1. What is ‘dumping’ in international trade?
A. Selling products at a higher price in a foreign market.
B. Selling products below cost in a foreign market.
C. Importing products without paying duties.
D. Exporting products without proper labeling.
2. When adapting a product for a foreign market, which of the following is LEAST likely to be a necessary consideration?
A. Local regulations and standards.
B. Cultural preferences and tastes.
C. The CEO’s personal dietary restrictions.
D. Climate and environmental conditions.
3. What is ‘localization’ in the context of international marketing?
A. Ignoring local cultural nuances.
B. Adapting a product or service to a specific local market.
C. Standardizing marketing campaigns globally.
D. Focusing solely on global branding.
4. Which of the following is an example of a ‘tariff’?
A. A ban on importing certain products.
B. A tax imposed on imported goods.
C. A limit on the quantity of goods that can be imported.
D. A government subsidy for domestic producers.
5. What is the primary purpose of using a ‘focus group’ in international marketing research?
A. To collect quantitative data from a large sample.
B. To gather in-depth qualitative insights about consumer attitudes and behaviors.
C. To conduct statistical analysis of market trends.
D. To assess the financial viability of a new product.
6. What does ‘Glocalization’ refer to in international marketing?
A. Standardizing marketing campaigns globally.
B. Ignoring local cultural nuances.
C. Adapting global marketing strategies to local cultures.
D. Focusing solely on global branding.
7. A company is considering using celebrity endorsements in its international advertising campaigns. What is a potential risk of this strategy?
A. Increased brand credibility.
B. Wider reach to target audiences.
C. Negative publicity if the celebrity is involved in a scandal.
D. Lower cost compared to traditional advertising.
8. Which of the following is a key benefit of using a global brand name?
A. Increased cost of marketing campaigns.
B. Reduced brand recognition.
C. Enhanced brand awareness and consistency across markets.
D. Greater difficulty in protecting intellectual property rights.
9. What is ‘reverse innovation’?
A. Developing products specifically for developed markets.
B. Adapting existing products for developing markets.
C. Developing products in developing markets and then scaling them for developed markets.
D. Reversing the product development process.
10. A company is considering entering a market where bribery is a common business practice. What ethical framework would MOST strongly discourage this?
A. Cultural relativism.
B. Utilitarianism.
C. Ethical universalism.
D. Moral idealism.
11. What is ‘transfer pricing’?
A. The price at which goods are transferred between different divisions of the same company.
B. The price at which goods are sold to consumers in a foreign market.
C. The price at which goods are imported into a country.
D. The price at which goods are exported from a country.
12. Which of the following factors would most likely encourage a company to adopt a standardized international marketing strategy?
A. Significant differences in consumer tastes across countries.
B. High levels of cultural diversity in target markets.
C. Strong local competition.
D. Global brand recognition and appeal.
13. A company is planning to launch a new product in a foreign market. Which of the following market entry strategies would give them the MOST control over their operations?
A. Exporting through an intermediary.
B. Licensing their technology to a local manufacturer.
C. Establishing a wholly-owned subsidiary.
D. Entering into a joint venture with a local company.
14. What is the purpose of ‘Intellectual Property Rights’ (IPR) in international marketing?
A. To encourage the imitation of successful products.
B. To protect companies’ inventions, brands, and creative works.
C. To promote free access to all information.
D. To limit competition in international markets.
15. A company discovers that its brand name is offensive in a foreign language. What is the MOST appropriate course of action?
A. Ignore the issue and continue using the brand name.
B. Modify the brand name to be more culturally appropriate.
C. Launch a public relations campaign to defend the brand name.
D. Withdraw from the market.
16. Which of the following is a key challenge when conducting international marketing research?
A. The lack of available data.
B. The ease of accessing reliable information.
C. Cultural and linguistic differences.
D. The homogeneity of consumer preferences across countries.
17. When translating marketing materials for a foreign market, what is ‘back translation’?
A. Translating the translated text back into the original language.
B. Using a machine translation tool.
C. Simplifying the text for easier understanding.
D. Translating only the key phrases and slogans.
18. Which of the following is an example of a non-tariff barrier to trade?
A. A tax on imported cars.
B. A quota on imported textiles.
C. A subsidy for domestic farmers.
D. A reduction in export duties.
19. A company is facing strong resistance to its products in a foreign market due to cultural differences. Which of the following strategies would be MOST effective in overcoming this resistance?
