Question 1

The combined effect of both clear-cut and hidden costs results in export prices that far exceed domestic prices.This cause is known as:

Accepted Answer

A) export pricing escalation. 
B) stepped escalation. 
C) domestic export differentiation. 
D) price escalation. 
A) export pricing escalation. 
B) stepped escalation. 
C) domestic export differentiation. 
D) price escalation. D

Question 2

Which price system differentiates between domestic and export prices, where two approaches to pricing products for exports are available (cost-driven and market-driven)?

Accepted Answer

A) Dual pricing 
B) Bi-market pricing 
C) Two-tiered pricing 
D) Export secondary pricing 
A) Dual pricing 
B) Bi-market pricing 
C) Two-tiered pricing 
D) Export secondary pricing A

Question 3

A status-conscious market that insists on products with established reputations will be inelastic, allowing for far more pricing freedom than a market where price-consciousness drives demand.

Accepted Answer

A) True 
 B)False  True

Question 4

Prices quoted ex-works (EXW)are when the seller agrees to place the goods at the disposal of the buyer at the specified place on the date or within the fixed period.At which point do these prices apply?

Accepted Answer

A) At the end of the contract 
B) Only at the point of origin 
C) Throughout the entire process 
D) Before, during and after the process 
A) At the end of the contract 
B) Only at the point of origin 
C) Throughout the entire process 
D) Before, during and after the process

Question 5

Which of the following is not included in export-related costs?

Accepted Answer

A) The cost of modifying the product for foreign markets 
B) Operational costs of the export operation 
C) Costs incurred in entering the foreign market 
D) The cost of modifying marketing communications 
A) The cost of modifying the product for foreign markets 
B) Operational costs of the export operation 
C) Costs incurred in entering the foreign market 
D) The cost of modifying marketing communications

Question 6

___________ pricing, or intracorporate pricing, is the pricing of sales to members of the extended corporate family.

Accepted Answer

A) Moving 
B) Transaction 
C) Transfer 
D) Intrafamily 
A) Moving 
B) Transaction 
C) Transfer 
D) Intrafamily

Question 7

___________ provides the exporter with cash at the time of the shipment.The importer pays the exporter with bills of exchange or promissory notes guaranteed by a leading bank in the importer's country.

Accepted Answer

A) Official trade finance 
B) Bank 
C) Factoring 
D) Forfaiting 
A) Official trade finance 
B) Bank 
C) Factoring 
D) Forfaiting

Question 8

Because international currency is fluid, neither party will get harmed if the exchange rate is different in one country versus another.

Accepted Answer

A) True 
 B)False

Question 9

What is the process of setting an export price?

Accepted Answer

The process of setting an export price m

Question 10

Which of the following is not considered in negotiating terms of payment?

Accepted Answer

A) The amount of payment and the need for protection 
B) The capacity for financing international transactions 
C) Practices in the country 
D) The relative strength of the parties involved. 
A) The amount of payment and the need for protection 
B) The capacity for financing international transactions 
C) Practices in the country 
D) The relative strength of the parties involved.

Question 11

The most favourable term to the importer is consignment selling, which allows the importer to defer payment until the goods are actually sold.

Accepted Answer

A) True 
 B)False

Question 12

_______ serves as a means of communication with the buyer by providing a basis for judging the attractiveness of the offer.

Accepted Answer

A) Price 
B) Packaging 
C) Colours 
D) Advertising 
A) Price 
B) Packaging 
C) Colours 
D) Advertising

Question 13

_______ calls for export pricing according to the dynamic conditions of the marketplace.

Accepted Answer

A) Skimming 
B) Follow the market pricing 
C) Penetration pricing 
D) Market-differentiated pricing 
A) Skimming 
B) Follow the market pricing 
C) Penetration pricing 
D) Market-differentiated pricing

Question 14

Prices quoted CFR apply only at the point of origin, and the seller agrees to place the goods at the disposal of the buyer at the specified place on the date or within the fixed period.

Accepted Answer

A) True 
 B)False

Question 15

Overall, exporters see the pricing decision as a critical one, which means that it is typically taken centrally under the supervision of top-level management.

Accepted Answer

A) True 
 B)False

Question 16

An exporter can use a penetration pricing approach if the product is unique and some segments of the market are willing to pay the high price.

Accepted Answer

A) True 
 B)False

Question 17

For what would a distributor in certain markets forgo profit margins?

Accepted Answer

A) Competition 
B) Trade 
C) Tax deferment 
D) Exclusivity 
A) Competition 
B) Trade 
C) Tax deferment 
D) Exclusivity

Question 18

The objective of _______ is to achieve the highest possible contribution in a short time.

