1. What is ‘localization’ in international marketing?
A. Using the same marketing strategy in all countries
B. Adapting marketing strategies to suit local cultures and preferences
C. Focusing only on global markets
D. Ignoring cultural differences for the sake of standardization
2. What is the primary purpose of a ‘tariff’?
A. To encourage imports
B. To protect domestic industries by increasing the price of imports
C. To subsidize exports
D. To simplify customs procedures
3. 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
4. What is the difference between ‘exporting’ and ‘foreign direct investment (FDI)’?
A. Exporting involves selling goods produced domestically to foreign markets, while FDI involves investing directly in foreign production facilities
B. Exporting involves producing goods in foreign countries and selling them domestically, while FDI involves selling goods produced domestically to foreign markets
C. Exporting is always more profitable than FDI
D. FDI is only suitable for large multinational corporations
5. Which of the following is an example of a ‘demographic’ factor in international marketing?
A. Political stability
B. Consumer income levels
C. Cultural values
D. Technological infrastructure
6. What is a ‘quota’ in international trade?
A. A tax on imports
B. A limit on the quantity of goods that can be imported
C. A subsidy for exports
D. A regulation on product quality
7. 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. The imposition of one’s cultural values on another culture
D. Ignoring cultural differences for the sake of global standardization
8. Which of the following is a characteristic of a ‘collectivist’ culture?
A. Emphasis on individual achievement
B. Strong group loyalty and harmony
C. Direct and assertive communication style
D. Preference for decentralized decision-making
9. What is the role of ‘international marketing research’?
A. To avoid understanding local markets
B. To gather information about international markets and consumers
C. To promote ethnocentric marketing strategies
D. To reduce marketing budgets
10. What is ‘countertrade’?
A. A type of free trade agreement
B. The exchange of goods or services for other goods or services instead of money
C. A government subsidy for exports
D. A tax on imports
11. What is the ‘infant industry’ argument for protectionism?
A. Protecting mature industries from competition
B. Protecting new industries until they can compete globally
C. Promoting free trade agreements
D. Subsidizing exports
12. Which of the following is NOT a key factor to consider when analyzing the international marketing environment?
A. Cultural differences
B. Political and legal factors
C. Technological advancements
D. The color of the company’s logo
13. What is ‘dumping’ in international trade?
A. Selling products at a high price in a foreign market
B. Selling products below cost in a foreign market
C. Importing products without paying tariffs
D. Exporting products without meeting quality standards
14. How can a company mitigate political risks in international markets?
A. By ignoring government regulations
B. By diversifying investments across multiple countries
C. By using aggressive marketing tactics
D. By avoiding partnerships with local firms
15. Which of the following is an example of a ‘non-tariff barrier’ to trade?
A. A tax on imported goods
B. A limit on the quantity of imported goods
C. Complex and discriminatory product standards
D. A subsidy for domestic producers
16. What is ‘reverse innovation’?
A. Innovating products in developed countries and then selling them in developing countries
B. Innovating products in developing countries and then selling them in developed countries
C. Copying existing products from other companies
D. Using outdated technology in new products
17. How does ‘infrastructure’ affect international marketing activities?
A. It has no impact on marketing activities
B. It affects logistics, distribution, and communication channels
C. It only affects manufacturing costs
D. It only affects advertising effectiveness
18. How can a company use ‘market segmentation’ in international marketing?
A. By targeting the same market segment in all countries
B. By dividing international markets into distinct groups with similar needs and preferences
C. By ignoring differences between countries
D. By focusing only on the largest markets
