mk0018 international marketing
TRANSCRIPT
MODEL QUESTION PAPER
MK0018 – INTERNATIONAL MARKETING
SECTION A – 1 MARK QUESTIONS
1. The striking difference between international marketing and domestic
marketing lies in ___________.
A. analyzing competition by the two
B. the environment in which the two take place
C. customer segmentation
D. positioning of products and services
2. The major objective behind ______________ is the protection of
home industries from the competition of the foreign commodities.
A. quantitative restrictions
B. exchange control
C. tariffs
D. custom duties
3. A ______________ is a total offer of benefits or advantages that is
more attractive to customers than any other competitor.
A. Sustained superior performance
B. Core competency
C. Strategic advantage
D. Competitive advantage
4. The _____________ orientation represents a “world-view” that sees
similarities and differences in markets and countries, and seeks to
create a global strategy that is fully responsive to local needs and
wants.
A. regiocentric
B. ethnocentric
C. geocentric
D. polycentric
5. Trans-nationality Index is calculated as the average of three ratios:
foreign assets to total assets, foreign sales to total sales and
________________.
A. foreign income to national income
B. foreign income to total income
C. foreign employment to total employment
D. foreign income to total assets
6. _______________ is based on the belief that if the individual was
permitted to pursue his or her own interest without the interference
from the state, he or she would promote the well-being of all.
A. Comparative advantage theory
B. Classical theory
C. Adam Smith’s theory
D. Factor endowment theory
7. According to David Ricardo’s ________________, the exporting
country should look at the relative efficiencies of production for both
commodities and make only those goods it could produce most
efficiently.
A. Adam Smith’s theory
B. Classical theory
C. Factor endowment theory
D. Comparative advantage theory
8. A _________ may be defined as the imposition of an “absolute limit on
the physical quantity of value of goods or services that may be traded
over a set period of time”
A. quota
B. tariff
C. exchange restriction
D. custom duty
9. A _____________ is a strategic alliance where two or more parties
form a partnership to share markets, knowledge and profits without
the transfer of ownership.
A. merger
B. joint venture
C. licensing
D. franchising
10. The final step in marketing research is ___________________.
A. data evaluation
B. summarizing the result of research and making a report
C. data collection and compilation
D. interpretation
11. ________________ is a fact finding mission, conducted for the
purpose of obtaining all relevant information about the market.
A. Market survey
B. Sales information system
C. Segmentation
D. Market intelligent system
12. _______________ involves determining which products to introduce
into which countries, what modifications to make in the products,
what new products to add, what brand names to use and when to
enter the market.
A. International market segmentation
B. International product planning
C. Global business strategy
D. Market intelligent system
13. _____________________ is based on measurable characteristics of
population such as age, gender, income, education and occupation.
A. Behavioral segmentation
B. Psychographic segmentation
C. Geographic segmentation
D. Demographic segmentation
14. _________________ involves grouping people in terms of their
attitudes, values and lifestyles.
A. Behavioral segmentation
B. Psychographic segmentation
C. Geographic segmentation
D. Demographic segmentation
15. The three main pricing factors are costs, demand and __________.
A. competition
B. quality
C. quantity
D. brand image
16. In arriving at the export pricing under __________ method the total
cost of production of the article is taken into account.
A. cost-plus method
B. variable cost method
C. marginal cost method
D. common cost method
17. In international marketing, ________________ is employed when a
manufacturer develops an overseas channel.
A. local channel
B. indirect selling
C. direct selling
D. domestic channel
18. Domestic channel is also known as _________________.
A. direct channel
B. local channel
C. direct selling
D. franchise
19. _______________ is the process of identifying potential purchasers
and assessing their probability of purchase.
A. Prospecting
B. Promotion
C. Targeting
D. Positioning
20. ________________ is a paid form of non-personal presentation of
ideas, goods and services by an identified sponsor.
A. Promotion
B. Publicity
C. Public Relations
D. Advertisement
21. _____________ refers to the policy where the advertising in
domestic market is extended to foreign markets in its forms, appeals
and other selling propositions.
A. Indirect advertising
B. Diversified advertising
C. Unified advertising
D. Corporate advertising
22. ________________ is the total of activities by which products and
services are offered to market segments
A. Indirect advertising
B. Diversified advertising
C. Unified advertising
D. Corporate advertising
23. In _____________ Strategy the advertising is not the same as in
the domestic market but it requires proper adaptation of the
advertising strategy to various elements such as religion, culture,
traditions, etc. of diverse nature peculiar to the foreign market or
market segment.
