43.Which of the following reflects the relationship between international business and domestic business?
A. Domestic businesses find it relatively easy to manage profits in the current scenario.
B. Domestic businesses find it relatively easy to manage profits in the current scenario.
C. Most domestic businesses are the result of customization efforts of international businesses.
D. The ability to invest abroad is to a large extent a function of domestic economic vitality.
E. Domestic businesses are more viable as capital tends to move toward minimum use.
The capacity to invest in plants and facilities, either in domestic or foreign markets, is to a large extent a function of domestic economic vitality.
AACSB: Analytic
Blooms: Remember
Difficulty Level: 2 Medium
Learning Objective: 01-03 The scope of the international marketing task
Topic: The International Marketing Task
44.Which of the following is a possible outcome of the “alien status” of a company?
A. An increase in protectionist federal policies.
B. A positive balance of trade.
C. A sharp rise in domestic and international demand.
D. A huge trade deficit.
E. An economic situation of the magnitude of the Great Depression.
Between 1888 and 1971, the United States sold more to other countries than it bought from them; that is, the United States had a favorable balance of trade. By 1971, however, the United States had a trade deficit of $2 billion that grew steadily until it peaked at $160 billion in 1987.
AACSB: Analytic
Blooms: Remember
Difficulty Level: 1 Easy
Learning Objective: 01-03 The scope of the international marketing task
Topic: The International Marketing Task
45.With respect to the environment in which a business operates, factors such as competition, political and legal forces, economic climate, would all be classified as:
A. controllable elements.
B. uncontrollable elements.
C. predictable elements.
D. demographic elements.
E. cultural elements.
With respect to the environment in which a business operates, factors such as competition, political and legal forces, economic climate, would all be classified as uncontrollable elements. Refer to Exhibit 1.3-The International Marketing Task.
AACSB: Analytic
Blooms: Remember
Difficulty Level: 2 Medium
Learning Objective: 01-03 The scope of the international marketing task
Topic: The International Marketing Task
46._____ is a controllable element in both domestic and international marketing environments.
A. Economic climate
B. Competition within the home country
C. Price of products
D. Political forces
E. Foreign policies
Price is a controllable element in both domestic and international marketing. Refer to Exhibit 1.3-The International Marketing 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
47.The marketing tasks of an international marketer differs from that of a domestic marketer as:
A. the international marketer has fewer uncontrollable elements to deal with compared to a domestic marketer.
B. the level of technology and cultural forces are controllable elements for the domestic marketer.
C. the structure of distribution is an uncontrollable element for the international marketer.
D. the competitive structure is one of the controllable factors for an international marketer.
E. the international marketer is less concerned about geography and infrastructure than the domestic marketer.
The uncontrollable elements of the foreign environment are political/legal forces, economic forces, competitive forces, level of technology, structure of distribution, geography and infrastructure, and cultural forces. Refer to Exhibit 1.3-The International Marketing Task.
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
48.Robert Jonas is in charge of a new marketing effort directed toward Peru. In order for his company to effectively market and distribute to all of Peru’s major cities, Mr. Jonas must devise a logistics plan for crossing the Andes Mountains on a daily basis. Which of the following foreign environment uncontrollable variables would be a chief concern as Mr. Jonas devises his plan?