Question 1

Global pricing contract (GPCs) are demanded by governments.

Accepted Answer

A) True 
 B)False

Question 2

Countries with low per-capita incomes pose a dilemma for marketers from higher-income economies._____ are often a major hurdle for most consumers in these markets.

Accepted Answer

A) high expectations 
B) sales channels 
C) price premiums 
D) language barriers 
A) high expectations 
B) sales channels 
C) price premiums 
D) language barriers

Question 3

There are a series of key drivers behind transfer pricing decisions of U.S.-based multinationals.Which of the following is not one of those drivers?

Accepted Answer

A) U.S.federal income taxes 
B) Customs duties 
C) Reasonable profit for foreign affiliate 
D) Political stability 
E) Taxation in the foreign country 
A) U.S.federal income taxes 
B) Customs duties 
C) Reasonable profit for foreign affiliate 
D) Political stability 
E) Taxation in the foreign country

Question 4

When the U.S.levied a 10 percent tax on plus-$30,000 luxury cars, Land Rover changed the weight of Range Rover models so they could be classed as a truck and thereby avoid the luxury status, the company was attempting to follow which of the price strategies listed below for lowering the price of an exported product?

Accepted Answer

A) rearrange the distribution channel. 
B) eliminate costly features (or make them optional). 
C) downsize the product. 
D) adapt the product to escape tariffs or tax levies. 
E) assemble or manufacture the product in foreign markets. 
A) rearrange the distribution channel. 
B) eliminate costly features (or make them optional). 
C) downsize the product. 
D) adapt the product to escape tariffs or tax levies. 
E) assemble or manufacture the product in foreign markets.

Question 5

The most drastic reaction to government-imposed price controls is to:

Accepted Answer

A) adapt the product line. 
B) shift target segments or market. 
C) negotiate with the government. 
D) launch a variant of an existing product. 
E) leave the country. 
A) adapt the product line. 
B) shift target segments or market. 
C) negotiate with the government. 
D) launch a variant of an existing product. 
E) leave the country.

Question 6

In the international marketplace, _____ pricing adds international costs and a mark-up to the domestic manufacturing cost.

Accepted Answer

A) dynamic incremental pricing 
B) export price 
C) import price 
D) cost-plus price 
E) target-return price 
A) dynamic incremental pricing 
B) export price 
C) import price 
D) cost-plus price 
E) target-return price

Question 7

_____ reflect how much one currency is worth in terms of another currency.

Accepted Answer

A) Interest rates 
B) Credit rates 
C) Bond rates 
D) Inflation rates 
E) Exchange rates 
A) Interest rates 
B) Credit rates 
C) Bond rates 
D) Inflation rates 
E) Exchange rates

Question 8

Dumping occurs when imports are being sold lower than local products.

Accepted Answer

A) True 
 B)False

Question 9

Cost-based pricing simply adds a mark-up to the cost of goods.

Accepted Answer

A) True 
 B)False

Question 10

A stronger U.S.dollar undermines the competitive position of American exports.

Accepted Answer

A) True 
 B)False

Question 11

There are two ways to deal with the price escalation phenomenon.One of these methods is to cut the export price.The other is to:

Accepted Answer

A) change the promotion strategy. 
B) position the product as a (super) premium brand. 
C) position the product as a lower quality brand. 
D) reduce retailer margins. 
E) reduce distances that the good must be shipped. 
A) change the promotion strategy. 
B) position the product as a (super) premium brand. 
C) position the product as a lower quality brand. 
D) reduce retailer margins. 
E) reduce distances that the good must be shipped.

Question 12

Sales tax rates, tariffs, and price controls are all examples of _____ that can have a direct or indirect impact on the pricing policies of a firm in the international marketplace.

Accepted Answer

A) sales volume policies 
B) price policies 
C) government policies 
D) restrictions 
E) punishments 
A) sales volume policies 
B) price policies 
C) government policies 
D) restrictions 
E) punishments

Question 13

Sales transactions between related entities of the same company tend to be fairly minor.

Accepted Answer

A) True 
 B)False

Question 14

Hyperinflation happens when price rises are extremely high, causing the local population to maximize their cash holdings.

Accepted Answer

A) True 
 B)False

Question 15

_____ inflation also mandates rapid inventory turnarounds.

Accepted Answer

A) High 
B) Low 
C) Visible 
D) Hyper 
E) Slow 
A) High 
B) Low 
C) Visible 
D) Hyper 
E) Slow

Question 16

Government policies do not have any impact on pricing decisions.

Accepted Answer

A) True 
 B)False

Question 17

With respect to currency quotation when preparing for buying and selling transactions, buyers and sellers generally prefer to quote in:

Accepted Answer

A) a world currency. 
B) the seller's currency. 
C) the buyer's currency. 
D) their own currency. 
E) the dollar. 
A) a world currency. 
B) the seller's currency. 
C) the buyer's currency. 
D) their own currency. 
E) the dollar.

Question 18

In international marketing, price escalation can be a serious problem.To offset these difficulties marketers must be prepared to creatively meet the price escalation challenge.List the various ways that marketers might attack this problem.

Accepted Answer

Ways to lower the export price include:

Question 19

If a company that is threatened with price controls diversifies into product lines that are relatively free of price controls, the firm would be following which of the following strategies?