A. Ignoring the cultural differences and continuing with the same marketing strategy.
B. Adapting the product and marketing message to align with local cultural values.
C. Lowering the price of the product to increase sales.
D. Launching a negative advertising campaign against local competitors.
20. Which of the following is a key consideration when analyzing the political environment of a foreign market?
A. The average rainfall in the region.
B. The stability of the government.
C. The number of social media users.
D. The dominant religion.
21. Which of the following is the MOST important factor to consider when selecting a distribution channel in a foreign market?
A. The distribution channel used by competitors.
B. The cost of the distribution channel.
C. The availability and accessibility of the channel to the target market.
D. The number of intermediaries involved in the channel.
22. Which of the following is NOT typically considered a key factor influencing international marketing decisions?
A. Political and legal environment
B. Cultural differences
C. Technological advancements
D. The CEO’s favorite color
23. Which of the following is a potential disadvantage of using a global advertising campaign?
A. Increased cost efficiency.
B. Greater brand consistency.
C. Potential for cultural insensitivity.
D. Simplified marketing management.
24. What is ‘purchasing power parity’ (PPP)?
A. A measure of the total wealth of a country.
B. A method of comparing the relative value of currencies.
C. A system of fixed exchange rates.
D. A trade agreement between two countries.
25. What is ‘green marketing’ in the context of international business?
A. Selling products with a green color scheme.
B. Marketing products as environmentally friendly.
C. Focusing on marketing to environmental organizations.
D. Ignoring environmental concerns in marketing campaigns.
26. Which entry mode into a foreign market typically involves the LEAST risk and control?
A. Exporting.
B. Joint venture.
C. Foreign direct investment.
D. Licensing.
27. What is ‘ethnocentrism’ in the context of international marketing?
A. A marketing strategy focused on ethnic minorities.
B. The belief in the superiority of one’s own culture.
C. Adapting marketing strategies to different ethnic groups.
D. A global marketing approach that ignores cultural differences.
28. A company wants to minimize its exposure to currency exchange rate fluctuations. Which strategy would be MOST effective?
