Question 1

To restrict the gray market, companies must establish and monitor controls that effectively police sales channels.

Accepted Answer

A) True 
 B)False

Question 2

For ________ duties to be levied on a product, it must be shown that prices are lower in the importing country than in the exporting country and that producers in the importing country are being directly harmed by the dumping of the product.

Accepted Answer

A)  countertrade 
B)  domestic protection 
C)  countervailing 
D)  foreign practice 
E)  import restriction 
A)  countertrade 
B)  domestic protection 
C)  countervailing 
D)  foreign practice 
E)  import restriction

Question 3

Letters of credit shift the buyer's credit risk to the bank issuing the letter of credit.

Accepted Answer

A) True 
 B)False

Question 4

A(n) ________ means that once the seller has accepted the credit, the buyer cannot alter it in any way without permission of the seller.

Accepted Answer

A)  open account 
B)  letter of credit 
C)  bill of lading 
D)  bill of regression 
E)  sales agreement 
A)  open account 
B)  letter of credit 
C)  bill of lading 
D)  bill of regression 
E)  sales agreement

Question 5

Gift Group Inc., an importing organization in New York, buys perfume from a company in France for $13 a unit. Unknown to the French company, Gift Group sells this product in the United States for $19 a unit. This leads to a loss of revenue for the French company as it also sells its perfume in the United States but for a higher price of $22. What concept does this demonstrate??

Accepted Answer

A)  black-listed importing 
B)  indirect importing 
C)  circular importing 
D)  co-mingled importing 
E)  parallel importing 
A)  black-listed importing 
B)  indirect importing 
C)  circular importing 
D)  co-mingled importing 
E)  parallel importing

Question 6

An important selling technique to alleviate high prices and capital shortages for capital equipment is the ________ system.

Accepted Answer

A)  leasing 
B)  antidumping 
C)  direct buy-back 
D)  consignment 
E)  rental 
A)  leasing 
B)  antidumping 
C)  direct buy-back 
D)  consignment 
E)  rental

Question 7

Setting the right price for a product can be the key to success or failure in international markets.

Accepted Answer

A) True 
 B)False

Question 8

Companies that use pricing to achieve marketing objectives use pricing as a static element.

Accepted Answer

A) True 
 B)False

Question 9

Dumping in the world markets is most likely to increase when

Accepted Answer

A)  domestic production capacity is low. 
B)  demand in the home country is low. 
C)  demand in the foreign country is low. 
D)  foreign production capacity is high. 
E)  cost of production is low. 
A)  domestic production capacity is low. 
B)  demand in the home country is low. 
C)  demand in the foreign country is low. 
D)  foreign production capacity is high. 
E)  cost of production is low.

Question 10

Domestic cartelization is legal in the United States.

Accepted Answer

A) True 
 B)False

Question 11

The international marketer must rely on experience and marketing research to determine middleman costs because no convenient source of data on middleman costs is available.

Accepted Answer

A) True 
 B)False

Question 12

Firms that are unfamiliar with overseas marketing and firms that produce industrial goods orient their pricing solely on the basis of

Accepted Answer

A)  cultural differences in perceptions of pricing. 
B)  market segmentation from market to market. 
C)  the costs of production of the goods. 
D)  market segmentation from country to country. 
E)  competitive pricing in the market. 
A)  cultural differences in perceptions of pricing. 
B)  market segmentation from market to market. 
C)  the costs of production of the goods. 
D)  market segmentation from country to country. 
E)  competitive pricing in the market.

Question 13

What results from the added costs incurred as a result of exporting products from one country to another?

Accepted Answer

A)  price deflation 
B)  penetration pricing 
C)  price escalation 
D)  price gouging 
E)  predatory pricing 
A)  price deflation 
B)  penetration pricing 
C)  price escalation 
D)  price gouging 
E)  predatory pricing

Question 14

Companies should use the full-cost pricing approach when it has high fixed costs relative to its variable costs.

Accepted Answer

A) True 
 B)False

Question 15

The portion of international business handled on a cash-in-advance basis is not large and this is typically used when credit is doubtful.

Accepted Answer

A) True 
 B)False

Question 16

When a company exports a product from the United States to another country, the company is most likely to be unable to determine the ultimate price of a product if

Accepted Answer

A)  the channels of distribution are short. 
B)  the number of middlemen in its distribution channels is low. 
C)  large orders are placed by retailers. 
D)  marketing and distribution channel infrastructures are well developed. 
E)  the middleman markups are not standardized. 
A)  the channels of distribution are short. 
B)  the number of middlemen in its distribution channels is low. 
C)  large orders are placed by retailers. 
D)  marketing and distribution channel infrastructures are well developed. 
E)  the middleman markups are not standardized.

Question 17

The costs of production may be lowered if a firm ships unassembled goods to a free trade zone (FTZ) in an importing country because

Accepted Answer

A)  wages and other overheads may be higher in an FTZ. 
B)  locally produced components do not qualify for tariffs. 
C)  unassembled goods may qualify for lower freight rates. 
D)  the finished goods cannot be exported to other countries. 
E)  goods imported in an FTZ qualify for the same level of tariffs as other imported goods. 
A)  wages and other overheads may be higher in an FTZ. 
B)  locally produced components do not qualify for tariffs. 
C)  unassembled goods may qualify for lower freight rates. 
D)  the finished goods cannot be exported to other countries. 
E)  goods imported in an FTZ qualify for the same level of tariffs as other imported goods.

