BUSN 501 Exam 1 Question and
answers already passed 2025/2026
five most important trends affecting global business - correct answer ✔- Rapid growth of the World
Trade Organization (WTO) and regional free trade areas*
- Acceptance of the free market system
-Growing middle class in developing countries
- Impact of the Internet, mobile phones, and other global media on the dissolution of national borders
- Mandate to properly manage the resources and global environment
Internationalization of U.S. Business - correct answer ✔Non-U.S. Companies in U.S.
- Many formally U.S. companies are now foreign owned
- Many foreign companies manufacture in U.S.
- Huge portion of products sold in U.S. are foreign made
RESULT - increased competition for U.S. companies
U.S. Companies in Other Countries
- Ford bought and sold Volvo
- Western Central Transportation controls U.K. rail freight business and Queen's private train
* U.S multinational companies outperform domestic companies
international marketing - correct answer ✔The performance of business activities designed to plan,
price, promote, and direct the flow of a company's goods and services to consumers or users in more
than one nation for a profit.
marketing vs. international mktg - correct answer ✔- marketing concepts are universal
- the difference is the UNCONTROLLABLE ENVIRONMENT
,Environmental adaption - correct answer ✔adaption - A conscious effort on the part of the
international marketer to anticipate the influences of both the foreign and domestic uncontrollable
factors on a marketing mix and then to adjust the marketing mix to minimize the effects.
cultural adjustments - correct answer ✔most challenging and important adaption for international
marketers
must establish a frame of reference
*examples:
- time conscious American vs. time is not an asset thinking Latin Americans
- hand gestures vary between countries s
obstacles to adaption - correct answer ✔Self-Reference Criterion (SRC)
- An unconscious reference to one's own cultural values, experiences, and knowledge as a basis for
decision.
÷Aware of only 1/10 of our cultural conditioning
- Example: Personal Space
Ethnocentrism
- The notion that people in one's own company, culture, or country know best how to do things.
- Often occurs with managers from affluent countries work with managers from less affluent countries
risks of SRC - correct answer ✔Influence the evaluation of the appropriateness of a domestically
designed marketing mix for a foreign market
real results of SRC - Esso; pet evaporated milk
adaption to foreign markets - correct answer ✔The most effective way to control the influence of SRC
and Ethnocentrism is:
,- To recognize the effects on our behavior
- To recognize that there may be more similarities than differences between countries
- To conduct cross-cultural analysis
Real Results of Adaptation
- McVitie, McDonald's, and Vicks
global awareness - correct answer ✔involves
- tolerance of cultural differences
- knowledge of cultures, history, world market potential, and global economic, social, and political
trends
developing a firms global awareness
- mgmt selection
- develop relationships in foreign countries
- culturally diverse senior executive staff or board of directors
5 stages of international marketing involvement - correct answer ✔1. No Direct Foreign Marketing
2. Infrequent Foreign Marketing
^ REACTIVE
3. Regular Foreign Marketing
4. International Marketing
5. Global Marketing
^ PROACTIVE
No Direct Foreign Marketing - correct answer ✔- Products "indirectly" reach foreign markets
- Foreign orders stimulate a company's interest to seek additional international sales
, Infrequent Foreign Marketing - correct answer ✔-Caused by temporary surpluses
-Firm has little or no intention of maintaining continuous market representation
Regular Foreign Marketing - correct answer ✔-Dedicated production capacity for foreign markets
-Products are adapted for foreign markets
-Firms depend on profits from foreign markets
international marketing - correct answer ✔Fully committed to and involved in international marketing
activities
- production takes place on foreign soil earning firms multinational corporation title
global marketing - correct answer ✔- Firm sees the world as one market
- Market segmentation
- - Not defined by borders
- - Now defined by income levels, usage patterns, or other factors that span the globe
- More than half of its revenues come from abroad
- "Global companies" and "global marketing"
- Most effective orientation
- - Standardize, yet adapt if necessary
international trade environment - correct answer ✔world trade is an important activity
- never before in modern history have countries been more economically interdependent
result - countries often attempt to control trade; protectionism more likely as competition intensifies
however, world trade has not always been this prevalent
answers already passed 2025/2026
five most important trends affecting global business - correct answer ✔- Rapid growth of the World
Trade Organization (WTO) and regional free trade areas*
- Acceptance of the free market system
-Growing middle class in developing countries
- Impact of the Internet, mobile phones, and other global media on the dissolution of national borders
- Mandate to properly manage the resources and global environment
Internationalization of U.S. Business - correct answer ✔Non-U.S. Companies in U.S.
