International Marketing MCQs | Multiple Choice Questions and Answers

 International Marketing MCQs
Multiple Choice Questions and Answers

Choose the correct answer:

1. The target group for marketing of Internet Banking is

a) All customers.

b) All literate customers.

c) All computer literate customers.

d) All of the above

2. Brand element is also known as:

a) Awareness

b) Recall

c) Identity

d) Image

3. NRI is an easy target for effective marketing, because

a) He likes Indian goods.

b) He is easily approachable.

c) There are special products designed for NRIs.

d) None of the above

4. In the context of globalization, BPO means

a) Business Process Orientation.

b) Business Process Outsourcing.

c) Budgeting Process Orientation.

d) All of the above

5. According to Product life cycle theory, the profit is maximum in:

a) Early stage

b) Growth stage

c) Maturity stage

d) Decline stage

6. Consumer Day is celebrated on

a) 15th March.

b) 16th March.

c) 20th March.

d) 25th March.

7. Market information means

a) The knowledge of customer profile

b) The knowledge of customer profile and product mix

c) The knowledge of shops/bazaars/shopping malls

d) All of the above

8. Trademark is a:

a) Legal term

b) Social term

c) Marketing term

d) None of the above

9. All the trademarks are brand but:

a) All the brands are not trademark

b) All the brands are trademark

c) None of the above

10. Which of the following forces help in shaping people’s standard of living?

a) Socio-cultural forces

b) Demographic forces

c) Political forces

d) None of the above

11. Which of the following should be considered while fixing the standard of the product?

a) Size, product design and shape

b) Weight and measures

c) Technical aspects

d) All of the above

12. Which is not a characteristic of international marketing?

a) It is a sub-part of marketing

b) It is a multinational process

c) It is concerned with home nation

d) It is a part of overall business activity

13. International promotion helps in

a) Expanding market

b) Diversifying product line

c) Earning more profit

d) All of the above

14. Making product up to established standards is known as

a) Product development

b) Product specialization

c) Product diversification

d) Product simplification

15. International product design strategies depend on

a) Market development

b) Legal requirement

c) Competition

d) All of the above

16. A certificate which enables a consumer to get a certain reduction in price on next purchase of particular product is called:

a) Discount

b) Trade Discount

c) Discount Coupon

d) Cash Discount

17. Purchasing power of an individual depends upon:

a) Income

b) Savings

c) Prices, debts and credit availability

d) All of the above   

18. Which one of the new product development process?

a) Analysis stage

b) Concept and market testing stage

c) Product development stage

d) Commercialization stage 

Fill in the blank

a) Personal selling in the present times is also known as salesmanship or face-to-face selling.

b) Bill of lading is a principal export document in international marketing.

c)  Logistic is coordinating and movement of goods from one place to another.

d) A brand is generally a symbol of identity.

e) WTO came into existence on 1st January, 1995, replacing GATT. 

f) The WTO was established to implement the final act of Uruguay Round Agreement of GATT. 

g) In the Growth stage of International Product Life Cycle (IPLC), the profit improves substantially.

h) Global product strategy in which product is changed a little to be adopted in foreign market is termed as product adaptability.

i) Marketing capabilities is a external environment affecting international marketing.

j) In International Marketing, a manager who sees the world as one big market and does not necessarily consider the International Markets separately for the domestic markets is known as geocentric manager.

k) An export house is also referred to as a/an trading house.

l) A short-term incentive designed as to encourage purchase is called as sales promotion.

m) The International Bank for Reconstruction and Development (IBRD) also popularly known as the World Bank.

n) Products which can be purchased frequently, immediately and with little efforts are called convenience products.    

State whether the following statements are true or false:

1. International trade and international marketing are synonymous terms.           False

2. In the context of globalization, BPO means business process orientation.         False, Business Process Outsourcing

3. From cultural point of view, exporting means operating in a cross-cultural environment.           True

4. The division of products into several homogeneous groups on the basis of their common characteristics is called simplification.    False, Grading

5. A brand is generally a symbol of quality.           False, Identity

6. In marketing, market penetration means covering a wide area of the market.                False

7. In indirect exporting, the manufacturer takes upon himself the task of managing the export sales. False, independent middle men and sales intermediaries

8. A long distribution channel means a longer time between production and final consumption.                 False

9. The pull factors refer to the compulsions of the domestic market, which prompt companies to internationalize.   False, Push factors

