Chapter 1: Global Environmental Drivers

Chapter 1: Global Environmental Drivers

TRUE/FALSE

• International marketing is unable to retain the basic marketing tenets of value and exchange.

ANS: F PTS: 1 DIF: Easy REF: p. 5 OBJ: LO: 1-1 NAT: BUSPROG: Analytic STA: DISC: International Perspective KEY: Bloom's: Knowledge

• It is in the domestic marketing field where one can observe most closely the role of marketing as a key

agent of societal change.

ANS: F PTS: 1 DIF: Easy REF: p. 5 OBJ: LO: 1-1 NAT: BUSPROG: Analytic STA: DISC: International Perspective KEY: Bloom's: Knowledge

• Only those who participate in the transactions are exposed to international marketing and subject to its

changing influences.

ANS: F PTS: 1 DIF: Easy REF: p. 7 OBJ: LO: 1-1 NAT: BUSPROG: Analytic STA: DISC: International Perspective KEY: Bloom's: Knowledge

• To achieve success in the art of international marketing, it is necessary to be

firmly grounded in its scientific aspects.

ANS: T PTS: 1 DIF: Moderate REF: p. 7 OBJ: LO: 1-1 NAT: BUSPROG: Analytic STA: DISC: International Perspective KEY: Bloom's: Knowledge

• World trade has assumed an importance heretofore unknown to the global community and as a result,

many countries and firms have found it highly desirable to become major participants in international marketing.

ANS: T PTS: 1 DIF: Moderate REF: p. 7 OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: International Perspective KEY: Bloom's: Knowledge

• International specialization and cross-sourcing have made production much more efficient.

ANS: T PTS: 1 DIF: Easy REF: p. 7 OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: International Perspective KEY: Bloom's: Knowledge

• The network of global linkages that bind us all as a result of world trade were first recognized during

the rebuilding of Europe after WWII.

ANS: F PTS: 1 DIF: Moderate REF: p. 8 OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: International Perspective KEY: Bloom's: Knowledge

(International Marketing 10e Michael Czinkota, Ilkka Ronkainen) (Test Bank all Chapters) 1 / 4

• World trade has brought about a global reorientation of corporate processes.

ANS: T PTS: 1 DIF: Easy REF: p. 10 OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: International Perspective KEY: Bloom's: Knowledge

• Due to ongoing global technological innovation in marketing, products are distributed at a higher cost.

ANS: F PTS: 1 DIF: Moderate REF: p. 10 OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: International Perspective KEY: Bloom's: Knowledge

• Global investment strategies, coupled with production and distribution sharing, increase the challenge

of staying in a leadership position.

ANS: T PTS: 1 DIF: Easy REF: p. 10 OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: International Perspective KEY: Bloom's: Knowledge

• The level of global investment has resulted in a decrease in international debt by governments.

ANS: F PTS: 1 DIF: Moderate REF: p. 10 OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: International Perspective KEY: Bloom's: Knowledge

• Currency flows and exchange rates have a greater effect on trade than government monetary policies.

ANS: T PTS: 1 DIF: Moderate REF: p. 12 OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: International Perspective KEY: Bloom's: Knowledge

• The level of trade is now determined by exchange rates.

ANS: T PTS: 1 DIF: Moderate REF: p. 12 OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: International Perspective KEY: Bloom's: Knowledge

• Trade flows outnumber currency flows by 100 to 1.

ANS: F PTS: 1 DIF: Easy REF: p. 12 OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: International Perspective KEY: Bloom's: Knowledge

• Constant rapid technological change and vast advances in communication permit firms and countries

to quickly emulate innovation and counteract carefully designed plans.

ANS: T PTS: 1 DIF: Easy REF: p. 12 OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: International Perspective KEY: Bloom's: Knowledge

• Policymakers restrict the impact of global trade and financial flows by eliminating tariffs and quotas.

ANS: F PTS: 1 DIF: Easy REF: p. 12 OBJ: LO: 1-2 NAT: BUSPROG: Analytic 2 / 4

STA: DISC: International Perspective KEY: Bloom's: Knowledge

• Market saturation can be avoided by lengthening or rejuvenating product life cycles in other countries.

