1. Which of the following is an example of a non-tariff barrier to trade?
A. Import duties
B. Quotas
C. Export subsidies
D. Currency exchange rates
2. Which of the following is a potential disadvantage of using a joint venture as an entry mode?
A. Lower risk and investment.
B. Potential for disagreements and conflicts with the partner.
C. Greater control over the marketing process.
D. Elimination of cultural barriers.
3. What is the role of public relations in international marketing?
A. To avoid communicating with the public.
B. To build and maintain a positive image and relationships with stakeholders.
C. To focus solely on advertising.
D. To increase marketing costs.
4. What is the ‘country of origin effect’ in international marketing?
A. The impact of domestic marketing on international sales.
B. The influence of a product’s manufacturing location on consumer perceptions.
C. The effect of import tariffs on product pricing.
D. The impact of political instability on export volumes.
5. Which pricing strategy is most suitable for a company introducing a new, innovative product to a foreign market?
A. Cost-plus pricing
B. Penetration pricing
C. Skimming pricing
D. Competitive pricing
6. Which of the following is a key consideration when adapting a product for international markets?
A. Maintaining the exact same product specifications as in the domestic market.
B. Ignoring local regulations and standards.
C. Cultural preferences and local regulations.
D. Focusing solely on cost reduction.
7. What role does technology play in international marketing?
A. It is irrelevant due to cultural differences.
B. It facilitates communication, distribution, and market research.
C. It only benefits large multinational corporations.
D. It increases the cost of international marketing.
8. What is the significance of cultural intelligence (CQ) in international marketing?
A. It is irrelevant to marketing success.
B. It enhances a marketer’s ability to understand and adapt to different cultures.
C. It only applies to large multinational corporations.
D. It increases marketing costs.
9. What is the primary benefit of using standardized advertising in international markets?
A. Increased relevance to local audiences.
B. Reduced marketing costs.
C. Improved brand image.
D. Enhanced cultural sensitivity.
10. Which of the following is a key challenge in managing international distribution channels?
A. Ensuring timely and reliable delivery to diverse locations.
B. Reducing transportation costs to zero.
C. Eliminating the need for inventory management.
D. Ignoring local regulations.
11. Which distribution channel is most appropriate for reaching rural consumers in developing countries?
A. E-commerce
B. Large retail chains
C. Mobile vendors and local distributors
D. Direct mail
12. What is the primary risk associated with gray market activity?
A. Increased brand equity.
B. Damage to brand image and channel conflict.
C. Reduced marketing costs.
D. Improved customer satisfaction.
13. What is the primary goal of international marketing communications?
A. To confuse international customers.
B. To convey a consistent and persuasive message to target audiences worldwide.
C. To ignore cultural differences.
D. To increase marketing costs.
14. Which of the following factors should a company consider when selecting an international advertising agency?
A. Only the cost of services.
B. The agency’s experience and expertise in the target market.
C. Ignoring cultural differences.
D. The agency’s size, regardless of its international experience.
15. What is the purpose of conducting international marketing research?
A. To avoid adapting products for local markets.
B. To understand the target market and make informed marketing decisions.
C. To reduce marketing costs.
D. To promote ethnocentrism.
16. Which of the following is a key consideration when managing international pricing?
A. Ignoring exchange rate fluctuations.
B. Considering tariffs, taxes, and transportation costs.
C. Focusing solely on cost-plus pricing.
D. Ignoring local competition.
17. When should a company consider using a concentrated marketing strategy in international markets?
A. When resources are limited and the market is homogeneous.
B. When the market is highly segmented and diverse.
