Question 1

Outline the key political and legal issues that an international marketer would have to take into consideration when developing marketing mixes for a range of international markets.

Accepted Answer

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Question 2

Legal constraints on a product entering a new international market include:

Accepted Answer

All of the options listed (packaging, product labels, physical and chemical composition) are subject to legal regulations when entering a new international market. Therefore, options A, B, and C are all correct.

Question 3

Discuss the circumstances under which arbitration is preferable to conciliation in contract and dispute resolution in international marketing.

Accepted Answer

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Question 4

Companies operating in foreign markets often hire local employees. This can involve a variety of issues including:

Accepted Answer

Hiring local employees in foreign markets involves training locals and considering the number of expatriates employed, but not home country labor laws, which are not directly relevant to local hiring practices.

Question 5

Which of the following statements about intellectual property protection in international marketing is NOT true?

Accepted Answer

Intellectual property rights are territorial, meaning that they only apply in the country or region where they have been registered. Therefore, a company may need to register its intellectual property rights in each foreign market it operates in, in order to gain legal protection from infringement. The statement that the intellectual property rights a company has in its home country will apply in all foreign markets is not true.

Question 6

International marketers need to be aware of areas where international law may impinge on their marketing activities.

Accepted Answer

As international marketers operate in different countries and regions, they need to follow the laws and regulations that are in place. These laws may vary and even conflict with one another, so it's essential for international marketers to be aware of them to avoid potential legal issues and ensure ethical and compliant marketing practices.

Question 7

Explain the intellectual property protection available in most countries and why such protection is important to international marketers.

Accepted Answer

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Question 8

Arbitration is the best approach to resolving contract disputes because it is less likely to close the door on future business relationships between the feuding parties.

Accepted Answer

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Question 9

Companies entering foreign markets do not need to worry about intellectual property as long as they have registered their intellectual property in their home country.

Accepted Answer

Intellectual property rights are territorial in nature, meaning that registering it in one country does not automatically grant protection in other countries. Companies must register their intellectual property in each country where they plan to do business to ensure proper protection and avoid potential legal issues. Failure to do so can result in infringement, loss of exclusivity, and potential legal action from local competitors.

Question 10

Explain the key differences between common law, code law and Islamic law. Why must an international marketer have an understanding of the different legal systems?

Accepted Answer

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Question 11

Transfer pricing involves a firm setting the prices at which it transfers products or technologies to affiliates in other countries.

Accepted Answer

This statement is true. Transfer pricing involves setting the prices for transactions between affiliates in different countries within the same company. This can include prices for the transfer of products, services, and intellectual property. The purpose of transfer pricing is to ensure that the prices set are fair and reasonable, and do not result in tax evasion or other financial benefits to the company.

Question 12

A firm's marketing mix options can be affected through the extraterritorial application of law, which occurs when the laws of the firm's home country are applied in the overseas country.

Accepted Answer

Extraterritorial application of law can affect a firm's marketing mix options in the overseas country by requiring them to comply with the laws of their home country, which may have different regulations or restrictions. This can impact their product, promotion, price, and distribution strategies.

Question 13

Transfer pricing in international marketing is:

Accepted Answer

The answer of Transfer pricing in international marketing is:
...

Question 14

Environmental law is gaining an increased amount of attention in overseas marketing both within countries and in multilateral forums. Which of the following is NOT an issue of concern?

Accepted Answer

None of the listed options are excluded as potential issues of concern in environmental law, so the correct answer is E. However, it is worth noting that all of the listed options (billboards, noise, energy consumption, and packaging materials) are potential environmental concerns and may be subject to regulation or restriction in certain circumstances.

Question 15

Explain how a firm can reduce the impact of foreign laws on its pricing.

Accepted Answer

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Question 16

The Trade in-Intellectual Property (TRIPS) code administered by the WTO:

Accepted Answer

The TRIPS code administered by the WTO contains comprehensive new rules to protect intellectual property and to govern disputes. It sets minimum standards for intellectual property protection and enforcement that must be followed by all WTO member countries. It also provides a framework for resolving intellectual property disputes through the WTO's dispute settlement system.

Question 17

Patents protect intellectual property and provide the holder with the following protection(s):

Accepted Answer

Patents protect inventions or discoveries by granting exclusive rights to the inventor to make, use, sell, and import the invention for a limited period, typically 20 years. They do not provide copyright protection (which protects original works of authorship), trademark protection (which protects symbols, names, and slogans used to identify goods or services), or specifically prevent imitation in music (which would fall under copyright law).

Question 18

Dumping refers to the practice of an exporter attempting to:

Accepted Answer

Dumping refers to the practice of selling a product in a foreign market at a price that is lower than the price charged in the home market. This can be done to gain a larger market share in the foreign market, which can lead to the imposition of antidumping duties by the affected country.

Question 19

Arbitration is:

Accepted Answer

Arbitration involves a neutral third party or a panel that hears both sides of a dispute and makes a decision that is usually binding. It is often used when other forms of dispute resolution, such as conciliation, fail. The arbitrator acts similarly to a referee by listening to both parties and then making a judgment.

Question 20

Which of the following statements is true about the product element of the marketing mix in international markets?

Accepted Answer

Where countries have laws covering the same issue, the standards to which the product must conform can vary. This means that even if two countries have regulations regarding a certain aspect of a product, the standards set by each country may differ from one another. It is important for companies to familiarize themselves with the regulations and standards of each individual market to avoid potential legal issues.

Quiz 2: Avoiding the Pitfalls of the International Political and Legal Environment