Indian Institute of Foreign Trade, MBA (IB) 2009-12, Quiz 1

International Marketing Management

Time: 20 minutes
TICK THE CORRECT ONE
1.In which level of marketing is the firm most likely to have an ethnocentric orientation?
a. Export marketing
b. International marketing

c. Multinational marketing
d. Global marketing

2.Which type of marketing best describes a company that is present in different countries with sales
offices, subsidiaries, or is an active partner in strategic alliances with local companies and that does not
coordinate activities across the different countries or regions?
a. Domestic marketing
b. Export marketing

c. International marketing
d. Global marketing

3. Global marketing is ill-advised when:

a. market, government, cost, and competition drivers do not indicate the environment is
conducive to a globalized strategy.
b. the organization considering a globalized strategy does not have the resources necessary financial, human, technological, experience, etc. - to successfully implement a globalized
approach.
c. some aspects of the marketing mix lend themselves better to a localized approach in specific
markets.
d. All of the above are true
4. The EPRG Framework of international orientation stands for:
a.
b.
c.
d.

economics, psychographics, regulations, & geographics

enter, produce, react, & group
ethnicity, polychronic, regulations, & global expansion
ethnocentric, polycentric, regiocentric, & geocentric

5. In high-context cultures
a.
b.
c.
d.

business is conducted on e-mail or paper.

what is said is precisely what is meant
business is typically done at arm's length.
trust is crucial and a handshake is as important and reliable as a paper contract.

6.Which of the following is NOT a driver of international expansion?

a. Competition
b. Regional economic integration

c.
d.

Import quotas
Technology

7.Business Environment Risk Index (BERI) may be used during international market selection process
to assess ---------- of countries.
a. Political climate
c. General business climate
b. Cultural climate
d. Technology advancement
8. According to Hofstede's classification, which country has a feminine society?
a. Australia
c. Great Britain
b. Canada
d. Japan
9 . According to the TCA model, firms integrate _____ in order to reduce transaction costs.
a. Horizontally
b. Sequentially
c. Diagonally
d. Vertically
10. Which of the following is the equation of customer value?
a
b
c
d

V=P/B Where V =Value; B = Perceived Benefits Perceived Costs; P = Price

V=P+B
V= B X P
V = B/P

11. Which of the following strategies yields cost benefits and can easily secure economies of scale?
a) Standardization strategy
b) Adoption strategy
c) Customization strategy
d) Differentiation strategy
12. For global market participation, one of the primary requirements for the organization is to have
a) Transferable business model
b) Transferable human resources
c) Transferable infrastructure
d) Transferable organizational culture
13. In international market selection process shift share approach is used as a tool to
a) understand each countrys actual import growth to average growth of import for a particular
product for a basket of countries
b) understand each countrys actual export growth to average growth of export for a particular product for a
basket of countries
c) understand each countrys actual import growth to average growth of export for a particular product for a
basket of countries
14. Hofstede study of French and Swedish culture indicates that France is 10-15 and Sweden is 49-50 in
dimension of Uncertainty avoidance which means that
(a) French consumer has more need for formal work and fixed rules than the Swedish
(b) Swedish has more need for formal work and fixed rules than the French

the

(c) Both Swedish and French consumer has equal need for formal work and fixed rules
(d) Swedish consumer has more desire to show success than the French one
15. According to Uppsala or Gradual Incremental Approach theory of internationalization
a)
b)
c)
d)

Firms develop their activities abroad in an incremental fashion as their knowledge develops
Firms require experimental knowledge for international expansion.
Firms reduce psychic distance as their knowledge develops
All of the above

16. Which order of entry mode below is ordered from low to high risk?

a)
b)
c)
d)

Licensing, direct exporting, joint ventures, wholly-owned subsidiaries.

Indirect exporting, licensing, joint ventures, wholly-owned subsidiaries.
Indirect exporting, franchising, direct exporting, branch offices.
Strategic alliances, branch offices, franchising, licensing.

17. The term most closely associated with psychographic segmentation is

a.
b.
c.
d.

gender
lifestyle
statistics
heavy users

18. When identifying global market segments, a fundamental guiding principle should be the need to determine
a.
b.
c.
d.

similar need and behavior

similar languages
shared demographic characteristics
similar ethnic background

19. According to Dunnings eclectic approach, the propensity of a firm to engage itself in international
production increases if
a) The firm has ownership, locational and internalization advantage
b) The firm has network, locational and internalization advantage
c) The firm has ownership, locational and internationalization advantage
d) None of the above
20. According to Hofstede model
a) In high Power Distance society power is concentrated among few people at the top who
makes decision
a) In high Power Distance society people shows more tendency to be united for a cause.
b) In high Power Distance society power is dispersed across the society and decision making is
through consensus.
c) None of the above

21. As per transaction cost theory of internationalization, if transaction cost is higher than the control cost
through an internal hierarchical system than it results in
a)
b)
c)
d)

Forward integration
Backward integration
Disintegration
None of the above

22.Which of the following is not the disadvantage of licensing ?

a) Restricting future activities
b) Reducing quality and consistency
c) Reducing expansion risk to an extent
d) Assisting competitors
23 Transaction cost in the context of theory of internationalization refers to
a)
b)
c)
d)

Ex ante cost
Ex post cost
Both ex ante cost and ex post cost
Production cost

24. International strategic alliances:

(a) Refer to cooperative activities between companies from two or more countries.
(b) Have become less common as increased competition has reduced trust among companies.
(c) Are seldom used by large, strong companies.
(d) all of the above.
(e) None of the above.
25. In the international marketing parlance product customization means
a) The discretionary modification of domestic target market dictated product standards
b) The production process modification of domestic set up as per international standard
c) The regulatory modification as per foreign market norms
d) None of the above