International Sales Management Final Exam
Course Introduction
International Sales Management explores the strategies and practices involved in managing sales operations across global markets. This course covers key topics such as cross-cultural communication, global market entry strategies, international sales negotiations, channel management, and legal and ethical considerations in worldwide transactions. Students will learn to develop and implement effective sales plans that account for regional differences, analyze international customer behavior, and adapt leadership styles to diverse sales teams. Emphasizing both theoretical concepts and practical applications, the course prepares students to navigate the complex environment of international sales and effectively contribute to the success of multinational organizations.
Recommended Textbook
International Marketing 16th Edition by
Philip Cateora
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Page 2
Chapter 1: The Scope and Challenge of International Marketing
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Q1) Which of the following is true regarding the stages of international marketing involvement?
A) A firm essentially progresses through the stages in a linear order.
B) The international marketing stage represents the highest level of international involvement.
C) A firm begins its international involvement at the second stage.
D) A firm may be in more than one stage simultaneously.
E) The final stage of the process is involves no direct foreign marketing.
Answer: D
Q2) The global marketing concept views the marketplace as consisting of one primary domestic market that is complimented by several smaller regional markets.
A)True
B)False
Answer: False
Q3) In a broad sense, the uncontrollable elements of the foreign business environment constitute the culture.
A)True
B)False
Answer: True
Page 3
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Chapter 2: The Dynamic Environment of International Trade
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Q1) Which of the following falls on the minus side of the U.S. balance of payments?
A) Payments to the United States for insurance.
B) Payments of dividends and interest on investments abroad.
C) Return on capital invested abroad.
D) New foreign investments in the United States.
E) Spending by American tourists overseas.
Answer: E
Q2) By the year 1971, the United States was witnessing: By the year 1971, the United States was witnessing:
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.
Answer: D
Q3) As the U.S. trade deficit has grown, pressures have begun to push the value of the dollar to higher levels.
A)True
B)False
Answer: False
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Chapter 3: History and Geography: The Foundations of Culture
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Q1) Which of the following is true of culture?
A) It is a set of texts considered to be sacred.
B) It is a society's accepted basis for responding to external and internal events.
C) It is a branch of philosophy dealing with beauty and taste.
D) It is the philosophical study of being and knowing.
E) It is a set of rules governing socially acceptable behavior.
Answer: B
Q2) In 1450, the _____ was the first book printed with movable type.
A) Illiad
B) Gutenberg Bible
C) Codex Manesse
D) Scriptorium
E) Odyssey
Answer: B
Q3) In the context of U.S. foreign policies, the Monroe Doctrine dictated the abstention of the United States from European political affairs.
A)True
B)False
Answer: True
Page 5
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Chapter 4: Cultural Dynamics in Assessing Global Markets
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Q1) In the context of the relationship between language and international marketing, recent studies indicate that a new concept, _____, is proving useful to marketing researchers in market segmentation and strategic entry decisions.
A) paralinguistics
B) linguistic distance
C) language parallels
D) language roots
E) linguistic accents
Q2) Discuss the illusion of similarities facing the international marketer.
Q3) In the context of linguistic distance, which of the following languages is the most distant from English?
A) French
B) German
C) Spanish
D) Arabic
E) Thai
Q4) In the context of planned and unplanned cultural change, discuss the methods used by marketers to overcome resistance to change in an international marketing scenario.
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Chapter 5: Culture, Management Style, and Business Systems
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Q1) Simon Peters, a senior manager at Celise Export Logistics, goes for a meeting in France to negotiate a deal with the company's French partners. He dresses casually in a t-shirt and jeans. His French counterparts call off the meeting and accuse him of taking a casual attitude toward negotiations. In the context of this scenario, dressing formally during business meetings is probably a cultural _____ for the French.
A) imperative
B) elective
C) exclusive
D) oddity
E) benchmark
Q2) How important is adaptation in international marketing? What are the basic criteria to deal with foreign firms?
Q3) As businesses grow and professional management develops, there is a shift toward centralized management decision making.
A)True
B)False
Q4) In the context of authority and decision making, briefly describe the shift from centralized to decentralized decision making.
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Chapter 6: The Political Environment: a Critical Concern
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Q1) Stopping or refusing to trade with another nation for political reasons is called:
A) monopolizing.
B) boycotting.
C) confiscation.
D) democratization.
E) expropriation.
Q2) In North Korea, foreign investors or producers are required to sell products at prices stated by the North Korean government rather than letting market value and demand, determine the prices. This implies that there is severe application of _____.
A) exchange controls
B) local-content laws
C) import restrictions
D) tax controls
E) price controls
Q3) The most severe political risk is domestication.
A)True
B)False
Q4) Briefly discuss the role of PSAs and NGOs.
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Chapter 7: The International Legal Environment: Playing by the Rules
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Q1) _____ seeks "interpretation through the past decisions of higher courts which interpret the same statutes or apply established and customary principles of law to a similar set of facts."