A. Corporate advertising
B. Diversified advertising
C. Unified advertising
D. Indirect advertising
24. _____________ is the duplication of public events in other
geographical areas, while retaining the original brand (logo),
mission, concept and format of the event.
A. Manufacturing franchising
B. Product franchising
C. Social franchising
D. Event Franchising
25. Under __________________ the franchisee is permitted to
manufacture the products under license and sell them using the
originator’s trademark and name.
A. product franchising
B. manufacturing franchising
C. business franchising
D. social franchising
26. As part of ________________ agreement, one company will custom
produce parts or other materials on behalf of their clients and in
most cases, the manufacturer will also handle the ordering and
shipment processes for the client.
A. contract manufacturing
B. strategic alliance
C. FDI
D. Joint ventures
27. _________________ are intended to raise the Government revenue
without intending to protect any industry of the country.
A. Quotas
B. Protective tariffs
C. Revenue tariffs
D. Anti-dumping duties
28. _________________ are based on the value of imports and are
charged in the form of a specific percentage of the value of goods.
A. Ad-valorem tariffs
B. Anti-dumping duties
C. Quantity restrictions
D. Revenue tariffs
29. ___________ holds that expanding the labour pool leads to decline
in the accumulation of capital per worker, lower worker productivity
and lower incomes per person, eventually, causing stagnation or
economic decline.
A. Adam Smith theory
B. Classical theory
C. Theory of comparative advantage
D. Factor endowment theory
30. __________ occurs when there are two contracts or a set of parallel
cash sale agreement each paid in cash.
A. Buy back
B. Compensation trade
C. Barter
D. Counter purchase
31. ___________ requires a company to provide machinery, factories or
technology and to buy products made from this machinery over an
agreed on period.
A. Compensation-trade
B. Counter purchase
C. Offset
D. Barter
32. _________ is a specially delineated duty free enclave and shall be
deemed to be foreign territory for the purposes of trade operations.
A. Special Economic Zones
B. Free Trade Warehousing Zones
C. Trade Zones
D. Intermediate Zones
33. ___________ is issued to a merchant-exporter or manufacturer-
exporter for the import of inputs used in the manufacture of goods
without payment of Basic Customs Duty.
A. Advance release order
B. Advance License
C. Duty free replenishment Certificate
D. Duty free License
34. _________________ is issued to allow duty free import of inputs
which are physically incorporated in the export product.
A. Advance release order
B. Advance License
C. Duty free replenishment Certificate
D. Duty free License
35. ___________ Scheme allows import of capital goods for pre-
production, production and post-production at a certain percentage
customs duty subject to an export obligation.
A. Trade promotion
B. Export Promotion Capital Goods
C. Duty exemption
D. Duty remission
36. ____________ refers to the application of one country’s laws to
activities outside its border.
A. Sovereignty
B. Extra-territoriality
C. Trans-nationality
D. Cross-border law
37. _____________ is a method of dispute resolution using the offices of
third party.
A. Mediation
B. Arbitration
C. ADR method
D. Litigation proceeding
38. ____________ is one who seeks out need in foreign markets and
makes purchases from manufacturers in its own country to fill those
needs.
A. Export distributor
B. Export merchant
C. Export drop shipper
D. Forwarding agent
39. An export drop shipper is also known as a ____________.
A. desk jobber
B. export distributor
C. export merchant
D. Resident buyer
40. _____________ is an independent agent that is usually located near
the highly centralized production industry but more or less functions
like a regular purchasing agent.
A. Resident buyer
B. Country controlled buying agent
C. Co-operative exporter
D. Export merchant
SECTION B – 2 MARK QUESTIONS
1. The types of arbitration are ____________ and ___________.
A. Implicit, Explicit arbitration
B. Ad-hoc arbitration, Institutional arbitration
C. Flexible arbitration, structured arbitration
D. Third-party arbitration, internal arbitration
2. Fill up the blanks:
1) _________ is a sign that serves to distinguish the goods of
industrial or commercial enterprise from those of other
enterprise.
2) ___________ appear either because a seller has priced goods
differently in different markets or because currency value
changes.
A. 1- Trademark, 2-Grey market goods
B. 1- Patent, 2-Counterfeiting
C. 1- Copyrights, 2-Grey market goods
D. 1- Trademark, 2-Counterfeiting
3. State True (T) or False (F):
1) Under quantity restrictions, the maximum quantity of different
commodities, which would be allowed to be imported over a
period of time from various countries, is fixed in advance.
