INTERNATIONAL MARKETING MCQs

1. Different strategies are suitable for different companies depending on their particular
situation. This is articulated by the “EPRG Framework”. What are the four options of the
EPRG Framework?
A. Ethno Policies, Private Polies, Racial Policies, Geography
B. Ethnocentrism, Polycentrism, Regiocentrism, Geocentrism
C. Energy, Privacy, Real-World, Giggity
D. Ethnocentrism, Polycentrism, Racialism, Governmental
Answer: B

2. For any company looking to expand internationally, be it first-time exporter or a major

multinational, a fundamental question has been, and continues to be:
A. New Market, New Product
B. New Market, Same Product
C. The extent to which the marketing mix should or can be standardized across the countries
in which the firm operates
D. PDI, PDV
Answer: C

3. European and Japanese managers have been “thinking international” from the outset
(beginning).
A. True
B. False
Answer: A

4. Distribution channels vary depending on which of the following?

A. Target market size
B. Competition
C. Available distribution intermediaries
D. All of the above
Answer: D

5. Within the firm, it is primarily the ________ or _________ managers who argue for
standardization for the sake of economies of scale.
A. Production, Finance
B. Marketing, Distribution
C. Logistic, Manufacturer
D. Primary, Secondary
Answer: A

6. Which country has more retailers than the rest of the world combined?
A. Japan
B. China
C. India
D. Germany
Answer: B

7. The process of international market selection is typically done by using _________ to

enable a quick and relatively low-cost overview of as many markets as possible.
A. Quantitative data
B. Secondary data
C. Primary data
D. All of the above
Answer: B

8. Ethnocentrism can simply be defined as:

A. Developing a simple diverse strategy for new markets
B. Develop one strategy for all countries worldwide
C. Use everywhere the same strategy as at home.
D. Being ethnically centred on a global scale
Answer: C

9. Which of the following would you consider to be a socio-cultural influence on

international marketing?
A. Language
B. Religion
C. Social organisation
D. All of the above
Answer: D
10. An overall strategy that involves the firm pouring all of its available resources into one or
a select few markets is knows as:
A. Maximum investment strategy
B. Sprinkler Strategy
C. Waterfall Strategy
D. Standardization
Answer: C

11. All of the following are actual modes of market-entry EXCEPT:

A. Licensing
B. Standardization
C. Franchising
D. Exporting
Answer: B

12. __________ suggests spreading the company’s resources in order to gain even small
footholds across as many markets as possible
A. Direct Exporting
B. Sprinkler Strategy
C. Agent Intermediaries
D. Waterfall Strategy
Answer: B

13. Conditions that may encourage an organization in a domestic environment to expand are:
A. Market Saturation, Slow Population, Growth, Product Adolescence
B. Factors related to the firm's industrial sector, or to the company itself and its products
C. A unique product with a strong competitive advantage, a forward-looking managerial
philosophy, corporate objectives calling for rapid growth, as well as as of the right of talents
and skills for international operations
D. All of the above
Answer: D

14. _________ usually means that the company sells to a customer in another country, be it
an intermediary or an end-customer.
A. Indirect exporting
B. Direct Exporting
C. Franchising
D. Cross selling
Answer: B

15. Which of the following alternative market entry modes offers the least risk?
A. Consortia
B. Strategic International Alliance
C. Contract Manufacturing
D. Mergers and Acquisitions
Answer: C

16. Which of the following alternative market entry modes offers the most control and risk?
A. Franchising
B. Licensing
C. Greenfield
D. Strategic Alliance
Answer: C

17. MEA stands for Manufacturer Export Agent

A. True
B. False
Answer: A

18. ______________ is a partnership of two or more companies that join forces to create a
separate legal entity.
A. International Joint Ventures
B. International Consortia
C. Mergers and Acquisitions
D. Co-Branding
Answer: A

19. An unconscious reference to one’s own cultural values, experiences, and knowledge as a
basis for decisions.
A. Self-Reference Criterion
B. Pro Globalist
C. Tolerance Effect
D. Culture
Answer: A