C. When the company wants to target all market segments.
D. When the company has unlimited resources.
18. Which entry mode involves the highest level of risk and commitment for a company entering a foreign market?
A. Exporting
B. Licensing
C. Joint venture
D. Wholly owned subsidiary
19. What is ‘glocalization’ in international marketing?
A. Standardizing products and marketing worldwide.
B. Adapting products and marketing strategies to suit local markets.
C. Ignoring cultural differences in international markets.
D. Focusing solely on global branding.
20. What is a key challenge in managing international supply chains?
A. Maintaining consistent product quality across different locations.
B. Reducing transportation costs to zero.
C. Eliminating the need for inventory management.
D. Ignoring local labor laws.
21. Which of the following is a key benefit of using a global marketing information system (GMIS)?
A. Reduced need for market research.
B. Improved decision-making based on timely and accurate information.
C. Elimination of cultural barriers.
D. Decreased competition.
22. What is the ‘adaptation’ strategy in international product management?
A. Keeping the product exactly the same as in the domestic market.
B. Modifying the product to meet local needs and preferences.
C. Ignoring local regulations and standards.
D. Focusing solely on cost reduction.
23. What is the role of international trade agreements in international marketing?
A. To create barriers to international trade.
B. To facilitate trade by reducing tariffs and other trade barriers.
C. To promote protectionism.
D. To increase marketing costs.
24. What is the significance of understanding local consumer behavior in international marketing?
A. It is irrelevant to marketing success.
B. It helps marketers tailor their strategies to meet local needs and preferences.
C. It only applies to large multinational corporations.
D. It increases marketing costs.
25. What is the main advantage of using direct exporting as an entry mode?
A. Lower risk and investment.
B. Greater control over the marketing process.
C. Reduced need for market research.
D. Elimination of transportation costs.
26. Which of the following is an example of a ‘born global’ company?
A. A large multinational corporation with a long history.
B. A small startup that internationalizes rapidly from its inception.
C. A company that only exports its products.
D. A company that initially focuses solely on its domestic market.
27. What is the primary goal of international market segmentation?
A. To increase the overall volume of sales in all markets.
B. To identify and group consumers with similar needs and wants across different countries.
C. To standardize marketing strategies across all international markets.
D. To reduce marketing costs by focusing on a single global segment.
28. Which of the following is NOT a typical barrier to international marketing?
A. Cultural differences
B. Political and legal constraints
C. Lack of domestic competition
D. Economic differences
29. When adapting promotional materials for international markets, what should marketers primarily consider?
A. Using direct translations without modification.
B. Cultural nuances and language differences.
C. Ignoring local customs and traditions.
D. Focusing solely on global brand recognition.
30. Which factor is most likely to influence the success of a global branding strategy?
A. Ignoring cultural differences.
B. Adapting the brand to local cultural values.
C. Using a different brand name in each market.
D. Focusing solely on cost reduction.
31. Which entry mode into a foreign market involves the highest level of risk and commitment?
A. Exporting.
B. Licensing.
C. Joint Venture.
D. Wholly Owned Subsidiary.
32. Which of the following is an example of an ‘indirect exporting’ entry mode?
A. Selling products directly to consumers in a foreign market through an online store.
B. Selling products to a foreign distributor who then sells them in their local market.
C. Establishing a wholly owned subsidiary in a foreign market.
D. Licensing the right to manufacture and sell products in a foreign market.
33. Which of the following factors should a company consider when deciding whether to standardize or adapt its marketing strategy?