A. Denominating transactions in its home currency.
B. Denominating transactions in a volatile foreign currency.
C. Ignoring currency exchange rates.
D. Speculating on currency exchange rates.
29. What is ‘countertrade’?
A. Trading goods or services for other goods or services.
B. Selling products at a discount in a foreign market.
C. A strategy to avoid paying taxes on international transactions.
D. A system of bartering intellectual property rights.
30. What is the ‘country of origin effect’?
A. The impact of a country’s political instability on its exports.
B. The influence of a product’s manufacturing location on consumer perceptions.
C. The effect of tariffs on imported goods.
D. The role of government subsidies in promoting exports.
31. What is the role of international marketing research?
A. To gather information about foreign markets to support strategic decisions.
B. To promote a company’s products and services in foreign countries.
C. To lobby foreign governments for favorable trade policies.
D. To manage the logistics of international shipments.
32. What is a ‘Joint Venture’ in international market entry?
A. An agreement between two or more companies to undertake a specific project together.
B. A strategy where a company exports its products to a foreign market.
C. A situation where a company licenses its intellectual property to a foreign entity.
D. A type of foreign direct investment where a company acquires a foreign firm.
33. What is the primary benefit of using global branding?
A. Creating a consistent brand image and recognition worldwide.
B. Reducing marketing costs by localizing brand messaging.
C. Maximizing market share in individual countries.
D. Avoiding cultural sensitivities by using generic branding.
34. What is the role of international trade fairs and exhibitions?
A. To provide a platform for companies to showcase their products and network with potential partners and customers.
B. To regulate international trade and enforce trade agreements.
C. To provide financial assistance to companies engaged in international trade.
D. To conduct market research on foreign consumers.
35. What is the primary goal of international advertising?
A. To communicate a consistent brand message across different cultures and languages.
B. To maximize cost savings by using standardized advertising campaigns.
C. To target only the wealthiest consumers in each country.
D. To comply with all local advertising regulations.
36. When is an adapted marketing strategy more appropriate than a standardized one?
A. When there are significant cultural and legal differences between markets.
B. When the company wants to achieve economies of scale.
C. When the product is a global brand with universal appeal.
D. When the target market is homogenous across different countries.
37. What is the key advantage of using a standardized marketing strategy in international markets?
A. Cost reduction through economies of scale.
B. Increased market share in diverse cultural contexts.
C. Enhanced brand loyalty by catering to local preferences.
D. Greater flexibility in responding to changing market conditions.
38. What is ‘Gray Market’ activity in international trade?
A. The sale of genuine branded products through unauthorized channels.
B. The trade of counterfeit goods.
C. The exchange of goods between countries with no formal trade agreements.
D. The bartering of goods instead of using currency.
39. Which of the following is NOT a common base for segmenting international markets?
A. Geographic location.
B. Demographic factors.
C. Psychographic variables.
D. Political affiliation.
40. What is ‘parallel importing’ in international trade?
A. Importing genuine products through unauthorized channels.
B. Importing counterfeit products.
C. Importing products without paying tariffs.
D. Importing products with government subsidies.
41. What is the significance of ‘cultural intelligence’ in international marketing?
A. The ability to understand and effectively interact with people from different cultures.
B. The use of technology to analyze cultural trends.
C. The study of ancient cultures and their impact on modern marketing.
D. The ability to translate marketing materials into different languages.
42. Which of the following is an example of a ‘born global’ company?
A. A startup that begins exporting its products shortly after its founding.
B. A multinational corporation with operations in many countries.
C. A company that initially focuses on its domestic market and later expands internationally.
D. A company that only sells its products online.
43. Which of the following is a benefit of using a ‘franchising’ entry mode in international markets?
A. Rapid market expansion with limited capital investment.
B. Complete control over foreign operations.
C. Elimination of cultural adaptation challenges.
D. Direct access to foreign consumers.
44. What is the meaning of ‘Ethnocentrism’ in the context of international marketing?
A. The belief in the superiority of one’s own culture.
B. The practice of adapting products to foreign cultures.
C. The study of different ethnic groups.
D. The promotion of ethical business practices.
45. Which of the following is a benefit of using a ‘wholly owned subsidiary’ as an entry mode?
A. Maximum control over foreign operations and strategy.
B. Reduced capital investment and risk.
C. Faster market entry and expansion.
D. Shared profits and resources with local partners.
46. Which of the following is NOT a factor to consider when selecting an international distribution channel?
A. Channel length and complexity.
B. Availability of intermediaries.
C. Cost of distribution.
D. The CEO’s personal preference.
47. What is ‘dumping’ in international trade?
A. Selling products in a foreign market below their cost of production or domestic market price.
B. Exporting products that are of low quality.
C. Importing products without paying tariffs.
D. Selling products through unauthorized channels.
48. What does ‘Glocalization’ in international marketing refer to?
A. Adapting global products and marketing strategies to suit local cultures and preferences.
B. Implementing a uniform global marketing strategy without any local adaptation.
C. Focusing exclusively on global brands and ignoring local brands.
D. Outsourcing marketing activities to global agencies.
49. Which pricing strategy is most suitable when a company aims to quickly gain market share in a new international market?
A. Penetration pricing.
B. Skimming pricing.
C. Cost-plus pricing.
D. Premium pricing.
50. 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.