19. Which of the following is an example of a ‘cultural dimension’ that impacts international marketing?
A. Inflation rate
B. Political system
C. Language and communication styles
D. Interest rates
20. How does ‘climate’ impact international marketing strategies?
A. It has no impact on marketing strategies
B. It can affect product demand, distribution, and packaging
C. It only affects advertising campaigns
D. It only affects pricing strategies
21. What is ‘ethnocentrism’ in international marketing?
A. The belief that all cultures are equal
B. The tendency to view one’s own culture as superior and apply its values when judging other cultures
C. The practice of adapting marketing strategies to suit local cultures
D. The ability to understand and appreciate cultural differences
22. What does ‘protectionism’ refer to in international trade?
A. The policy of promoting free trade agreements
B. Government actions to restrict international trade and protect domestic industries
C. Strategies for protecting intellectual property rights internationally
D. Efforts to protect consumers from unsafe products
23. What is the ‘balance of payments’?
A. A statement of a company’s financial performance
B. A record of all economic transactions between a country and the rest of the world
C. The difference between a country’s imports and exports
D. A measure of a country’s inflation rate
24. Which of these is an example of a political risk in international marketing?
A. Fluctuations in exchange rates
B. Changes in consumer preferences
C. Government instability leading to nationalization of assets
D. Increased competition from local brands
25. What is ‘purchasing power parity (PPP)’?
A. A measure of a country’s political stability
B. A theory that exchange rates should adjust to equalize the purchasing power of currencies
C. A government program to support domestic industries
D. A method for calculating inflation rates
26. Which of the following is a key consideration when adapting a product for an international market?
A. Using the same product design in all countries
B. Meeting local regulatory requirements and cultural preferences
C. Ignoring local competition
D. Focusing only on low-cost production
27. What is the impact of exchange rate fluctuations on international marketing?
A. They have no impact on international marketing
B. They can affect the price competitiveness of products and profitability
C. They only affect import prices, not export prices
D. They always benefit domestic companies
28. Which of the following is a key function of the World Trade Organization (WTO)?
A. Providing financial aid to developing countries
B. Setting global interest rates
C. Regulating international trade and resolving trade disputes
D. Promoting cultural exchange programs
29. Which of the following is a potential benefit of ‘global standardization’?
A. Increased marketing costs
B. Simplified supply chain and reduced production costs
C. Greater cultural relevance
D. Higher customer satisfaction in all markets
30. What is the purpose of ‘intellectual property rights’ in international marketing?
A. To restrict competition from foreign companies
B. To protect inventions, trademarks, and creative works from unauthorized use
C. To promote the free flow of information across borders
D. To regulate advertising standards in different countries
31. Which of the following is a disadvantage of using a standardized marketing strategy in international markets?
A. Reduced marketing costs
B. Increased brand recognition
C. Failure to meet specific customer needs in different markets
D. Easier to control marketing message
32. Which of the following is a disadvantage of using a wholly owned subsidiary as an entry mode?
A. Loss of control over operations
B. High initial investment and risk
C. Limited access to local market knowledge
D. Difficulty in repatriating profits
33. A company modifies its product to meet local regulations and consumer preferences in a foreign market. This is an example of:
A. Standardization
B. Adaptation
C. Globalization
D. Diversification
34. What is the primary advantage of using a joint venture as an entry mode?
A. Complete control over operations
B. Reduced risk and shared investment
C. Full profit retention
D. Rapid market entry with minimal investment
35. A company is considering entering a country with a high level of political risk. Which entry mode would be the MOST suitable to minimize financial exposure?