Question 18

The use of countertrade in international trade

Accepted Answer

A)  allows trade with countries short of hard currency. 
B)  reduces a firm's competitive advantage. 
C)  increases the tax liabilities of trading firms. 
D)  leads to a loss of revenue. 
E)  is considered unethical. 
A)  allows trade with countries short of hard currency. 
B)  reduces a firm's competitive advantage. 
C)  increases the tax liabilities of trading firms. 
D)  leads to a loss of revenue. 
E)  is considered unethical.

Question 19

When the Indian rupee depreciated against the U.S. dollar, PC manufacturers who were dependent on imported components had to either absorb the increased cost or

Accepted Answer

A)  raise the quantity of inputs they used in production. 
B)  give discounts to their customers. 
C)  increase the wages that they paid to labor. 
D)  increase the production of PCs. 
E)  raise the price of PCs. 
A)  raise the quantity of inputs they used in production. 
B)  give discounts to their customers. 
C)  increase the wages that they paid to labor. 
D)  increase the production of PCs. 
E)  raise the price of PCs.

Question 20

What is the difference between variable-cost pricing and full-cost pricing? When would a company choose one over the other?

Accepted Answer

In variable-cost pricing, the firm is co

To restrict the gray market, companies must establish and monitor controls that effectively police sales channels.

For ________ duties to be levied on a product, it must be shown that prices are lower in the importing country than in the exporting country and that producers in the importing country are being directly harmed by the dumping of the product.

Letters of credit shift the buyer's credit risk to the bank issuing the letter of credit.

A(n) ________ means that once the seller has accepted the credit, the buyer cannot alter it in any way without permission of the seller.

An important selling technique to alleviate high prices and capital shortages for capital equipment is the ________ system.

Setting the right price for a product can be the key to success or failure in international markets.

Companies that use pricing to achieve marketing objectives use pricing as a static element.

Dumping in the world markets is most likely to increase when

Domestic cartelization is legal in the United States.

The international marketer must rely on experience and marketing research to determine middleman costs because no convenient source of data on middleman costs is available.

Firms that are unfamiliar with overseas marketing and firms that produce industrial goods orient their pricing solely on the basis of

What results from the added costs incurred as a result of exporting products from one country to another?

Companies should use the full-cost pricing approach when it has high fixed costs relative to its variable costs.

The portion of international business handled on a cash-in-advance basis is not large and this is typically used when credit is doubtful.

When a company exports a product from the United States to another country, the company is most likely to be unable to determine the ultimate price of a product if

The costs of production may be lowered if a firm ships unassembled goods to a free trade zone (FTZ) in an importing country because

The use of countertrade in international trade

When the Indian rupee depreciated against the U.S. dollar, PC manufacturers who were dependent on imported components had to either absorb the increased cost or

What is the difference between variable-cost pricing and full-cost pricing? When would a company choose one over the other?

The Scope and Challenge of International Marketing

The Dynamic Environment of International Trade

History and Geography: the Foundations of Culture

Cultural Dynamics in Assessing Global Markets

Culture, Management Style, and Business Systems

The Political Environment: a Critical Concern

The International Legal Environment: Playing by the Rules

Developing a Global Vision Through Marketing Research

Economic Development and the Americas

Europe, Africa, and the Middle East

The Asia Pacific Region

Global Marketing Management: Planning and Organization

Products and Services for Consumers

Products and Services for Businesses

International Marketing Channels

Integrated Marketing Communications and International Advertising

Personal Selling and Sales Management

Inventive Negotiations With International Customers, Partners, and Regulators

Filters

Exam 18: Pricing for International Markets

To restrict the gray market, companies must establish and monitor controls that effectively police sales channels.

For ________ duties to be levied on a product, it must be shown that prices are lower in the importing country than in the exporting country and that producers in the importing country are being directly harmed by the dumping of the product.

Letters of credit shift the buyer's credit risk to the bank issuing the letter of credit.

A(n) ________ means that once the seller has accepted the credit, the buyer cannot alter it in any way without permission of the seller.

An important selling technique to alleviate high prices and capital shortages for capital equipment is the ________ system.

Setting the right price for a product can be the key to success or failure in international markets.

Companies that use pricing to achieve marketing objectives use pricing as a static element.

Dumping in the world markets is most likely to increase when

Domestic cartelization is legal in the United States.

The international marketer must rely on experience and marketing research to determine middleman costs because no convenient source of data on middleman costs is available.

Firms that are unfamiliar with overseas marketing and firms that produce industrial goods orient their pricing solely on the basis of

What results from the added costs incurred as a result of exporting products from one country to another?

Companies should use the full-cost pricing approach when it has high fixed costs relative to its variable costs.

The portion of international business handled on a cash-in-advance basis is not large and this is typically used when credit is doubtful.

When a company exports a product from the United States to another country, the company is most likely to be unable to determine the ultimate price of a product if

The costs of production may be lowered if a firm ships unassembled goods to a free trade zone (FTZ) in an importing country because

The use of countertrade in international trade

When the Indian rupee depreciated against the U.S. dollar, PC manufacturers who were dependent on imported components had to either absorb the increased cost or

What is the difference between variable-cost pricing and full-cost pricing? When would a company choose one over the other?

The Scope and Challenge of International Marketing

The Dynamic Environment of International Trade

History and Geography: the Foundations of Culture

Cultural Dynamics in Assessing Global Markets

Culture, Management Style, and Business Systems

The Political Environment: a Critical Concern

The International Legal Environment: Playing by the Rules

Developing a Global Vision Through Marketing Research

Economic Development and the Americas

Europe, Africa, and the Middle East

The Asia Pacific Region

Global Marketing Management: Planning and Organization

Products and Services for Consumers

Products and Services for Businesses

International Marketing Channels

Integrated Marketing Communications and International Advertising

Personal Selling and Sales Management

Inventive Negotiations With International Customers, Partners, and Regulators

Filters