2) Quotas can be imposed on imports as well as exports.
A. 1T, 2F
B. 1F, 2F
C. 1F, 2T
D. 1T, 2T
4. State True (T) or False (F):
1) A joint venture differs from a merger in the sense that there is no
transfer of ownership in the deal.
2) Joint ventures enable companies to share technology
A. 1T, 2F
B. 1T, 2T
C. 1F, 2F
D. 1F, 2T
5. Fill up the blanks:
1) The advantages frequently associated with entering a market
early are commonly known as _______________.
2) FDI can take the form of ___________ in a new facility.
A. 1- early bird advantage, 2- acquisitions
B. 1- entering advantage, 2- mergers
C. 1- first mover advantage, 2- mergers
D. 1- first mover advantage, 2- Green field investment
6. The types of Survey techniques are ____________, _____________
and _______________.
A. Observation method, indirect interview, schedule method
B. personal interview, telephonic interview, mail questionnaire
survey
C. Observation method, mail questionnaire survey, schedule
method
D. Observation method, direct interview, schedule method
7. State True (T) or False (F):
1) Variation in trade margins may be adopted by the exporter as
the pricing strategy in foreign market.
2) Seasonal discounts aim at shifting the storing function in the
channels
A. 1T, 2F
B. 1T, 2T
C. 1F, 2F
D. 1F, 2T
8. Fill up the blanks:
1) Under _______________, exporters offer a very low
introductory price to speed up their sales and therefore,
widening the market base.
2) Under _______________ strategy, a very high introductory
price is fixed to skim the cream of the demand at the very
outset.
A. 1- Probe pricing strategy, 2- Standard export pricing
B. 1- Skimming strategy, 2- probe pricing
C. 1- market penetration strategy, 2- skimming price
D. 1- differential trade margins strategy, 2- skimming pricing
9. Fill up the blanks:
1) A _____________ acts on behalf of buyer and charges
commission.
2) A _____________ buys goods from market or from a
manufacturer and then sells them to foreign to buyers
A. 1- sales agent, 2- manufacturer exporter
B. 1- buying agent, 2- merchant exporter
C. 1- indenting agent, 2- buying agent
D. 1- buying agent, 2- commission agent
10. Fill up the blanks:
1) An Export Management Company (EMC) is also known as
________________.
2) A ______________ is a manufacturer with its own export
organization that is retained by other manufacturers to sell in
foreign markets.
A. 1- Combination Export Manager, 2- Cooperative exporter
B. 1- Buying agent, 2- Cooperative exporter
C. 1- Cooperative exporter, 2- Resident buyer
D. 1-Combination Export Manager, 2- Export drop shipper
11. Fill up the blanks:
1) A _________________ is formed when two or more firms usually
in the same industry join together to market their products
overseas
2) An export drop shipper is also known as a ______________.
A. 1- cable merchant, 2- desk jobber
B. 1- resident buyer, 2- cable merchant
C. 1- Webb-pomerene association, 2- desk jobber
D. 1- Cooperative exporter, 2- resident buyer
12. State True (T) or False (F):
1) An export drop shipper places an order with a manufacturer
directing the manufacturer to deliver the product directly to the
foreign buyer on the receipt of order from overseas.
2) The export distributer is authorized and granted an exclusive
marketing right to represent the manufacturer and to sell in
some or all foreign markets
A. 1T, 2F
B. 1F, 2T
C. 1T, 2T
D. 1F, 2F
13. State True (T) or False (F):
1) Event franchising is the duplication of public events in other
geographical areas, while retaining the original brand, mission and
concept.
2) Through Foreign Direct Investment, a firm invests directly in
facilities to produce and/or market a product in a foreign country.
A. 1T, 2F
B. 1F, 2T
C. 1T, 2T
D. 1F, 2F
14. Fill up the blanks:
1) ________________ scheme enables import of “inputs” required
for export production.
2) ________________ is issued to a merchant-exporter or
manufacturer-exporter for the import of inputs used in the
manufacturer of goods without payment of basic customs duty.
A. 1 - Export promotion capital goods, 2- Export license
B. 1 – Duty exemption, 2 – Duty free replenishment certificate
C. 1 – Export promotion capital goods, 2- Duty exemption
D. 1 - Export shipment, 2- Duty free replenishment certificate
15. State True (T) or False (F):
1) First mover disadvantages may give rise to pioneering costs that
an early entrant has to bear that a later entrant can avoid.
