Midterm Examination - (International Marketing)

UNIVERSIDAD DE ZAMBOANGA
SCHOOL OF BUSINESS MANAGEMENT

A. Eustaquio Quadrangle, JS Alano Street, Zone III, Zamboanga
City, 7000 Philippines
MIDTERM EXAMINATION
CA ELECT 2 - INTERNATIONAL MARKETING
Name: Date:
Year and Section Score
TEST I. MULTIPLE CHOICE: Read and understand the questions carefully and encircle the
corresponding letter, which you think is the best answer on your answer sheet.
1. What is international trade?

a. The exchange of goods and services among nations
b. goods and services sold within the country
c. goods and services purchased from other countries
d. A trade route
2. The development of a worldwide economy where resources flow fairly freely across borders
a. Globalization b. Economy c. Economic Independence d. GDP
3. Who benefits the most from Globalization?

a. Workers b. Companies
c. People Buying the Goods and Services (Consumers) d. Countries
4. The comparative advantage encouraged by the globalization, brings these effects to the
society:
a. Promotes economic growth b. Makes production more efficient
c. Lowers prices of goods and services d. All of the above
5. A ___________ is a type of market entry strategy that a party acquires to allow them to have
access to a business's proprietary knowledge, processes, and trademarks in order to allow the
party to sell a product or provide a service under the business's name.
a. License b. Franchise c. Manufacturing Contract d. Direct Investment
6. The reason for a company planning to sell its products abroad for the first time is:
a. It will cost less to export products than to sell them in the home market
b. Legal controls over product quality are always much less strict in foreign countries
c. The foreign markets may be saturated
d. Market share could be declining in the home market
7. If company A entered a foreign market by selling a license to a local firm to manufacture

products then:
a. quality would certainly improve
b. costs of exporting product could be low
c. profit margins would definitely increase compared to the home market
d. additional capacity in Company A's factory in the home country would be needed
8. A market in which members allow goods and services to be freely traded across borders
without trade barriers
A. Free Trade Zone b. Free Trade Agreement c. Common markets d. Embargo
9. A unique business organized by two or more other businesses to operate for a limited time and
for a specific project.
a. Independent contracting b. Joint Venture c. franchising d. licensing
10. A written contract granting permission to operate a business to sell products and services in a
set way.
a. Franchising b. Joint Venture c. licensing d. strategic alliance
11. There are benefits of participating in parallel with international business activities, except:
a. Business can achieve the economic efficiency of scale
b. Business can learn from foreign competitors
c. Private culture is protected by law
d. The price will lower
12. What are the advantages of Global Marketing?

a. Lower average marketing costs b. Consistency in brand image
c. Power in the market as your brand is known d. all of these
13. The best explanation of globalization is:

a. All countries are now part of the same free trade area
b. Countries' economies are now much less dependent on foreign trade than they used to be
c. Companies can sell products abroad and invest abroad more easily than uses to be the case
d. Cultural and economic differences between nations are becoming much greater
14. If company A entered a foreign market by selling a license to a local firm to manufacture
products then:
a. quality would certainly improved
b. costs of exporting product could be low
c. profit margins would definitely increase compared to the home market
d. additional capacity in Company A's factory in the home country would be needed
15. Which of the following entry modes allow(s) a company to engage in global strategic
coordination?
a. Exporting b. Licensing c. Wholly owned subsidiaries d. Joint ventures
TEST II. MODIFIED TRUE OR FALSE: Write the word TRUE if the statement is correct
and if not, underline the word or statement that sentence incorrect and write the correct answer
on the space provided.
__________1. National Security and Domestic Employment are two reasons for Trade Barriers.
__________2. Nations are almost always better off when they don’t buy and sell from one
another.
__________3.Total gains to the economy from trade are the sum of the consumer and producer
surplus.
__________4. Excess of what a consumer is willing to pay to what he actually has to pay is
consumer’s surplus.
__________5. A quota is a tax placed on a product.
__________6.The current account of the balance of payments measures the trade in imports and
exports of goods.
__________7. A multinational enterprise if one which has no centralized headquarters.
__________8. Large multinational companies often allocate their resources without regard to
national boundaries, even though they have a home country in terms of ownership
and top management.
__________9. The concept of comparative advantage assumes that countries have equal rates of
productivity for a wide variety of goods and services.
__________10. The majority of world population growth is in industrialized countries.
TEST III. ESSAY: Read the question(s) carefully. Make sure that you understand it before
responding. Be brief and concise as much as possible.
1. In an attempt to market the products abroad, what kind of marketing strategy a firm should
choose ?
2. Cultural and political forces influence international marketing activity. Discuss the impact of
these forces and illustrate your answers with examples.
3. Will global media eventually replace national media? Discuss the factors that underlie the rise
of global media and the impact of the future trends affecting international marketing
communications.
"Life is the most difficult exam. Many people fail because they try to copy others, not realizing
that everyone has a different question paper."
Prepared by:
CHRISTINE LEAL-ESTENDER
Instructor

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UNIVERSIDAD DE ZAMBOANGA

SCHOOL OF BUSINESS MANAGEMENT

1. What is international trade?

3. Who benefits the most from Globalization?

7. If company A entered a foreign market by selling a license to a local firm to manufacture

12. What are the advantages of Global Marketing?

13. The best explanation of globalization is:

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