A. Wholly owned subsidiary
B. Joint venture
C. Exporting
D. Foreign direct investment
36. Which of the following is a potential disadvantage of using indirect exporting?
A. High initial investment
B. Limited control over the marketing process
C. Exposure to currency risk
D. Difficulty in adapting to local market conditions
37. Which of the following is a potential disadvantage of using a global distribution strategy?
A. Increased control over the supply chain
B. Higher transportation costs and complexities
C. Greater brand consistency across markets
D. Improved responsiveness to local market needs
38. What is ‘cultural distance’ in the context of international marketing?
A. The geographical distance between two countries
B. The difference in cultural values and norms between two countries
C. The time it takes to travel between two countries
D. The economic disparity between two countries
39. Which of the following best describes ‘trade barriers’?
A. Factors that encourage international trade
B. Restrictions that governments place on international trade
C. Agreements between countries to promote free trade
D. Technological advancements that facilitate trade
40. What is the primary purpose of a ‘tariff’?
A. To promote free trade
B. To protect domestic industries by increasing the cost of imported goods
C. To subsidize exports
D. To encourage foreign investment
41. What does ‘WTO’ stand for in international trade?
A. World Trade Organization
B. Western Trade Office
C. World Tourism Organization
D. Worldwide Transportation Organization
42. A company discovers that its product name is offensive in a new international market. What is this an example of?
A. Economic barrier
B. Political risk
C. Cultural barrier
D. Technological disadvantage
43. What does ‘FDI’ stand for in international business?
A. Foreign Domestic Investment
B. Foreign Direct Investment
C. Free Direct Investment
D. Financial Development Index
44. What is the primary goal of conducting a PESTEL analysis before entering a new international market?
A. To understand the internal strengths and weaknesses of the company
B. To identify potential external opportunities and threats
C. To analyze the competitive landscape of the industry
D. To determine the optimal pricing strategy for the new market
45. What is ‘currency risk’ in international marketing?
A. The risk of political instability in a foreign country
B. The risk of fluctuations in exchange rates
C. The risk of product counterfeiting
D. The risk of supply chain disruptions
46. What is the main advantage of using a ‘glocalization’ strategy?
A. It minimizes marketing costs by using a standardized approach.
B. It allows for better adaptation to local market needs and preferences.
C. It ensures consistent brand messaging across all markets.
D. It simplifies supply chain management.
47. Which of the following is a key advantage of using a standardized product strategy in international markets?
A. It allows for better adaptation to local customer needs
B. It reduces production and marketing costs
C. It increases brand awareness in each market
D. It simplifies the supply chain
48. Which of the following is NOT a benefit of global branding?
A. Increased brand recognition and loyalty
B. Higher marketing efficiency
C. Greater price sensitivity
D. Enhanced brand image
49. A company is using the internet to sell its products directly to customers in other countries. What entry mode is this?
A. Foreign direct investment
B. Indirect exporting
C. Direct exporting
D. Licensing
50. Which of the following is an example of a ‘born global’ firm?
A. A large multinational corporation with operations in many countries
B. A small startup that begins exporting soon after its founding
C. A company that gradually expands internationally over many years
D. A firm that only operates domestically
51. A company decides to use the same advertising campaign in all international markets. This is an example of:
A. Localization
B. Standardization
C. Glocalization
D. Differentiation
52. What is the ‘country of origin effect’?
A. The impact of a country’s economic policies on its trade balance
B. The influence of a product’s manufacturing location on consumer perceptions
C. The effect of cultural values on consumer behavior
D. The impact of political stability on foreign investment
53. What is the purpose of conducting market research before entering a new international market?
A. To determine the optimal production capacity
B. To understand consumer behavior and market trends
C. To negotiate favorable trade agreements
D. To secure financing for international expansion
54. Which of the following is the MOST significant risk associated with licensing as an entry mode?
A. High capital investment
B. Loss of control over production and marketing
C. Difficulty in adapting to local market conditions
D. Exposure to political instability
55. Which of the following is NOT a primary driver for firms to expand internationally?
A. Increased domestic competition
B. Declining domestic sales
C. Access to new markets
D. Exploiting technological advantages
56. 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
C. The illegal export of restricted goods
D. The process of simplifying customs procedures
57. A company allows a foreign firm to use its brand name and operating system in exchange for a fee. This is an example of:
A. Exporting
B. Licensing
C. Franchising
D. Joint venture
58. Which of the following is a key factor to consider when assessing the political environment of a foreign market?
A. The country’s GDP growth rate
B. The stability of the government
C. The level of technological development
D. The country’s literacy rate
59. Which of the following is an example of a non-tariff barrier?
A. A tax on imported goods
B. A quota on imported goods
C. A subsidy for domestic producers
D. A voluntary export restraint
60. A company partners with a local firm to manufacture and distribute its products in a foreign market. What entry mode is this?
A. Exporting
B. Licensing
C. Franchising
D. Contract manufacturing
61. A company wants to assess the price sensitivity of consumers in a new international market. Which research method is most appropriate?
A. Focus groups.
B. Surveys with conjoint analysis.
C. Observational studies.
D. Secondary data analysis.
62. What is the likely outcome if a global company fails to adapt its research methods to suit local cultural norms?
A. More accurate research findings.
B. Increased participant engagement.
C. Biased or inaccurate results.
D. Reduced research costs.
63. A company is conducting a survey in a country where face-to-face interviews are culturally preferred. What adjustment should they make?
