MODEL QUESTION PAPER MK0018 INTERNATIONAL MARKETING SECTION A 1 MARK QUESTIONS 1.

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 Smiths theory D. Factor endowment theory 7. According to David Ricardos ________________, 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 Smiths 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 originators 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 manufacturerexporter 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 preproduction, 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 countrys 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 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 or commercial enterprise from those of other

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. B. C. D.

1T, 2F 1F, 2F 1F, 2T 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 countrys 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
1. Ethnocentric 2. Polycentric 3. Regiocentric 4. Geocentric

Set B
A. This orientation views entire world as one big potential market B. This orientation believes that each region is unique C. This orientation believes that every country is unique 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 Governments ownership 2. Nationalism B) process of a Governments taking ownership of a property without compensation 3. Domestication C) involves government ownership in the business taking the

4. Expropriation

D)

foreign control nationals completely

companies and or partially

relinquish either to the

ownership

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 2. Legal & Regulatory 3. Socio-cultural Environment 4. Economic Environment A) Income level, market system & Purchase power parity B) Attitudes and beliefs C) Intellectual property, copy rights and related rights 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 exporters 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 2. International Development Association 3. International Finance Corporation 4. OECD b) 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 Established in 1956 to help strengthen the private sector in developing countries, through the provision of long term loans, equity investments, guarantees, etc c) It is a lending agency administered by the IBRD to provide assistance on concessional terms to the poor and developing countries. 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: a) It is a basic document in an export contains charged, transaction the of goods, which as price costs information

1. Bill of Lading

description

quantity,

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 by main the for document customs allowing required authorities 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. B. C. D. Airways bill Bill of lading Shipping bill 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 1. Currency Futures Set B a. It consists of transactions that require delivery of currency at an agreed upon future date. b. It is the price to paid by the purchaser of the option to its writer 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 d. These are standard value forward contracts that obligate the parties to exchange a particular currency on a specific date at a predetermined exchange rate

2. Foreign currency options

3. Option premium

4. Forward market

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