BUSN 501 - Exam 1 Questions and Answers Latest Update 2025-2026
five most important trends affecting global business - Answers 1. rapid growth of the WTO and
regional free trade areas
2. acceptance of the free market system
3. growing middle class in developing countries
4. impact of the Internet, mobile phones, and other global media on the dissolution of national
borders
5. mandate to properly manage the resources and global environment
(what is the impact of) non-U.S. companies in the U.S.? - Answers increased competition for U.S.
companies
U.S. multinational companies _______________ domestic companies - Answers outperform
International Marketing
(definition) - Answers 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
the difference between marketing and international marketing - Answers uncontrollable
environment
controllable environment - Answers product, price, promotion, channels of distribution, firm
characteristics, research
uncontrollable environment - Answers -domestic environment
-foreign environment
domestic environment - Answers political/legal forces, competitive structure, economic climate
foreign environment - Answers political/legal forces, economic forces, cultural forces,
competitive forces, geography and infrastructure, level of technology, structure of distribution
adaptation - Answers -a conscious effort to anticipate the influences of both the foreign and
domestic uncontrollable factors on a marketing mix
-adjust the mktg mix to minimize the effects
what are the most challenging and important adaptation for int'l marketers? - Answers cultural
adjustments
, Self-Reference Criterion (SRC) - Answers an unconscious reference to one's own cultural values,
experiences, and knowledge as a basis for decision
ethnocentrism - Answers the notion that people in one's own company, culture, or country know
[best] how to do things
risks of SRC - Answers influence the evaluation of the appropriateness of a domestically
designed marketing mix for a foreign market
-SRCs cause bias which causes poor decision making
most effective ways to control the influence of SRC and ethnocentrism are... - Answers -to
recognize the effects on our behavior
-to recognize that there may be more similarities than diffs between countries
-to conduct cross-cultural analysis
Global awareness involves... - Answers -tolerance of cultural differences
-knowledge of cultures, history, world market potential, and global economic, social, and
political trends
5 stages of international marketing involvement - Answers Reactive:
1. no direct foreign marketing
2. infrequent foreign marketing
Proactive:
3. regular foreign marketing
4. international marketing
5. global marketing
no direct foreign marketing - Answers -products "indirectly" reach foreign markets
-foreign orders stimulate a company's interest to seek additional international sales
infrequent foreign marketing - Answers -caused by temporary surpluses
-firm has little or no intention of maintaining continuous market representation
(company has a surplus but doesn't want to lower price, they could ship to another country)
five most important trends affecting global business - Answers 1. rapid growth of the WTO and
regional free trade areas
2. acceptance of the free market system
3. growing middle class in developing countries
4. impact of the Internet, mobile phones, and other global media on the dissolution of national
borders
5. mandate to properly manage the resources and global environment
(what is the impact of) non-U.S. companies in the U.S.? - Answers increased competition for U.S.
companies
U.S. multinational companies _______________ domestic companies - Answers outperform
International Marketing
(definition) - Answers 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
the difference between marketing and international marketing - Answers uncontrollable
environment
controllable environment - Answers product, price, promotion, channels of distribution, firm
characteristics, research
uncontrollable environment - Answers -domestic environment
-foreign environment
domestic environment - Answers political/legal forces, competitive structure, economic climate
foreign environment - Answers political/legal forces, economic forces, cultural forces,
competitive forces, geography and infrastructure, level of technology, structure of distribution
adaptation - Answers -a conscious effort to anticipate the influences of both the foreign and
domestic uncontrollable factors on a marketing mix
-adjust the mktg mix to minimize the effects
what are the most challenging and important adaptation for int'l marketers? - Answers cultural
adjustments
, Self-Reference Criterion (SRC) - Answers an unconscious reference to one's own cultural values,
experiences, and knowledge as a basis for decision
ethnocentrism - Answers the notion that people in one's own company, culture, or country know
[best] how to do things
risks of SRC - Answers influence the evaluation of the appropriateness of a domestically
designed marketing mix for a foreign market
-SRCs cause bias which causes poor decision making
most effective ways to control the influence of SRC and ethnocentrism are... - Answers -to
recognize the effects on our behavior
-to recognize that there may be more similarities than diffs between countries
-to conduct cross-cultural analysis
Global awareness involves... - Answers -tolerance of cultural differences
-knowledge of cultures, history, world market potential, and global economic, social, and
political trends
5 stages of international marketing involvement - Answers Reactive:
1. no direct foreign marketing
2. infrequent foreign marketing
Proactive:
3. regular foreign marketing
4. international marketing
5. global marketing
no direct foreign marketing - Answers -products "indirectly" reach foreign markets
-foreign orders stimulate a company's interest to seek additional international sales
infrequent foreign marketing - Answers -caused by temporary surpluses
-firm has little or no intention of maintaining continuous market representation
(company has a surplus but doesn't want to lower price, they could ship to another country)