A. Switch to online surveys to save costs.
B. Train interviewers to conduct face-to-face interviews.
C. Send out self-administered questionnaires by mail.
D. Cancel the survey altogether.
64. What is the importance of understanding cultural nuances in international marketing research?
A. To standardize marketing campaigns across all countries.
B. To avoid misinterpretations and ensure accurate data collection.
C. To reduce the cost of research.
D. To simplify the research process.
65. What is the key benefit of using online communities for international marketing research?
A. Lower research costs.
B. Access to a wide range of opinions and insights.
C. Faster data collection.
D. Higher response rates.
66. What is ‘sampling error’ in international marketing research?
A. Errors in data entry.
B. Errors due to the sample not perfectly representing the population.
C. Errors caused by language translation.
D. Errors in questionnaire design.
67. What is the primary goal of conducting international marketing research?
A. To minimize the cost of marketing operations.
B. To gain a deeper understanding of foreign markets and consumers.
C. To promote domestic products in foreign countries.
D. To increase the volume of exports regardless of market needs.
68. What is ‘back translation’ in international marketing research?
A. Translating the research findings back into the original language for verification.
B. Translating a questionnaire from one language to another and then back to the original language by a different translator to ensure accuracy.
C. Translating marketing materials to suit local tastes.
D. Translating the marketing budget into different currencies.
69. What is the primary challenge when conducting international marketing research in countries with high levels of political instability?
A. Difficulty in accessing technology.
B. Increased research costs.
C. Safety and security of researchers and data.
D. Lack of skilled research personnel.
70. A company is facing difficulties in recruiting participants for focus groups in a specific country. What could be a potential solution?
A. Increasing the length of the focus group sessions.
B. Offering higher monetary incentives or alternative rewards.
C. Conducting the focus groups in a language the researchers don’t understand.
D. Reducing the number of participants required.
71. Which of the following is a key consideration when selecting a research agency for international marketing research?
A. The agency’s proximity to the company’s headquarters.
B. The agency’s familiarity with the target markets and cultural nuances.
C. The agency’s use of the latest technology.
D. The agency’s low cost.
72. What is the best approach to take when dealing with sensitive topics in international marketing research?
A. Avoid asking about sensitive topics altogether.
B. Frame questions carefully and ensure anonymity and confidentiality.
C. Use aggressive questioning techniques to get honest answers.
D. Disclose all personal information collected to the authorities.
73. Which of the following is NOT a step in the international marketing research process?
A. Defining the research problem and objectives.
B. Developing the research plan.
C. Implementing the marketing strategy.
D. Interpreting and reporting the findings.
74. A company is planning to launch a new product in a foreign market. What type of research is most appropriate to assess the market’s potential?
A. Customer satisfaction surveys.
B. Market potential studies.
C. Advertising effectiveness research.
D. Sales force compensation analysis.
75. What is the main challenge of using secondary data in international marketing research?
A. The high cost of acquiring secondary data.
B. The lack of availability of secondary data in most countries.
C. The accuracy, reliability, and comparability of data across different countries.
D. The time-consuming process of analyzing secondary data.
76. When should a company consider using a standardized international marketing research approach?
A. When targeting niche markets in different countries.
B. When products have universal appeal and similar usage patterns.
C. When cultural differences are significant.
D. When the company lacks resources for customized research.
77. Which of the following is a potential ethical issue in international marketing research?
A. Using statistical software for data analysis.
B. Obtaining informed consent from participants.
C. Using deceptive practices to gather information.
D. Ensuring data confidentiality.
78. Which of the following is a method to improve the comparability of data across different countries?
A. Using different research methods in each country.
B. Standardizing data collection procedures and definitions.
C. Ignoring cultural differences.
D. Relying solely on secondary data.
79. Which of the following is a potential challenge when translating questionnaires for international marketing research?
A. Ensuring the translator has marketing expertise.
B. Maintaining the original meaning and intent of the questions.
C. Using standardized translation software.
D. Finding translators who are willing to work for free.
80. A marketing manager suspects that the low sales in a specific country are due to miscommunication in advertising. What type of research should they conduct?
A. Pricing research.
B. Distribution channel analysis.
C. Advertising effectiveness research.
D. Competitor analysis.
81. What is the primary purpose of conducting pilot studies before launching a full-scale international marketing research project?