51. What is ‘country-of-origin’ effect?
A. The impact of a product’s manufacturing location on consumer perceptions and purchasing decisions.
B. The influence of a company’s headquarters location on its global brand image.
C. The effect of government regulations on the import and export of goods.
D. The cultural impact of a product on its target market.
52. What is ‘reverse innovation’ in international marketing?
A. Developing products in emerging markets and then introducing them in developed markets.
B. Adapting products from developed markets for use in emerging markets.
C. Selling products in emerging markets at a lower price point.
D. Outsourcing product development to emerging markets.
53. Which of the following is a challenge in international marketing research?
A. Data collection and accuracy due to cultural and infrastructure differences.
B. Availability of standardized research methodologies.
C. Simplified access to secondary data sources.
D. Homogenous consumer behavior across different countries.
54. Which of the following is a challenge in international marketing communication?
A. Language and cultural differences.
B. Availability of advanced technology.
C. Standardized consumer preferences.
D. Simplified regulatory environment.
55. What is the purpose of ‘countertrade’ in international marketing?
A. To exchange goods or services for other goods or services, rather than using money.
B. To protect domestic industries from foreign competition.
C. To promote free trade agreements.
D. To prevent the import of counterfeit products.
56. What is the primary goal of international market segmentation?
A. To identify and group consumers with homogeneous attributes across different countries.
B. To standardize marketing strategies across all international markets to reduce costs.
C. To maximize market share in every country regardless of consumer differences.
D. To avoid competition by focusing on niche markets in developed countries.
57. What is the meaning of ‘product standardization’ in international marketing?
A. Offering the same product in all international markets without any adaptation.
B. Adapting the product to meet local cultural preferences.
C. Developing a new product specifically for each international market.
D. Selling products through unauthorized channels.
58. What is the role of ‘export management companies’ (EMCs) in international marketing?
A. To act as intermediaries, helping companies export their products to foreign markets.
B. To provide financing for export activities.
C. To regulate export activities and enforce trade agreements.
D. To conduct market research on foreign consumers.
59. Which of the following is a key consideration when adapting a product for an international market?
A. Cultural preferences and local regulations.
B. Maintaining a standardized product design.
C. Ignoring local competition.
D. Focusing solely on cost reduction.
60. Which international pricing approach considers factors such as demand, competition, and perceived value in the target market?