A) Constitutional law
B) Family law
C) Criminal law
D) Civil law
E) Common law
Q2) In a common-law country, ownership of intellectual property rights is established by "prior use versus registration" which implies that to claim the ownership of a trademark, an individual:
A) must be ratified by the United Nations trademark protection agency.
B) must pay for the right to own a trademark.
C) must establish first use of a trademark.
D) must prove the ownership of a trademark in a court of law.
E) must register a trademark only in his home country.
Q3) A certain level of piracy is beneficial for some companies as it provides an unplanned trial.
A)True
B)False
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Chapter 8: Developing a Global Vision Through Marketing Research
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Q1) Which of the following statements is true about quantitative research?
A) It includes direct observation of consumers in choice or product usage situations.
B) It studies the dynamic interplay between peoples' feelings and their resulting actions.
C) It is generally associated with survey research that involves "yes" or "no" questions.
D) It includes recording consumers' first impression about products.
E) It is used to formulate and define a problem more clearly.
Q2) Which of the following is the last step of a market research process?
A) Define the research problem and establish research objectives.
B) Effectively communicate the results to decision makers.
C) Analyze, interpret, and summarize the results.
D) Consider the costs and benefits of the research effort.
E) Gather the relevant data from secondary or primary sources, or both.
Q3) With reference to international marketing research, list the various problems that are associated with gathering primary data.
Q4) List the various uses of the Internet in international marketing research.
Q5) Write a short note on the expert opinion method of demand forecasting.
Q6) Write a short note highlighting the key features of quantitative research.
Page 10
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Chapter 9: Economic Development and the Americas
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Q1) Markets that are geographically large, have strong growth rates, are regional economic drivers and represent sizable markets for a wide range of products are known as _____.
A) captive markets
B) big emerging markets
C) niche markets
D) contestable markets
E) two-sided markets
Q2) The marketing process substage in the United States economy from 1950 to the present is mass production.
A)True
B)False
Q3) One of the most important aspects of LAIA that differs from LAFTA is the differential treatment of member countries according to their level of economic development
A)True
B)False
Q4) Describe the political and economic changes affecting global marketing.
Q5) What is economic development?
Q6) What are the various factors that promote the economic growth of NICs?
Page 11
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Chapter 10: Europe, Africa, and the Middle East
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Q1) Groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers are called:
A) multilateral economic associations.
B) cartels.
C) multinational market regions.
D) trade associations.
E) political and cultural associations.
Q2) The most basic economic integration and cooperation is the:
A) political union.
B) common market.
C) regional cooperation for development (RCD).
D) customs union.
E) free trade area (FTA).
Q3) Which of the following countries rejected the euro?
A) Austria
B) Greece
C) Finland
D) Denmark
E) Spain
Q4) What is the regional cooperation for development?
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Chapter 11: Asia Pacific Region
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Q1) Political explanations of Japan's crisis during the 1990s identified two villains. One of them was the powerful Japanese bureaucracy. Which of the following is the other one?
A) Japan's trade policies with the United States.
B) Japan's refusal to join Asian trade blocs.
C) The powerful influence of the royalty in political issues.
D) The long entrenched Liberal Democratic political party.
E) The splintering of most of Japan's right-wing political parties.
Q2) The term "The Greater China" refers to the information technology (IT) corridor in north China.
A)True
B)False
Q3) _____ a boomtown bordering Hong Kong and a fishing village just 20 years ago has replaced the provincial capital Guangzhou to lead the local economy.
A) Dongguan
B) Shenzhen
C) Huizhou
D) Foshan
E) Zhongshan
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Chapter 12: Global Marketing Management: Planning and Organization
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Q1) Which of the following subjects is explored after developing information in the international planning process?
A) Company character.
B) Home-country constraints.
C) Geography.
D) Host-country constraints.
E) The mode of entry.
Q2) A company has four different modes of foreign market entry from which to select. Briefly describe each of these modes.
Q3) Which of the following is true about tactical planning?
A) It refers to the plans that are made at the local level.
B) It deals with a company's products, capital, and research.
C) It is conducted at the highest level of management.
D) It incorporates generalized goals for the enterprise as a whole.
E) It is essentially long-term in nature.
Q4) Discuss the differences between corporate, strategic, and tactical planning.
Q5) List the four phases of the international planning process.
Q6) Briefly explain the benefits of global marketing.
Q7) Explain the difference between a joint venture and consortia.
Q8) What is a strategic international alliance (SIA)? Page 14
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Chapter 13: Products and Services for Consumers
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Q1) Maxcare, an insurance firm based in California had difficulties expanding their operations to Asian markets, as most of their target countries had strict regulations on transferring the details of the customers among the different branches of the firm. The company had to obtain an approval from its customers before sharing their personal information with their branches in other countries. Which of the following barriers is affecting the services of the insurance firm in the above scenario?