Accepted Answer

A) adapt the product line. 
B) shift target segments or market. 
C) negotiate with the government. 
D) launch a variant of an existing product. 
E) predict the incidence of price controls. 
A) adapt the product line. 
B) shift target segments or market. 
C) negotiate with the government. 
D) launch a variant of an existing product. 
E) predict the incidence of price controls.

Question 20

One alternative for successful marketing to the price sensitive low per-capita income market is to produce a _____ product or lower product quality.

Accepted Answer

A) downsized 
B) upgraded 
C) synthetic 
D) copy 
E) parallel 
A) downsized 
B) upgraded 
C) synthetic 
D) copy 
E) parallel

Global pricing contract (GPCs) are demanded by governments.

Countries with low per-capita incomes pose a dilemma for marketers from higher-income economies._____ are often a major hurdle for most consumers in these markets.

There are a series of key drivers behind transfer pricing decisions of U.S.-based multinationals.Which of the following is not one of those drivers?

The most drastic reaction to government-imposed price controls is to:

In the international marketplace, _____ pricing adds international costs and a mark-up to the domestic manufacturing cost.

_____ reflect how much one currency is worth in terms of another currency.

Dumping occurs when imports are being sold lower than local products.

Cost-based pricing simply adds a mark-up to the cost of goods.

A stronger U.S.dollar undermines the competitive position of American exports.

There are two ways to deal with the price escalation phenomenon.One of these methods is to cut the export price.The other is to:

Sales tax rates, tariffs, and price controls are all examples of _____ that can have a direct or indirect impact on the pricing policies of a firm in the international marketplace.

Sales transactions between related entities of the same company tend to be fairly minor.

Hyperinflation happens when price rises are extremely high, causing the local population to maximize their cash holdings.

_____ inflation also mandates rapid inventory turnarounds.

Government policies do not have any impact on pricing decisions.

With respect to currency quotation when preparing for buying and selling transactions, buyers and sellers generally prefer to quote in:

In international marketing, price escalation can be a serious problem.To offset these difficulties marketers must be prepared to creatively meet the price escalation challenge.List the various ways that marketers might attack this problem.

If a company that is threatened with price controls diversifies into product lines that are relatively free of price controls, the firm would be following which of the following strategies?

One alternative for successful marketing to the price sensitive low per-capita income market is to produce a _____ product or lower product quality.

Globalization Imperative

Economic Environment

Financial Environment

Global Cultural Environment and Buying Behavior

Political and Legal Environment

Global Marketing Research

Global Segmentation and Positioning

Global Marketing Strategies

Global Market Entry Strategies

Global Product Policy Decisions I: Developing New Products for Global Markets

Global Product Policy Decisions Ii: Marketing Products and Services

Global Communication Strategies

Sales Management

Global Logistics and Distribution

Export and Import Management

Planning, Organization, and Control of Global Marketing Operations

Marketing Strategies for Emerging Markets

Global Marketing and the Internet

Sustainable Marketing in the Global Marketplace

Filters

Exam 12: Global Pricing

Global pricing contract (GPCs) are demanded by governments.

Countries with low per-capita incomes pose a dilemma for marketers from higher-income economies._____ are often a major hurdle for most consumers in these markets.

There are a series of key drivers behind transfer pricing decisions of U.S.-based multinationals.Which of the following is not one of those drivers?

The most drastic reaction to government-imposed price controls is to:

In the international marketplace, _____ pricing adds international costs and a mark-up to the domestic manufacturing cost.

_____ reflect how much one currency is worth in terms of another currency.

Dumping occurs when imports are being sold lower than local products.

Cost-based pricing simply adds a mark-up to the cost of goods.

A stronger U.S.dollar undermines the competitive position of American exports.

There are two ways to deal with the price escalation phenomenon.One of these methods is to cut the export price.The other is to:

Sales tax rates, tariffs, and price controls are all examples of _____ that can have a direct or indirect impact on the pricing policies of a firm in the international marketplace.

Sales transactions between related entities of the same company tend to be fairly minor.

Hyperinflation happens when price rises are extremely high, causing the local population to maximize their cash holdings.

_____ inflation also mandates rapid inventory turnarounds.

Government policies do not have any impact on pricing decisions.

With respect to currency quotation when preparing for buying and selling transactions, buyers and sellers generally prefer to quote in:

In international marketing, price escalation can be a serious problem.To offset these difficulties marketers must be prepared to creatively meet the price escalation challenge.List the various ways that marketers might attack this problem.

If a company that is threatened with price controls diversifies into product lines that are relatively free of price controls, the firm would be following which of the following strategies?

One alternative for successful marketing to the price sensitive low per-capita income market is to produce a _____ product or lower product quality.

Globalization Imperative

Economic Environment

Financial Environment

Global Cultural Environment and Buying Behavior

Political and Legal Environment

Global Marketing Research

Global Segmentation and Positioning

Global Marketing Strategies

Global Market Entry Strategies

Global Product Policy Decisions I: Developing New Products for Global Markets

Global Product Policy Decisions Ii: Marketing Products and Services

Global Communication Strategies

Sales Management

Global Logistics and Distribution

Export and Import Management

Planning, Organization, and Control of Global Marketing Operations

Marketing Strategies for Emerging Markets

Global Marketing and the Internet

Sustainable Marketing in the Global Marketplace

Filters