A. Only the cost of adaptation.
B. Only the potential increase in sales revenue.
C. Cultural differences, economic conditions, and legal regulations.
D. Only the availability of local marketing agencies.
34. What is the purpose of ‘tariffs’ in international trade?
A. To promote free trade.
B. To protect domestic industries from foreign competition.
C. To encourage foreign investment.
D. To simplify customs procedures.
35. Which of the following is an example of a ‘direct exporting’ entry mode?
A. Selling products to a foreign distributor who then sells them in their local market.
B. Selling products directly to consumers in a foreign market through an online store.
C. Licensing the right to manufacture and sell products in a foreign market.
D. Establishing a joint venture with a local company in a foreign market.
36. Which of the following is NOT a factor that affects international pricing decisions?
A. Exchange rates.
B. Government regulations.
C. Competitive landscape.
D. The CEO’s favorite color.
37. What is ‘cultural distance’ in the context of international marketing?
A. The physical distance between two countries.
B. The difference in time zones between two countries.
C. The degree of similarity or difference between two national cultures.
D. The cost of transporting goods between two countries.
38. Which of the following is an example of a ‘born global’ company?
A. A multinational corporation with operations in over 50 countries.
B. A small startup that begins exporting its products shortly after its founding.
C. A company that gradually expands internationally over several decades.
D. A company that only sells its products domestically.
39. What are ‘quotas’ in international trade?
A. Taxes on imported goods.
B. Limits on the quantity of goods that can be imported or exported.
C. Agreements between countries to reduce trade barriers.
D. Regulations on product safety standards.
40. What is the ‘country of origin effect’?
A. The impact of a company’s marketing campaigns on consumer awareness.
B. The influence of a product’s country of origin on consumer perceptions and attitudes.
C. The effect of exchange rates on the price of imported goods.
D. The impact of government regulations on international trade.
41. Which of the following is a potential advantage of using a global branding strategy?
A. Increased cost savings due to economies of scale.
B. Greater flexibility to adapt to local market conditions.
C. Enhanced ability to target specific consumer segments.
D. Reduced need for international marketing research.
42. What is a ‘joint venture’ in international market entry?
A. A company establishing a wholly owned subsidiary in a foreign market.
B. Two or more companies pooling their resources and expertise to enter a foreign market.
C. A company licensing its technology to a foreign company.
D. A company exporting its products to a foreign market through a distributor.
43. What is ‘grey market’ activity in international distribution?
A. The unauthorized sale of genuine products outside of authorized distribution channels.
B. The sale of counterfeit products.
C. The sale of products at discounted prices.
D. The legal import and export of goods.
44. What is the role of ‘international advertising’ in international marketing?
A. To promote products and services to consumers in foreign markets.
B. To conduct market research in foreign countries.
C. To manage distribution channels in foreign markets.
D. To set prices for products in foreign markets.
45. What is ‘dumping’ in international trade?
A. Selling products in a foreign market at a price lower than the cost of production.
B. Selling products at a higher price in a foreign market than in the domestic market.
C. Engaging in unethical business practices.
D. Ignoring cultural differences in marketing strategies.
46. What is ‘glocalization’ in international marketing?
A. Ignoring local market conditions to achieve global brand consistency.
B. Developing products and marketing campaigns that are both global and local.
C. Focusing only on global markets and ignoring local markets.
D. Outsourcing all marketing activities to local agencies.
47. What is ‘transfer pricing’ in international marketing?
A. The price at which goods are transferred between a company and its foreign subsidiary.
B. The price at which goods are sold to consumers in a foreign market.
C. The cost of transporting goods between two countries.
D. The exchange rate between two currencies.
48. What is ‘public relations’ in the context of international marketing?
A. Directly selling products to consumers.
B. Building and maintaining relationships with stakeholders in foreign markets.
C. Setting prices for products in foreign markets.
D. Managing distribution channels in foreign markets.
49. Which of the following is a potential disadvantage of using a standardized marketing strategy?
A. Increased cost savings due to economies of scale.
B. Reduced brand consistency across different markets.
C. Failure to meet the specific needs and preferences of local consumers.
D. Simplified marketing management and coordination.
50. What is ‘adaptation’ in international marketing strategy?
A. Using the same marketing mix in all international markets.
B. Adjusting the marketing mix to suit the specific needs and preferences of each local market.
C. Ignoring cultural differences to achieve cost savings.
D. Focusing only on markets with similar cultural values.
51. Which of the following is a key consideration for international distribution strategy?
A. The availability of transportation infrastructure.
B. The cost of labor.
C. The level of competition.
D. All of the above.