ANS: T PTS: 1 DIF: Easy REF: p. 13 OBJ: LO: 1-3 NAT: BUSPROG: Analytic STA: DISC: International Perspective KEY: Bloom's: Knowledge

• Many firms do not participate in the global market because their managers believe that international

marketing should only be carried out by large multinational corporations.

ANS: T PTS: 1 DIF: Easy REF: p. 15 OBJ: LO: 1-3 NAT: BUSPROG: Analytic STA: DISC: International Perspective KEY: Bloom's: Knowledge

• Firms are fairly consistent in their international activities because of the similarities in their levels of

experience, resources, and capabilities.

ANS: F PTS: 1 DIF: Easy REF: p. 15 OBJ: LO: 1-3 NAT: BUSPROG: Analytic STA: DISC: International Perspective KEY: Bloom's: Knowledge

• The role of government in the marketplace is decreasing dramatically.

ANS: F PTS: 1 DIF: Easy REF: p. 18 OBJ: LO: 1-3 NAT: BUSPROG: Analytic STA: DISC: International Perspective KEY: Bloom's: Knowledge

MULTIPLE CHOICE

• Which of the following best defines international marketing?
• It is the process of planning and conducting economic forecasting in developing countries.
• It is the process of creating a subsidiary in a neighboring country.
• It consists of the activity, institutions, and processes across national borders that create,

communicate, deliver, and exchange offerings that have value for stakeholders and society.

• It is the process of hiring employees from other countries to assist with advertising

messages, public communication, and the building of overall awareness.

ANS: C PTS: 1 DIF: Easy REF: p. 5 OBJ: LO: 1-1 NAT: BUSPROG: Analytic STA: DISC: International Perspective KEY: Bloom's: Knowledge

• Which of the following is a form of international marketing?
• Government-owned operations
• Inter-state trade
• Joint ventures
• Putting-out system

ANS: C PTS: 1 DIF: Easy REF: p. 5 OBJ: LO: 1-1 NAT: BUSPROG: Analytic STA: DISC: International Perspective KEY: Bloom's: Knowledge

• / 4

• Export-import trade, licensing, joint ventures, wholly owned subsidiaries, turnkey operations, and

management contracts are examples of:

• global positioning systems.
• outsourcing.
• regional agreements.
• international marketing.

ANS: D PTS: 1 DIF: Easy REF: p. 5 OBJ: LO: 1-1 NAT: BUSPROG: Analytic STA: DISC: International Perspective KEY: Bloom's: Knowledge

• International marketing differs from domestic marketing in that international marketing has different:
• marketing principles.
• tenets of value and exchange.
• applications, complexity, and intensity.
• social responsibilities.

ANS: C PTS: 1 DIF: Easy REF: p. 5 OBJ: LO: 1-1 NAT: BUSPROG: Analytic STA: DISC: International Perspective KEY: Bloom's: Knowledge

• Which of the following is true of an international marketer?
• An international marketer faces the same macroenvironmental factors as a domestic

marketer.

• An international marketer and a domestic marketer are subject to a similar set of

constraints.

• An international marketer has to understand that basic marketing principles differ in

different markets.

• An international marketer needs to face conflicts resulting from different laws, cultures,

and societies.

ANS: D PTS: 1 DIF: Easy REF: p. 5 OBJ: LO: 1-1 NAT: BUSPROG: Analytic STA: DISC: International Perspective KEY: Bloom's: Knowledge

• Which of the following is true of international marketing?
• The international marketer is faced with often inconsistent legal systems when it comes to

monitoring environmental pollution.

• International marketing does not retain the basic marketing tenets of value and exchange.
• International marketing does not focus on stakeholders and society whose present

positions are to be improved.

• The international marketer is subject to the same set of macroenvironmental factors as a

domestic marketer.

ANS: A PTS: 1 DIF: Moderate REF: p. 5 OBJ: LO: 1-1 NAT: BUSPROG: Analytic STA: DISC: International Perspective KEY: Bloom's: Knowledge

• Which of the following statements is true about the role of international markets?
• Those who do not participate in the transactions are not exposed to international marketing

and are not subject to its changing influences.

• International markets can become a source of needs satisfaction.
• International markets cannot influence the quality of life of individuals.
• International markets can simplify the process and eliminate complex business decisions.

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