A. To minimize the overall research budget.
B. To test the research instruments and procedures.
C. To impress potential investors.
D. To generate preliminary findings for marketing campaigns.
82. What is the role of technology in international marketing research?
A. To replace traditional research methods entirely.
B. To facilitate data collection, analysis, and communication.
C. To increase the cost of research.
D. To limit the scope of research.
83. What is the risk of relying solely on online surveys in international marketing research?
A. Higher costs compared to traditional methods.
B. Limited reach to populations with low internet access.
C. Difficulty in analyzing qualitative data.
D. Increased risk of sampling error.
84. A company wants to understand how consumers in different countries perceive their brand compared to competitors. What research approach is most suitable?
A. Sales data analysis.
B. Brand image studies.
C. Employee satisfaction surveys.
D. Supply chain audits.
85. Which data collection method is most suitable for gathering exploratory information in international marketing research?
A. Surveys.
B. Experiments.
C. Focus groups.
D. Statistical modeling.
86. A company wants to understand the distribution channels used by consumers in a new international market. What research method is most appropriate?
A. Advertising recall tests.
B. Distribution channel audits.
C. Customer satisfaction surveys.
D. Employee performance reviews.
87. A company discovers that consumers in a foreign market are hesitant to provide direct feedback in surveys. What alternative approach could be used?
A. Using more complex statistical analysis.
B. Employing observational research methods or mystery shoppers.
C. Increasing the use of open-ended questions.
D. Shortening the survey length.
88. A company is analyzing secondary data for a new market entry strategy. What is the most important factor to consider when evaluating the data?
A. The age of the data.
B. The cost of the data.
C. The source’s credibility and methodology.
D. The volume of the data.
89. A company is expanding into a new country with a vastly different legal system. Which aspect of international marketing research becomes particularly important?
A. Competitor analysis.
B. Understanding local data protection and privacy laws.
C. Assessing the effectiveness of advertising campaigns.
D. Determining optimal pricing strategies.
90. A company is planning to enter a market where data is scarce and unreliable. What approach should they prioritize?
A. Relying solely on secondary data.
B. Investing in primary data collection with careful validation.
C. Avoiding the market altogether.
D. Using aggressive marketing tactics to compensate for lack of information.
91. Which of the following is an example of ‘adaptation’ in international marketing?
A. Selling the same product globally with the same advertising campaign.
B. Modifying a product to meet local regulations or consumer preferences.
C. Using the same distribution channels in every country.
D. Maintaining a consistent price point across all markets.
92. Which of the following is a DISADVANTAGE of using a ‘joint venture’ as an entry strategy?
A. It provides access to new markets and distribution networks.
B. It allows for sharing of risks and resources.
C. It can lead to disagreements and conflicts between partners.
D. It provides greater control over operations compared to exporting.
93. What is ‘licensing’ in international marketing?
A. Opening a retail store in a foreign country.
B. Granting a foreign company the right to use a patent, trademark, or technology.
C. Buying products from a foreign supplier.
D. Merging with a foreign company.
94. What is ‘direct investment’ in international marketing?
A. Exporting products directly to consumers.
B. Purchasing stock in a foreign company.
C. Establishing a wholly-owned subsidiary or joint venture in a foreign country.
D. Licensing a foreign company to use your trademark.
95. What is the purpose of a ‘free trade agreement’?
A. To increase tariffs between member countries.
B. To reduce or eliminate trade barriers between member countries.
C. To impose strict quotas on imported goods.
D. To promote protectionism in domestic industries.
96. Which of the following is a key factor to consider when analyzing the ‘political and legal environment’ of a foreign market?
A. Consumer demographics.
B. Exchange rates.
C. Government regulations and political stability.
D. Technological infrastructure.
97. What is a ‘tariff’?
A. A tax on imported goods.
B. A subsidy for exported goods.
C. A type of currency exchange rate.
D. A trade agreement between countries.
98. 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.