52. Which of the following is a challenge in international advertising?
A. Language barriers.
B. Cultural differences.
C. Varying media regulations.
D. All of the above.
53. Which of the following is NOT a typical motivation for a company to expand into international markets?
A. To access new markets and increase sales revenue.
B. To diversify risk and reduce dependence on a single market.
C. To exploit economies of scale and reduce production costs.
D. To avoid domestic competition by shrinking market share.
54. Which of the following is a potential benefit of using a global supply chain?
A. Reduced transportation costs.
B. Increased control over suppliers.
C. Access to lower-cost labor and materials.
D. Simplified logistics management.
55. What role does ‘international marketing research’ play in the internationalization process?
A. It is not important in the internationalization process.
B. It helps companies understand foreign markets and make informed decisions.
C. It is only used to track sales performance in foreign markets.
D. It is only used to evaluate the effectiveness of marketing campaigns.
56. What is the primary goal of ‘international market segmentation’?
A. To standardize marketing efforts across all countries.
B. To identify groups of consumers with similar needs and wants in different countries.
C. To target all consumers in a particular geographic region.
D. To focus only on the largest markets in the world.
57. What is ‘countertrade’ in international marketing?
A. Exchanging goods or services for other goods or services, rather than for money.
B. Selling goods at a discounted price to gain market share.
C. Using aggressive marketing tactics to undermine competitors.
D. Ignoring cultural differences in pricing strategies.
58. What is ‘standardization’ in international marketing strategy?
A. Adapting the marketing mix to suit local market conditions.
B. Using the same marketing mix in all international markets.
C. Focusing on a niche market in each international market.
D. Outsourcing marketing activities to local agencies.
59. What is ‘licensing’ as an international market entry strategy?
A. Exporting goods directly to foreign consumers.
B. Granting a foreign company the right to use intellectual property in exchange for royalties.
C. Establishing a wholly owned subsidiary in a foreign country.
D. Forming a joint venture with a foreign company.
60. What is the role of the World Trade Organization (WTO)?
A. To promote free trade and resolve trade disputes between countries.
B. To provide financial assistance to developing countries.
C. To regulate international currency exchange rates.
D. To set global environmental standards.
61. Which factor is most crucial when deciding whether to standardize or adapt a marketing campaign internationally?
A. The company’s budget for marketing.
B. The level of cultural differences between markets.
C. The availability of local marketing agencies.
D. The company’s preference for control.
62. What is the meaning of ‘think globally, act locally’ in international marketing?
A. Develop a global marketing strategy but implement it with local considerations.
B. Focus only on local markets and ignore global trends.
C. Standardize all marketing activities to reduce costs.
D. Outsource all marketing activities to local agencies.
63. Which of the following is a potential disadvantage of using local marketing agencies in international markets?
A. Lack of cultural understanding.
B. Higher marketing costs.
C. Difficulty in maintaining brand consistency.
D. Slower market entry.
64. A company sells luxury goods. Which segmentation variable is most relevant when targeting international markets?
A. Age.
B. Income.
C. Climate.
D. Lifestyle.
65. Which of the following is an example of psychographic segmentation?
A. Segmenting based on income level.
B. Segmenting based on country of origin.
C. Segmenting based on lifestyle and values.
D. Segmenting based on age and gender.
66. What is the primary goal of international market segmentation?
A. To standardize marketing strategies across all countries.
B. To identify and group consumers with similar needs and wants across different countries.
C. To reduce marketing costs by targeting only the largest markets.
D. To ignore cultural differences and focus on global similarities.
67. Why is it important to conduct market research before launching a product in a new international market?
A. To reduce marketing costs.
B. To understand consumer needs, preferences, and cultural nuances.
C. To standardize the marketing mix.
D. To avoid any form of market segmentation.
68. A company wants to promote a product that is considered taboo in a particular culture. What is the best approach?
A. Ignore the cultural taboo and promote the product directly.
B. Adapt the product and marketing message to be culturally sensitive or avoid the market altogether.
C. Use aggressive marketing tactics to overcome cultural resistance.
D. Focus on a different product in that market.
69. What is the purpose of using a positioning strategy in international marketing?
A. To create a clear and distinct image of a product or brand in the minds of consumers in a specific market.
B. To lower the price of a product to increase sales volume.
C. To standardize the marketing mix across all international markets.
D. To avoid any form of market segmentation.
70. What role does language play in international market segmentation and marketing?
A. Language is irrelevant in global marketing.
B. Language can be a key segmentation variable and affects communication effectiveness.
C. Standardized advertising eliminates the need to consider language.
D. Language only affects product labeling, not marketing strategies.