A. Market-based pricing.
B. Cost-plus pricing.
C. Standardized pricing.
D. Transfer pricing.
61. What is a key advantage of using a ‘product adaptation’ strategy in international markets?
A. Reduced marketing research costs.
B. Increased economies of scale in production.
C. Better alignment with local consumer needs and preferences.
D. Simplified distribution logistics.
62. Which of the following is a key factor to consider when selecting an international market research agency?
A. The agency’s familiarity with the company’s domestic market.
B. The agency’s expertise in the specific foreign market and cultural context.
C. The agency’s low prices compared to competitors.
D. The agency’s use of standardized research methodologies.
63. Which communication tool is most effective for building brand awareness in a new international market?
A. Direct mail marketing.
B. Personal selling.
C. Advertising and public relations.
D. Price discounts.
64. Which of the following is NOT a commonly used base for segmenting international markets?
A. Geographic factors such as region and climate.
B. Demographic factors such as age and income.
C. Psychographic factors such as lifestyle and values.
D. Astrological signs such as zodiac symbols.
65. Which pricing strategy involves setting a high price for a new product to recoup development costs quickly?
A. Penetration pricing.
B. Skimming pricing.
C. Competitive pricing.
D. Cost-plus pricing.
66. Which of the following is an example of a ‘reverse innovation’ strategy?
A. Developing a high-end product for affluent markets.
B. Creating a low-cost product for emerging markets and then selling it in developed countries.
C. Using the same marketing strategy in all countries.
D. Ignoring the needs of local consumers.
67. How does ‘ethnocentrism’ affect international marketing?
A. It encourages companies to adapt their products to local tastes.
B. It leads consumers to prefer products from their own country.
C. It promotes the use of standardized marketing strategies.
D. It helps companies understand foreign cultures.
68. What is ‘penetration pricing’ in international markets?
A. Setting a high price to create an exclusive image.
B. Setting a low price to gain quick market share.
C. Matching the prices of competitors.
D. Adjusting prices based on currency exchange rates.
69. What is the purpose of ‘test marketing’ in international markets?
A. To avoid conducting full-scale marketing campaigns.
B. To evaluate the potential success of a product or marketing strategy before a full launch.
C. To reduce the need for market research.
D. To standardize marketing messages across all countries.
70. What is the potential drawback of using a standardized advertising campaign in international markets?
A. Increased production costs due to multiple versions.
B. Reduced brand recognition across different countries.
C. Ineffectiveness due to cultural differences and varying consumer preferences.
D. Simplified media planning and buying processes.
71. What is the primary goal of international market segmentation?
A. To reduce marketing costs by using a standardized approach globally.
B. To identify and group consumers with homogeneous attributes for targeted marketing strategies.
C. To increase brand awareness in all countries regardless of consumer differences.
D. To simplify the international marketing process by ignoring cultural differences.
72. How can a company effectively manage the ‘translation challenges’ in international marketing research?
A. By using machine translation tools exclusively.
B. By relying on bilingual employees without professional translation experience.
C. By using professional translators and back-translation techniques.
D. By avoiding the use of translated materials altogether.
73. What is the role of ‘sales promotion’ in international marketing?
A. To build long-term brand loyalty.
B. To provide short-term incentives to encourage purchase.
C. To create informative advertising campaigns.
D. To manage public relations activities.
74. What is the ‘global citizen’ segment in international marketing?
A. Consumers who only buy products made in their own country.
B. Consumers who are primarily motivated by price.
C. Consumers who are concerned about social and environmental issues and seek out responsible brands.
D. Consumers who are indifferent to marketing messages.
75. What is the primary challenge in managing international distribution channels?
A. Standardizing packaging across all countries.
B. Dealing with varying infrastructure and regulations in different countries.
C. Reducing transportation costs for bulk shipments.
D. Ignoring local customs and traditions.
76. What is the role of ‘transfer pricing’ in international business?
A. Setting prices for products sold to consumers in different countries.
B. Setting prices for goods and services transferred between subsidiaries of a multinational corporation.
C. Determining the cost of shipping products internationally.
D. Calculating import duties and taxes.
77. What is ‘standardized marketing’ in the context of international marketing?
A. Adapting the marketing mix to suit each individual country.
B. Using the same marketing mix globally without any adaptation.
C. Focusing marketing efforts on only a few select countries.
D. Ignoring cultural differences in international markets.
78. Which of the following is an example of a direct distribution channel in international marketing?
A. Selling products through a local wholesaler.
B. Selling products online directly to consumers in another country.
C. Using a network of independent retailers.
D. Partnering with a foreign distributor.
79. Which of the following is an example of a ‘glocalized’ product?
A. A globally standardized smartphone sold with the same features everywhere.
B. A fast-food menu item adapted to local tastes in different countries.
C. A luxury car marketed with the same advertising campaign worldwide.
D. A software program available only in English.
80. What is the purpose of ‘public relations’ in international marketing?
A. To directly sell products to consumers.
B. To build and maintain a positive image and relationships with stakeholders.
C. To create aggressive advertising campaigns.
D. To avoid communicating with the public.
81. How can a company effectively adapt its marketing communication message for different cultural contexts?
A. By using the same message globally to maintain consistency.
B. By translating the message literally without considering cultural nuances.
C. By conducting thorough market research and tailoring the message to local values and beliefs.
D. By ignoring cultural differences to save costs.
82. Which of the following is a key challenge in conducting international marketing research?
A. The lack of available data in foreign markets.
B. The difficulty in adapting research methodologies to different cultural contexts.
C. The high cost of conducting research in domestic markets.
D. The ease of standardizing research questionnaires.
83. How can a company overcome the challenge of ‘cultural myopia’ in international marketing?
A. By ignoring cultural differences and focusing on standardized approaches.
B. By conducting thorough market research and cultural sensitivity training.
C. By relying solely on intuition and personal experience.
D. By avoiding international markets altogether.
84. What is the ‘country of origin’ effect?
A. The impact of a product’s price on consumer perceptions.
B. The influence of a product’s country of manufacture on consumer perceptions.
C. The effect of advertising on brand awareness.
D. The impact of distribution channels on product availability.
85. Which of the following is a potential barrier to effective international marketing communication?
A. Having a large marketing budget.
B. Using social media effectively.
C. Language differences and cultural nuances.
D. Employing a diverse marketing team.
86. What is the role of a ‘foreign freight forwarder’ in international logistics?
A. To manufacture products in foreign countries.
B. To handle the documentation and logistics of exporting goods.
C. To provide financing for international trade.
D. To conduct market research in foreign countries.
87. Which of the following is a key consideration when choosing a distribution channel in an international market?
A. The availability of government subsidies.
B. The level of competition in the market.
C. The local infrastructure and logistical capabilities.
D. The personal preferences of the CEO.
88. What are the key benefits of adapting a product for an international market?
A. Reduced production costs and increased economies of scale.
B. Increased market share and customer satisfaction.
C. Simplified distribution and logistics processes.
D. Decreased brand recognition and loyalty.
89. What is the role of ‘international marketing research’ in the global expansion process?
A. To reduce marketing costs by avoiding unnecessary expenses.
B. To provide insights into foreign markets and consumer behavior to inform strategic decisions.
C. To create standardized marketing campaigns for all countries.
D. To eliminate the need for product adaptation.
90. What is ‘integrated marketing communications’ (IMC) in international marketing?
A. Using only one type of marketing communication tool.
B. Coordinating all marketing communication tools to deliver a consistent message.
C. Ignoring cultural differences in marketing communications.
D. Focusing solely on online advertising.
91. Which of the following is NOT a key consideration when conducting international market research?
A. Cultural differences in research methodology.
B. Availability and reliability of data.
C. Cost of conducting research.
D. Ignoring local customs and traditions.
92. 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. Direct Investment
93. What is ‘ethnocentrism’ in the context of international marketing?
A. A focus on global citizenship and universal values.
B. The belief in the superiority of one’s own culture.
C. A strategy of adapting marketing efforts to different cultures.
D. The study of different ethnic groups and their consumer behavior.
94. A small business wants to start exporting but lacks experience and resources. Which entry strategy is MOST suitable?
A. Direct Exporting
B. Indirect Exporting
C. Foreign Direct Investment
D. Joint Venture
95. A company is planning an advertising campaign in a country with high levels of illiteracy. Which of the following media would be MOST effective?
