International Marketing Pre-Test
Questions
Course Introduction
International Marketing explores the strategies and practices organizations employ to market their products and services across national boundaries. The course examines the global marketplace, cultural nuances, economic environments, legal and ethical considerations, and the impact of technology on marketing decisions. Students will analyze market entry strategies, international product adaptation, global branding, and distribution decisions, while developing an understanding of consumer behavior in various cultural and economic contexts. Emphasis is placed on real-world case studies and the application of theoretical frameworks to solve complex marketing challenges faced by firms in todays interconnected world.
Recommended Textbook
International Logistics Management of International Trade Operations 3rd Edition by David
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Page 2
Chapter 1: Introduction
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Q1) The Treaty of Rome in 1957 was the first step in the creation of the European Union.
A)True
B)False
Answer: True
Q2) World trade has grown about 10 percent per year since 1950.
A)True
B)False
Answer: False
Q3) Information on foreign countries,including their economic environment,their political environment,and their geography,can easily be found in several publications.Which is NOT one of the organizations that publishes background information on countries?
A) The Economist's Intelligence Unit
B) The Central Intelligence Agency
C) The U.S. Department of Commerce
D) The United Nations' UNICEF
E) None of the above
Answer: D
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Page 3
Chapter 2: International Supply Chain Management
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Q1) Which one was NOT one of the characteristics of the "early days" of logistics?
A) an emphasis on making sure that the goods arrived in good condition
B) an emphasis on low-cost transportation
C) long transit times
D) an emphasis on customer satisfaction
E) None of the above
Answer: D
Q2) Most firms either purchase goods from abroad or sell goods abroad.If they do not,their suppliers and customers do.This situation illustrates that supply chain management is inherently ____________________.
Answer: global
Q3) The single most important development in international ocean shipping was the creation of containers.
A)True
B)False
Answer: True
Q4) Manufacturers have adopted MRP systems so that they can reduce their inventory and manufacture ____________________.
Answer: just-in-time
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Chapter 3: International Logistics Infrastructure
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Q1) The current trend in shipbuilding is toward post-Panamax ships.
A)True
B)False
Answer: True
Q2) Post-Panamax ships have resulted in
A) ports being able to handle more ships.
B) cranes being unable to reach across Panamax ships.
C) the ability to load up to thirteen containers across the width of the ship.
D) All of the above
E) None of the above
Answer: B
Q3) As ships move through the Panama Canal,the locks they traverse use an inordinate amount of fresh water,including water from the reserve at A) Lake Panama.
B) Guillard Lake.
C) the Panama River.
D) Great Lake.
E) None of the above
Answer: E
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Page 5
Chapter 4: Methods of Entry into Foreign Markets
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Q1) Attempts to reduce business practices that include corruption and bribery have been made by the
A) W.O.F.E.
B) sogo shosha.
C) Organisation for Economic Co-operation and Development.
D) foreign labor laws that protect agents.
E) None of the above
Q2) An exporter has the most control over its foreign sales through a(n)
A) sales or marketing subsidiary.
B) export trading company.
C) export management company.
D) agent.
E) distributor.
Q3) Maquiladoras are located on the border between A) France and Germany.
B) Spain and Portugal.
C) Quebec and Ontario.
D) the United States and Mexico.
E) None of the above
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Page 6
Chapter 5: International Contracts
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Sample Questions
Q1) The European Union tends not to recognize exclusive territories that limit an agent or distributor to one country.
A)True
B)False
Q2) A termination for "convenience" is
A) illegal.
B) a termination for any reason other than non-performance.
C) a simple process about which the exporter should not have to worry.
D) usually accomplished with good feelings on both sides.
E) None of the above
Q3) Unless otherwise specified,contracts between an exporter and an agent and contracts between an exporter and a distributor are called
A) contract law.
B) labor law.
C) common law.
D) distribution contracts.
E) None of the above
Q4) How trade secrets and other strategic advantages are to be handled is included in a _____________________ clause of a contract.
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Chapter 6: Terms of Trade or Incoterms
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Q1) The CFR Incoterm means "Cost and Freight."
A)True
B)False
Q2) The choice of the Incoterm is almost always the decision of the A) importer.
