Chapter 1
Introduction to international marketing
TRUE/FALSE
1. International marketing is the process of planning and conducting transactions across national borders to create
exchanges that satisfy the objectives of individuals and organisations.
ANS: T PTS: 1 DIF: Easy REF: International marketing defined
2. In the definition of international marketing, the major foundation of this process is the planning and conducting of
transactions across national borders to create exchanges that satisfy the objectives of individuals and
organisations.
ANS: T PTS: 1 DIF: Easy REF: International marketing defined
3. In international marketing, the basic principles of marketing still apply, but their applications, complexity and
intensity may vary substantially.
ANS: T PTS: 1 DIF: Easy REF: International marketing defined
4. Even though a firm operates in the international marketplace, it still cannot separate its activities by content and
context.
ANS: F PTS: 1 DIF: Difficult REF: Globalisation drivers
5. The binding effect of the global linkages created by world trade (on countries, institutions and individuals) was
first widely recognised during the Second World War.
ANS: F PTS: 1 DIF: Difficult REF: Globalisation drivers
6. International marketing is a tool used to obtain improvement of one’s present position and retains the basic
marketing tenets of ‘satisfaction’ and ‘exchange’.
ANS: T PTS: 1 DIF: Easy REF: International marketing defined
7. International marketing creates an interdependence that makes a country like Australia more affluent but also
more vulnerable.
ANS: T PTS: 1 DIF: Difficult REF: Globalisation drivers
8. The global market imposes increasingly tight limits on national economic regulation and sovereignty.
ANS: T PTS: 1 DIF: Moderate REF: Globalisation drivers
9. While Asia has grown in importance as an export market for Australia, the UK still remains the most important
export market for this country.
ANS: F PTS: 1 DIF: Moderate REF: Globalisation drivers
,
,10. A firm can only build and strengthen its competitive position in the international marketplace if it does not
transfer its knowledge around the globe.
ANS: F PTS: 1 DIF: Moderate REF: Opportunities and challenges in
international marketing
11. Currency flows and exchange rates have a greater effect on trade than do government monetary policies.
ANS: T PTS: 1 DIF: Moderate REF: Globalisation drivers
12. In the international areas of social responsibility and ethics, the international marketer is faced with a
multicultural environment with differing expectations and often inconsistent legal systems when it comes to
monitoring environmental pollution, maintaining safe working conditions, copying technology or trademarks or
paying bribes.
ANS: T PTS: 1 DIF: Easy REF: Environmental factors
13. All of the key difficulties encountered in doing business internationally are marketing problems.
ANS: F PTS: 1 DIF: Moderate REF: Global linkages
14. A differentiation strategy takes advantage of the marketer’s real or perceived uniqueness in elements such as
design or after-sales service.
ANS: T PTS: 1 DIF: Moderate REF: The strategic planning process
15. Merchandise trade statistics, in particular, overemphasise production and understate intellectual property from
design to brand.
ANS: T PTS: 1 DIF: Moderate REF: What is international marketing?
16. The four BRIC countries are Brazil, Russia, Indonesia and China. These countries had their first formal meeting
in 2009.
ANS: F PTS: 1 DIF: Moderate REF: Globalisation drivers
17. Chinese consumers tend to be less demanding and are not willing to pay more for higher-quality products. Thus,
this leads to serious differences between Westerners and Chinese consumers.
ANS: F PTS: 1 DIF: Moderate REF: Globalisation drivers
18. According to the text, the environment is broken down into four major components: economic, trade institutions
and trade policy, political and legal, and cultural.
ANS: T PTS: 1 DIF: Moderate REF: Environmental factors
19. Trading blocs encourage trade relations between their members, but through their rules and standards, and the
incentives they provide for mutual trade, they also affect the trade and investment flows of non-member countries.
ANS: T PTS: 1 DIF: Moderate REF: Global linkages
,
Introduction to international marketing
TRUE/FALSE
1. International marketing is the process of planning and conducting transactions across national borders to create
exchanges that satisfy the objectives of individuals and organisations.
ANS: T PTS: 1 DIF: Easy REF: International marketing defined
2. In the definition of international marketing, the major foundation of this process is the planning and conducting of
transactions across national borders to create exchanges that satisfy the objectives of individuals and
organisations.
ANS: T PTS: 1 DIF: Easy REF: International marketing defined
3. In international marketing, the basic principles of marketing still apply, but their applications, complexity and
intensity may vary substantially.
ANS: T PTS: 1 DIF: Easy REF: International marketing defined
4. Even though a firm operates in the international marketplace, it still cannot separate its activities by content and
context.
ANS: F PTS: 1 DIF: Difficult REF: Globalisation drivers
5. The binding effect of the global linkages created by world trade (on countries, institutions and individuals) was
first widely recognised during the Second World War.
ANS: F PTS: 1 DIF: Difficult REF: Globalisation drivers
6. International marketing is a tool used to obtain improvement of one’s present position and retains the basic
marketing tenets of ‘satisfaction’ and ‘exchange’.
ANS: T PTS: 1 DIF: Easy REF: International marketing defined
7. International marketing creates an interdependence that makes a country like Australia more affluent but also
more vulnerable.
ANS: T PTS: 1 DIF: Difficult REF: Globalisation drivers
8. The global market imposes increasingly tight limits on national economic regulation and sovereignty.
ANS: T PTS: 1 DIF: Moderate REF: Globalisation drivers
9. While Asia has grown in importance as an export market for Australia, the UK still remains the most important
export market for this country.
ANS: F PTS: 1 DIF: Moderate REF: Globalisation drivers
,
,10. A firm can only build and strengthen its competitive position in the international marketplace if it does not
transfer its knowledge around the globe.
ANS: F PTS: 1 DIF: Moderate REF: Opportunities and challenges in
international marketing
11. Currency flows and exchange rates have a greater effect on trade than do government monetary policies.
ANS: T PTS: 1 DIF: Moderate REF: Globalisation drivers
12. In the international areas of social responsibility and ethics, the international marketer is faced with a
multicultural environment with differing expectations and often inconsistent legal systems when it comes to
monitoring environmental pollution, maintaining safe working conditions, copying technology or trademarks or
paying bribes.
ANS: T PTS: 1 DIF: Easy REF: Environmental factors
13. All of the key difficulties encountered in doing business internationally are marketing problems.
ANS: F PTS: 1 DIF: Moderate REF: Global linkages
14. A differentiation strategy takes advantage of the marketer’s real or perceived uniqueness in elements such as
design or after-sales service.
ANS: T PTS: 1 DIF: Moderate REF: The strategic planning process
15. Merchandise trade statistics, in particular, overemphasise production and understate intellectual property from
design to brand.
ANS: T PTS: 1 DIF: Moderate REF: What is international marketing?
16. The four BRIC countries are Brazil, Russia, Indonesia and China. These countries had their first formal meeting
in 2009.
ANS: F PTS: 1 DIF: Moderate REF: Globalisation drivers
17. Chinese consumers tend to be less demanding and are not willing to pay more for higher-quality products. Thus,
this leads to serious differences between Westerners and Chinese consumers.
ANS: F PTS: 1 DIF: Moderate REF: Globalisation drivers
18. According to the text, the environment is broken down into four major components: economic, trade institutions
and trade policy, political and legal, and cultural.
ANS: T PTS: 1 DIF: Moderate REF: Environmental factors
19. Trading blocs encourage trade relations between their members, but through their rules and standards, and the
incentives they provide for mutual trade, they also affect the trade and investment flows of non-member countries.
ANS: T PTS: 1 DIF: Moderate REF: Global linkages
,
