International Marketing Exam Practice Tests
Course Introduction
International Marketing explores the strategies and practices organizations use to market products and services across national boundaries. The course examines the cultural, economic, legal, and political environments that influence global marketing decisions. Students will learn how to analyze international markets, adapt marketing mixes to diverse cultures, develop global branding strategies, and manage international distribution and communication channels. Emphasis is placed on understanding global consumer behavior, entry strategies, international product development, pricing, promotion, and ethical considerations in cross-cultural contexts.
Recommended Textbook
International Marketing An Asia Pacific Perspective 7th Edition by Richard Fletcher
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17 Chapters
1024 Verified Questions
1024 Flashcards
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Page 2
Chapter 1: Rationale for International Marketing
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) Discuss the various factors that might encourage a successful domestic firm to accept the risk inherent in going international and choose to sell its product in an overseas market.
Answer: International marketers balance the driving forces against the restraining forces when assessing each particular market. If the driving forces outweigh the restraining forces, a decision might be made to enter the market; if the restraining forces outweigh the driving forces, a decision might be made to forego the market or postpone entry. Driving forces include market needs (that transcend national boundaries), technology (which has no national boundaries), costs (economies of scale), governments (supportive policies) and information technology that have revolutionized communication (media overlaps national boundaries). Restraining forces include differences between markets flowing from economic development, the political system, legal requirements, societal expectations and cultural norms; government controls over entry and market access; and actual or perceived commercial, cross-cultural, country and currency/financial risk.
Q2) The product life cycle paradigm is a market-specific approach.
A)True
B)False
Answer: True
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Page 3
Chapter 2: Avoiding the Pitfalls of the International Political and Legal Environment
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) Legal constraints on a product entering a new international market include:
A) the packaging of the product.
B) information on product labels.
C) the physical and chemical composition of the product.
D) options A, B and C.
E) options A and C only.
Answer: D
Q2) Arbitration is the best approach to resolving contract disputes because it is less likely to close the door on future business relationships between the feuding parties.
A)True
B)False
Answer: False
Q3) Transfer pricing involves a firm setting the prices at which it transfers products or technologies to affiliates in other countries.
A)True
B)False
Answer: True
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Page 4
Chapter 4: Catering for the Social and Cultural Environment of International Marketing
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) Ethnocentric organisations are characterised by the belief that:
A) all cultures should be respected as equal.
B) organisational culture is the predominant determinant of business success.
C) regional cultural similarities should be taken into consideration when determining the marketing mix.
D) one's own national or cultural group is superior.
E) a global culture is preferable to national cultures.
Q2) Identify the various levels at which culture operates in a foreign market, and explain how each might impact on the business dealings of a firm wishing to enter an overseas market.
Q3) Tolerance of ambiguity is a cultural factor that can complicate relationships between Asian and Western organisations. It is sometimes included in which of Hofstede's dimensions of culture?
A) Masculine/feminine
B) Uncertainty avoidance
C) Long-term/short-term orientation
D) Individualism/collectivism
E) Power distance
Q4) Explain psychic distance. What role does it play in international marketing?
Page 5
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Chapter 5: Technology Change and International Marketing
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Sample Questions
Q1) Discuss the implications for international marketing of an increasingly global information-rich environment.
Q2) By adopting the concept of the 'globally networked business enterprise', many firms are able to improve their business success through the key areas of:
A) e-learning.
B) customer support.
C) e-commerce.
D) options A, B and C.
E) options A and B only.
Q3) Online shoppers tend to have more loyalty to their favourite e-tailers than they will to offline retailers.
A)True
B)False
Q4) Organisations can become involved in consumer-to-consumer (C2C) marketing by:
A) hosting virtual communities.
B) placing sponsored content on blogs or consumer interest sites.
C) opening a forum for product co-development.
D) options A, B and C.
E) options B and C only.
6
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Chapter 6: Contemporary Environmental Variables in International Marketing
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Sample Questions
Q1) In colder climates, indoors and outdoors are blended.
A)True
B)False
Q2) Locally and internationally there is increasing concern regarding the environmental standards of producers of all forms of product. The reason for this is:
A) major companies are being held responsible for their environmental impact.
B) national and local governments are becoming increasingly involved in the issue.
C) there is greater public awareness of issues.
D) international conferences such as the G20 summit are being targeted by environmentalists.
E) all of the above.
Q3) Which of the following conditions is most likely to increase the level of unethical international marketing behaviour?