Accepted Answer

A) following the market price 
B) skimming 
C) penetration pricing 
D) prestige pricing 
A) following the market price 
B) skimming 
C) penetration pricing 
D) prestige pricing

Question 19

A more refined form of barter, aimed at reducing the effect of the immediacy of the transaction, is called:

Accepted Answer

A) switch trading. 
B) buyback. 
C) clearing arrangements. 
D) complex barter. 
A) switch trading. 
B) buyback. 
C) clearing arrangements. 
D) complex barter.

Question 20

A dual pricing strategy is based on demand orientation.

Accepted Answer

A) True 
 B)False

The combined effect of both clear-cut and hidden costs results in export prices that far exceed domestic prices.This cause is known as:

Which price system differentiates between domestic and export prices, where two approaches to pricing products for exports are available (cost-driven and market-driven)?

A status-conscious market that insists on products with established reputations will be inelastic, allowing for far more pricing freedom than a market where price-consciousness drives demand.

Prices quoted ex-works (EXW)are when the seller agrees to place the goods at the disposal of the buyer at the specified place on the date or within the fixed period.At which point do these prices apply?

Which of the following is not included in export-related costs?

___________ pricing, or intracorporate pricing, is the pricing of sales to members of the extended corporate family.

___________ provides the exporter with cash at the time of the shipment.The importer pays the exporter with bills of exchange or promissory notes guaranteed by a leading bank in the importer's country.

Because international currency is fluid, neither party will get harmed if the exchange rate is different in one country versus another.

What is the process of setting an export price?

Which of the following is not considered in negotiating terms of payment?

The most favourable term to the importer is consignment selling, which allows the importer to defer payment until the goods are actually sold.

_______ serves as a means of communication with the buyer by providing a basis for judging the attractiveness of the offer.

_______ calls for export pricing according to the dynamic conditions of the marketplace.

Prices quoted CFR apply only at the point of origin, and the seller agrees to place the goods at the disposal of the buyer at the specified place on the date or within the fixed period.

Overall, exporters see the pricing decision as a critical one, which means that it is typically taken centrally under the supervision of top-level management.

An exporter can use a penetration pricing approach if the product is unique and some segments of the market are willing to pay the high price.

For what would a distributor in certain markets forgo profit margins?

The objective of _______ is to achieve the highest possible contribution in a short time.

A more refined form of barter, aimed at reducing the effect of the immediacy of the transaction, is called:

A dual pricing strategy is based on demand orientation.

Introduction to international marketing

The economic environment

Trade institutions and trade policy

The political and legal environment

The cultural environment

Building the knowledge base

Foreign market entry

Channels of distribution and logistics

Product policy and adaptation in international markets

Product and brand management in international markets

Services marketing

International marketing communications

Social Networking and Communications

Filters

Exam 12: Pricing in international markets

The combined effect of both clear-cut and hidden costs results in export prices that far exceed domestic prices.This cause is known as:

Which price system differentiates between domestic and export prices, where two approaches to pricing products for exports are available (cost-driven and market-driven)?

A status-conscious market that insists on products with established reputations will be inelastic, allowing for far more pricing freedom than a market where price-consciousness drives demand.

Prices quoted ex-works (EXW)are when the seller agrees to place the goods at the disposal of the buyer at the specified place on the date or within the fixed period.At which point do these prices apply?

Which of the following is not included in export-related costs?

___________ pricing, or intracorporate pricing, is the pricing of sales to members of the extended corporate family.

___________ provides the exporter with cash at the time of the shipment.The importer pays the exporter with bills of exchange or promissory notes guaranteed by a leading bank in the importer's country.

Because international currency is fluid, neither party will get harmed if the exchange rate is different in one country versus another.

What is the process of setting an export price?

Which of the following is not considered in negotiating terms of payment?

The most favourable term to the importer is consignment selling, which allows the importer to defer payment until the goods are actually sold.

_______ serves as a means of communication with the buyer by providing a basis for judging the attractiveness of the offer.

_______ calls for export pricing according to the dynamic conditions of the marketplace.

Prices quoted CFR apply only at the point of origin, and the seller agrees to place the goods at the disposal of the buyer at the specified place on the date or within the fixed period.

Overall, exporters see the pricing decision as a critical one, which means that it is typically taken centrally under the supervision of top-level management.

An exporter can use a penetration pricing approach if the product is unique and some segments of the market are willing to pay the high price.

For what would a distributor in certain markets forgo profit margins?

The objective of _______ is to achieve the highest possible contribution in a short time.

A more refined form of barter, aimed at reducing the effect of the immediacy of the transaction, is called:

A dual pricing strategy is based on demand orientation.

Introduction to international marketing

The economic environment

Trade institutions and trade policy

The political and legal environment

The cultural environment

Building the knowledge base

Foreign market entry

Channels of distribution and logistics

Product policy and adaptation in international markets

Product and brand management in international markets

Services marketing

International marketing communications

Social Networking and Communications

Filters