International Marketing Set 2

International Marketing mcq Set 1
International Marketing mcq Set 2
International Marketing mcq Set 3
International Marketing mcq Set 4
International Marketing mcq Set 5
International Marketing mcq Set 6
International Marketing mcq Set 7

Q1. A strong orientation toward the home country is an indication of

(a) ethnocentricity

(b) polycentricity

Answer

Ans: a) ethnocentricity

Q2. According to Adam Smith’s Theory of absolute advantage, a country should. …. a commodity that can be produced at a lower cost than can other nations.

(a) export

(b) import

Answer

Ans: a) export

Q3. The evidence that the United States exports constitutes of labor-intensive goods and imports comprises of capital-intensive goods is known as

(a) principle of absolute advantage

(b) principle of relative advantage

(d) factor endowment

Answer

Ans: b) principle of relative advantage

Q4. This export strategy involves selling a product from a home base, usually without any product modification.

(a) exporting

(b) licensing

(d) manufacturing

Answer

Ans: a) exporting

Q5. This entry strategy involves granting permits to a foreign company to use industry property, technical knowhow, or engineering design in a foreign market.

(a) exporting

(b) licensing

(d) manufacturing

Answer

Ans: b) licensing

Q6. ICICI and Prudential joined together to market Insurance products in India. This strategy is

(a) exporting

(b) licensing

(d) assembly operations

Answer

Ans: c) joint venture

Q7. Indian firms were asked to build the biggest oil refinery in the world in Egypt and to train local personnel. This is known as

(a) licensing

(b) manufacturing

(d) turnkey

Answer

Ans: d)turnkey

Q8. Which of the following product is most likely to require adaptation for overseas markets.

(a) musical recordings

(b) films

(d) watches

Answer

Ans: c) automobiles

Q9. Which of the following cannot be used as a trademark?

(a) a word

(b) a name

(d) a device

(e) all of them can be used as a trademark

Answer

Ans: e) all of them can be used as a trademark

Q10. Which marketing component is most likely to be standardized.

(a) brand

(b) advertising

(d) distribution

Answer

Ans: a) brand

Q11. The promotion mix does not include

(a) advertising

(b) personal selling

(d) publicity

Answer

Ans: b) personal selling

Q12. This term of payment is the one most desired by importers.

(a) bill of exchange

(b) letter of credit

(d) cash in advance

Answer

Ans: b) letter of credit

Q13. This method of payment presents the least risk to an exporter.

(a) sight draft

(b) time draft

(d) letter of credit

Answer

Ans: c) open account

Q14. This financial instrument is a document, issued by a bank at a buyer’s request in favor of a seller, promising that the bank will pay an agreed amount of money upon its receipt of certain documents.

(a) sight draft

(b) time draft

(d) letter of credit

Answer

Ans: d) letter of credit

Q15. Import duty to offset a subsidy is

(a) protective tariff

(b) revenue tariff

(d) countervailing duty

(e) variable duties

Answer

Ans: e) variable duties

Q16. This is not a form of subsidy.

(a) cash

(b) interest rate

(d) freight and infrastructure

(e) all of them are subsidies

Answer

Ans: d) freight and infrastructure

Q17. This international organization wants to achieve a broad, multilateral, and free worldwide system of trading.

(a) WTO

(b) GSP

(d) MFN

Answer

Ans: a) WTO

Q18. According to the international product life cycle theory, a country that developed an innovation will eventually become

(a) a net importer

(b) a net exporter

(d) a relative producer

(e) a monopolist

Answer

Ans: c) an absolute exporter

Q19. Innovations are most likely to be first introduced in

(a) least developed countries

(b) less developed countries

(d) highly developed countries

Answer

Ans: d) highly developed countries

Q20. Which of the following is not a brand’s function?

(a) creating identification

(b) guaranteeing quality level

(d) lowering production cost

Answer

Ans: d) lowering production cost

Q21. The most important packaging criterion is

(a) promotional

(b) functional

(d) versatile

Answer

Ans: a) promotional

Q22. “Noise” does not affect this stage of the communication process.

(a) sender

(b) encoding

(d) receiver

(e) all of them can be affected

Answer

Ans: e) all of them can be affected

Q23. Which of the following is not an example of indirect export?

(a) Export house in home country

(b) Cooperatives marketing organizations in home country

(d) Agent in overseas market

Answer

Ans: c) State trading Corporations in home country

Q24. Which of the following is not an example of Countertrade Arrangement?

(a) Barter Trade

(b) Compensation Arrangement

(d) Counterfeiting

Answer

Ans: d) Counterfeiting

Q25. Trade in services is covered under which agreement?

(a) GATS

(b) GATT

(d) TRIMS

Answer

Ans: b) GATT

Q26. EXIM Bank of India provide following services to the Indian Exporter?

(a) Export financing

(b) Advisory Services for Export

(d) Export Agent

Answer

Ans: a) Export financing

Q27. ECGC helps exporters by providing

(a) insurance protection against payment risks.

(b) information on different countries with its own credit ratings.

(d) extending line of credit to overseas entities

Answer

Ans: c) information on credit-worthiness of overseas buyers

Q28. Which of the following is not an export incentive given by Government of India as per the provisions in the FTP 2004-2009?

(a) DEPB

(b) Duty Drawback

(d) Direct Export Subsidies

Answer

Ans: c) Advance License

Q29. Which of the following is not an export promotion measure in the FTP 2004-2009?

(a) Towns of Export Excellence

(b) Served from India

(d) Focus Market Scheme

Answer

Ans: c) Working Capital Management for Export

Q30. This is not a characteristic of “centrally planned economies.”

(a) a communist philosophy

(b) an active government role in economic planning

(d) market-oriented economy

Answer

Ans: d) market-oriented economy

Q31. The market-oriented system is also known as

(a) capitalism

(b) socialism

(d) modified communism

Answer

Ans: a) capitalism

Q32. Which of the following is not a strategic alliance?

(a) mergers

(b) joint ventures

(d) sole ventures

Answer

Ans: d) sole ventures

Q33. These firms allocate corporate resources without taking into consideration national frontiers and also make direct investment abroad.

(a) ethnocentric firms

(b) polycentric firms

Answer

Ans: c) geocentric firms

Q34. Trade is a

(a) zero sum game

(b) positive sum game

(d) all of the above

Answer

Ans: c) negative sum game

Q35. The theory of factor endowment focus on which factor of production.

(a) labor

(b) land

(d) all of them are considered

Answer

Ans: a) labor

Q36. China do not have comparative advantage in which factor of production?

(a) labor

(b) land

(d) technology

Answer

Ans: d) technology

Q37. According to the international product life cycle theory, a country that invented a product will eventually become

(a) a net importer

(b) a net exporter

(d) a monopolist

Answer

Ans: c) an absolute exporter

Q38. The most important factor which makes product modification mandatory is

(a) country’s regulations

(b) electrical current standards

(d) product standards

Answer

Ans: a) country’s regulations

Q39. To sell to their subsidiaries in countries with lower corporate tax rates than that in the United States, American firms should make their transfer prices

(a) low

(b) high

(d) no change

Answer

Ans: b) high

Q40. When compared to a trading company, an EMC

(a) has more diverse product lines

(b) is more likely to take ownership to merchandise

(d) is larger and better financed

Answer

Ans: c) offers less services

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