B) agent.
C) exporter.
D) distributor.
E) None of the above
Q3) Under the CPT Incoterm,the bill of ____________________ can act as a proof of delivery from the carrier.
Q4) FOB is
A) Free On Board.
B) an Incoterm that can be used for any merchandise.
C) an Incoterm specifically designed for ocean transportation.
D) All of the above
E) None of the above.
Q5) The customer-focused exporter gives the importer a quote in which the importer can determine which ____________________ should govern the transaction.
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Chapter 7: Terms of Payment
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Q1) A procurement card is conceptually similar to a consumer credit card.
A)True
B)False
Q2) Credit terms can be considerably lengthened through
A) a letter of credit.
B) trade acceptance.
C) banker's acceptance.
D) international forfaiting.
E) None of the above
Q3) SWIFT stands for
A) Southwestern International Fund Transfers.
B) Sales World Institutional Financial Telecommunications.
C) Serving-the-World Institutional Financial Transactions.
D) Society for Worldwide Institutional Transfers.
E) None of the above
Q4) In a cash-in-advance transaction,all risk is transferred to the ____________________.
Q5) Usually a bank guarantee is offered by a single bank,rather than multiple banks.
A)True
B)False
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Chapter 8: Currency of Payment (Managing Transaction
Risks)
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Q1) In the long run,technical forecasting of exchange rates is very accurate.
A)True
B)False
Q2) In an options market hedge there is the option to sell or purchase certain currencies at a certain exchange rate either on or before a certain date.The agreed-upon exchange rate is called the
A) international leverage.
B) trade dimension.
C) leveraging currency.
D) transaction exposure.
E) None of the above
Q3) Some currencies are traded in the futures' market as "commodities."
A)True
B)False
Q4) In the United States,the Federal Reserve System technically fulfills the role of being a ____________________.
Q5) A money market hedge consists of using the ____________________ system of the country of the currency in which the receivable or the payable is going to be paid.
Q6) The euro was first created as an artificial ____________________.
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Chapter 9: International Commercial Documents
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Q1) Which of the following pieces of information does an international commercial invoice contain?
A) Incoterms
B) a precise description of the product
C) terms of payment
D) All of the above
E) None of the above
Q2) A consular invoice is a regular commercial invoice printed on stationery provided by a country and visa-ed by its consulate in the exporter's country.
A)True
B)False
Q3) A careful preparation of all of the documents by the exporter helps the importer tremendously when it is time to clear Customs.
A)True
B)False
Q4) A bill of ____________________ is a fundamental international shipping document in ocean transportation.
Q5) A Phyto-Sanitary Certificate is for ____________________ products and foodstuffs.
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Chapter 10: International Insurance
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Sample Questions
Q1) A "With Average" policy does not cover any losses from loading and unloading of the vessel.
A)True
B)False
Q2) One of the most complex areas of international logistics is international insurance.
A)True
B)False
Q3) Coverage A of the Institute Marine Cargo Clauses requires a special endorsement to cover
A) an unseaworthy vessel.
B) improper packing.
C) strikes and other civil disturbances.
D) All of the above
E) None of the above
Q4) All marine insurance policies carry a general average clause.
A)True
B)False
Q5) Even in good weather,cargo is subject to ship's movement in ____________________ directions at once.
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Chapter 11: International Ocean Transportation
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Sample Questions
Q1) NVOCCs are
A) not regulated by the Federal Maritime Commission.
B) prohibited in North America.
C) rarely involved in LCL freight.
D) All of the above
E) None of the above
Q2) LASH ships cannot function well in ports that have little lifting equipment.
A)True
B)False
Q3) Standardized units of cargo on a LASH ship have a capacity of
A) 385 metric tons of deadweight tonnage.
B) 385 long tons.
C) 500 metric tons of deadweight tonnage.
D) 500 long tons.
E) None of the above
Q4) ____________________ ships are designed to carry all sorts of different loads in a single voyage.
Q5) The ____________________ tonnage is the total weight of the ship when fully loaded,measured by the weight of the volume of water it displaces.
Page 13
Q6) The deepest draft a ship can sit is called the ____________________ line.
