Ch.11 Test Questions & Answers The Asia Pacific Region

International Marketing, 18e (Cateora)

Chapter 11 The Asia Pacific Region

1) The term "The Greater China" refers to the information technology (IT) corridor in north China.

2) In the year 2009, Germany became the world's biggest exporter ahead of China.

3) The PNTR status given to China contributed much toward increasing the import barriers on American products and services.

4) In view of China's size, diversity, and political organization, it is not possible to have one-growth strategy for China.

5) A major issue that China has to address in its path to economic growth is improving human rights.

6) China is now the biggest market for personal computers.

7) China's "one country, two systems" agreement with Hong Kong guarantees the latter a high degree of autonomy.

8) The Hong Kong dollar is freely convertible.

9) The Hong Kong SAR government stresses the predominant role of the public sector over the private sector.

10) The sector that was hit the hardest during the Japanese recession was the real estate sector.

11) According to analysts, Japan's long entrenched Liberal Democratic political party was one of the reasons for the Japanese crisis.

12) One of Japan's core advantages over other countries is its language; the syntax of the Japanese language is similar to that of certain programming languages.

13) The Japanese have an affinity for united effort.

14) Owing to the deeply corrupt system, most of the U.S. manufacturers in India are leaving for other countries or pulling their money back home.

15) The Four Asian Tigers are: China, Thailand, India, and North Korea.

16) The United States has granted NTR (normal trade relations) status to Vietnam.

17) Bottom-of-the-pyramid markets (BOPMs) are always defined by national borders.

18) In recent years, the United States has emerged as Japan's single largest trading partner, surpassing the Southeast Asian countries.

19) The Asian financial crisis led to the creation of the ASEAN+3.

20) APEC is a body formed by the major governments of the Asian countries with the primary purpose of protecting their local industries against the market domination by their western counterparts.

21) Northeast China was the industrial and technological center of the country in the 1970s and 1980s.

22) The United States is now Japan's most important trading partner, even ahead of China.

23) Liaoning and Jilin provinces of China share borders with North Korea, and both provinces have substantial numbers of Korean minorities.

24) China's longest border is with Russia.

25) Tianjin is China's largest industrial city.

26) Hong Kong was designated as China's first Special Economic Zone.

27) At present, low value-added manufacturing in textiles and heavy equipment manufacturing industries account for the vast majority of Shanghai's industrial employment.

28) The Chinese central government spends almost 50 percent of its budget for the rural poor who amount to almost three-fourths of the Chinese population.

29) Humility and indirection are more emphasized in northern than in southern China.

30) As they were closest to foreign influences, negotiators in Taiwan are considered to be the most liberal.

31) What is the term used to refer to both the People's Republic of China (PRC) and the Republic of China (ROC) or Taiwan?

A) Integrated China

B) Yellow Route

C) Neo China

D) Mainland China

E) Greater China

32) What has contributed to the decrease in the historical tension among countries in East Asia?

A) ROC acquiring the UN membership

B) rise of communism

C) increase in direct trade

D) American military involvement in peacekeeping

E) ASEAN mandates overruling former hostilities between member nations

33) Aside from the United States, ________ is the most important single national market.

A) United Arab Emirates

B) Union of Soviet Socialist Republics

C) People's Republic of China

D) Dominican Republic

E) French Southern Territories

34) China's astonishing growth rate has begun to slow recently; however, most analysts see fast growth continuing for China. All of this growth is primarily dependent, in part, on China's

A) ability to deregulate industry.

B) prevention of the privatization of its state-owned enterprises.

C) preparedness to resist the capitalist wave.

D) ability to put embargoes on foreign investment.

E) ability to uphold its traditional legal system.

35) Two major events that occurred in 2000 had a profound effect on China's economy. One of these is the United States granting normal trade relations (NTR) to China on a permanent basis (PNTR). What is the other one?

A) inclusion of state owned companies in NASDAQ

B) admission to the World Trade Organization

C) signing of the new ASEAN pact

D) the handover of Hong Kong by the British to China

E) inclusion of Hong Kong as a special administrative region (SAR) of China

36) The two most important steps China must take to ensure smooth economic growth are to

A) decrease export barriers and promote indigenous technology.

B) strengthen the hold of its communist party and promote innovative thinking.

