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The central government of Arcadia requires that 80 percent of the proprietorship of a corporation should be held by its citizens.This particular requirement of the government is attributed to which of the following?


A) Exchange controls and ownership restrictions
B) Export restrictions
C) Import restrictions
D) Cultural misunderstandings

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Which of the following is true of a global corporation?


A) It emphasizes cultural differences across countries.
B) It emphasizes universal consumer needs and wants rather than differences.
C) It competes on a market-by-market basis.
D) Each of its international subsidiaries operates independently.

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Big Bite Ltd. ,an American fast food chain,has franchises in several countries.Big Bite regularly provides extensive marketing and promotional support to its franchises,and there is a complete absence of rifts between its domestic and international divisions.This indicates that Big Bite Ltd.has an admirable _____.


A) social culture
B) structure
C) political system
D) management process

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With regard to global marketing,which of the following is an example of an offensive goal?


A) A mutual fund firm headquartered in New York aiming to increase its sales targets in its European branches
B) An American automobile manufacturer planning to gain access to technological innovations developed in Japan
C) An information technology company based in Texas attempting to take advantage of the low costs of operations in India by outsourcing its services
D) An American clothing company aiming to expand its operations to India to compete with the local brands there

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One of the offensive goals multinational firms seek to achieve when investing in other countries is to:


A) take advantage of economies of scale.
B) compete with foreign firms on their own turf instead of in the United States.
C) take advantage of significant differences in operating costs between countries.
D) preempt competitors' global moves.

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Which of the following factors of Michael Porter's diamond model refers to the existence or absence in a country of supplier industries that are also internationally competitive?


A) Demand conditions
B) Company strategy,structure,and rivalry
C) Related and supporting industries
D) Factor conditions

Correct Answer

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Which of the following is a defensive goal multinational firms seek to achieve when investing in other countries?


A) To gain access to technological innovations developed in other countries
B) To maximize total sales revenue
C) To increase long-term growth and profit prospects
D) To improve overall market position

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In the context of global marketing research,which of the following can be assessed by examining per capita national income,extent of available financing,and distribution of income?


A) Culture
B) Ability to buy
C) Willingness to buy
D) Political conditions

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The availability of employable foreign nationals is a dimension of which internal factor?


A) Structure
B) Management processes
C) Culture
D) People

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_____ occurs when a company produces a product outside of its final destination and ships it there for sale.


A) Licensing
B) Exporting
C) Importing
D) Franchising

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Most foreign nations do not include an income question on their census,while others omit such items as marital status or education levels.What problem is a market researcher most likely to encounter here?


A) Language
B) Timeliness
C) Data content
D) Availability in the United States

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According to Michael Porter's diamond model of national advantage,which of the following factors refers to a nation's ability to turn its natural resources,skilled labor,and infrastructure into a competitive advantage?


A) Factor conditions
B) Related and supporting industries
C) Company strategy,structure,and rivalry
D) Demand conditions

Correct Answer

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Some nations establish limits on the amount of earned and invested funds that can be withdrawn from it.These exchange controls are usually established by nations that:


A) have a high trade surplus.
B) are a part of larger trade agreements.
C) are experiencing balance-of-payment problems.
D) have an open economy.

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Franklin Inc. ,an apparel manufacturer based in Scotland,opened a new store in the United States.Franklin's designs were well received by consumers in the host country.However,the firm incurred very high expenses due to high rent and high costs of labor.Also,there was a hike in the price of fuel in the United States.This led to increased expenditures on the transportation of goods.This indicates that Franklin Inc.had serious issues in the United States due to poor:


A) political conditions.
B) legal conditions.
C) economic conditions.
D) cultural conditions.

Correct Answer

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Tingle Inc.is an American food processing company.The company manufactures processed mayonnaise,cheese,cheese slices,jams,and white sauce and distributes its products to supermarkets and dealers in England,Norway,and Sweden through container ships.Which of the following approaches is Tingle Inc.using in this scenario?


A) Exporting
B) Licensing
C) Franchising
D) Strategic alliance

Correct Answer

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Alpha Partners Ltd. ,an international auditing firm,audits the accounts of various multinational corporations.The firm specializes in conducting audits for the hospitality sector by organizing global performance reviews.The ability of Alpha Partners Ltd.to conduct global performance reviews is associated with which of the following internal factors?


A) Structure
B) Culture
C) People
D) Management processes

Correct Answer

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In the context of the problems faced when entering foreign markets,which of the following refers to political uncertainty?


A) Differences in communication,spatial boundaries,perception of time,and behavior
B) Unstable governments,social unrest,and armed conflict
C) Differences in language,customs,norms,and customer preferences
D) Economic conditions and policies of a country that could harm a firm's operations within that country

Correct Answer

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Environmental factors include:


A) homogeneous market needs,global customers,shorter product life cycles,transferable brands and advertising,and the ability to globalize distribution channels.
B) worldwide economies of scale in manufacturing and distribution,steep learning curves,and worldwide sourcing efficiencies.
C) improving communications,favorable government policies,and the increasing speed of technological change.
D) competitive interdependencies among countries,global moves of competitors,and opportunities to preempt a competitor's global moves.

Correct Answer

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Which of the following statements is true about multidomestic companies?


A) Multidomestic companies tend to view the world as one market and pit their resources against competition in an integrated manner.
B) Local managers of multidomestic companies are given the authority to make necessary decisions and are held accountable for results.
C) Multidomestic companies pursue the same strategies in each of their foreign markets.
D) Multidomestic companies standardize marketing activities when there are cultural similarities and adapt them when cultures are different.

Correct Answer

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HSV Electronics Ltd.manufactures computers,laptops,digital cameras,and several other electronic products.It operates in many countries and standardizes its marketing activities when there are cultural similarities and adapts them when the cultures are different.The company has established universal product divisions,each responsible for selling its own products throughout the world.The information in this scenario implies that the electronic firm has adopted a _____ strategy.


A) multidomestic
B) transnational
C) global
D) vertical integration

Correct Answer

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