Chapter 1
Introduction to international marketing
MULTIPLE CHOICE
1. Which of the following is not one of the forms of international marketing defined in the text?
A. Government-owned operations B. Licensing C. Joint ventures D. Wholly owned subsidiaries
ANS: A PTS: 1 DIF: Moderate REF: International marketing defined
2. Which of the following statements is not true when describing international transactions?
A. Marketing internationally needs to be pursued, often aggressively. B. Those who do not participate in
the transaction are still exposed to the changing influences of international marketing. C. International
marketing can be as much art as science. D. The international marketer recognises the changing nature
of transactions but is not part of the exchange.
ANS: D PTS: 1 DIF: Moderate REF: International marketing defined
3. Which of the following trading blocs does not exist?
A. NAFTA in North America B. European Union in Europe C. ASEAN Free Trade Area (AFTA) in Asia D.
Bilateral trade agreements between China and India
ANS: D PTS: 1 DIF: Moderate REF: Global market factors
,4. ____________refers to the capability of attracting and influencing all stakeholders, whether through
energetic brands, heroic missions, distinctive talent development or an inspirational corporate culture.
A. Hard power B. Soft power C. Influential power D. Media power
ANS: B PTS: 1 DIF: Difficult REF: The strategic planning process
5. Which of the following has traditionally been a domestic issue and is now an international issue?
A. Geographic boundaries of cities B. The flow of water through dam diversion tunnels C. Applications for
government subsidies D. Agriculture and farm policies affecting imports and exports
ANS: D PTS: 1 DIF: Difficult REF: Globalisation drivers
6. Which country has had the most dramatic growth in exports in the period 1990–2004?
A. Japan B. India C. USA D. China
ANS: B PTS: 1 DIF: Moderate REF: Globalisation drivers
7. Traditionally, trade flow determined currency flows and therefore the level of the exchange rate. The
exchange rate is now determined by:
A. currency flows. B. trade levels. C. domestic policy. D. wholesalers who take possession of the product
prior to sale.
,ANS: A PTS: 1 DIF: Difficult REF: Globalisation drivers
8. Generally, the strategic business unit (SBU) is the unit around which decisions are based. In practice,
SBUs represent groupings organised around market similarities based on:
A. needs or wants to be met. B. end-user customers to be targeted. C. the product or service used to
meet the needs of specific customers. D. All of these choices
ANS: D PTS: 1 DIF: Difficult REF: Globalisation drivers
9. A ___________ is defined by its emphasis on a single industry segment, within which the orientation
may be toward either low cost or differentiation. ________ is characterised by a company offering
products or services at a lower cost than the competition. A _____________ is industry-wide or focused
on a single segment and takes advantage of the marketer’s real or perceived uniqueness in elements
such as design or after-sales service.
A. differentiation strategy; cost leadership; focus strategy B. differentiation strategy; low-price
leadership; focus strategy C. focus strategy; cost leadership; differentiation strategy D. price leadership;
cost leadership; differentiation strategy
ANS: C PTS: 1 DIF: Moderate REF: Globalisation drivers
10. All of the following are characteristics of the first stage of the global marketing evolution of a
company, except:
A. Entry is constrained by a lack of funding (domestic growth still priority investment), so entry is low-
cost B. The risk tends to be minimised by entering close markets (geographically, culturally and
economically) C. The entry is based on core products with technical superiority D. The objective is to
achieve economies of scope
ANS: D PTS: 1 DIF: Moderate REF: Domestic policy repercussions
, 11. In regards to Australian exporters, which of the following is incorrect?
A. Ninety per cent of Australian exporters have fewer than 50 employees. B. There is a relatively even
spread between Australian export firms involved in consumer and industrial markets. C. Approximately
half of Australian exporters operate in fewer than five export markets. D. Australian SMEs are
responsible for 30% of Australian exports.
ANS: D PTS: 1 DIF: Difficult REF: Opportunities and challenges in international marketing
12. Which of the following events helped identify global linkages, causing the world to realise that the
systems of product development, distribution and consumption are intertwined and related?
A. The worldwide oil crisis of 1970 B. Gulf War One and Gulf War Two C. The Second World War D. The
opening of the Suez Canal
ANS: A PTS: 1 DIF: Moderate REF: Globalisation drivers
13. The marketing manager’s task is to plan and execute programs that will ensure a long-term
competitive advantage for the company. This includes determining of a specific target market and:
A. developing a uniform currency worldwide. B. marketing management. C. looking at occupants,
objects, occasions and objectives. D. testing markets.
ANS: B PTS: 1 DIF: Moderate REF: The strategic planning process
14. The emergence of technology has created new markets for companies. Which of the following
represents an example of this new market tendency?