20. For managers selling capital equipment and big-ticket industrial services, understanding
the concept of ________ demand is absolutely fundamental to their success.
A. Kinked
B. Sliding
C. Multiple
D. Derived
Answer: D

21. The concept of quality encompasses many factors, and the perception of quality rests
solely with the _____________.
A. Price
B. Value
C. Sellers
D. Customer
Answer: D

22. ISO 9000 concerns the registration and certification of a manufacturer's ___________.
A. Goods
B. Services
C. Quality systems
D. MIS
Answer: C

23. The __________ measures customers' satisfaction and perceptions of quality of a

representative sample of U.S goods and services.
A. ISO 9000
B. MIS
C. ACSI
D. API
Answer: C

24. The ability to match the acceptable behaviour, norms, and values is called a product's:
A. Relative advantage
B. Compatibility
C. Complexity
D. Trial-ability
Answer: B

25. One of the early problems faced by BMW when it attempted to market its line of
automobiles in the United States was a severe shortage of spare parts. If BMW's
management makes the decision to correct this problem, in which of the following
components of the product component model would management need to make
improvement?
A. Core component
B. Functional component
C. Support services component
D. First stage component
Answer: C

26. How do the vast majority of services enter a foreign market?

A. Exporting
B. Importing
C. Brokers
D. Licensing, Franchising, or Direct Investment
Answer: D

27. A successful _______ is the most valuable resource a company has.

A. Marketing Campaign
B. CEO
C. Product
D. Brand
Answer: D

28. Any influence that the company of manufacture, assembly, or design has on a consumer's
positive or negative perception of a product is called the:
A. Polar effect
B. Alteration effect
C. Country-of-origin effect
D. Transferation effect
Answer: C

29. The foundation of the Japaense distribution system is the:

A. Middleman
B. Upper man
C. Small retailer
D. Big retailer
Answer: C

5. Three questions are central to strategy. Which is not one of them?

a. When do we compete?
b. With whom do we need to develop key relationships?
c. Where do we compete?
d. How do we compete?
6. There are complaints towards globalization. Which is not one of them?
a. unhealthy dietary patterns
b. legal rights
c. unsustainable consumption
d. loss of local
5. Three questions are central to strategy. Which is not one of them?
a. When do we compete?
b. With whom do we need to develop key relationships?
c. Where do we compete?
d. How do we compete?
6. There are complaints towards globalization. Which is not one of them?
a. unhealthy dietary patterns
b. legal rights
c. unsustainable consumption
d. loss of local
30. Three questions are central to strategy. Which is not one of them?
A. When do we compete?
B. With whom do we need to develop key relationships?
C. Where do we compete?
D. How do we compete?
Answer: A

31. There are complaints towards globalization. Which is not one of them?
A. unhealthy dietary patterns
B. legal rights
C. unsustainable consumption
D. loss of local Culture
Answer: B

32. Web sales are characterized as having which of the following challenging aspects?
A. Delivery of goods
B. Discounts for volume purchase
C. Consumer loyalty
D. Payment
Answer: A

33. Which of the following external intermediaries does not take title to the goods that they
process?
A. Merchant intermediaries
B. Export merchants
C. Trading companies
D. Agent intermediaries
Answer: D

34. James Bond is looking for an intermediary that specialise in researching foreign markets
for a client's products. Additionally, he would like this intermediary to handle all the routine
details of getting his products to the foreign customers that he anticipates he will have during
the next business year. Which of the following would be the best choice for Mr. Bond if he
wants to meet his objectives?
A. Export Management Company
B. Import Management Company
C. A jobber
D. A robber
Answer: A

35. As Global Retailers like Idea, Costco, Toys "R" Us, or Wal-Mart expand their global
coverage, they are becoming major _________ for international markets.
A. Domestic intermediaries
B. International intermediaries
C. Globally renowned
D. EMC
Answer: A

36. MEA stands for Manufacturer Export Agent

A. True
B. False
Answer: A
37. Which of the following international intermediaries often has exclusive sales rights in a
specific country and works in close cooperation with the manufacturer?
A. Foreign-country broker
B. Managing agent
C. Dealer
D. Foreign distributor
Answer: D