71. What is the key benefit of using a global brand name in international marketing?
A. Lower marketing costs.
B. Increased brand recognition and consistency.
C. Easier market entry.
D. Simplified supply chain management.
72. Which of the following is an example of adapting a product to suit local market preferences?
A. Selling the same product in all markets.
B. Changing the product’s ingredients or features to match local tastes.
C. Ignoring local market feedback.
D. Focusing only on cost reduction.
73. What is the potential risk of ignoring local customs and traditions in international marketing?
A. Increased brand awareness.
B. Offending consumers and damaging brand reputation.
C. Reduced marketing costs.
D. Faster market entry.
74. Which of the following is a potential disadvantage of standardized international marketing?
A. Higher marketing costs.
B. Inability to meet specific local needs.
C. Slower market entry.
D. Difficulty in managing global brands.
75. What is the meaning of ‘cultural myopia’ in international marketing?
A. Having a deep understanding of foreign cultures.
B. The belief that one’s own culture is superior and applying domestic marketing strategies without adaptation.
C. Adapting marketing strategies to fit local cultures.
D. Ignoring cultural differences altogether.
76. Why is it important to consider cultural differences when segmenting international markets?
A. Cultural differences are irrelevant in global marketing.
B. Cultural differences can significantly impact consumer needs, preferences, and purchasing behavior.
C. Standardized marketing eliminates the need to consider cultural differences.
D. Cultural differences only affect product design, not marketing strategies.
77. What is ‘adaptation’ in the context of international marketing?
A. Ignoring cultural differences and using the same marketing mix globally.
B. Modifying marketing strategies to suit the specific needs and preferences of different international markets.
C. Focusing solely on cost reduction in international operations.
D. Only selling products that are already successful in the domestic market.
78. A company wants to enter a new international market. Which segmentation strategy is most appropriate if the company has limited resources?
A. Undifferentiated marketing.
B. Differentiated marketing.
C. Concentrated marketing.
D. Micromarketing.
79. Which of the following is an example of a demographic segmentation variable?
A. Lifestyle
B. Personality
C. Age
D. Values
80. What is the primary challenge of using standardized advertising campaigns in international markets?
A. Difficulty in translating the advertising message.
B. Cultural differences may lead to misinterpretation or offense.
C. Higher advertising production costs.
D. Lack of media channels in some countries.
81. A company is launching a new product in a country with a collectivist culture. Which marketing message is most likely to resonate with consumers?
A. Focusing on individual achievement and personal success.
B. Highlighting the product’s benefits for the entire family or community.
C. Emphasizing the product’s low price and affordability.
D. Promoting the product as a status symbol.
82. Which of the following is a potential ethical consideration in international marketing?
A. Adapting products to local tastes.
B. Using culturally sensitive advertising.
C. Exploiting vulnerable populations or promoting harmful products.
D. Conducting market research.
83. What is the role of market research in international market segmentation?
A. To eliminate the need for segmentation.
B. To identify relevant segmentation variables and understand consumer behavior in different countries.
C. To reduce marketing budgets.
D. To promote standardized marketing strategies.
84. What is ‘glocalization’ in international marketing?
A. Standardizing marketing strategies globally.
B. Adapting products and marketing to specific local markets while maintaining a global brand image.
C. Ignoring local market needs.
D. Focusing only on exporting products.
85. Which of the following is an example of geographic segmentation?
A. Segmenting based on income.
B. Segmenting based on climate.
C. Segmenting based on lifestyle.
D. Segmenting based on personality.
86. What is differentiated marketing strategy in international marketing?
A. Targeting all market segments with a single marketing mix.
B. Targeting multiple market segments with tailored marketing mixes.
C. Ignoring market segmentation altogether.
D. Adapting the marketing mix to every individual customer.
87. Which of the following is a potential benefit of adapting marketing strategies to local markets?
A. Reduced marketing costs.
B. Increased brand loyalty.
C. Simplified marketing management.
D. Faster market entry.
88. What is concentrated marketing strategy in international marketing?
A. Targeting all market segments with a single marketing mix.
B. Focusing on a single market segment with a tailored marketing mix.
C. Ignoring market segmentation altogether.
D. Adapting the marketing mix to every individual customer.
89. A company is targeting a market with high internet penetration but low credit card usage. What is the most appropriate payment method to offer?
A. Credit card payments only.
B. Cash on delivery or mobile payment options.
C. Bank transfers only.
D. Cryptocurrency payments only.
90. Which of the following is NOT a common basis for segmenting international markets?
A. Geographic location
B. Demographics
C. Psychographics
D. Astrological sign
91. Which communication strategy is most effective when introducing a complex technical product to a new international market?
