Test 2 Key

1. (p. 341) In many countries the term product homologation is used to describe the changes mandated by local product and service standards. TRUE

Cateora - Chapter 12 #5 Difficulty: Hard Type: Definition

2. (p. 341) Green marketing is the term frequently used to identify a marketer's efforts to reduce its dependency on U.S. dollars as the standard for international exchange. FALSE

Cateora - Chapter 12 #6 Difficulty: Easy Type: Definition

3. (p. 351) A well-known baby-food producer that introduced small jars of baby food in Africa complete with labels featuring a picture of a baby experienced the classic example of misinterpreted symbols--consumers thought it was ground-up babies in a jar. This would be an example of a problem with the packaging component in the product component model. TRUE

Cateora - Chapter 12 #19 Difficulty: Easy Type: Application

4. (p. 425) An e-vendor in a foreign market can generally ignore culture as an important variable because the commerce is being done via the Internet that is culturally insensitive. FALSE

Cateora - Chapter 14 #24 Difficulty: Hard Type: Comprehension

5. (p. 414) Export merchants are essentially foreign producers who both export and import goods and services. FALSE

Cateora - Chapter 14 #20 Difficulty: Moderate Type: Definition

6. (p. 414) The term broker is typically applied to import-export brokers who provide the intermediary function of bringing buyers and sellers together and who do not have a continuing relationship with their clients. TRUE

Cateora - Chapter 14 #17 Difficulty: Moderate Type: Definition

7. (p. 410) Merchant middlemen take title to the goods and buy and sell on their own account. TRUE

Cateora - Chapter 14 #9 Difficulty: Easy Type: Definition

8. (p. 183) Common law is based on an all-inclusive system of written rules of law. FALSE

Cateora - Chapter 07 #4 Difficulty: Moderate Type: Fact

9. (p. 189) One of the deterrents to litigation with respect to disputes in the international business arena is the fear of creating a poor image and damaging public relations. TRUE

Cateora - Chapter 07 #14 Difficulty: Moderate Type: Comprehension

10. (p. 203) The U.S. Foreign Corrupt Practices Act (FCPA) makes it illegal for companies to pay bribes to foreign officials, candidates, or political parties. TRUE

Cateora - Chapter 07 #22 Difficulty: Easy Type: Fact

11. (p. 194) In a common-law country, ownership of intellectual property rights is established by "prior use versus registration." What does the phrase "prior use versus registration" mean? a. One must register a trademark to gain rightful ownership of it. b. One must pay for the right to own a trademark. C. Whoever can establish first use of a trademark is typically considered the rightful owner. d. Ownership of a trademark can only be established in a court of law. e. Ownership of a trademark is global and is established by the United Nations.

Cateora - Chapter 07 #61 Difficulty: Moderate Type: Definition and Application

12. (p. 189) The first step that most arbitrators try to resolve a dispute between two parties is to attempt: A. conciliation. b. informal settlement. c. fault finding or wrong doing. d. litigation. e. coercion.

Cateora - Chapter 07 #49 Difficulty: Moderate Type: Comprehension

13. (p. 185) Among the unique aspects of Islamic law is the prohibition against the payment of: a. taxes. b. profits. C. interest. d. equity. e. accounting fees.

Cateora - Chapter 07 #38 Difficulty: Hard Type: Fact

14. (p. 350, Exhibit 12.1) Installation, repair and maintenance, deliveries, and warranties are all found in which of the following components of the product component model used in the text? a. core component B. support services component c. packaging component d. functional component e. global component

Cateora - Chapter 12 #50 Difficulty: Easy Type: Comprehension

15. (p. 355) Mark Townes is a dentist in Denver. During a four-day stretch in March, the snows in Denver were so bad that not one single patient was able to come for appointments with Dr. Townes. Since all of the appointments were missed, he made absolutely no money for the four days even though all of his normal expenses were still there. This difficulty illustrates one of a service's four distinct characteristics. Which area listed below is the best match? a. intangibility b. inseparability c. profitability d. heterogeneity E. perishability

Cateora - Chapter 12 #62 Difficulty: Moderate Type: Application and Comprehension

16. (p. 346) The process by which an innovation spreads is called: a. the innovation cycle. b. the product life cycle. C. the diffusion process. d. the fashion curve. e. the product curve.

Cateora - Chapter 12 #39 Difficulty: Moderate Type: Definition

17. (p. 347) Carolyn is interested in marketing her company's diet products in Asia. She is studying what acceptable behavior, norms, and values in Asian markets. Carolyn is studying ___________________. a. relative advantage. B. compatibility. c. complexity. d. trialability. e. observability.

Cateora - Chapter 12 #46 Difficulty: Easy Type: Definition

18. (p. 419-420) Valerie's company can't seem to keep customers. Which of the following channel strategy Cs should her company consider? a. cost b. control c. coverage d. character E. continuity

Cateora - Chapter 14 #69 Difficulty: Moderate Type: Comprehension

19. (p. 417) Generally speaking, anyone who has a continuing relationship with a supplier in buying and selling goods is considered to be a: a. foreign-country broker b. managing agent c. import jobber D. dealer e. foreign distributor

Cateora - Chapter 14 #64 Difficulty: Moderate Type: Comprehension

20. (p. 413) Companies with marketing facilities or contacts in different countries with excess marketing capacity or a desire for a broader product line sometimes take on additional product lines for international distribution. The formal name for this type of marketing is: a. backhauling. b. demand shifting. C. complimentary marketing. d. shape shifting. e. Norazi.

Cateora - Chapter 14 #49 Difficulty: Moderate Type: Definition

III. Questions 1. 2. 3. 4. 5. 6. Conformance to customer specifications and expectations. Relative advantage, Compatibility, Complexity, Trialability, Observability Packaging Market-perceived Intangibility, Inseparability, Heterogeneity, Perishability Customer Characteristics, Culture, Cost, Capital Requirement, Control, Coverage, Competition, Company objectives, Character, Continuity, Communication

7. Manufacturers Representatives, Distributors, Foreign Country Brokers, Managing Agents and Compradors, Dealers, Import Jobber, Wholesalers, and Retailers 8. China 9. Japan 10. High Density of Middlemen, Channel Control, Business Philosophy, Large-Scale Retail Store Law 11. Koran 12. Conciliation 13. Vietnam 14. Conciliation, Arbitration, Litigation 15. Common Law, Code Law, Islamic Law, Marxist-Socialist Tenets IV. Match the following 6, 9, 2, 7, 1, 3, 10, 8, 5, 4