INTERNATIONAL MARKETING - MCQs

1. Marketing is a universal principle. (True/False)

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 home made
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, infact 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.

9. Ethnocentric companies are ___ in their business approaches.

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 ___.

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, USA has a two party system. (True/False)
Ans. True
16. The basic pattern of the family relationships in the 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.

20. India holds the ___ place in the rankings based on purchasing power parity.
Ans. 4th

21. ___ are instruments that connect computers to the phones that help access the internet.
Ans. Modem

22. ___ is sometimes referred to as „the information super highway‟.

23. Due to ___ change, the product development and production process become obsolete.
Ans. Technological

24. To provide 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 the international marketer.
(True/False)
Ans. False

27. Intellectually property is the creation of technology. (True/False)

28. Firms doing business in 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 about 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
environment 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 high impact on the
host country. (True/False)
Ans. False

36. Pioneering costs arise when an international firm, in attempt to gain the first mover advantage, spends
considerable time to learn 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 ___.

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 country’s BOP.
Ans. Direct Investment

42. ___ refers to the establishment of 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 quantity 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.

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 European Common Market is 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 1st of January ___.

58. ___ introduced the concept of sustainable development in order to preserve 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.

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 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 international market research is to know about 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 it 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)

74. It is imperative to test the product under standard conditions before launching it into the global market.
(True/False)
Ans. False