99. What is the main difference between ‘global marketing’ and ‘international marketing’?
A. Global marketing focuses on standardizing products, while international marketing adapts them.
B. Global marketing views the world as one market, while international marketing treats each country as unique.
C. There is no difference between global marketing and international marketing.
D. International marketing is only for large companies, while global marketing is for small businesses.
100. What is ‘countertrade’?
A. Exchanging goods or services directly for other goods or services.
B. Selling products at a discount in a foreign market.
C. Borrowing money from a foreign bank.
D. Investing in a foreign company.
101. A company decides to enter a foreign market by exporting its products directly to retailers. This is an example of:
A. Indirect exporting.
B. Direct exporting.
C. Licensing.
D. Joint venture.
102. Which of the following is a potential disadvantage of using ‘standardized advertising’ globally?
A. It can be more expensive than localized advertising.
B. It may not resonate with local cultures or consumer preferences.
C. It is difficult to implement across different media channels.
D. It requires a large advertising budget.
103. What is the primary benefit of using a standardized marketing approach in international markets?
A. It allows for greater responsiveness to local market needs.
B. It reduces costs and simplifies marketing management.
C. It increases market share in each individual country.
D. It enhances brand image through localized messaging.
104. 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. Importing products illegally.
D. Exporting products without proper documentation.
105. What is ‘glocalization’?
A. Standardizing products for the global market.
B. Adapting global products to local markets.
C. Focusing only on local markets.
D. Ignoring cultural differences in marketing.
106. What is the ‘country-of-origin effect’?
A. The impact of a country’s political stability on its trade relations.
B. The influence of a product’s manufacturing location on consumer perceptions.
C. The effect of exchange rates on import prices.
D. The impact of tariffs on international trade volumes.
107. What is the purpose of conducting a ‘SWOT analysis’ in international marketing?
A. To determine the optimal price point for a product.
B. To identify a company’s strengths, weaknesses, opportunities, and threats in a foreign market.
C. To measure customer satisfaction levels.
D. To forecast future sales volumes.
108. A company is facing significant exchange rate fluctuations. What is the MOST effective way to mitigate this risk?
A. Ignore the fluctuations and hope they stabilize.
B. Increase prices in foreign markets to compensate for the fluctuations.
C. Use hedging strategies or forward contracts.
D. Reduce marketing spending to minimize losses.
109. What is the ‘exchange rate’?
A. The price of one currency in terms of another.
B. The interest rate charged by a bank.
C. The inflation rate in a country.
D. The unemployment rate in a country.
110. Which of the following is a key benefit of using ‘global branding’?
A. It allows for greater customization of products in each market.
B. It creates a consistent brand image and strengthens brand recognition worldwide.
C. It reduces marketing costs by focusing on local advertising.
D. It simplifies distribution by using different channels in each country.
111. What is the ‘balance of payments’?
A. The difference between a country’s exports and imports.
B. A record of all economic transactions between a country and the rest of the world.
C. The total value of a country’s currency in circulation.
D. A measure of a country’s inflation rate.
112. A company discovers that its product name is offensive in a foreign language. What should the company do?
A. Ignore the issue and continue using the same name.
B. Change the product name to something more appropriate for the local market.
C. Educate consumers about the meaning of the original name.
D. Withdraw the product from the market.
113. Which of the following is the MOST accurate definition of ‘market segmentation’ in international marketing?
A. Dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors, who might require separate products or marketing mixes.
B. The process of selecting which countries to enter.
C. Adjusting the marketing mix elements to suit specific international markets.
D. Selling the same product in all international markets without any modifications.
114. A company wants to expand into a country with a very different cultural background. What is the MOST important thing to consider?
A. The country’s GDP growth rate.
B. Cultural sensitivity and adaptation of the marketing mix.
C. The availability of natural resources.
D. The current exchange rate.
115. A company is considering entering a market with high tariffs on imported goods. Which entry strategy would be MOST suitable?
A. Direct exporting.
B. Indirect exporting.
C. Foreign direct investment (FDI).
D. Licensing.
116. A company wants to enter a foreign market with a high level of political risk. Which entry strategy would be the LEAST risky?
A. Foreign direct investment (FDI).
B. Joint venture.
C. Exporting.
D. Establishing a wholly-owned subsidiary.
117. A company is launching a new product in a foreign market. What is the MOST important factor to consider when setting the price?
