AACSB: Analytic
Blooms: Remember
Difficulty Level: 1 Easy
Learning Objective: 01-04 The importance of the self-reference criterion (SRC) in international marketing
Topic: The Self-Reference Criterion and Ethnocentrism: Major Obstacles
27.The most effective approach to build global awareness into an organization is to increase the diversity mix of the employee profile, especially for entry-level jobs
FALSE
The most effective approach to build global awareness into an organization is to have a culturally diverse senior executive staff or board of directors.
AACSB: Analytic
Blooms: Remember
Difficulty Level: 2 Medium
Learning Objective: 01-05 The increasing importance of global awareness
Topic: Developing a Global Awareness
28.Research has revealed that smaller home markets and larger production capacities appear to favor internationalization.
TRUE
Research has revealed a number of factors favoring faster internationalization: (1) Companies with either high-technology and/or marketing-based resources appear to be better equipped to internationalize than more traditional manufacturing kinds of companies; (2) smaller home markets and larger production capacities appear to favor internationalization; and (3) firms with key managers well networked internationally are able to accelerate the internationalization process.
AACSB: Analytic
Blooms: Remember
Difficulty Level: 2 Medium
Learning Objective: 01-06 The progression of becoming a global marketer
Topic: Stages of International Marketing Involvement
29.A company in the “no direct foreign marketing” stage of international marketing involvement does not actively cultivate customers outside national boundaries.
TRUE
A company in the stage of “no direct foreign marketing” does not actively cultivate customers outside national boundaries; however, this company’s products may reach foreign markets. Sales may be made to trading companies as well as foreign customers who directly contact the firm.
AACSB: Analytic
Blooms: Remember
Difficulty Level: 2 Medium
Learning Objective: 01-06 The progression of becoming a global marketer
Topic: Stages of International Marketing Involvement
30.The global marketing concept views the marketplace as consisting of one primary domestic market that is complimented by several smaller regional markets.
FALSE
At the global marketing stage of international marketing involvement, companies treat the world, including their home market, as one market.
AACSB: Reflective Thinking
Blooms: Understand
Difficulty Level: 2 Medium
Learning Objective: 01-06 The progression of becoming a global marketer
Topic: Stages of International Marketing Involvement
Multiple Choice Questions
31.Which of the following is a dynamic trend that is affecting the current global business strategies?
A. The trend toward buying American cars in Europe.
B. The trend toward the acceptance of the free market system among developing countries.
C. The trend toward using English as the global language.
D. The trend toward establishing a world currency.
E. The trend toward worldwide instant communication.
Of all the events and trends affecting global business today, four stand out as the most dynamic, the ones that will influence the shape of international business beyond today’s “bumpy roads” and far into the future: (1) the rapid growth of the World Trade Organization and regional free trade areas such as the North American Free Trade Area and the European Union; (2) the trend toward the acceptance of the free market system among developing countries in Latin America, Asia, and eastern Europe; (3) the burgeoning impact of the Internet, mobile phones, and other global media on the dissolution of national borders; and (4) the mandate to manage the resources and global environment properly for the generations to come.
AACSB: Analytic
Blooms: Remember
Difficulty Level: 2 Medium
Learning Objective: 01-01 The benefits of international markets
Topic: Global Perspective: Global Commerce Causes Peace
32.Companies from _____ lead in foreign investment in the United States.
A. Kingdom of Saudi Arabia
B. Russia
C. China
D. United Kingdom
E. Canada
Foreign investment in the United States is more than $23.4 trillion. Companies from the United Kingdom lead the group of investors, with companies from the Netherlands, Japan, Germany, and Switzerland, following in that order.