Mark 442 Exam 1

Question 1

What are the 4 P’s?

Answer 1

Product
Price
Promotion
Place

Question 2

Impact of international business driving forces

Answer 2

Market needs/wants​

Technology​

Transportation​

Communication ​

Product costs & quality​

Global operational synergies​

Global economic trends​

Revenues from international sales​

Question 3

Impact of international business restraining forces

Answer 3

Market differences​

Management myopia​

Organizational culture​

National controls/barriers​

Question 4

Foreign environment uncontrollables​

Answer 4

Political and legal forces​

Economic climate​

Competition​

Level of technology​

Structure of distribution​

Geography and infrastructure​

Cultural forces​

Question 5

Self-Reference Criterion (SRC)​

Answer 5

Unknowingly relying on personal cultural values, experiences, and knowledge, which can lead to biased decisions.

Question 6

Ethnocentrism​

Answer 6

Belief that one’s own country or culture is superior, especially problematic when wealthy nations interact with less affluent ones.

Question 7

Stages of international marketing involvement​

Answer 7

More reactive and less strategic​:

No direct foreign marketing​

Infrequent foreign marketing​

More involved in strategic planning​:

Regular foreign marketing​

International marketing​

Global marketing​

Question 8

Capitalism

Answer 8

You have 2 cows. You sell 1 & buy a bull. Herd multiplies, & you sell it and retire on the income.​

Question 9

Socialism

Answer 9

You have 2 cows. You have to give 1 to your neighbor.​

Question 10

Communism

Answer 10

You have 2 cows. The state takes both & gives you some milk.​

Question 11

Low-income countries

Answer 11

GNI/capita $1,035 or less—13% of world population​

Question 12

Lower middle income

Answer 12

up to $1,036-4,046/capita​

Question 13

Upper middle income

Answer 13

up to $4,046-12,535/capita​

Question 14

High income

Answer 14

$12,536/capita or more​

Question 15

Common myths about the poor

Answer 15

They have no money or avoid non-essentials.

Developing markets aren’t profitable.

They lack access to technology.

Global companies may seem exploitative.

Question 16

Trade barriers

Answer 16

Implemented against foreign imports and businesses​

Use barriers for protection​

Include: quotas, boycotts, monetary barriers, and market barriers​

Question 17

Tariff barriers tend to increase

Answer 17

Inflationary pressures​

Special interest privileges​

Government control & influence over economic affairs​

Reciprocal tariffs​

Question 18

Tariff barriers tend to decrease & weaken

Answer 18

Manufacturer’s supply sources​

Choices available to consumers​

Competition​

Balance of payments positions​

Supply & demand positions​

International relations​

​

Question 19

Non-tariff barriers​

Answer 19

Quotas and import licenses​

Voluntary export restraints (VERs)​

Boycotts and embargoes​

Monetary barriers​

Standards​

Anti-dumping penalties​

Domestic subsidies and economic stimuli​

​

Question 20

Protectionism

Answer 20

The theory or practice of shielding a country’s domestic industries from foreign competition by taxing imports.

Question 21

Anti-capitalist protests​

Answer 21

Started in 1999 to combat globalism’s downsides.

Issues: environmental harm, worker exploitation, job loss, cultural loss, high oil prices, reduced sovereignty.

Includes both violent and nonviolent protests, with some policy changes achieved.

Question 22

Arguments for protectionism​

Answer 22

Protection of an infant industry ​

Protection of the home market ​

Need to keep money at home ​

Encouragement of capital accumulation​

Maintenance of the standard of living and real wages​

Conservation of natural resources ​

Industrialization of a low-wage nation ​

Maintenance of employment ​

Reduction of unemployment​

National defense ​

Enhancement of business size ​

Retaliation and bargaining ​

Question 23

History

Answer 23

Shapes a nation’s mission and global identity.

Subjective and influenced by culture.

Defines roles and relationships.​

Question 24

Japanese History Impacts its Business​

Answer 24

Japan’s history shaped its values and behaviors.

Influences: shogunate, colonial threats, social classes, WWII.

Rooted in Confucian philosophy.

Emphasizes loyalty and collective cooperation.

Question 25

Geography

Answer 25

Geography shapes climate, land, people, and resources. Limits and influences culture, economy, and industries. It affects a nation's ability to meet citizens' needs. Key for assessing market potential and local demands.

Question 26

Climate & topography​

Answer 26

Climate affects product function and requires adaptation. Factors: altitude, humidity, temperature, seasonal differences. One market can have diverse climates. Geography (mountains, oceans, jungles) impacts trade and growth.

Question 27

Resources​

Answer 27

Access to minerals and energy production. In underdeveloped areas, human labor generates energy. Many countries start off self-sufficient. Attitudes toward renewable energy and corporate responsibility matter.

Question 28

World trade routes​

Answer 28

Trade routes connect people and economies, overcoming differences. They address imbalances caused by geography. Established in 1500 between Europe, Asia, and the Americas. The Panama Canal plays a key role. Trade among developing nations is growing fast. Climate change affects trade routes.

Question 29

Population impacts demand​

Answer 29

Current population: over 7.5 billion. Projected to reach 9.8 billion by 2050. Most growth will be in underdeveloped regions. 85% of the population will live in these areas. 1.2 billion jobs needed to keep up with growth.

Question 30

Dynamics of Global Population Trends​

Answer 30

Rural/urban migration​ Population decline​ Aging​ Worker shortages & immigration​ Communication​