A) Protectionism.
B) Controls on transborder data flows.
C) Protection of intellectual property.
D) Cultural requirements for adaptation.
E) Language translation barriers.
Q2) Which of the following is a physical attribute of a product that is essential for its primary function?
A) Colors
B) Prices
C) Components
D) Designs
E) Sizes
Q3) Define a global brand. How important are global brands?
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Chapter 14: Products and Services for Businesses
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Q1) The single most important difference between consumer and industrial marketing is the cyclical swings in demand inherent in the latter.
A)True
B)False
Q2) The ISO 9000 certification guarantees that each product or service produced by a company is of the highest quality.
A)True
B)False
Q3) The lack of universal standards in the industrial goods market:
A) increases market efficiency.
B) gives each firm a competitive edge.
C) increases the level of consumer satisfaction.
D) reduces the prices of the final goods.
E) increases the cost of doing business.
Q4) The adoption of universal quality standards would mean that the perceptions of industrial product quality would also be standardized.
A)True
B)False
Q5) Which are the stages of Rostow's five-stage model of economic development?
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Chapter 15: International Marketing Channels
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Q1) Domestic middlemen are most likely to be used when the marketer desires to minimize financial and management investment.
A)True
B)False
Q2) In the context of the different kinds of middlemen, in 2003, the WTO ruled export management companies to be in violation of international trade rules.
A)True
B)False
Q3) Discuss the export trading company act (ETC).
Q4) In the context of cultural reactions when engaging in e-commerce, the color red is associated with socialism in _____.
A) the United States
B) China
C) Brazil
D) Uruguay
E) Spain
Q5) Agent middlemen work on commission and do not take title to the merchandise.
A)True
B)False
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Chapter 16: Integrated Marketing Communications and International Advertising
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Q1) One of the drawbacks of satellites is:
A) the cost of creating a high quality ad for satellite television.
B) the limited market penetration of satellite television.
C) the number of intermediaries required for satellite service transmission.
D) the government regulations placed on satellite advertising.
E) their ability to span a wide geographical region.
Q2) Due to their inherent entertainment value, satellite TV and the Internet have become major communications media in almost all nations.
A)True
B)False
Q3) In the context of the communications process in advertising, problems of literacy, media availability, and types of media create challenges in the communications process at the _____ step.
A) feedback
B) decoding
C) message channel selection
D) encoding
E) message selection
Q4) Explain the significance of social media as a marketing tool.
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Chapter 17: Personal Selling and Sales Management
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Q1) For selling in relationship-oriented countries, a sales force consisting of American expatriates proves to be most efficient.
A)True
B)False
Q2) Which of the following is the most important quality that a recruiter should consider while hiring marketing personnel?
A) They should have little cultural empathy as this might distract them from their main purpose.
B) When working in a foreign country, they must be capable of taking decisions that are not influenced by the habits of the market.
C) They should be able to represent a culturally superior image of their country and its products.
D) They should be hypersensitive to the behavioral variations in different countries.
E) They should possess a considerable breadth of knowledge of many subjects both on and off the job.
Q3) How important is the family in the success of an expatriate manager?
Q4) What are the advantages and disadvantages of using an expatriate sales force?
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Chapter 18: Pricing for International Markets
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Q1) Which of the following would be considered an advantage of leasing equipment rather than owning it?
A) Lease revenue tends to fluctuate greatly.
B) Leased equipment rarely breaks down.
C) Leasing helps guarantee better maintenance on overseas equipment.
D) Leasing keeps companies from using experimental equipment.
E) Leasing is less risky than outright sale of equipment.
Q2) Which of the following is true of countertrading?
A) Frequently there is inadequate time to conduct a market analysis in a countertrade negotiation.
B) Identifying countries that have a history of countertrading is one of the major problems with countertrades.
C) The use of countertrading to sell a good implies that the demand for the good is highly elastic.
D) Countertrading does not benefit countries that face a shortage of hard currencies with which to trade.
E) The U.S. dollar is the reserve currency that is used in countertrades.
Q3) What is price escalation? Explain.
Q4) What are the essential features required while making price quotations?
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Chapter 19: Negotiating With International Customers,
Partners, and Regulators
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Q1) The behavior of the businesspeople in Taiwan is quite different from that in China and Japan, but similar to that in Korea.
A)True
B)False
Q2) In the context of international business negotiations, when faced with a complex negotiation task, most Asians divide the large task up into a series of smaller tasks.
A)True
B)False
Q3) Even though American sellers make lower profits than the Japanese, many American managers apparently prefer lower profits if those profits are yielded from a more equal split of the joint profits. This demonstrates that Americans and Japanese have different views about _____.
A) favoritism
B) competitiveness
C) individualism
D) fairness
E) nepotism
Q4) What are the criteria for selecting international business negotiators?
Page 22
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