C) invest in more developing countries and change its education system.

D) acquire membership in more regional trade blocs and increase embargoes.

E) improve human rights and reform the legal system.

37) One of the reasons there is no one-growth strategy for China is

A) the regions have no link to the central government.

B) each region in China is at a different stage economically.

C) the inability to prevent the privatization of its state-owned enterprises.

D) each region within China is completely isolated from other regions.

E) the complete absence of autonomy in the various regions of China.

38) IBM entered into a venture with the Chinese Railways Ministry that allowed IBM to set up a national network of IBM service centers in railway stations so that IBM could ship computer parts via the railroad around the country within 24 hours. This venture was dubbed the

A) Blue Connect.

B) China Express.

C) China Blue.

D) Blue Express.

E) China Connect.

39) What is a cultural hurdle in the path of China becoming a vast market in the long run?

A) caste system

B) xenophobia

C) excessive focus on human rights

D) excessive bureaucracy

E) excessive spending

40) What is the biggest threat to the fast growth China is experiencing?

A) increased opening of the market to foreign investments

B) trade isolation by other ASEAN countries

C) losing the permanent normal trade relations (PNTR) status

D) reformation of the traditional legal system

E) economic volatility

41) Since its turnover to the People's Republic of China, Hong Kong

A) has lost its autonomy.

B) negotiates bilateral agreements and makes major economic decisions on its own.

C) operates with no jurisdiction from the central government in Beijing over matters related to foreign affairs and defense of Hong Kong.

D) has ceased to be freely convertible after its turnover to the People's Republic of China.

E) openly opposes economic policies that stress the predominant role of the private sector.

42) What tenet does China follow to ensure that Hong Kong's exuberant capitalism is retained despite the communist leanings of mainland China?

A) absolute plutocracy

B) sovereignty of the provinces

C) theocracy

D) noninterventionist approach

E) one country, two systems

43) What accurately represents the "three direct links" leading to the establishment of One China?

A) transportation, trade, and communications

B) culture, language, and religion

C) history, language, and transportation

D) federal bodies, education, and trade

E) technology, natural resources, and people

44) What is one of the reasons behind the economic stagnation in Japan in the 1990s?

A) the caste system

B) inept political apparatus

C) aggressive internal competition

D) theocratic rule

E) lack of natural resources

45) Political explanations of Japan's crisis during the 1990s identified two causes. One of them was the country's long entrenched Liberal Democratic political party. What is the other one?

A) Japan's trade policies with the United States

B) Japan's refusal to join Asian trade blocs

C) the powerful influence of the royalty in political issues

D) the hidebound Japanese bureaucracy

E) the splintering of Japan's right-wing political parties

46) In the 1970s, Frank Gibney called Japan "The Fragile Superpower," which was confirmed with the economic crisis of the 1990s. In his new appraisal, Gibney writes that Japan has become the victim of

A) social loafing.

B) compensating errors.

C) being penny-wise and pound-foolish.

D) herd behavior.

E) one-party sickness.

47) What was Japan's greatest hindrance to the development of software innovations appropriate for world markets?

A) deeply rooted bureaucratic structure

B) rise in global oil prices

C) complex language

D) growing fiscal deficit

E) burgeoning population

48) What theory explains Japan's recovery from WWII as a result of the nation adopting a consensus goal for national recovery?

A) the Cultural Causation theory

B) the Power Shift theory

C) the Third Way theory

D) the Hybridity theory

E) the Cultural Capital theory

49) A survey of U.S. manufacturers shows that 95 percent of respondents with Indian operations plan on expanding, and none say they are leaving, in spite of widespread corruption in the country. What is primarily behind this new trend?

A) India's government machinery is one of the most efficient in the world.

B) Living standards for expatriates in India are comparable to the world's best.

C) India offers cheap qualified labor and a massive market.

D) India's proximity to China makes sourcing of parts easier.

E) There is a lack of competitiveness among local firms in India.

50) Which nation is one of the Four Asian Tigers?

A) India

B) Thailand

C) South Korea

D) Malaysia

E) Sri Lanka

51) Which Asian country was the first to move from a status of developing country to a newly industrialized country?