- Many formally U.S. companies are now foreign owned
- Many foreign companies manufacture in U.S.
- Huge portion of products sold in U.S. are foreign made
RESULT - increased competition for U.S. companies
U.S. Companies in Other Countries
- Ford bought and sold Volvo
- Western Central Transportation controls U.K. rail freight business and Queen's private train
* U.S multinational companies outperform domestic companies
international marketing - correct answer ✔The performance of business activities designed to plan,
price, promote, and direct the flow of a company's goods and services to consumers or users in more
than one nation for a profit.
marketing vs. international mktg - correct answer ✔- marketing concepts are universal
- the difference is the UNCONTROLLABLE ENVIRONMENT
,Environmental adaption - correct answer ✔adaption - A conscious effort on the part of the
international marketer to anticipate the influences of both the foreign and domestic uncontrollable
factors on a marketing mix and then to adjust the marketing mix to minimize the effects.
cultural adjustments - correct answer ✔most challenging and important adaption for international
marketers
must establish a frame of reference
*examples:
- time conscious American vs. time is not an asset thinking Latin Americans
- hand gestures vary between countries s
obstacles to adaption - correct answer ✔Self-Reference Criterion (SRC)
- An unconscious reference to one's own cultural values, experiences, and knowledge as a basis for
decision.
÷Aware of only 1/10 of our cultural conditioning
- Example: Personal Space
Ethnocentrism
- The notion that people in one's own company, culture, or country know best how to do things.
- Often occurs with managers from affluent countries work with managers from less affluent countries
risks of SRC - correct answer ✔Influence the evaluation of the appropriateness of a domestically
designed marketing mix for a foreign market
real results of SRC - Esso; pet evaporated milk
adaption to foreign markets - correct answer ✔The most effective way to control the influence of SRC
and Ethnocentrism is:
,- To recognize the effects on our behavior
- To recognize that there may be more similarities than differences between countries
- To conduct cross-cultural analysis
Real Results of Adaptation
- McVitie, McDonald's, and Vicks
global awareness - correct answer ✔involves
- tolerance of cultural differences
- knowledge of cultures, history, world market potential, and global economic, social, and political
trends
developing a firms global awareness
- mgmt selection
- develop relationships in foreign countries
- culturally diverse senior executive staff or board of directors
5 stages of international marketing involvement - correct answer ✔1. No Direct Foreign Marketing
2. Infrequent Foreign Marketing
^ REACTIVE
3. Regular Foreign Marketing
4. International Marketing
5. Global Marketing
^ PROACTIVE
No Direct Foreign Marketing - correct answer ✔- Products "indirectly" reach foreign markets
- Foreign orders stimulate a company's interest to seek additional international sales
, Infrequent Foreign Marketing - correct answer ✔-Caused by temporary surpluses
-Firm has little or no intention of maintaining continuous market representation
Regular Foreign Marketing - correct answer ✔-Dedicated production capacity for foreign markets
-Products are adapted for foreign markets
-Firms depend on profits from foreign markets
international marketing - correct answer ✔Fully committed to and involved in international marketing
activities
- production takes place on foreign soil earning firms multinational corporation title
global marketing - correct answer ✔- Firm sees the world as one market
- Market segmentation
- - Not defined by borders
- - Now defined by income levels, usage patterns, or other factors that span the globe
- More than half of its revenues come from abroad
- "Global companies" and "global marketing"
- Most effective orientation
- - Standardize, yet adapt if necessary
international trade environment - correct answer ✔world trade is an important activity
- never before in modern history have countries been more economically interdependent
result - countries often attempt to control trade; protectionism more likely as competition intensifies
however, world trade has not always been this prevalent