A. Print advertising in newspapers and magazines.
B. Television and radio advertising.
C. Online banner ads.
D. Direct mail marketing.
96. Which of the following is NOT a typical consideration when selecting an international distribution channel?
A. Channel length and complexity.
B. Availability of infrastructure and logistics.
C. Cultural and legal restrictions on distribution.
D. Ignoring local consumer preferences.
97. What is ‘reverse innovation’?
A. Developing products in developed countries and selling them in developing countries.
B. Developing products in developing countries and then adapting and selling them in developed countries.
C. Copying innovative products from competitors.
D. Ignoring innovation and focusing on cost reduction.
98. Which of the following is NOT a typical barrier to international marketing?
A. Cultural differences
B. Political and legal restrictions
C. Economic disparities
D. Standardized global consumer preferences
99. What is the ‘gray market’ or ‘parallel importing’?
A. Selling products through unauthorized channels in a foreign market.
B. Selling products at a discount in a foreign market to clear excess inventory.
C. Selling counterfeit products in a foreign market.
D. Selling products legally imported into a country through unauthorized distribution channels.
100. A company is launching a new product in a foreign market with a vastly different cultural context. Which pricing strategy would be MOST appropriate?
A. Standard worldwide pricing.
B. Cost-plus pricing based on domestic production costs.
C. Dynamic pricing that considers local purchasing power and competitive landscape.
D. Ignoring local market conditions and setting prices based on internal targets.
101. Which of the following is NOT a typical challenge in managing international marketing operations?
A. Coordinating marketing activities across different time zones and cultures.
B. Managing relationships with foreign distributors and partners.
C. Monitoring and controlling marketing performance in different countries.
D. Ignoring cultural differences and imposing a standardized approach.
102. What is ‘cultural relativism’ in international marketing ethics?
A. The belief that ethical standards are universal and should be applied consistently across all cultures.
B. The principle that ethical standards are relative to the specific culture and context.
C. Ignoring ethical considerations in favor of maximizing profits.
D. Adhering to the ethical standards of the company’s home country.
103. A company is facing ethical concerns about its marketing practices in a developing country. What should the company do?
A. Prioritize profits over ethical considerations.
B. Adhere to the ethical standards of its home country.
C. Adapt its ethical standards to the local customs and practices.
D. Develop a global code of ethics that respects human rights and local cultures.
104. What is a ‘tariff’ in international trade?
A. A tax imposed by a government on imported goods.
B. A government subsidy to domestic producers.
C. A quota on the quantity of goods that can be exported.
D. An agreement between countries to reduce trade barriers.
105. What is ‘dumping’ in international trade?
A. Selling products at a higher price in a foreign market than in the domestic market.
B. Selling products at a lower price in a foreign market than in the domestic market or below the cost of production.
C. The illegal export of restricted goods.
D. The process of discarding unsold inventory in a foreign market.
106. What is ‘countertrade’ in international marketing?
A. A method of advertising in foreign markets.
B. A form of trade in which goods or services are exchanged for other goods or services, rather than for money.
C. A strategy of setting prices lower than competitors in a foreign market.
D. A type of insurance that protects against political risk in foreign markets.
107. What is ‘integrated marketing communications (IMC)’ in the context of international marketing?
A. Using the same advertising message in all countries.
B. Coordinating all marketing communications tools to deliver a consistent brand message across borders.
C. Focusing solely on digital marketing channels in international markets.
D. Outsourcing all marketing communications activities to local agencies.
108. What is ‘ethnocentric pricing’?
A. Setting prices based on the perceived value of the product in each market.
B. Using a uniform pricing strategy across all international markets.
C. Setting prices based on the cost of production plus a fixed profit margin.
D. Ignoring local market conditions and setting prices based on internal targets.
109. A company is considering expanding into a country with high political instability. Which of the following strategies would be MOST appropriate to mitigate risk?
A. Direct investment in a wholly-owned subsidiary.
B. Exporting through a local distributor.
C. Entering a long-term joint venture with a government entity.
D. Ignoring the political risks and focusing on market potential.
110. Which of the following is a potential disadvantage of using a standardized advertising campaign in international markets?