A) Japan

B) Hong Kong

C) South Korea

D) Singapore

E) Taiwan

52) The most rapidly growing economies in the Asia Pacific region during the 1980s and 1990s, Hong Kong, South Korea, Singapore, and Taiwan, are sometimes referred to as the

A) Four Lions.

B) Four Elephants.

C) Four Dragons.

D) Four Horses.

E) Four Swans.

53) What is common among the Asian countries Hong Kong, South Korea, Singapore, and Taiwan?

A) They were among the first countries in Asia to move from a status of developing countries to newly industrialized countries.

B) They have a middle class numbering some 250 million, about the population of the United States.

C) The exports in these countries are growing at a rate of 50 percent annually.

D) They have faced a serious disadvantage in the information age due to their complex languages.

E) They all have the custom of "baksheesh," a deeply ingrained system of bribery.

54) What country is at present the center of trade links with north China and the Asian republics of the former Soviet Union?

A) Japan

B) South Korea

C) Malaysia

D) Singapore

E) India

55) C. K. Prahalad and associates introduced the concept of a global market, not necessarily defined by national borders but rather by the pockets of poverty across countries and consisting of 4 billion people across the globe with annual incomes of less than $1,200. They refer to these regions, concentrated in the LDCs and LLDCs, as ________ markets.

A) subsistence

B) third-world

C) underdeveloped

D) bottom-of-the-pyramid

E) peripheral

56) According to C. K. Prahalad, what misconception leads international markets to ignore the bottom-of-the-pyramid markets?

A) Products developed for more affluent consumers are not appropriate for BOPMs.

B) Most BOPMs are geographically isolated and thus difficult to access.

C) Protective policies make BOPMs difficult to penetrate.

D) Exchange rate fluctuations make BOPMs very volatile.

E) Language and cultural barriers make BOPMs unattractive and sometimes hostile.

57) C. K. Prahalad and his associates introduced a new concept into the discussion of developing countries and markets—bottom-of-the-pyramid markets (BOPMs)—consisting of the 4 billion people across the globe with annual incomes of less than

A) $400.

B) $1,200.

C) $ 2,500.

D) $ 3,700.

E) $ 4,200.

58) C. K. Prahalad has cited two primary misconceptions behind the international marketers ignoring the bottom-of-the-pyramid markets. One of the reasons is that the products and services developed for more affluent consumers are not appropriate for these markets. Which of the following is the other misconception?

A) Unwillingness of consumers in the bottom-of-the-pyramid markets to buy international products.

B) The lack of uniformity in bottom-of-the-pyramid markets.

C) The heavy taxation system in bottom-of-the-pyramid markets allows little profit.

D) Consumers in the bottom-of-the-pyramid markets lack both money and technology.

E) Consumers in the bottom-of-the-pyramid markets are characterized by conservative traditions and culture.

59) What appears to be the best way to stimulate economic development and growth from within developing countries?

A) imposing embargoes

B) encouraging governmental regulations

C) restricting immigration

D) increasing tariffs on exports

E) encouraging networked entrepreneurial activities

60) Grameen Bank is a private commercial enterprise in ________ that developed a program to supply phones to 300 villages.

A) Bangladesh

B) China

C) Japan

D) Sri Lanka

E) South Korea

61) What is true of the standard of living of the eight most populous countries of the Asia/Pacific region?

A) The Japanese rail system is one of the most underdeveloped in the world.

B) In the Philippines, most people travel by train.

C) As a result of communism, China and Vietnam place low emphasis on health.

D) The Japanese healthcare system produces the longest lifespans in the world.

E) Consumption patterns indicate that the Chinese place much lower emphasis on education compared with Indians.

62) ASEAN+3 is a forum for ASEAN ministers plus ministers from China, Japan, and

A) Singapore.

B) South Korea.

C) Russia.

D) Australia.

E) Taiwan.

63) The primary multinational trade group in Asia is

A) MERCOSUR.

B) COMESA.

C) CEFTA.

D) SADC.

E) ASEAN.

64) What helps account for the vigorous economic growth of the ASEAN countries and their transformation from cheap-labor havens to industrialized nations?

