Question 1

How are global retailers like IKEA, Costco, and Walmart becoming major domestic middlemen for international markets?

Accepted Answer

A)  They maintain their core marketing approaches while localizing the array of products, promotions, and other peripheral aspects of their operations. 
B)  They work under the names of the manufacturers and function as low-cost, independent marketing departments with direct responsibility to the parent firms. 
C)  They have minimum investment costs as they do not commit to investing in company personnel. 
D)  They serve as the producer's export department but have a short-term relationship, cover only one or two markets, and operate on a straight commission basis. 
E)  They offer reduction of export costs, demand expansion through promotion, trade barrier reduction, and improvement of trade terms through bilateral bargaining. 
A)  They maintain their core marketing approaches while localizing the array of products, promotions, and other peripheral aspects of their operations. 
B)  They work under the names of the manufacturers and function as low-cost, independent marketing departments with direct responsibility to the parent firms. 
C)  They have minimum investment costs as they do not commit to investing in company personnel. 
D)  They serve as the producer's export department but have a short-term relationship, cover only one or two markets, and operate on a straight commission basis. 
E)  They offer reduction of export costs, demand expansion through promotion, trade barrier reduction, and improvement of trade terms through bilateral bargaining.

Question 2

What has proven to be an important way to break the trade barrier imposed by the Japanese distribution system?

Accepted Answer

A)  direct sales through catalogs 
B)  large wholesale stores 
C)  street corner kiosks 
D)  Internet shopping 
E)  television advertising 
A)  direct sales through catalogs 
B)  large wholesale stores 
C)  street corner kiosks 
D)  Internet shopping 
E)  television advertising

Question 3

Channels of distribution often pose longevity problems as they tend to be small institutions.

Accepted Answer

A) True 
 B)False

Question 4

Direct marketing works well in affluent markets as well as in markets with underdeveloped distribution systems.

Accepted Answer

A) True 
 B)False

Question 5

The closer the company wants to get to the customer in its channel contact,

Accepted Answer

A)  the larger the sales force required. 
B)  the more routine the channel-building process becomes. 
C)  the more likely the company will use middlemen. 
D)  the more important it is to consult with trade organizations. 
E)  the more effective use of the Internet will be. 
A)  the larger the sales force required. 
B)  the more routine the channel-building process becomes. 
C)  the more likely the company will use middlemen. 
D)  the more important it is to consult with trade organizations. 
E)  the more effective use of the Internet will be.

Question 6

A distinguishing characteristic of the Japanese distribution channel system is that it is controlled by a few small local retailers.

Accepted Answer

A) True 
 B)False

Question 7

Merchant middlemen tend to be more controllable than agent middlemen because they take title to manufacturers' goods.

Accepted Answer

A) True 
 B)False

Question 8

In a traditional distribution structure, distribution systems are national rather than local in scope.

Accepted Answer

A) True 
 B)False

Question 9

Companies with marketing facilities or contacts in different countries with excess distribution capacity or a desire for a broader product line sometimes take on additional lines for international distribution. The formal name for such activities is

Accepted Answer

A)  skimming. 
B)  backhauling. 
C)  complementary marketing. 
D)  export marketing. 
E)  demand shifting. 
A)  skimming. 
B)  backhauling. 
C)  complementary marketing. 
D)  export marketing. 
E)  demand shifting.

Question 10

What is a foreign sales corporation?

Accepted Answer

A foreign sales corporation (FSC) is a s

Question 11

The ________ process includes the physical handling and distribution of goods, the passage of ownership (title), and the buying and selling negotiations between producers and middlemen and between middlemen and customers.

Accepted Answer

A)  logistics 
B)  marketing 
C)  channel 
D)  distribution 
E)  control 
A)  logistics 
B)  marketing 
C)  channel 
D)  distribution 
E)  control

Question 12

Trading companies provide the best means for intensive coverage of the market in Japan.

Accepted Answer

A) True 
 B)False

Question 13

The channel process includes all activities, beginning with the manufacturer and ending with the

Accepted Answer

A)  wholesaler. 
B)  agent middlemen. 
C)  merchant middlemen. 
D)  retailer. 
E)  final consumer. 
A)  wholesaler. 
B)  agent middlemen. 
C)  merchant middlemen. 
D)  retailer. 
E)  final consumer.

Question 14

Which group is frequently criticized for not representing the best interests of a manufacturer?

Accepted Answer

A)  global wholesalers 
B)  trading companies 
C)  consumers 
D)  merchant middlemen 
E)  brokers 
A)  global wholesalers 
B)  trading companies 
C)  consumers 
D)  merchant middlemen 
E)  brokers

Question 15

Legal advice is not necessary when entering distribution contracts with middlemen.

Accepted Answer

A) True 
 B)False

Question 16

The distribution channel process includes all activities, beginning with the manufacturer and ending with the retailer.

