Quiz-4

True/False

Indicate whether the sentence or statement is true or false.

1. 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.

2. The concept of comparative advantage assumes that countries have equal rates of productivity for a wide variety of goods and services.

3. The majority of world population growth is in industrialized countries.

4. Products are often in different stages in the product life cycle in different countries.

Multiple Choice

Identify the letter of the choice that best completes the statement or answers the question.

5. A ____ firm is a worldwide player with the greatest geographic business scope.

a.	multinational	c.	global
b.	international	d.	glocal

6. Countries have different rates of productivity due to their natural resources, climate, technology, labor costs, and other factors. This represents the country's

a.	differential advantage.	c.	comparative advantage.
b.	trade surplus.	d.	balance of trade.

7. A company may prolong a product's life cycle through international marketing by exporting a product

a.	that is in the mature stage in its home market to a foreign market with high growth prospects.
b.	with high growth in the firm's home market to a foreign market with high growth prospects.
c.	to a country with a high standard of living.
d.	to a country with a high population growth rate.

8. What concept is best illustrated when developing countries exchange raw materials (extracted and semi-processed with low-priced labor) for high-technology products from industrialized countries?

a.	The balance of trade	c.	Comparative advantage
b.	The product life cycle	d.	Nationalism

9. Although the market for washing machines is mature in the United States, in many developing countries, home washing machine market penetration is low. This best illustrates what international marketing concept?

a.	Comparative advantage	c.	Product differentiation
b.	The balance of trade	d.	The product life cycle

10. The marketing of goods and services outside an organization's home country (whether in one or several markets) is known as

a.	direct exporting.	c.	international marketing.
b.	indirect exporting	d.	multinational marketing.

Quiz-4

Answer Section

TRUE/FALSE

1. T

2. F

3. F

4. T

MULTIPLE CHOICE

5. C

6. C

7. A

8. C

9. D

10.C