1. International marketing is the performance of business activities designed to plan, price, promote, and direct the flow of a company's goods and services to consumers or users in more than one nation for a profit. 2. A good illustration of an uncontrollable variable that might impact international business is a marketing decision with respect to research. 3. The foreign uncontrollable environment is the same as the domestic uncontrollable environment. 4. The level of technology is an uncontrollable element for international marketers. 5. The political and legal environment is a controllable element for international marketers because of the ability to lobby and influence legislation. 6. In a broad sense, the uncontrollable elements of the foreign business environment constitute the culture. 7. John refuses to buy Japanese products because he sees them as a way of selling out to nation known for its aggressive behavior. John is using a self-reference criterion to make his decision. 8. A self-reference criterion is closely related to ethnocentrism. 9. Sam Watkins just recently ate and, therefore, feels justified in refusing food from his Middle Eastern host. In this instance, Sam's self-reference criterion has just saved him from making a cultural blunder. 10. To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that emphasizes the need for ethnocentrism. 11. To be globally aware, you should be tolerant of cultural differences. 12. To be globally aware, you should require that all of your international customers know about your cultural rules and adhere strictly to each one. 13. If a company is in a stage designated as being one with "no direct foreign marketing," the company does not actively cultivate customers outside national boundaries. 14. Of all the stages in international business, a stage called "regular foreign marketing" produces the most profound change in the orientation of the company toward markets and associated planning activities. 15. If a company uses a strategic orientation called domestic market extension, it views its international operations as secondary to and an extension of its domestic operations. 16. The global marketing concept views the marketplace as consisting of one primary domestic market that is complimented by several smaller regional markets.
Multiple Choice Questions
1. International __________ play an important role in promoting global peace and prosperity. A. foreign aid and treaties
B. competition and consumer spending
C. trade and marketing
D. consumer and industrial services
2. Of all the events and trends affecting global business today, four stand out as the most dynamic. Which of the following would be one of those events? A. The trend toward buying American cars in Europe.
B. The trend toward the acceptance of the free market system among developing countries in Latin America, Asia, and Eastern Europe. C. The trend toward using English as the global language.
D. The trend toward establishing a world currency.
3. All of the following events and trends are among the four major trends described in the chapter as having a major impact or effect on global business EXCEPT: A. the trend toward the acceptance of the free market system among developing countries in Latin America, Asia, and Eastern Europe. B. the rapid growth of the World Trade Organization and regional free trade areas such as NAFTA and the European Union. C. the burgeoning impact of the Internet and other global media on the dissolution of national borders. D. the trend toward decreasing OPEC profits as oil reserves decline in the 21st century.
4. Simi Khan wants to move his business into the international arena as quickly as possible; however, to be successful he must consider a variety of factors that have global dimensions. Which of the following factors would be most important to...