A. The company’s production costs.
B. The prices of competitors’ products in that market.
C. The average income level of consumers in that market.
D. All of the above.
118. What is the role of ‘international marketing research’?
A. To promote products in foreign markets.
B. To gather information about foreign markets to make informed decisions.
C. To manage international sales teams.
D. To negotiate trade agreements.
119. What is ‘ethnocentrism’ in international marketing?
A. The belief that one’s own culture is superior to others.
B. Adapting marketing strategies to suit local cultures.
C. Focusing only on ethical business practices.
D. Promoting cultural exchange and understanding.
120. What is the primary goal of ‘international advertising’?
A. To create culturally relevant and effective advertising campaigns in foreign markets.
B. To use the same advertising campaign globally to save costs.
C. To focus only on online advertising to reach a wider audience.
D. To avoid advertising altogether and rely on word-of-mouth marketing.
121. A company is launching a new product in a country with a collectivist culture. Which promotional strategy would likely be MOST effective?
A. Highlighting individual achievements and personal success.
B. Emphasizing the product’s benefits for the community and social harmony.
C. Focusing on the product’s low price and affordability.
D. Using celebrity endorsements to create brand awareness.
122. Which of the following is an example of a ‘product adaptation’ strategy in international marketing?
A. Using the same advertising campaign in all countries.
B. Selling the same product at a lower price in developing countries.
C. Modifying a product’s features to meet local regulations or consumer preferences.
D. Distributing the product through the same channels worldwide.
123. When a company faces significant differences in consumer preferences and legal regulations across different international markets, which marketing approach is generally more effective?
A. Standardization
B. Adaptation
C. Globalization
D. Concentration
124. Which of the following is a potential barrier to international trade?
A. Free trade agreements.
B. Technological advancements in logistics.
C. Government regulations and tariffs.
D. Increased consumer demand for global brands.
125. Which of the following best describes the concept of ‘glocalization’?
A. Standardizing products and marketing across all global markets.
B. Adapting global products and marketing to suit local markets.
C. Focusing solely on global branding and brand recognition.
D. Ignoring local cultural differences in international marketing.
126. Which of the following is NOT a key factor to consider when assessing a foreign market’s potential?
A. Political stability and government regulations.
B. Cultural differences and consumer behavior.
C. The company’s domestic market share.
D. Economic indicators such as GDP and inflation.
127. 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. The tendency to impose one’s own cultural values on other cultures.
D. The rejection of all cultural norms and values.
128. What is the primary advantage of using standardized advertising campaigns in international marketing?
A. Maximizing relevance to local cultural values.
B. Reducing costs through economies of scale.
C. Increasing brand awareness in niche markets.
D. Enhancing the ability to adapt to local market conditions.
129. What is the primary goal of ‘adaptation’ in international marketing?
A. To reduce costs by using a uniform marketing approach.
B. To increase market share by meeting local customer needs.
C. To simplify the marketing process for global brands.
D. To avoid cultural sensitivity in foreign markets.
130. Which of the following is a key consideration when selecting a distribution channel in a foreign market?
A. The company’s existing distribution network in its home market.
B. The availability and cost of transportation infrastructure.
C. The preferences of the company’s management team.
D. The distribution channels used by competitors in other markets.
131. What is the role of ‘marketing research’ in international market selection?
A. To reduce the cost of entering a foreign market.
B. To identify and assess potential foreign markets.
C. To promote the company’s products in all countries.
D. To avoid the need for product adaptation.
132. What is ‘countertrade’ in international marketing?
A. The exchange of goods or services between two countries without the use of currency.
B. The practice of selling products at a discount in foreign markets.
C. The use of barter to avoid paying import duties.
D. The process of hedging against currency fluctuations.
133. What is a ‘joint venture’ in international market entry?
A. A company’s direct investment in a foreign manufacturing facility.
B. An agreement between two or more companies to undertake a specific project together.
C. A company’s exclusive licensing agreement with a foreign distributor.
D. A company’s export sales to a foreign market.
134. Which entry mode involves the least amount of risk and investment for a company entering a foreign market?
A. Exporting.
B. Joint venture.
C. Foreign direct investment.
D. Licensing.
135. A company’s marketing team discovers that their product name has a negative connotation in a foreign language. What should they do?
A. Ignore the issue, as the product is successful in other markets.
B. Adapt the product name to a more appropriate term for the local market.
C. Launch an extensive marketing campaign to educate consumers about the original name.
D. Withdraw from the market to avoid potential negative consequences.
136. A U.S.-based company wants to expand into Europe but is concerned about the complexity of dealing with multiple countries and regulations. Which market entry strategy might be the most suitable first step?