A. Humorous advertising.
B. Informative advertising.
C. Celebrity endorsements.
D. Emotional appeals.
92. Which pricing strategy is most suitable when entering a new international market with a highly innovative product?
A. Penetration pricing.
B. Competitive pricing.
C. Skimming pricing.
D. Cost-plus pricing.
93. Which of the following is a potential ethical concern in international marketing?
A. Adapting products to meet local tastes.
B. Using sustainable packaging materials.
C. Exploiting lower labor costs in developing countries.
D. Conducting thorough market research.
94. Which of the following is a key consideration when selecting an international advertising agency?
A. The agency’s proximity to the company’s headquarters.
B. The agency’s experience in the target market and cultural understanding.
C. The agency’s low cost structure.
D. The agency’s expertise in domestic advertising.
95. Which of the following is a disadvantage of using ‘joint ventures’ as a market entry strategy?
A. Limited access to local market knowledge.
B. Potential for conflicts and disagreements between partners.
C. Reduced financial risk.
D. Faster market entry.
96. Which of the following is NOT a typical consideration when adapting a product for an international market?
A. Cultural differences in taste and preferences.
B. Government regulations and standards.
C. The company’s domestic market share.
D. Economic conditions and consumer purchasing power.
97. What is a ‘countertrade’ agreement in international business?
A. A trade agreement that eliminates all tariffs.
B. An agreement where goods or services are exchanged for other goods or services.
C. A financial agreement to reduce currency exchange risks.
D. A trade agreement focused on environmental protection.
98. Which of the following is a benefit of using a global brand name?
A. Increased advertising costs.
B. Easier brand recognition and consistency across markets.
C. Greater need for product adaptation.
D. Reduced pricing flexibility.
99. What is the purpose of a ‘letter of credit’ in international trade?
A. To provide financing for international expansion.
B. To guarantee payment to the exporter by the importer’s bank.
C. To simplify customs procedures.
D. To protect intellectual property rights.
100. Which of the following is NOT a key component of the international distribution channel?
A. Wholesalers.
B. Retailers.
C. Transportation providers.
D. The domestic stock market.
101. What is the most significant risk associated with using a ‘piggybacking’ strategy for international distribution?
A. High initial investment costs.
B. Dependency on the carrier company, potentially limiting control.
C. Difficulty in accessing local market knowledge.
D. Inability to adapt products to local tastes.
102. What is the role of ‘trade shows’ in international marketing?
A. To sell products directly to consumers.
B. To showcase products, network with potential partners, and gather market intelligence.
C. To provide financial assistance to exporters.
D. To enforce international trade regulations.
103. What is ‘gray market’ activity in international marketing?
A. Selling products through unauthorized channels at lower prices.
B. Marketing products specifically to elderly consumers.
C. Promoting environmentally friendly products.
D. Conducting market research in developing countries.
104. A company is considering expanding into a country with a very different legal system. What is the first step they should take regarding product labeling?
A. Translate the existing label directly.
B. Ignore local labeling laws to maintain consistency.
C. Consult with legal experts to understand local labeling requirements.
D. Use only images on the label to avoid language barriers.
105. Which of the following is a potential drawback of using a standardized advertising campaign globally?
A. Reduced production costs.
B. Inability to resonate with diverse cultural values.
C. Easier brand management.
D. Simplified media planning.
106. What is the primary goal of ‘transfer pricing’ within a multinational corporation?
A. To minimize taxes and duties.
B. To maximize sales volume in each country.
C. To simplify the supply chain.
D. To increase brand awareness globally.
107. Which of the following is a significant challenge when managing international supply chains?
A. Lack of demand for products.
B. Geopolitical risks and disruptions.
C. Stable exchange rates.
D. Homogeneous consumer preferences.
108. A company decides to enter a foreign market by granting a local company the right to use its intellectual property in exchange for royalties. What market entry strategy is this?
