Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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1.
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What
is ethnocentrism? a. | The belief that
other cultures are better than one’s own | b. | The belief that
one’s own culture is the “right” one | c. | The belief that
other people understand culture better | | |
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2.
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What
is protectionism? a. | The tendency of
governments to keep foreign companies out of their markets | b. | The tendency of
firms to protect themselves from competition | c. | The tendency of
foreign firms to be protective of their customers | | |
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3.
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What
is meant by the stages of development approach to internationalisation? a. | The theory that
companies need to reach a certain stage of development before they can
internationalise | b. | The theory that a foreign market needs to be sufficiently
developed for a company to enter it | c. | The theory that companies typically go through a series of
stages when internationalising | | |
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4.
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What
is Dunning’s Eclectic Theory? a. | The theory that firms enter markets on the basis of their
strengths. | b. | The theory that markets overseas show greater diversity than
domestic markets | c. | The theory that foreign companies will enter domestic markets
in greater numbers in future | | |
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5.
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Which
of the following is NOT true? a. | Agents do not take title to the goods they
sell | b. | Licensees do not
manufacture the goods they sell | c. | Distributors take title to the goods they
sell | | |
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6.
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Which
of the following is NOT part of EU agency law? a. | Agents are entitled to whatever remuneration is standard in the
place where the captivities are carried out | b. | Agents who live
in the EU, but who operate outside the EU, are covered by the Directive | c. | Agents are
entitled to inspect the company’s books to check that their commission has been correctly
calculated | | |
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7.
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Which
of the following is NOT an advantage of sending home-country salespeople to the foreign sales
office? a. | They will
understand the local culture | b. | They will understand the corporate
culture | c. | They will understand the company’s
policies | | |
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8.
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Which
of the following motivators would work best for a Japanese sales force? a. | Money | b. | Team spirit | c. | Consumer
goods | | |
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9.
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Which
of the following motivators would work best for an American sales force? a. | Money | b. | Team spirit | c. | Trips and
holidays | | |
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10.
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What
is the commonest reason for overseas appointments failing? a. | Failure of the
salesperson to sell in a foreign culture | b. | Failure of the salesperson’s family to adapt to the
foreign country | c. | Failure of the salesperson to learn the
language | | |
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