A) Poorly defined legal environments
B) High levels of government control and state ownership
C) Low income for public servants
D) All of the above
E) Options A and C only
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Chapter 7: Research in International Markets
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62 Flashcards
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Sample Questions
Q1) Outline the key new international marketing research methods. What are the advantages and disadvantages of employing these methods ahead of more traditional research approaches?
Q2) Quantitative data gathering techniques involve gathering ________ from a large, ________ group of respondents.
A) data, consultative
B) data, representative
C) information, consultative
D) statistics, consultative
E) information, representative
Q3) The interpretation of research results from overseas markets will require a degree of scepticism because the data may have been collected under varying circumstances that could cause errors in both the collection and analysis processes.
A)True
B)False
Q4) Would you recommend that a firm employ a test market before entering an international market? Why or why not? Support your answer by highlighting either the benefits or problems associated with test marketing in the international environment.
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Chapter 8: International Market Selection and Entry
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Sample Questions
Q1) A greenfield operation occurs where a firm decides to build its own manufacturing plant overseas using its own funds.
A)True
B)False
Q2) Domestic buyers that buy on behalf of firms in overseas markets are known as:
A) export merchants.
B) brokers.
C) export commission houses.
D) manufacturers' export agents.
E) confirming houses.
Q3) The strategic alliance is relationship-based and provides benefits to the participants. Discuss the five theoretical underpinnings underlying strategic alliances.
Q4) List additional factors that need to be weighed when considering decisions requiring foreign direct investment (FDI).
Q5) Market entry selection should balance the firm's strategic orientation with the characteristics of the market.
A)True B)False
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Chapter 9: International Competitive Strategy
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59 Flashcards
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Sample Questions
Q1) Competition between firms is greater if they both have the same or similar strategies.
A)True
B)False
Q2) Define competitive advantage and explain how it relates to competing internationally.
Q3) Within the value chain analysis, the work done by the firm's manufacturing arm would be regarded as being a ________ activity.
A) secondary
B) competitive
C) augmented
D) primary
E) none of the above
Q4) When segmenting international markets, there are three segmentation scenarios that include international segments, regional segments or unique segments.
A)True
B)False
Q5) Discuss the trade-offs between standardisation and adaptation.
Q6) What is the purpose of value chain analysis? List its components.
Page 10
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Chapter 10: Internationalization, Relationships and Networks
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Sample Questions
Q1) In your opinion, is the sequential or non-sequential approach to internationalisation more effective? Justify your answer and give examples of companies that have succeeded using either or both approaches.
Q2) CRM is directly related to networks because:
A)Members of the network provide marketing-related services that help create and satisfy the demand of international customers
B)Members of the networks supply the inputs
C)It involves harnessing the international network in which the firm is embedded to serve the customer
D)All of the above
E)Options A and C only
Q3) Explain how a firm's international corporate social responsibility is influenced by its international networks.
Q4) Firms usually internationalise because they wish to:
A) Access factors of production on a more cost-competitive basis
B) Achieve economies of scale in sourcing and production
C) Gain exposure to new ways of doing business
D) All of the above
E) Options A and B only
11
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Chapter 11: Globalization
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Sample Questions
Q1) Opportunities for firms generated as a result of globalisation include:
A)Achieve improved economies of scale
B)Access to raw materials
C)Ability to operate in less-regulated environments
D)All of the above
E)Options A and C only
Q2) Transnational companies often supply outmoded plant and equipment when they invest internationally.
A)True
B)False
Q3) Emerging multinationals are more risk-adverse and avoid being first mover.
A)True
B)False
Q4) One of the downsides of globalisation is that it promotes homogeneity of culture.
A)True
B)False
Q5) Sport is now the most globalised legal business in the world.
A)True
B)False
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Chapter 12: Planning for Effective International Marketing
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Sample Questions
Q1) Price, needs and potential usage are important aspects to consider when designing a positioning strategy.
A)True
B)False
Q2) Organisational structure is a weak influence on implementation due to the action focus of marketing plans.
A)True
B)False
Q3) Country of origin can be an important positioning attribute in international marketing.
A)True
B)False
Q4) A company's decision and reward systems will significantly affect the implementation of an international marketing plan.
A)True
B)False
Q5) Discuss the difference between market-based and product-based approaches to marketing planning.
Q6) Discuss the emerging bases for global segmentation.
