C) Countries must not restrict foreign investment even if domestic economic conditions deteriorate.
D) The ability to invest abroad is to a large extent a function of domestic economic vitality.
E) Domestic businesses are more viable than international businesses as capital tends to move toward minimum use.
44) How can "alien status" unfavorably affect a company?
A) prejudiced treatment by the host country's politicians and legal authorities
B) an inflated balance of trade
C) a sharp rise in domestic and international demand
D) lower trade tariffs in the host country
E) an economic situation of the magnitude of the Great Depression
45) With respect to the environment in which a business operates, factors such as competition, political and legal forces, and economic climate would all be classified as
A) controllable elements.
B) uncontrollable elements.
C) tractable elements.
D) demographic elements.
E) cultural elements.
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 force
E) Foreign policy
47) The marketing tasks of an international marketer differ from that of a domestic marketer as the
A) international marketer has fewer uncontrollable elements to deal than a domestic marketer.
B) level of technology and cultural forces are controllable elements for the international marketer.
C) structure of distribution is an uncontrollable element for the international marketer.
D) competitive structure is one of the controllable factors for an international marketer.
E) international marketer is less concerned about geography and infrastructure than the domestic marketer.
48) Kelly Reeves is in charge of a new marketing effort directed toward Peru. In order for her company to market effectively and distribute to all of Peru's major cities, Kelly must devise a logistics plan for crossing the Andes Mountains on a daily basis. Which of these foreign environment uncontrollable variables would be a chief concern as Kelly devises her firm's logistics plan?
A) price
B) product
C) geography and infrastructure
D) promotional strategies
E) channels of distribution
49) Compared to the foreign environment variables, which of the following uncontrollable variables is least likely to affect a domestic marketer?
A) political forces
B) competitive structure
C) economic climate
D) cultural forces
E) legal forces
50) Angelica Wu is preparing a marketing plan for her company for the upcoming year's business activities. She knows that she should begin her plan by examining the variables she has some control over. These controllable variables would include price, product, channels-of-distribution, and
A) level of technology.
B) political forces.
C) competition.
D) economic climate.
E) promotion.
51) M&G Inc., a company producing musical instruments, had dominated its home market for several years before venturing into international markets. The company was focusing more on international operations until Beige N, a German company in the same business, entered its home market. Beige N started selling good quality products at prices much lower than M&G's and affected its sales adversely. Which of the following elements in the marketing environment has affected the business of M&G Inc. with the market entry of Beige N?
A) level of technology
B) structure of distribution
C) competition in the domestic market
D) cultural forces
E) promotion of the product
52) Shondra McDonald, a marketing manager at a hearing aid manufacturing firm, is asked to review the marketing opportunities of her company in a foreign market. She is aware that she can modify certain elements of the marketing environment to suit the foreign market needs. She focuses her attention on the uncontrollable factors that might affect the firm's business prospects. Which of the following uncontrollable elements is most likely to affect the company's business prospects in the foreign market?
A) pricing policies in the domestic market
B) research methodologies used by her company
C) promotional activities required to market the product
D) level of technology in the targeted market
E) product distribution channels adopted by his company
53) The uncontrollable issue of ________ faced by a company abroad is often amplified by the "alien status" of the company, which increases the difficulty of properly assessing and forecasting the dynamic international business climate.