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International Environmental Forces

International Environmental Forces

1. Market screening is derived from

A. current market trends.

B. environmental scanning.

C. local sociocultural forces.

D. global opportunities and threats.

2. Market screening is divided into

A. segment screening and environmental screening.

B. region screening and segment screening.

C. environmental screening and country screening.

D. country screening and segment screening.

3. _______ is/are economic data that correlate highly with market demand for a product.

A. Market factors

B. Market indicators

C. Trend analysis

D. Cluster analysis

4. After Saudi Arabia, the country with the greatest heavy oil reserves is

A. Iraq.

B. Canada.

C. Iran.

D. Venezuela.

5. Understanding the religious beliefs of foreign markets is

A. useful, because religions affect attitudes and beliefs across cultures.

B. useful because there’s always the possibility of conversion.

C. not necessary because religion isn’t a part of culture; it’s beyond culture.

D. not really necessary because religion is one and the Truth is universal.

6. The two types of market screening procedures are

A. trend analysis and cluster analysis.

B. country screening and segment screening.

C. initial screening and secondary screening.

D. market indicators and market factors.

7. Trade names are protected under

A. the International Convention for the Protection of Industrial Property.

B. many local laws in most countries, so illegal trademark use is a local issue.

C. national laws in all UN member countries.

D. long-standing convention, but no legal agreements.

8. There are several criteria for segmenting markets. Which of the following are two criteria for segmenting?

A. Small and elusive

B. Large and definable

C. Diverse and accessible

D. Unclassified and unfulfilled

9. The concept of strict liability, as found in the US legal system, applies

A. to harm done by the designer/manufacturer without the need to prove negligence.

B. strictly to harm caused by the designer/manufacturer, so no penalties outside of damages can be awarded.

C. to harm done within narrow limits, considering the design of the product.

D. to children harmed by products in both the United States and the EU.

10. In a personal interview or phone survey, some respondents want to help the interviewer out of politeness or just to please the interviewer. This is known as

A. social desirability bias.

B. interviewer bias.

C. response bias.

D. market research.

11. The International Energy Agency concluded in 2010 that

A. a worldwide energy revolution based on low-carbon technologies is under way.

B. oil demand must immediately drop worldwide by 10 percent.

C. oil reserves would dry up by 2020.

D. sustainable energy development was not feasible.

12. In what order is the country screening process presented in the textbook?

A. Basic needs, economic/financial, political, sociocultural, and competitive

B. Basic needs, competitive, political, economic/financial, and sociocultural

C.Basic needs, sociocultural, economic/financial, political, and competitive

D. Basic needs, political, economic/financial, competitive, and sociocultural

13. Average growth rate in commercial energy use and real growth rate in GDP compose the _______ index.

A. e-commerce readiness

B. market size

C. market factor

D. market growth rate

14. Hiring and promoting employees on the basis of the specific local context in which the subsidiary operates is a/an _______ orientation.

A. polycentric

B. regiocentric

C. ethnocentric

D. geocentric

15. Hong Kong is seen as a more desirable location for foreign firms than Shanghai because

A. Hong Kong has a tradition of law adopted from British colonialism.

B. the Chinese government has given Hong Kong dispensation to act as a sovereign nation.

C. Shanghai’s main language is Mandarin, while Hong Kong’s is Cantonese.

D. Hong Kong remains a British colony.

16. Payments made to expatriates to compensate for extra costs of living abroad are called

A. differentials.

B. bonuses.

C. allowances.

D. premiums.

17. Enforcing contracts that cross international borders is

A. the responsibility of Interpol.

B. secondary to who has possession of the goods, regardless of title.

C. quite complicated and governed in most nations by the CISG.

D. simply a matter of applying the local law to the contract.

18. Patent trolling is the process of

A. looking for loopholes in patent protection and exploiting them.

B. legal research that uncovers obscure, deceased patent holders and liberates their inventions.

C. searching out patents that have expired and negotiating their replacements.

D. recording and registering patents in foreign countries to protect the firm’s IP.

19. When host-country nationals are employed

A. they’re already familiar with the home country.

B. they’re familiar with local customs, culture, and language.

C. training costs are a minimum.

D. any conflict of interest is removed.

20. In _______ screening, the important variables for segmentation are commonalities in needs and wants among consumers across nationalities.

A. country

B. product

C. segment

D. cultural


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