Page 13
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Chapter 13: Modifying Products for International Markets
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Sample Questions
Q1) An important factor in a firm's decision to enter the international market is that of leveraging its capabilities, which includes:
A) shared physical assets.
B) shared information.
C) shared external relationships.
D) shared expertise.
E) all of the above.
Q2) With transaction-related products, the information search is conducted physically, but actual consumption of the product or service is online.
A)True
B)False
Q3) In the reversal stage of the international product life cycle, growing demand in advanced nations provides the stimulus for firms to start local production of the imported product.
A)True
B)False
Q4) How might a firm redefine its business when entering international markets?
Q5) Discuss the basic stages in the international product life cycle.
Q6) Discuss how a firm might leverage it capabilities in an international market.
Page 14
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Chapter 14: International Pricing for Profit
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Sample Questions
Q1) The price that an international buyer pays for the product, or sees being demanded for a product, becomes the ________ price against which other products are likely to be evaluated.
A) hidden
B) seasonal
C) reference
D) comparative
E) discount
Q2) An Australian firm is not always free to set the prices it wishes to charge in international markets. Discuss the main constraints on pricing that Australian firms must generally adhere to but cannot control.
Q3) The only variable that can be changed in the international market at short notice is distribution.
A)True
B)False
Q4) Transfer pricing occurs only when a firm is able to take advantage of financial incentives offered by a host government.
A)True
B)False
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Chapter 15: Promotion in International Marketing
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61 Verified Questions
61 Flashcards
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Sample Questions
Q1) In cultures where the language is ________ messages need to be more ________ than in cultures where language is precise:
A)Imprecise; extended
B)Indirect; extended
C)Imprecise; symbolic
D)Indirect; symbolic
E)Symbolic; extended
Q2) Suggest arguments for and against the standardisation of advertising in international marketing. Provide examples to explain your answer.
Q3) In international promotion, trade shows are more important for business or industrial products than they are for consumer products.
A)True
B)False
Q4) Explain how the marketing communication strategy for an industrial product marketed internationally would differ from that of a consumer good.
Q5) Web advertisements are often aimed towards a mass audience.
A)True B)False
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Chapter 16: Effective International Distribution
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Sample
Questions
Q1) You are the international marketing manager for an Australian confectionary company that is looking to export into China, Hong Kong and Taiwan. Prepare a discussion paper on how you would go about selecting, appointing, maintaining and possibly terminating intermediaries for these markets.
Q2) Which of the following are reasons why consumer goods tend to have longer channels?
A)Inclusion of intermediaries
B)Inclusion of wholesalers
C)Inclusion of retailers
D)All of the above
E)Options B and C only
Q3) Stage of economic development is a strong influence on the number of retailers in a country.
A)True
B)False
Q4) Discuss the management implications of selecting and managing a channel intermediary in another country.
Q5) Using the comparison of major international transportation modes, evaluate its use for determining transportation of high-price goods.
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Chapter 17: Marketing Services and Projects Overseas
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64 Verified Questions
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Sample Questions
Q1) In addition to the traditional 4Ps of marketing, which additional two variables impact international project marketing?
A)People, process
B)Physical facilities, process
C)People, politics
D)Politics, process
E)Plans, people
Q2) Discuss the intrinsic and extrinsic factors that a firm faces at the different stages of screening when bidding for an international project.
Q3) Explain the four distinguishing characteristics that differentiate services products from physical goods. Identify what steps a firm might take to overcome any problems that each of these characteristics can present when marketing a services product overseas.
Q4) The rise of low contact service within the service sector can be attributed to:
A)Self service
B)Time constraints
C)Electronic delivery of services
D)All of the above
E)Options A and C only
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Chapter 18: International Marketing in the Decade Ahead
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Sample Questions
Q1) Some of the reasons why firms from developed countries have tended to focus firstly on other developing countries when expanding internationally include:
A)They were easier to do business with
B)From a buyer perspective the country of origin effect was smaller
C)They were easier to understand
D)From a supply perspective, the psychic distance was less
E)All of the above
Q2) The three segments that make up the middle of the pyramid in Africa are known as:
A)Working class, lower middle class, upper class
B)Rural workers, regional workers, urban workers
C)Lower class, middle class, upper class
D)Blue collar workers, white collar workers, working families
E)Lower middle class, floating class, upper middle class
Q3) Price is the most important consideration for consumers in BOP markets.
A)True
B)False
Q4) Discuss the challenges a firm would face when undertaking market research in developing countries.
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Page 19