International Marketing Multiple Choice Questions and Answers pdf for the preparation of academic and competitive examinations.
International Marketing Multiple Choice Questions and Answers
1. Marketing is a universal principle. (True / False)
Ans. True
2. Though marketing is universal, different marketing approaches are required for different countries. (True/False)
Ans. True
3. The main objective of imposing quantitative restrictions on imports is to increase the demand for homemade items. (True/False)
Ans. True
4. The mobility of labour and capital in the international market is smoother than in the domestic market. (True/False)
Ans. False
5. A clear focus on its profit goals and sales maximisation can give the company a distinct advantage. (True/False)
Ans. True
6. International marketing and multinational marketing are very similar to each other, in fact almost the same thing. (True/False)
Ans. False
7. As per ___ approach, every country has a unique business environment and therefore should be dealt with differently.
Ans. Polycentric
8. European Union is based on ___ orientation.
Ans. Regiocentric
9. Ethnocentric companies are ___ in their business approaches.
Ans. Centralized
10. The companies that sell products in the global market without making any adaptations to their home made product are called ___.
Ans. International Companies
11. Samsung Electronics is MNCs with its base in ___.
Ans. South Korea
12. ___ marketing and multinational marketing are very similar to each other, infact almost the same thing.
Ans. International
13. For USA ___ is the biggest market in the world for consumer and engineering products.
Ans. India
14. According to experts, the best way to control inflation is to earn ___ through exports
Ans. Foreign Exchange
15. If classified on the number of political parties, the USA has a two-party system. (True/False)
Ans. True
16. The basic pattern of family relationships in Latin American countries is based on equality. (True/False)
Ans. False
17. Region and religion, both are important determinants of cultural values. (True/False
Ans. True
18. Countries where the government decides the market prices are called ___ economies.
Ans. Mixed
19. A ___ is defined as a group of people willing to buy a particular product.
Ans. Market
20. India holds the ___ place in the rankings based on purchasing power parity.
Ans. 4th
21. ___ are instruments that connect computers to phones that help access the internet.
Ans. Modem
22. ___ is sometimes referred to as „the information superhighway‟.
Ans. Internet
23. Due to ___ change, the product development and production process become obsolete.
Ans. Technological
24. To provide the right and adequate consumer education is a ___ of the organisation.
Ans. Social responsibility
25. The process in which a company is totally taken over by the government is called domestication. (True/False)
Ans. False
26. Attitudes and beliefs are but time is not an element of culture that concerns international marketer. (True/False)
Ans. False
27. Intellectually property is the creation of technology. (True/False)
Ans. False
28. Firms doing business in the UK have two basic choices in form of firm-limited company and partnership. (True/False)
Ans. False
29. Adam Smith wrote the book „Wealth of Nations‟, wherein he mentioned the „invisible hand‟. (True/False)
Ans. True
30. As per the Relative Advantage Theory, the country should produce wheat if it is the best thing it can do. (True/False)
Ans. True
31. Many believe that firms within oligopoly enter foreign markets so as to equalize absolute advantages. (True/False)
Ans. False
32. It is difficult to do business in a country where there are no strict legal standards for product and environmental safety. (True/False)
Ans. False
33. Economic and political risks are not independent of each other, but they influence each other. (True/False)
Ans. True
34. One of the first-mover advantages is to ride the experience curve ahead of the rivals and capture demand by creating a solid brand name. (True/False)
Ans. True
35. Whenever a firm wants to enter an international market, it should be on a high scale with a high impact on the host country. (True/False)
Ans. False
36. Pioneering costs arise when an international firm, in an attempt to gain the first-mover advantage, spends considerable time learning the systems of the host country. (True/False)
Ans. True
37. Large companies enter into ___ with smaller companies to acquire intellectual property and resources, which are otherwise hard to get.
Ans. Joint Venture
38. Xerox has formed a joint venture with ___.
Ans. Fuji Photo
39. ___ are formed by two or more, in most cases, indirect competitors, for a set period of time.
Ans. Strategic Alliance
40. The goal of alliances is to minimize risk while maximizing the ___ and profit.
Ans. Leverage
41. ___ removes the obstacle of immobility in labour markets and leads to an improvement in current account balance of the country’s BOP.
Ans. Direct Investment
42. ___ refers to the establishment of an entirely new operation in a foreign country.
Ans. Greenfield Investment
43. In case of ___ the businessman does not have to hire a facility or labour in order to get finished goods.
Ans. Contract Manufacturing
44. Contract manufacturing works only if the company gets involved with the ___ company.
Ans. Right
45. In ___ there is usually a sale of intangible assets to the new business.
Ans. Franchising
46. In ___ franchise, the manufacturer uses the franchise agreement to determine how the product is distributed by the person buying the franchise.
Ans. Product
47. Tariffs that are imposed to benefit the domestic industries are called protective tariffs. (True/False)
Ans. True
48. Quota is a kind of non-tariff barrier, levied to regulate the number of imports. (True/False)
Ans. True
49. Quotas are generally imposed on imports of goods whose supply is elastic. (True/False)
Ans. False
50. The ___ effect of a tariff is invariably to reduce aggregate consumption.
Ans. Consumption
51. The export control measures will affect the export of a home country only if they are___.
Ans. Discriminatory
52. The most significant achievement of the European Common Market is the breaking of ___.
Ans. Monopolies
53. Many countries have resorted to ___ agreements to deal with the problem of regulation of foreign currency.
Ans. Bilateral
54. ___ trade agreements are formed between more than two countries at a time.
Ans. Multilateral
55. The member countries of ___ contribute together to four-fifth of the total world trade.
Ans. GATT
56. The basic aim of GATT is to relax the ___ among members countries.
Ans. Trade negotiations
57. WTO was established on the 1st of January ___.
Ans. 1995
58. ___ introduced the concept of sustainable development in order to preserve the environment along with economic development.
Ans. WTO
59. The WTO‟s ___ lowers trade barriers through negotiation and applies the principle of non-discrimination.
Ans. Global system
60. As per evidence, lower trade barriers are ___ for employment
Ans. Good
61. In a ___ economy, there is an attempt to save taxes by hiding income.
Ans. Black
62. Under ___ scheme, people came out themselves to disclose their black income and pay taxes.
Ans. Voluntary Disclosure of Income
63. Market research is the main instrument for ascertaining demand. (True/False)
Ans. True
64. The final stage in the product life cycle is the stage of downfall. (True/False)
Ans. True
65. Revenue tariffs imposed are very high and tend to disrupt the flow of imports into the country. (True/False)
Ans. False
66. SAFTA, ASEAN, SAARC etc are preferential agreements formed to regulate trade and are under the control of GATT. (True/False)
Ans. False
67. The choice of the nation which a businessman wants to enter would probably depend on immediate short term benefits. (True/False)
Ans. False
68. The main purpose of international market research is to know about the company’s assets and its shareholders. (True/False)
Ans. False
69. The marketing researcher is mainly concerned with the details regarding consumers. (True/False)
Ans. True
70. Marketing research doesn’t help in knowing the competitive policies. (True/False)
Ans. False
71. National products add to the opportunity cost of a company as they can’t be used in any other country. (True/False)
Ans. True
72. International products and international brands are one of the same things. (True/False)
Ans. False
73. 7up Lemon was an entirely new invention by 7up. (True/False)
Ans. False
74. It is imperative to test the product under standard conditions before launching it into the global market. (True/False)
Ans. False
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