A. Lower production costs.
B. Increased brand recognition.
C. Reduced creative development expenses.
D. Ineffectiveness due to cultural differences.
111. What is ‘adaptation’ in the context of international product strategy?
A. Selling the same product in all markets without any changes.
B. Modifying a product to meet the specific needs and preferences of a foreign market.
C. Focusing on exporting only products that are already successful domestically.
D. Ignoring local regulations and standards.
112. A company discovers its products are being sold in a foreign market through unauthorized channels at significantly lower prices. What is the MOST appropriate course of action?
A. Ignore the situation as long as sales are increasing.
B. Implement stricter distribution controls and legal action to stop the unauthorized sales.
C. Lower prices in the authorized channels to match the gray market prices.
D. Increase advertising spending to counteract the lower prices.
113. What does ‘localization’ in international marketing refer to?
A. Using the same marketing strategy in all countries.
B. Adapting marketing efforts to the specific cultural, economic, and legal environment of a country.
C. Focusing marketing efforts on local communities within a country.
D. Outsourcing marketing activities to local agencies.
114. Which of the following is an example of a ‘non-tariff barrier’ to trade?
A. Import quota
B. Customs duty
C. Value-added tax (VAT)
D. Exchange rate fluctuation
115. What is the primary goal of ‘global standardization’ in marketing?
A. To maximize profits by adapting to local markets.
B. To minimize costs by using the same marketing mix worldwide.
C. To increase market share by offering customized products.
D. To improve brand image by using different marketing campaigns in each country.
116. A company decides to enter a foreign market by granting a foreign entity the right to use its intellectual property in exchange for royalties. Which entry mode is this?
A. Franchising
B. Exporting
C. Licensing
D. Contract Manufacturing
117. What is ‘public relations’ (PR) in international marketing?
A. Paid advertising in foreign media.
B. Building relationships with stakeholders to manage a company’s image and reputation in foreign markets.
C. Direct selling to consumers in foreign markets.
D. Lobbying government officials to influence trade policy.
118. What is the role of the World Trade Organization (WTO)?
A. To provide financial assistance to developing countries.
B. To regulate international trade and resolve trade disputes between member countries.
C. To promote cultural exchange and understanding between countries.
D. To enforce international human rights laws.
119. What is the ‘country of origin effect’?
A. The impact of exchange rates on the price of goods.
B. The influence of a product’s country of manufacture or assembly on a consumer’s perception of it.
C. The effect of cultural differences on consumer behavior.
D. The impact of import tariffs on the cost of goods.
120. What is ‘transfer pricing’?
A. The price at which goods are transferred between different divisions or subsidiaries of a multinational company.
B. The price charged to consumers in a foreign market.
C. The cost of shipping goods to a foreign market.
D. The exchange rate between two currencies.
121. What is the ‘country of origin’ effect?
A. The impact of a country’s export policies on international trade.
B. The influence of a product’s manufacturing location on consumer perceptions.
C. The effect of cultural values on consumer behavior.
D. The relationship between a country’s GDP and its marketing potential.
122. Which of the following is a key consideration when deciding whether to standardize or adapt a product for international markets?
A. The company’s financial resources.
B. The degree of cultural differences between markets.
C. The availability of local suppliers.
D. The political stability of the target country.
123. Avoiding offensive or inappropriate content in international ads demonstrates:
A. Aggressive marketing.
B. Cultural sensitivity.
C. Product standardization.
D. Cost leadership.
124. A company wants to quickly gain market share in a new international market. Which pricing strategy would be most suitable?