2) A joint venture differs from a merger in the sense that there is no
transfer of ownership in the deal
A. 1T, 2F
B. 1F, 2T
C. 1F, 2F
D. 1T, 2T
16. State True (T) or False (F):
1) Spot market is the market where transactions are conducted for
the spot delivery of currencies.
2) Forward market consists of transactions that require delivery of
currency at an agreed upon future date.
A. 1F, 2F
B. 1T, 2T
C. 1T, 2F
D. 1F, 2T
17. Fill in the blanks:
1) ______________ is a technique that attempts to predict future
exchange rates by examining the influence of major
macroeconomic variables on the foreign exchange markets.
2) ___________ relies on past exchange rate data to develop
quantitative models and charts that can be used to predict future
exchange rates.
A. 1- Trend analysis, 2- Cyclical trend
B. 1- Fundamental forecasting, 2- Technical forecasting
C. 1- Technical forecasting, 2- Fundamental forecasting
D. 1- Time series analysis, 2- Seasonal trend
18. State True (T) or False (F):
1) Special Economic Zone is a specially delineated duty free enclave
and shall be deemed to be foreign territory for the purposes of
trade operations and duties and tariffs.
2) SEZ unit may export goods manufactured or software developed
through a merchant exporter or status holder.
A. 1T, 2T
B. 1F, 2F
C. 1T, 2F
D. 1F, 2T
19. Fill up the blanks:
1) ____________ refers to those transactions in which the goods
supplied do not leave the country and the payment for such
supplies is received either in Indian Rupees or in free foreign
exchange.
2) With a view to promoting agricultural exports from the country
and remunerative returns to the farming community in a
sustained manner, the concept of ___________ was started.
A. 1- Deemed exports, 2- Special Economic Zones
B. 1- Deemed exports, 2- Agri Export Zones
C. 1- Isolated exports, 2- Free trade warehousing Zones
D. 1- Capital goods exports, 2- Special Economic Zones
20. State True (T) or False (F):
1) Consular Invoice needs to be submitted for certification to the
embassy of the country concerned.
2) When a draft bill is drawn on a foreign firm, it is termed as a
foreign draft
A. 1F, 2F
B. 1F, 2T
C. 1T, 2F
D. 1T, 2T
SECTION C – 4 MARK QUESTIONS
1. State True (T) or False (F):
1) Exchange rates for each country’s currency are fixed under the
rules framed by the International Monetary Fund
2) Imposition of more local taxes on imported goods is done with
the object to make imported goods costly
3) Through the efforts of GATT, there has been a significant
reduction in tariff globally
4) The existence of different legal systems in different countries
makes the task of businessman more difficult
A. 1T, 2T, 3T, 4F
B. 1F, 2F, 3T, 4T
C. 1T, 2F, 3F, 4F
D. 1T, 2T, 3T, 4T
2. Match the following:
Set A
Set B
1. Ethnocentric A. This orientation views entire world as
one big potential market
2. Polycentric B. This orientation believes that each
region is unique
3. Regiocentric C. This orientation believes that every
country is unique
4. Geocentric D. In this People consider his home
country superior to rest of the world
A. 1D, 2C, 3B, 4A
B. 1B, 2C, 3D, 4A
C. 1C, 2D, 3A, 4B
D. 1D, 2A, 3B, 4C
3. Match the following:
1. Confiscation A) there is some compensation when
Government’s taking the
ownership
2. Nationalism B) process of a Government’s taking
ownership of a property without
compensation
3. Domestication C) involves government ownership in
the business
4. Expropriation D) foreign companies relinquish
control and ownership either
completely or partially to the
nationals
A. 1A, 2C, 3D, 4B
B. 1D, 2C, 3B, 4A
C. 1B, 2C, 3D, 4A
D. 1C, 2D, 3A, 4B
4. Match the following sets:
1. Political Environment A) Income level, market system &
Purchase power parity
2. Legal & Regulatory B) Attitudes and beliefs
3. Socio-cultural
Environment
C) Intellectual property, copy rights
and related rights
4. Economic
Environment
D) Form of government
A. 1A, 2C, 3D, 4B
B. 1D, 2C, 3B, 4A
C. 1B, 2C, 3D, 4A
D. 1C, 2D, 3A, 4B
5. State True (T) or False (F):
1) A marketing Intelligence System is a set of procedures and
sources used by managers to obtain everyday information about
developments in the marketing environment
2) The main aim of product-oriented survey is to identify market for
the exporter’s existing product or product range
3) Exploratory research provides insights into and comprehension of
an issue or situation
4) The final step in marketing research is summarizing and making a
report
A. 1T, 2F, 3F, 4F
B. 1F, 2F, 3T, 4T
C. 1T, 2T, 3T, 4T
D. 1F, 2T, 3F, 4T
6. Match the following
1. Multilateral
Investment
Guarantee Agency
a) The aims of this are to promote policies
designed to achieve the highest sustainable
economic growth and employment and a
raising standard of living in member countries
2. International
Development
Association
b) Established in 1956 to help strengthen the
private sector in developing countries, through
the provision of long term loans, equity
investments, guarantees, etc
3. International
Finance
Corporation
c) It is a lending agency administered by the IBRD
to provide assistance on concessional terms to
the poor and developing countries.