A) the ASEAN governments' decision to shift their economies from manufacturing based to commodity based

B) North Korea's emergence as a major provider of technology and capital necessary to upgrade manufacturing capability

C) a bilateral trade agreement between the United States and Vietnam leading to the granting of NTR status to Vietnam

D) Hong Kong becoming a special administrative region (SAR) of the People's Republic of China

E) the ASEAN governments' commitment to deregulation, liberalization, and privatization of their economies

65) During the Asian financial crisis, the leading financial powers seemingly either declined to take part in the rescue operations, as the United States did in Thailand, or proposed unattainable solutions. The result was the creation of

A) SADC.

B) NAFTA.

C) ASEAN+3.

D) CEFTA.

E) COMESA.

66) One target of ASEAN Vision 2020 is to

A) implement fully and as rapidly as possible the ASEAN Free Trade Area.

B) form the ASEAN+3 to deal with trade and monetary issues facing Asia.

C) shift Asian economies from manufacturing based to commodity based.

D) aid Japan's emergence as the major provider of technology and capital necessary to develop new industries.

E) prevent the further privatization of state-owned industries.

67) The first meeting of the members of the ASEAN+3 was devoted to devising a system whereby the member countries could

A) defend their currencies against future attack.

B) improve the multilateral trade.

C) keep inflation in check.

D) acquire nuclear technology.

E) improve agricultural production.

68) ________ is a unique forum that has evolved into the primary regional vehicle for promoting trade liberalization and economic cooperation, and includes all the major economies around the Pacific Rim, from Russia to Chile to Australia.

A) NAFTA

B) ASEAN

C) ASEAN+3

D) SADC

E) APEC

69) What is true of APEC?

A) Russia is not a member of this group.

B) It is opposed to open trade.

C) Its members meet every six months.

D) It promotes economic cooperation.

E) It aims to increase barriers to investment.

70) Which region is considered the information technology (IT) corridor in north China?

A) Beijing–Tianjin

B) Heilongjiang

C) Liaoning

D) the Jilin River Delta

E) Fujian

71) ________ contains Hong Kong, Macau, Guangzhou, and Shenzhen and is considered the world's manufacturing base for the IT industry.

A) Northeast China

B) The Yellow River Delta

C) The Yangtze River Delta

D) The Pearl River Delta

E) Southwest China

72) The national language of China is standard ________, but more than 56 dialects and other languages are spoken across the country.

A) Wu

B) Min

C) Cantonese

D) Xiang

E) Mandarin

73) What is most likely to cause the biggest problems for television and radio advertisers in China?

A) low levels of television and radio penetration

B) the rigid theocratic rule

C) lack of common language

D) the rigid adherence to traditional values

E) lack of investment

74) The three contiguous provinces in Northeast China—________, Jilin, and Heilongjiang— have long represented a cohesive unit in terms of culture and the political economy.

A) Gansu

B) Shanxi

C) Henan

D) Liaoning

E) Sichuan

75) The most important advantage of Northeast China that mainly contributed toward its being the industrial and technological center of the country in the 1970s and 1980s is

A) its juxtaposition with China's most important industrial neighbors.

B) the lack of economic diversity in this area.

C) the existence of oil fields these areas.

D) that it contains Hong Kong, Macau, Guangzhou, and Shenzhen.

E) its authority to impose embargoes upon trading partners.

76) Liaoning province of Northeast China has the closest economic ties with

A) Japan.

B) South Korea.

C) Russia.

D) United Kingdom.

E) North Korea.

77) Which province of China shares the closest economic ties with South Korea?

A) Liaoning

B) Jilin

C) Heilongjiang

D) Guangdong

E) Hainan

78) Which province of China shares the closest economic ties with Russia?

A) Liaoning

B) Jilin

C) Heilongjiang

D) Guangdong

E) Hainan

79) _______ is now Japan's most important trading partner.

A) Malaysia

B) The United States

C) Bangladesh

D) Bahrain

E) China

80) ________ at the southern tip of the Liaodong Peninsula in China is the focus of bi-national relationships and has one of the world's largest and most modern port facilities.

A) Dalian

B) Jilin

C) Heilongjiang

D) Guangdong

E) Hainan

81) The ________ region in China is the political and R&D center of China. The 75-mile corridor in this region hosts some 5,000 Chinese high-tech companies, and more than 1,000 international IT companies.