A. Establishing a wholly-owned subsidiary in each country.
B. Focusing on exporting to a single, strategically chosen country.
C. Forming a joint venture with a company that operates across Europe.
D. Licensing its technology to multiple companies in different countries.
137. Which of the following is a potential disadvantage of using a standardized marketing strategy?
A. Increased production costs due to variations in product design.
B. Lower brand recognition and consistency across markets.
C. Failure to meet the specific needs and preferences of local customers.
D. Difficulty in managing global supply chains.
138. A company is facing significant currency exchange rate fluctuations that are impacting their profitability in a foreign market. What strategy can they use to mitigate this risk?
A. Ignoring the fluctuations and maintaining the same pricing strategy.
B. Using hedging strategies to lock in exchange rates.
C. Increasing prices to compensate for the currency devaluation.
D. Withdrawing from the market to avoid further losses.
139. A company wants to minimize its financial risk when entering a new international market. Which entry mode is most suitable?
A. Foreign Direct Investment
B. Exporting
C. Joint Venture
D. Franchising
140. A company is entering a market with high import tariffs on their product. What pricing strategy can they use to remain competitive?
A. Increasing prices to offset the tariff costs.
B. Absorbing the tariff costs and maintaining the same price.
C. Reducing product quality to lower production costs.
D. Lobbying the government to reduce the tariffs.
141. What is ‘standardization’ in international marketing strategy?
A. Adapting the marketing mix to suit each local market.
B. Using the same marketing mix across all international markets.
C. Focusing solely on price competition in foreign markets.
D. Ignoring cultural differences in international markets.
142. A company selling luxury goods is expanding into a new market. They discover the distribution channels common in their home country are not well-developed in the new market. Which aspect of the marketing mix should they focus on adapting?
A. Product
B. Price
C. Promotion
D. Place
143. What is ‘dumping’ in international trade?
A. Selling products in a foreign market at a price lower than the cost of production.
B. Exporting products to a foreign market through illegal channels.
C. Importing products into a domestic market without paying duties.
D. Selling products in a foreign market at a price higher than the domestic price.
144. What is ‘ethnocentrism’ in the context of international marketing?
A. The belief that all cultures are equally valid.
B. The tendency to view one’s own culture as superior and to judge other cultures by its standards.
C. The practice of adapting marketing strategies to local cultures.
D. The rejection of foreign products and brands.
145. A company is considering entering a market where consumers highly value local brands and are skeptical of foreign products. Which entry strategy would be MOST appropriate?
A. Direct exporting with a standardized marketing campaign.
B. Acquiring a local company with an established brand reputation.
C. Establishing a wholly-owned subsidiary with a foreign brand name.
D. Licensing the company’s technology to a foreign manufacturer.
146. A company wants to enter a foreign market where they lack knowledge of local consumer behavior and market dynamics. Which strategy can help them gain this knowledge?
A. Relying solely on secondary data and industry reports.
B. Conducting thorough marketing research and analysis.
C. Implementing a standardized marketing campaign based on their home market.
D. Partnering with a local distributor without conducting any prior research.
147. Which of the following is an example of a ‘promotion adaptation’ strategy in international marketing?
A. Using the same pricing strategy in all countries.
B. Modifying the product’s packaging to meet local regulations.
C. Changing the advertising message to resonate with local cultural values.
D. Distributing the product through the same channels worldwide.
148. A company is launching a new product in a market where consumers are highly price-sensitive. Which pricing strategy is likely to be MOST effective?
A. Premium pricing to create a perception of high quality.
B. Competitive pricing to match or undercut competitors’ prices.
C. Cost-plus pricing to ensure a high profit margin.
D. Value-based pricing to emphasize the product’s unique benefits.
149. Which of the following is a key benefit of using a ‘global brand’ strategy?
A. Increased ability to customize products for local markets.
B. Reduced marketing costs due to economies of scale.
C. Greater flexibility in pricing strategies.
D. Enhanced ability to adapt to local cultural nuances.
150. A company wants to avoid direct investment and maintain control over its brand in a foreign market. Which entry mode is most suitable?
A. Exporting
B. Franchising
C. Licensing
D. Joint Venture