4. OECD d) Established in 1998 to encourage the flow of FDI
to and among developing member countries,
this agency is the insurance arm of the World
Bank
A. 1d, 2c, 3b, 4a
B. 1b, 2c, 3d, 4a
C. 1c, 2d, 3a, 4b
D. 1a, 2b, 3d, 4c
7. Match the following sets:
1. Bill of Lading a) It is a basic document in an
export transaction which
contains the information as
description of goods, price
charged, quantity, costs
charged, terms of shipment
and number of documents
2. Commercial Invoice b) It is an undertaking that the
goods in the same condition as
received will be delivered to the
consignee provided the freight
has been duly paid
3. Shipping bill c) It is a document which needs to
be submitted for certification to
the embassy of the country
concerned
4. Consular Invoice d) It is the main document
required by the customs
authorities for allowing
shipment
A. 1a, 2c, 3d, 4b
B. 1b, 2c, 3d, 4a
C. 1c, 2a, 3b, 4d
D. 1b, 2a, 3d, 4c
8. This document is an acknowledgement by the shipping company
that the goods to be exported have been shipped on board. This
document is also an undertaking that the goods in the same
condition as received will be delivered to the consignee provided the
freight has been duly paid.
Which document are we talking about?
A. Combined transport document
B. Bill of Lading
C. Mate receipt
D. Air consignment note
9. X Ltd. exports its goods by air. Air India issued a receipt for carriage
of goods. The goods are delivered to the consignee mentioned in the
received. Such document related to transportation of goods is
called……….
A. Airways bill
B. Bill of lading
C. Shipping bill
D. Mate receipt
10. X Ltd. an exporter of garment products has to file a declaration form
declaring that the foreign exchange realized in lieu of goods
exported will be deposited with the RBI. This form is prepared in
duplicate; the original has to be submitted to the customs
authorities at the time of shipment, which is sent back by them to
the RBI. The duplicate copy of the form is submitted to the
negotiating bank along with other documents after shipment of the
goods. This declaration form is known as............
A. SC Form
B. VP Form
C. PP Form
D. GR Form
11. Which of the following is a step that transforms the idea or
information into a form that can be transmitted (written or spoken
verbs)?
A. Encoding
B. Decoding
C. Encrypting
D. Debugging
12. Match the following:
Set A Set B
1. Currency Futures
a. It consists of transactions that
require delivery of currency at an agreed upon future date.
2. Foreign currency options b. It is the price to paid by the
purchaser of the option to its
writer
3. Option premium
c. These are contracts that give the
buyer the right but not the obligation to buy or sell a
specified amount of foreign exchange at a set price for an
agreed upon period
4. Forward market
d. These are standard value forward contracts that obligate the parties
to exchange a particular currency on a specific date at a pre-
determined exchange rate
A. 1a, 2c, 3d, 4b
B. 1b, 2c, 3d, 4a
C. 1c, 2a, 3b, 4d
D. 1d, 2c, 3b, 4a
13. Which of the following certificate is issued to a merchant-exporter or
manufacturer-exporter for the import of inputs used in the
manufacturer of goods without payment of Basic Customs Duty?
A. Duty free replenishment certificate
B. Advance license
C. Advance license for annual requirement
D. Advance release orders
14. X Ltd., an Indian company desires to enter into South African
market. X Ltd. forms a partnership to share markets, intellectual
property, knowledge and profit with Y Ltd. a South African company
for 5 years. Such market strategy is known as……….
A. Joint venture
B. Direct Investment
C. Franchising
D. Contract
15. At times the exporter is called upon to certify on the invoice that the
goods are of particular origin, have been manufactured / packed at
a particular place and in accordance with a specific contract. When
such certificated appear on the invoice, it is called _____________.
A. Customs invoice
B. Certified invoice
C. Pro-forma invoice
D. Letter of credit