True False
25.To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that emphasizes the need for ethnocentrism.
True False
26.Understanding one’s own culture normally requires no additional study.
True False
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
True False
28.Research has revealed that smaller home markets and larger production capacities appear to favor internationalization.
True False
29.A company in the “no direct foreign marketing” stage of international marketing involvement does not actively cultivate customers outside national boundaries.
True False
30.The global marketing concept views the marketplace as consisting of one primary domestic market that is complimented by several smaller regional markets.
True False
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.
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
33.Which of the following is true regarding the impact of globalization on domestic markets in the United States?
A. Companies with only domestic markets have been able to sustain their customary rates of growth.
B. Multinational companies are making more profits from their domestic operations compared to their earnings from the foreign markets.
C. Only multinational companies with large production facilities have succeeded in the international markets.
D. The domestic companies have reduced their manufacturing employment more than the US multinationals.
E. Multinational manufacturing companies in all industries and sizes have outperformed their domestic counterparts.
34.Which of the following is an essential requirement for companies to succeed in international markets?
A. Binding strictly to their traditional methods of operations to succeed in international markets.
B. Focusing primarily on their production to meet the demands at home.
C. Venturing into multiple markets at once.
D. Committing themselves completely to foreign markets.
E. Focusing on improving the domestic market to invest the returns in international markets.
35._____ is the performance of business activities designed to plan, price, promote, and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit.
A. Internal marketing
B. Importing
C. Corporate management
D. International marketing
E. Domestic trade
36.Which of the following is the most critical difference between domestic marketing and international marketing?
A. The difference in marketing principles being followed.
B. The different concepts of marketing.
C. The change in marketing goals.
D. The environment in which marketing plans must be implemented.
E. The basic processes used to market products and services.
37.Which of the following elements in the marketing environment poses a challenge to both domestic and international marketers due to its uncontrollable nature?
A. Price
B. Promotion
C. Research activities
D. Political/legal forces