10. Company brand equity is a factor of internal business environment in International marketing.           True

11. GATT stands for Government Agreement on Tariffs and Trade.                          True

12. Bill of Lading is an auxiliary document in international marketing.        False, Principle document

13. Under the product extension strategy, the same product as marketed domestically is extended to foreign market without any significant modification.                       True

14. IEC Number stands for Import-Export Country Number.         False, Importer Exporter Code

15. A scheme of Special Economic Zones (SEZs) was introduced in the year 2000.                               False, 2005

16. EPCs stands for Export Promotion Councils.                  True

17. The term ‘logistic’ was used originally by the military.               True

18. Japan is a world leader in promotional techniques.    True

19. ‘Cash in advance’ is a payment method in which the seller receives a part payment before the product is manufactured and shipped.      False, Full payment made by the importer

20. In International Marketing, selling the domestic version of the product in the foreign market is known as product extension.          True

21. Modern concept of marketing is always product oriented.                    False, Consumer Oriented

22. International marketing and foreign trade are the same.    False

23. Staying competitive in the international market is the only way to survive for long-term in international marketing.    True

24. A GP form is a gate pass for the removal of excisable goods from a factory or warehouse.     True

25. EXIM Bank of India was set up in 1982.     True, March 1982

26. Bill of lading is an auxiliary document in international marketing.    False, Principle document

27. In case of ex-factory price quotation, all the expenses and risks are borne by the buyer right from the manufacturer’s doorsteps.          True

28. MNC’s help decrease competition and increase domestic monopolies.           False, Increases competition

29. A bill of lading is a negotiable instrument.      False, It is a document of title

30. Intermediaries are part of the micro-environment of international business.   True, Company, Suppliers, Marketing Intermediaries, Competitors, General Public and the Customers are the part of micro-environment.

31. Customers are a part of micro-environment affecting international marketing.   True, Company, Suppliers, Marketing Intermediaries, Competitors, General Public and the Customers are the part of micro-environment.

32. Is India a member of SAARC? 

Ans: Yes, Members of SAARC: Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka

33. The number of different product lines of a company is termed as product width.       True

34. A certificate of origin is a principal export document.                True, Commercial invoice, Packing list, Bill of lading, Airway bill, Certificate of inspection, Certificate of origin

35. Proforma invoice is an auxiliary document in international marketing.              True

Hint: List of Principal documents in international marketing: -

a)    Commercial invoice (and the invoice prescribed by the importer)

b)   Packing list

c)    Certificate of inspection

d)   Certificate of insurance/insurance policy

e)   Bill of Lading/Airway bill/Combined transport document

f)     Certificate of origin

g)    Bill of exchange

h)   Shipment advice

Hint: List of auxiliary documents in international marketing: -

a)    Proforma invoice

b)   Shipping instructions

c)    Insurance declaration

d)   Intimation for inspection

e)   Shipping order

f)     Mate’s receipt

g)    Application for certificate of origin

h)   Letter to bank for negotiation/collection of documents

36. Durable products are those products which can be used for longer period.    True, more than three years

37. International marketing and foreign trade are the same.        False

38. Is India a member of ASEAN?

Ans: No, members of ASEAN: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.

39. Letter of credit is an auxiliary document.        True

40. Under the product adaptation strategy, the same product as marketed domestically is extended to foreign market without any significant modification.                       False

41. There is always exchange rate fluctuation risk in domestic market.    False, risk in international market

42. A long distribution channel means a longer time between production and final consumption.

Write the full form of the following:

1. ASEAN: Association of Southeast Asian Nations

2. SAARC: South Asian Association of Regional Cooperation

3. PLC: Product Life Cycle

4. PLI Scheme: Production Linked Incentive Scheme

5. FEMA: Foreign Exchange Management Act

6. FMCG: Fast-Moving Consumer Goods

7. FOB: Free on Board

8. FOR: Free on Rail

9. EPRG: Ethnocentric, Polycentric, Regiocentric, and Geocentric

10. SEZ: special economic zone

11. WTO: World Trade Organisation

12. GATT: General Agreement on Tariffs and Trade

13. IPLC: International Product Life Cycle

14. EPCs: Export Promotion Councils

15. EPCG: Export Promotion Capital Goods

16. BPO: Business Process Outsourcing

17. DGFT: Director General of Foreign Trade

18. IEC: Importer Exporter Code

(IEC number is a 10 digit code number given to an exporter or importer by the regional office of the)

19. IBRD: International Bank for Reconstruction and Development

20. FDI: Foreign Direct Investment

21. IIFT: Indian Institute of Foreign Trade Admission Test

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