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Chapter 12: International Air Transportation
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Q1) Aircraft designed so that freight is carried on the main deck as well as in the belly hold tend to be
A) large.
B) Boeing 747s.
C) DC 10s.
D) All of the above
E) None of the above
Q2) The biggest constraint on a shipper regarding the use of passenger airplanes for shipping freight is the issue of the freight's ____________________.
Q3) The first air cargo was mail.
A)True
B)False
Q4) On international airfreight shipments,the volume-weight conversion uses
A) 6000 inches per kilogram.
B) 6000 cm per pound.
C) 166 cm per kilogram.
D) 166 cubic inches per pound.
E) None of the above
Q5) The largest cargo airport in the world is at ____________________.
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Chapter 13: International Land and Multi-Modal Transportation
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Q1) The biggest challenge to international trucking in Europe is the myriad of ____________________ that are present.
Q2) Although there are some standardization attempts,most air freight ____________________ are designed to fit a specific aircraft.
Q3) A high cube container is _____ feet tall.
A) 16
B) 14
C) 12.5
D) 11
E) None of the above
Q4) Twenty-foot containers are 6.1 meters.
A)True
B)False
Q5) A transportation system using more than one mode but which operates under a single bill of lading is called ____________________.
Q6) The Rotterdam Rules do not address the issues of cargo liability for cargo transported by land.
A)True
B)False
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Chapter 14: Packaging for Export
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Q1) Hazardous cargo shipped by sea is regulated by the A) IMO.
B) country of the ship's flag.
C) IATA.
D) ICAO.
E) None of the above
Q2) Containerized cargo is handled more frequently than break-bulk cargo.
A)True
B)False
Q3) The three functions of correct packaging are
A) to reduce costs, speed delivery, and to provide correct instructions.
B) to provide attractive packaging for consumers, to provide for recycling, and to publicize the product while in transit.
C) to protect goods in transit, to facilitate proper handling of goods in transit, and fulfill the shipper's customer service strategy.
D) to provide impenetrable protection for the goods, to make shipping costs as low as possible, and to maximize pallet utilization.
E) None of the above
Q4) To keep cargo from shifting,some shippers use inflatable
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Chapter 15: International Logistics Security
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Q1) The C-TPAT program operates very much within the guidelines established by the SAFE initiative.
A)True
B)False
Q2) Countries located outside of North America and Europe do not feel threatened by terrorism and therefore have not cooperated with international security measures.
A)True
B)False
Q3) ____________________ is a strategy that attempts to eliminate all imports of a particular type of goods and all entries of a specific group of persons into a country.
Q4) The SAFE initiative was implemented by
A) the U.S. government
B) the World Customs Organization
C) the World Trade Organization
D) the International Maritime Organization
E) None of the above
Q5) The primary goal of the International Chamber of Commerce is to facilitate international ____________________.
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Chapter 16: Customs Clearance
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Q1) In order for an importer to be found compliant under the concept of informed compliance,it must demonstrate that it has exercised reasonable care in the filing of its Customs entries.
A)True
B)False
Q2) The Harmonized System of classification is used to classify both exports and imports.
A)True
B)False
Q3) Customs determines tariffs based upon the type of goods imported,which is determined according to a number of rules of ____________________ that essentially have been standardized worldwide.
Q4) Countries' efforts to make imports adhere to national standards are not considered to be trade barriers.
A)True
B)False
Q5) The tax an importer must pay in order to be allowed to let goods into the country is called ____________________.
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Chapter 17: Using International Logistics for Strategic Advantage
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Q1) Among the criteria that the United States Department of State uses to determine whether a language is relatively easy or relatively difficult to learn is the complexity of the alphabet that language uses.
A)True
B)False
Q2) Special English is used for written communications,just as International English is.
A)True
B)False
Q3) International English was designed
A) so that non-native speakers of English can communicate with native speakers of English.
B) so that non-native speakers of English can communicate with each other.
C) so that native speakers of English can communicate with non-native speakers of English.
D) so that native speakers of English can communicate with other native speakers of English, but from a different country (eg. United States and New Zealand).
E) None of the above
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