A. Price skimming.
B. Penetration pricing.
C. Cost-plus pricing.
D. Premium pricing.
125. Which of the following is NOT a common basis for international market segmentation?
A. Geographic location
B. Demographic factors
C. Psychographic characteristics
D. Company’s stock price
126. What is ‘penetration pricing’?
A. Setting a low price to gain market share quickly.
B. Setting a high price to maximize profits.
C. Matching competitors’ prices.
D. Pricing based on production costs.
127. What is ‘cultural sensitivity’ in international advertising?
A. Using humor in advertising to appeal to a broad audience.
B. Being aware of and respecting local cultural norms and values.
C. Ignoring cultural differences to create a global brand image.
D. Using aggressive advertising tactics to gain market share.
128. What role does ‘culture’ play in international marketing decisions?
A. It has no impact on marketing decisions.
B. It is the most important factor to consider when entering a new market.
C. It only affects advertising campaigns.
D. It influences consumer preferences, communication styles, and product acceptance.
129. Advertising directly to consumers to increase demand is a:
A. Push strategy.
B. Pull strategy.
C. Distribution strategy.
D. Pricing strategy.
130. Which of the following is an example of a ‘pull’ promotional strategy?
A. Offering discounts to retailers to stock more products.
B. Advertising directly to consumers to create demand.
C. Providing sales training to distributors.
D. Giving incentives to sales representatives.
131. What is ‘dumping’ in international trade?
A. Selling products at a high price in foreign markets.
B. Selling products at below cost in foreign markets.
C. Bartering goods instead of selling them for cash.
D. Giving away products for free in foreign markets.
132. Which factor most directly impacts international distribution channel decisions?
A. The company’s advertising budget.
B. The infrastructure and logistics of the target market.
C. The political views of the local government.
D. The personal preferences of the CEO.
133. Which of the following is a strategy to mitigate negative country-of-origin perceptions?
A. Emphasizing the product’s low price.
B. Highlighting advanced technology used in the product’s manufacturing.
C. Focusing on the product’s aesthetic design.
D. Ignoring the country of origin in marketing communications.
134. 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 in different countries.
C. To reduce marketing costs by targeting the largest possible market.
D. To ignore cultural differences and focus on global similarities.
135. What is ‘global localization’ or ‘glocalization’?
A. Selling the same product everywhere without any changes.
B. Adapting products and marketing to specific local markets while maintaining a global brand image.
C. Focusing solely on global marketing campaigns.
D. Ignoring local cultures and preferences.
136. What is a ‘push’ promotional strategy?
A. Focusing on direct sales to consumers.
B. Incentivizing distributors and retailers to promote products.
C. Using social media to create brand awareness.
D. Relying on word-of-mouth marketing.
137. Selling goods in a foreign market below their cost of production is referred to as:
A. Price fixing.
B. Dumping.
C. Price skimming.
D. Predatory pricing.
138. Which of the following is a potential drawback of using an adapted international marketing strategy?
A. Increased customer satisfaction.
B. Higher marketing costs.
C. Greater market share.
D. Improved brand image.
139. Which of the following is a challenge associated with international advertising?
A. Reaching a larger audience.
B. Adapting to different cultural values and languages.
C. Lower advertising costs.
D. Increased brand recognition.
140. McDonald’s offers different menu items in India to cater to local dietary preferences. This is an example of:
A. Product standardization.
B. Glocalization.
C. Ethnocentrism.
D. Geocentric pricing.
141. Offering incentives to retailers to stock and promote a product exemplifies a:
A. Pull strategy.
B. Push strategy.
C. Direct marketing strategy.
D. Guerrilla marketing tactic.
142. Which pricing strategy involves setting a high price to appeal to a prestige-conscious market?
A. Penetration pricing.
B. Price skimming.
C. Competitive pricing.
D. Cost-plus pricing.
143. What is ‘adaptation’ in the context of international marketing?
A. Completely standardizing a product for all markets.
B. Modifying marketing strategies to suit local market conditions.
C. Ignoring cultural differences in international markets.
D. Focusing solely on price competition in foreign markets.
144. What is a ‘gray market’ in international distribution?
A. A market where counterfeit goods are sold.
B. A market where products are sold through unauthorized channels.
C. A market with a high level of price competition.
D. A market that is difficult to access due to trade barriers.
145. Which of the following is an example of ‘mandatory’ product adaptation?
A. Changing the product color to match local preferences.
B. Adjusting the product’s packaging to meet local legal requirements.
C. Adding extra features to appeal to a specific market segment.
D. Lowering the product’s price to compete with local brands.
146. A company selling electronics in Europe must change its product to meet local voltage requirements. This is an example of:
A. Discretionary adaptation.
B. Mandatory adaptation.
C. Standardization.
D. Product invention.
147. A company launching a new product in Japan needs to be aware of the importance of:
A. Aggressive advertising.
B. Building strong relationships and trust.
C. Directly challenging competitors.
D. Focusing solely on product features.
148. Products sold through unauthorized distribution channels are part of:
A. The black market.
B. A gray market.
C. Direct marketing.
D. Exclusive distribution.
149. What is the advantage of using a standardized international marketing strategy?
A. It always leads to higher sales volume.
B. It reduces costs through economies of scale.
C. It caters to the specific needs of each local market.
D. It guarantees success in all international markets.
150. A German car manufacturer leverages its ‘Made in Germany’ branding to signal high quality. This is an example of:
A. Price skimming.
B. The country-of-origin effect.
C. Product standardization.
D. Competitive pricing.