38. Distribution channels vary depending on which of the following?

A. Target market size
B. Competition
C. Available distribution intermediaries
D. All of the above
Answer: D

39. Conditions that may encourage an organization in a domestic environment to expand are:
A. Market Saturation, Slow Population, Growth, Product Adolescence
B. Factors related to the firm's industrial sector, or to the company itself and its products
C. A unique product with a strong competitive advantage, a forward-looking managerial
philosophy, corporate objectives calling for rapid growth, as well as as of the right of talents
and skills for international operations
D. All of the above
Answer: D

40. Which country has more retailers than the rest of the world combined?
A. Japan
B. China
C. India
D. Germany
Answer: B

41. Which of the following C's must be considered if the company is to achieve the optimum
volume of sales, secure a reasonable market share, and gain satisfactory market penetration?
A. Coverage
B. Control
C. Character
D. Continuity
Answer: A

42. Which of the following C's must be considered with regard to ownership of the sales
force and distribution system?
A. Control
B. Cost
C. Continuity
D. Coverage
Answer: A

43. As a result of international trade and global interdependence, countries' inflation rates
tend to:
A. increase
B. moderate
C. be unpredictable
D. be unstable
Answer: B

44. Because of trade (and imports), inflation:

A. increases
B. decreases
C. moderates
D. disappears
Answer: C

45. A strong orientation toward the home country is an indication of:

A. ethnocentricity
B. polycentricity
C. geocentricity
Answer: A

46. This is the feeling within a culture that its values are superior to those of foreign cultures.
A. ethnocentricity
B. polycentricity
C. geocentricity
Answer: A

47. Which of the following would you consider to be a socio-cultural influence on

international marketing?
A. Language
B. Religion
C. Social organisation
D. All of the above
Answer: D

48. A ___________ is a tax-free enclave in which imported goods can be stored or

processed. It is also not considered part of the country as far as import and other regulations
are concerned
A. Free trade zone
B. Port storage centre
C. Corporate housing unit
D. Manufacturing den
Answer: A

49. In countries with rapid inflation goods are often sold below their cost of replacement
A. True
B. False
Answer: A

50. Deflation results in decreasing prices and creates a positive result for consumers, but it
puts pressure on everyone in the supply chain to lower costs
A. True
B. False
Answer: A

51. A _________ exists when various companies producing similar products or services work
together to control their markets.
A. Inflation period
B. Deflation period
C. Cartel
D. Service
Answer: C

52. Domestic cartelization is legal in North America

A. True
B. False
Answer: A
53. Canada does not allow foreign-market cartels if the results have an adverse impact on the
Canadian economy.
A. True
B. False
Answer: A
54. Ethnocentrism can simply be defined as:
A. Developing a simple diverse strategy for new markets
B. Develop one strategy for all countries worldwide
C. Use everywhere the same strategy as at home.
D. Being ethnically centred on a global scale
Answer: C

55. All of the following are actual modes of market-entry EXCEPT:

A. Licensing
B. Standardization
C. Franchising
D. Exporting
Answer: B

56. According to the textbook, international marketing is “the multinational process of

planning and executing the conception, pricing, promotion, and distribution of ideas, goods,
and services to create exchanges that satisfy individual and organizational objectives.” The
definition fails to recognize:
A. Non-profit marketing
B. business-to-business marketing
C. consumer marketing
D. integration of the 4 Ps
Answer: B

57. ISO 9000 concerns the registration and certification of a manufacturer's ___________.
A. Goods
B. Services
C. Quality systems
D. MIS
Answer: C

58. Providing managerial and technical expertise to an overseas firm on contractual basis is
A. International Joint Ventures
B. Mergers and Acquisitions
C. Contract Manufacturing
D. Licensing
Answer: C

59. Sony and Pepsi joined together to market Wilson sporting goods in Japan. This strategy is
A. International Joint Ventures
B. Mergers and Acquisitions
C. Contract Manufacturing
D. Licensing
Answer: C

60.