Introduction to international marketing
MULTIPLE CHOICE
1. Which of the following is not one of the forms of international marketing defined in the text?
A. Government-owned operations B. Licensing C. Joint ventures D. Wholly owned subsidiaries
ANS: A PTS: 1 DIF: Moderate REF: International marketing defined
2. Which of the following statements is not true when describing international transactions?
A. Marketing internationally needs to be pursued, often aggressively. B. Those who do not participate in
the transaction are still exposed to the changing influences of international marketing. C. International
marketing can be as much art as science. D. The international marketer recognises the changing nature
of transactions but is not part of the exchange.
ANS: D PTS: 1 DIF: Moderate REF: International marketing defined
3. Which of the following trading blocs does not exist?
A. NAFTA in North America B. European Union in Europe C. ASEAN Free Trade Area (AFTA) in Asia D.
Bilateral trade agreements between China and India
ANS: D PTS: 1 DIF: Moderate REF: Global market factors
,4. ____________refers to the capability of attracting and influencing all stakeholders, whether through
energetic brands, heroic missions, distinctive talent development or an inspirational corporate culture.
A. Hard power B. Soft power C. Influential power D. Media power
ANS: B PTS: 1 DIF: Difficult REF: The strategic planning process
5. Which of the following has traditionally been a domestic issue and is now an international issue?
A. Geographic boundaries of cities B. The flow of water through dam diversion tunnels C. Applications for
government subsidies D. Agriculture and farm policies affecting imports and exports
ANS: D PTS: 1 DIF: Difficult REF: Globalisation drivers
6. Which country has had the most dramatic growth in exports in the period 1990–2004?
A. Japan B. India C. USA D. China
ANS: B PTS: 1 DIF: Moderate REF: Globalisation drivers
7. Traditionally, trade flow determined currency flows and therefore the level of the exchange rate. The
exchange rate is now determined by:
A. currency flows. B. trade levels. C. domestic policy. D. wholesalers who take possession of the product
prior to sale.
,ANS: A PTS: 1 DIF: Difficult REF: Globalisation drivers
8. Generally, the strategic business unit (SBU) is the unit around which decisions are based. In practice,
SBUs represent groupings organised around market similarities based on:
A. needs or wants to be met. B. end-user customers to be targeted. C. the product or service used to
meet the needs of specific customers. D. All of these choices
ANS: D PTS: 1 DIF: Difficult REF: Globalisation drivers
9. A ___________ is defined by its emphasis on a single industry segment, within which the orientation
may be toward either low cost or differentiation. ________ is characterised by a company offering
products or services at a lower cost than the competition. A _____________ is industry-wide or focused
on a single segment and takes advantage of the marketer’s real or perceived uniqueness in elements
such as design or after-sales service.
A. differentiation strategy; cost leadership; focus strategy B. differentiation strategy; low-price
leadership; focus strategy C. focus strategy; cost leadership; differentiation strategy D. price leadership;
cost leadership; differentiation strategy
ANS: C PTS: 1 DIF: Moderate REF: Globalisation drivers
10. All of the following are characteristics of the first stage of the global marketing evolution of a
company, except:
A. Entry is constrained by a lack of funding (domestic growth still priority investment), so entry is low-
cost B. The risk tends to be minimised by entering close markets (geographically, culturally and
economically) C. The entry is based on core products with technical superiority D. The objective is to
achieve economies of scope
ANS: D PTS: 1 DIF: Moderate REF: Domestic policy repercussions
, 11. In regards to Australian exporters, which of the following is incorrect?
A. Ninety per cent of Australian exporters have fewer than 50 employees. B. There is a relatively even
spread between Australian export firms involved in consumer and industrial markets. C. Approximately
half of Australian exporters operate in fewer than five export markets. D. Australian SMEs are
responsible for 30% of Australian exports.
ANS: D PTS: 1 DIF: Difficult REF: Opportunities and challenges in international marketing
12. Which of the following events helped identify global linkages, causing the world to realise that the
systems of product development, distribution and consumption are intertwined and related?
A. The worldwide oil crisis of 1970 B. Gulf War One and Gulf War Two C. The Second World War D. The
opening of the Suez Canal
ANS: A PTS: 1 DIF: Moderate REF: Globalisation drivers
13. The marketing manager’s task is to plan and execute programs that will ensure a long-term
competitive advantage for the company. This includes determining of a specific target market and:
A. developing a uniform currency worldwide. B. marketing management. C. looking at occupants,
objects, occasions and objectives. D. testing markets.
ANS: B PTS: 1 DIF: Moderate REF: The strategic planning process
14. The emergence of technology has created new markets for companies. Which of the following
represents an example of this new market tendency?