A. Exporting.
B. Licensing.
C. Foreign Direct Investment (FDI).
D. Joint Venture.
109. What is the ‘country of origin effect’ in international marketing?
A. The impact of a product’s price on consumer demand.
B. The influence of the product’s manufacturing location on consumer perceptions.
C. The effect of advertising on brand awareness.
D. The impact of government regulations on trade.
110. Which of the following is NOT a common barrier to international trade?
A. Tariffs and quotas.
B. Cultural differences.
C. Fluctuating exchange rates.
D. Universal product standards.
111. What does ‘localization’ refer to in the context of international marketing?
A. Selling products exclusively in the domestic market.
B. Adapting marketing materials and products to suit local cultures and preferences.
C. Centralizing all marketing activities in the headquarters.
D. Ignoring cultural differences to maintain a global brand image.
112. What is ‘dumping’ in international trade?
A. Selling products at a lower price in a foreign market than in the domestic market.
B. Promoting environmentally harmful products.
C. Engaging in unethical business practices.
D. Failing to meet product safety standards.
113. What is ‘product standardization’ in international marketing?
A. Adapting a product to meet local regulations.
B. Offering a uniform product across multiple markets with minimal variations.
C. Adjusting a product to suit different cultural tastes.
D. Modifying a product to fit specific distribution channels.
114. What is the primary advantage of using ‘export management companies’ (EMCs) for international sales?
A. They offer lower prices than direct exporting.
B. They provide expertise and resources for navigating foreign markets.
C. They guarantee higher sales volumes.
D. They eliminate all risks associated with international trade.
115. What is the role of ‘public relations’ in international marketing?
A. To directly persuade consumers to purchase a product.
B. To build and maintain a positive image of the company and its products.
C. To manage the company’s financial investments.
D. To handle legal disputes in foreign markets.
116. Which of the following is an example of a ‘pull’ promotional strategy in international marketing?
A. Offering discounts to retailers to stock more products.
B. Advertising directly to consumers to create demand.
C. Providing sales incentives to distributors.
D. Participating in trade shows to reach wholesalers.
117. What is ‘parallel importing’ and how does it differ from gray market activity?
A. Parallel importing is illegal, while gray market activity is legal.
B. Parallel importing involves products intended for one market being diverted to another, often at lower prices, similar to gray market activity.
C. Parallel importing involves counterfeit products, while gray market activity involves genuine products.
D. Parallel importing is sanctioned by the manufacturer, while gray market activity is not.
118. Which factor primarily determines whether a company should adapt its product or keep it standardized for international markets?
A. The CEO’s personal preference.
B. The availability of government subsidies.
C. The degree of cultural and economic differences between markets.
D. The company’s stock price.
119. What is ‘ethnocentrism’ in the context of international marketing, and how does it negatively impact marketing decisions?
A. Ethnocentrism is focusing on cost-effective marketing strategies, leading to lower profits.
B. Ethnocentrism is the belief in the superiority of one’s own culture, leading to marketing strategies that fail to resonate with foreign markets.
C. Ethnocentrism is adapting marketing strategies to suit diverse cultural values, resulting in increased market share.
D. Ethnocentrism is ignoring cultural differences to maintain a global brand image, leading to higher brand recognition.
120. What is ‘direct exporting’ in international trade?
A. Selling products to domestic consumers only.
B. Selling products directly to foreign customers without intermediaries.
C. Importing products from foreign suppliers.
D. Licensing a foreign company to manufacture your products.
121. What is the role of ‘trade barriers’ in international marketing?
A. To facilitate free trade between countries.
B. To protect domestic industries from foreign competition.
C. To promote global standardization of products.
D. To encourage unrestricted flow of goods and services.
122. What is ‘foreign direct investment’ (FDI)?
A. Exporting goods to a foreign market.
B. Investing directly in production or business operations in a foreign country.
C. Licensing a brand name to a foreign company.
D. Partnering with a foreign distributor.
123. Which of the following is NOT a typical barrier to international marketing?
A. Cultural differences
B. Political and legal hurdles
C. Economic disparities
D. Standardized global consumer preferences
124. What is the ‘ethnocentric’ approach to international marketing?
A. Adapting marketing strategies to each local market.
B. Viewing the world from the perspective of one’s own culture.
C. Focusing solely on domestic markets.
D. Treating all international markets as identical.
125. Which of the following is a potential disadvantage of using a standardized global marketing strategy?
A. Increased production costs.
B. Inability to meet specific local needs.
C. Reduced brand recognition.
D. Higher marketing research expenses.
126. Which of the following is a potential challenge when managing international distribution channels?
A. Lack of cultural understanding.
B. Limited transportation infrastructure.
C. Varying legal regulations.
D. All of the above.
127. What is the purpose of ‘international market segmentation’?
A. To treat all international consumers the same.
B. To divide international markets into distinct groups with different needs and wants.
C. To focus solely on domestic consumers.
D. To standardize products globally without considering local preferences.
128. A company is considering entering a market with high political risk. Which market entry strategy would be most appropriate?
A. Direct Investment
B. Exporting
C. Joint Venture
D. Franchising
129. Which of the following is an advantage of using a ‘geocentric’ approach to international marketing?
A. Lower marketing costs due to standardization.
B. Greater responsiveness to local market needs.
C. Improved global brand image.
D. All of the above.
130. Which of the following best describes a ‘joint venture’?
A. A company that exports its products directly to foreign markets.
B. A contractual agreement allowing a foreign entity to use intellectual property.
C. A business entity created by two or more parties, generally characterized by shared ownership.
D. A wholly-owned subsidiary in a foreign country.
131. A company is launching a new product in a country with a collectivist culture. What promotional approach would likely be most effective?