Accepted Answer

A) True 
 B)False

Question 17

How does complementary marketing extend a company's distribution? When is a company most likely to use it?

Accepted Answer

Companies with marketing facilities or c

Question 18

A(n) ________ is a middleman in a foreign country or U.S. possession that can obtain a corporate tax exemption on a portion of the earnings generated by the sale or lease of export property.

Accepted Answer

A)  Webb-Pomerene export association 
B)  manufacturer's export agent 
C)  export management company 
D)  complementary marketer 
E)  foreign sales corporation 
A)  Webb-Pomerene export association 
B)  manufacturer's export agent 
C)  export management company 
D)  complementary marketer 
E)  foreign sales corporation

Question 19

Which mode of distribution in the foreign market will require a company to make the maximum financial investment?

Accepted Answer

A)  export management companies 
B)  trading companies 
C)  export associations 
D)  direct sales force 
E)  complementary marketers 
A)  export management companies 
B)  trading companies 
C)  export associations 
D)  direct sales force 
E)  complementary marketers

Question 20

The distribution process includes promotion of goods and services by sellers and resellers.

Accepted Answer

A) True 
 B)False

How are global retailers like IKEA, Costco, and Walmart becoming major domestic middlemen for international markets?

What has proven to be an important way to break the trade barrier imposed by the Japanese distribution system?

Channels of distribution often pose longevity problems as they tend to be small institutions.

Direct marketing works well in affluent markets as well as in markets with underdeveloped distribution systems.

The closer the company wants to get to the customer in its channel contact,

A distinguishing characteristic of the Japanese distribution channel system is that it is controlled by a few small local retailers.

Merchant middlemen tend to be more controllable than agent middlemen because they take title to manufacturers' goods.

In a traditional distribution structure, distribution systems are national rather than local in scope.

Companies with marketing facilities or contacts in different countries with excess distribution capacity or a desire for a broader product line sometimes take on additional lines for international distribution. The formal name for such activities is

What is a foreign sales corporation?

The ________ process includes the physical handling and distribution of goods, the passage of ownership (title), and the buying and selling negotiations between producers and middlemen and between middlemen and customers.

Trading companies provide the best means for intensive coverage of the market in Japan.

The channel process includes all activities, beginning with the manufacturer and ending with the

Which group is frequently criticized for not representing the best interests of a manufacturer?

Legal advice is not necessary when entering distribution contracts with middlemen.

The distribution channel process includes all activities, beginning with the manufacturer and ending with the retailer.

How does complementary marketing extend a company's distribution? When is a company most likely to use it?

A(n) ________ is a middleman in a foreign country or U.S. possession that can obtain a corporate tax exemption on a portion of the earnings generated by the sale or lease of export property.

Which mode of distribution in the foreign market will require a company to make the maximum financial investment?

The distribution process includes promotion of goods and services by sellers and resellers.

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

Integrated Marketing Communications and International Advertising

Personal Selling and Sales Management

Pricing for International Markets

Inventive Negotiations With International Customers, Partners, and Regulators

Filters

Exam 15: International Marketing Channels

How are global retailers like IKEA, Costco, and Walmart becoming major domestic middlemen for international markets?

What has proven to be an important way to break the trade barrier imposed by the Japanese distribution system?

Channels of distribution often pose longevity problems as they tend to be small institutions.

Direct marketing works well in affluent markets as well as in markets with underdeveloped distribution systems.

The closer the company wants to get to the customer in its channel contact,

A distinguishing characteristic of the Japanese distribution channel system is that it is controlled by a few small local retailers.

Merchant middlemen tend to be more controllable than agent middlemen because they take title to manufacturers' goods.

In a traditional distribution structure, distribution systems are national rather than local in scope.

Companies with marketing facilities or contacts in different countries with excess distribution capacity or a desire for a broader product line sometimes take on additional lines for international distribution. The formal name for such activities is

What is a foreign sales corporation?

The ________ process includes the physical handling and distribution of goods, the passage of ownership (title), and the buying and selling negotiations between producers and middlemen and between middlemen and customers.

Trading companies provide the best means for intensive coverage of the market in Japan.

The channel process includes all activities, beginning with the manufacturer and ending with the

Which group is frequently criticized for not representing the best interests of a manufacturer?

Legal advice is not necessary when entering distribution contracts with middlemen.

The distribution channel process includes all activities, beginning with the manufacturer and ending with the retailer.

How does complementary marketing extend a company's distribution? When is a company most likely to use it?

A(n) ________ is a middleman in a foreign country or U.S. possession that can obtain a corporate tax exemption on a portion of the earnings generated by the sale or lease of export property.

Which mode of distribution in the foreign market will require a company to make the maximum financial investment?

The distribution process includes promotion of goods and services by sellers and resellers.

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

Integrated Marketing Communications and International Advertising

Personal Selling and Sales Management

Pricing for International Markets

Inventive Negotiations With International Customers, Partners, and Regulators

Filters