements that can have a direct effect on the success of a foreign venture: political and legal forces, economic climate, and competition.
AACSB: Analytic
Blooms: Remember
Difficulty Level: 2 Medium
Learning Objective: 01-03 The scope of the international marketing task
Topic: The International Marketing Task
12.The foreign policies of a country have a direct effect on a firm’s international marketing success.
TRUE
Domestic environment uncontrollables include home-country elements that can have a direct effect on the success of a foreign venture: political and legal forces, economic climate, and competition. A political decision involving foreign policy can have a direct effect on a firm’s international marketing success.
AACSB: Analytic
Blooms: Understand
Difficulty Level: 1 Easy
Learning Objective: 01-03 The scope of the international marketing task
Topic: The International Marketing Task
13.Abolition of apartheid in South Africa is an example of a positive uncontrollable element in an international marketing scenario.
TRUE
Positive effects occur when changes in foreign policy offer countries favored treatment. Such was the case when South Africa abolished apartheid.
AACSB: Analytic
Blooms: Understand
Difficulty Level: 2 Medium
Learning Objective: 01-03 The scope of the international marketing task
Topic: The International Marketing Task
14.The business activities of international marketers are not affected by competition in their domestic market.
FALSE
Competition within the home country can also have a profound effect on the international marketer’s task.
AACSB: Analytic
Blooms: Remember
Difficulty Level: 1 Easy
Learning Objective: 01-03 The scope of the international marketing task
Topic: The International Marketing Task
15.The process of evaluating the uncontrollable elements in an international marketing program involves substantial doses of cultural, political, and economic shock.
TRUE
The process of evaluating the uncontrollable elements in an international marketing program often involves substantial doses of cultural, political, and economic shock.
AACSB: Analytic
Blooms: Remember
Difficulty Level: 1 Easy
Learning Objective: 01-03 The scope of the international marketing task
Topic: The International Marketing Task
16.Level of technology remains unchanged across countries making it a fairly predictable factor in international marketing.
FALSE
The level of technology is an uncontrollable element that can often be misread because of the vast differences that may exist between developed and developing countries.
AACSB: Analytic
Blooms: Remember
Difficulty Level: 2 Medium
Learning Objective: 01-03 The scope of the international marketing task
Topic: The International Marketing Task
17.Political and legal issues a company may face abroad are mitigated by the “alien status” of the company.
FALSE
Political and legal issues a business faces abroad are often amplified by the “alien status” of the company, which increases the difficulty of properly assessing and forecasting the dynamic international business climate.
AACSB: Reflective Thinking
Blooms: Understand
Difficulty Level: 2 Medium
Learning Objective: 01-03 The scope of the international marketing task
Topic: The International Marketing Task
18.The political details and the ramifications of political and legal events are often more transparent in a domestic situation than they are in a foreign market.
TRUE
In a domestic situation, political details and the ramifications of political and legal events are often more transparent than they are in some foreign countries. In many foreign countries, corruption may prevail, foreigners may receive unfair treatment, or the laws may be so different from those in the home country that they are misinterpreted.
AACSB: Analytic
Blooms: Remember
Difficulty Level: 1 Easy
Learning Objective: 01-03 The scope of the international marketing task
Topic: The International Marketing Task
19.The political and legal environment is a controllable element for international marketers because of their potent ability to lobby and influence legislation in foreign markets.