A) The coastal Dalian city

B) The Pearl River Delta

C) The Yangtze River Delta

D) Beijing–Tianjin

E) Fujian

82) ________ is known as China's Silicon Valley.

A) Liaoning

B) Zhongguancun

C) Jilin

D) Guangzhou

E) Heilongjiang

83) ________ is China's third largest industrial city after Shanghai and Beijing, and the fastest growing one.

A) Wuhan

B) Chengdu

C) Qingdao

D) Tianjin

E) Kaohsiung

84) What is true of Tianjin in China?

A) It is China's largest industrial city.

B) It is China's fastest growing industrial city.

C) It has the closest economic ties with Japan.

D) It is referred to as "Little Moscow."

E) It harbors the world's largest and most modern port facilities.

85) Half of Shanghai's GDP is derived from

A) financial services industries.

B) steel industries.

C) electronic products.

D) shipping sector.

E) software industries.

86) ________ has replaced Nanjing as Jiangsu province's number one economy and foreign trade center.

A) Wuhan

B) Chengdu

C) Qingdao

D) Tianjin

E) Suzhou

87) The ________ region in China includes three cities of over 5 million inhabitants (Hong Kong, Guangzhou, and Shenzhen); five cities with more than 1 million inhabitants (Zhuhai, Huizhou, Foshan, Zhongshan, and Dongguan); and a number of cities that each contain approximately half a million inhabitants, such as Macau.

A) Shanghai

B) Northeast China

C) Yangtze River Delta

D) The Greater Pearl River area

E) Taiwan

88) What city has an advantage of bordering Hong Kong, using it as a trade platform to expand the global market?

A) Shanghai

B) Zhongshan

C) Taiwan

D) Beijing

E) Shenzhen

89) ________, a boomtown bordering Hong Kong and a fishing village just 20 years ago, has replaced the provincial capital Guangzhou to lead the local economy.

A) Dongguan

B) Shenzhen

C) Huizhou

D) Foshan

E) Zhongshan

90) What is the primary reason behind the inaccessibility of most of the 1.3 billion potential consumers in China?

A) Most of them have little disposable income.

B) The distribution network is poor or absent.

C) They are mostly Communist party members who avoid purchasing imported goods.

D) They are restricted to settlement zones where marketing is prohibited.

E) They are unfamiliar with the English language.

91) What stereotype of businesspeople in the Northeast of China persists, especially by their southern neighbors?

A) loud and argumentative

B) cold and businesslike

C) aggressive

D) dishonest

E) forthright

92) What trait is most closely associated with negotiators from the Beijing area?

A) traditional thought pattern

B) lack of creativity

C) forthright

D) shrewd

E) aggressive

93) Shanghai negotiators are famous for their

A) shrewdness.

B) tendency to be closemouthed.

C) low spending habits.

D) lack of creativity.

E) imperialist perspective.

94) Negotiators from the ________ region in China have been the closest to foreign influences, and are excellent traders and particularly interested in making short-term gains.

A) Taiwan

B) Yangtze River Delta

C) Beijing

D) Shanghai

E) Pearl River Delta

95) The negotiators in the Pearl River Delta are reputed to be

A) much more calculating than traders in Shanghai.

B) relatively honest and forthright.

C) very poor traders.

D) more interested in making long-term gains.

E) cut-off from foreign influences.

96) The __________ region of China is considered, by other Chinese, to be the most conservative both in terms of behavior and language.

A) Hong Kong

B) Mainland China

C) Beijing

D) Shanghai

E) Taiwan

97) Which areas that come under "The Greater China"? What is the history of the relationship between these areas?

98) Explain the two major events of 2000 that had a major impact on China's economy.

99) What is the "one country, two systems" approach of China? How did it come about?

100) What political factors were behind the Japanese crisis of 1990?

101) Given the rampant corruption in India, describe the attitude of investors toward India.

102) What are the countries referred to as the Asian Tigers, and why are they referred to this way?

103) What are BOPMs? According to C. K. Prahalad, why have they been ignored by international marketers?

104) Discuss the economic growth of the member nations of ASEAN, including the four major events that led to their economic growth.

105) Analyze APEC's role in international trade.

106) Give a brief account of the four major regional economies of China.

107) How have multinational companies contributed toward the development of rural China?