A. Highlighting individual achievements.
B. Emphasizing the product’s benefits for the community.
C. Focusing on the product’s low price.
D. Using aggressive and direct sales tactics.
132. What is the ‘adaptation’ strategy in international product marketing?
A. Selling the same product in all markets without any changes.
B. Modifying a product to meet local needs and preferences.
C. Focusing solely on exporting products to foreign markets.
D. Ignoring cultural differences when marketing a product.
133. What is ‘transfer pricing’?
A. The cost of shipping goods between countries.
B. The price at which goods are transferred between entities within the same company.
C. The exchange rate between two currencies.
D. The price of a product after tariffs and taxes.
134. Which of the following is a common pricing strategy used in international marketing?
A. Ethnocentric pricing
B. Polycentric pricing
C. Geocentric pricing
D. All of the above
135. Which of the following is a key benefit of using a ‘localized’ marketing strategy?
A. Lower marketing costs due to standardization.
B. Increased relevance to local consumers.
C. Simplified supply chain management.
D. Reduced need for market research.
136. A company is facing high tariffs in a foreign market. What strategy could they use to mitigate this?
A. Lowering the product’s quality.
B. Establishing a local production facility.
C. Increasing the product’s price.
D. Ignoring the tariff and continuing to export.
137. What is ‘cultural relativism’ in the context of international marketing?
A. The belief that one’s own culture is superior to others.
B. The practice of judging a culture by its own standards.
C. Ignoring cultural differences to achieve marketing efficiency.
D. Imposing one’s cultural values on foreign markets.
138. What is the ‘standardization’ strategy in international promotion?
A. Using the same promotional message in all markets.
B. Adapting the promotional message to local cultures.
C. Ignoring cultural differences in promotional campaigns.
D. Focusing solely on digital marketing channels.
139. What does ‘dumping’ refer to in international trade?
A. Selling products at a high price in a foreign market.
B. Selling products below cost in a foreign market.
C. Exporting products without proper labeling.
D. Importing products without paying tariffs.
140. Which of the following is an example of a ‘political risk’ in international marketing?
A. Changes in consumer preferences.
B. Fluctuations in exchange rates.
C. Government instability or policy changes.
D. Increased competition from local businesses.
141. Which entry mode involves the least amount of risk and control for a company entering a foreign market?
A. Exporting
B. Joint venture
C. Foreign direct investment
D. Licensing
142. Which of the following is a key consideration when conducting international marketing research?
A. Using only secondary data for cost efficiency.
B. Ensuring the research methods are culturally appropriate.
C. Assuming consumer behavior is universal across all countries.
D. Ignoring language barriers to save time.
143. Which of the following is NOT a component of the international marketing mix?
A. Product
B. Price
C. Promotion
D. Politics
144. Which of the following is an example of a ‘cultural universal’?
A. The specific foods people eat.
B. The language people speak.
C. The concept of marriage or family.
D. The clothing styles people wear.
145. What is ‘glocalization’ in international marketing?
A. Ignoring local cultures to create a completely standardized global product.
B. Developing a product that is identical across all markets.
C. Adapting global products to suit local tastes and preferences.
D. Focusing solely on domestic markets and ignoring international opportunities.
146. What is the ‘country of origin effect’?
A. The impact of a product’s price on consumer perception.
B. The influence of where a product is made on consumer perception.
C. The effect of advertising on brand loyalty.
D. The impact of distribution channels on product availability.
147. A company wants to enter a foreign market quickly and with minimal investment. Which entry strategy would be most suitable?
A. Foreign Direct Investment
B. Exporting
C. Joint Venture
D. Wholly Owned Subsidiary
148. What is a ‘tariff’?
A. A government subsidy to local businesses.
B. A tax imposed on imported goods.
C. A limit on the quantity of goods that can be exported.
D. A trade agreement between two countries.
149. What is ‘countertrade’?
A. The use of tariffs to restrict imports.
B. The exchange of goods or services for other goods or services.
C. A form of government subsidy for exporters.
D. A trade agreement based on a common currency.
150. What is the ‘product life cycle’ in international marketing?
A. The time it takes to manufacture a product.
B. The stages a product goes through from introduction to decline in a market.
C. The process of developing a new product.
D. The lifespan of a product’s packaging.
