Question 1

A South African law requires parallel importers to alert consumers to the fact that their products might be counterfeit.

Accepted Answer

A) True 
 B)False  False

Question 2

Parallel imports hurt governments because they do not pay taxes.

Accepted Answer

A) True 
 B)False  False

Question 3

Indopharm is negotiating for a major contract to supply pharmaceuticals to the Malaysian military.However,the Malaysian government wants the firm to take half payment in Malaysian palm oil.The firm should

Accepted Answer

A) insist on a buyback. 
B) insist on a switch trade. 
C) insist that the palm oil be replaced by a soft good. 
D) raise its proposed price for the contract. 
A) insist on a buyback. 
B) insist on a switch trade. 
C) insist that the palm oil be replaced by a soft good. 
D) raise its proposed price for the contract. D

Question 4

Free on board (FOB)designates that the buyer is responsible for the costs of shipping and insuring a purchased product.

Accepted Answer

A) True 
 B)False

Question 5

Karavel Foods entered the Latin American market 20 years ago targeting the urban elites.What should Karavel Foods consider concerning its pricing in the region?

Accepted Answer

A) Raise prices because Latin America's GDP has increased 
B) Lower prices to discourage parallel imports across the region 
C) Lower prices to avoid dumping charges 
D) Lower prices to target middle classes 
A) Raise prices because Latin America's GDP has increased 
B) Lower prices to discourage parallel imports across the region 
C) Lower prices to avoid dumping charges 
D) Lower prices to target middle classes

Question 6

Countertrade is complex and time consuming,and it is sometimes difficult to find a buyer for the merchandise accepted as a part of a transaction.

Accepted Answer

A) True 
 B)False

Question 7

Compensation transactions are typical for large governmental purchases,such as defense projects,especially when a country wants to obtain some extra exports in exchange for the awarding of a contract.

Accepted Answer

A) True 
 B)False

Question 8

The government of Thailand is concerned that MNCs are adjusting transfer prices to their Thai subsidiaries in order to decrease their income tax liability in Thailand.The Thai government should

Accepted Answer

A) review increases in transfer prices. 
B) review decreases in transfer prices. 
C) initiate price controls. 
D) require forward pricing of all transfer prices. 
A) review increases in transfer prices. 
B) review decreases in transfer prices. 
C) initiate price controls. 
D) require forward pricing of all transfer prices.

Question 9

A law in South Africa requires parallel importers to alert consumers to the fact that

Accepted Answer

A) the product they sell can be purchased cheaper elsewhere. 
B) the product they sell might be counterfeit. 
C) authorized dealers need not honor the manufacturer warranty on a parallel import. 
D) authorized dealers could sue the purchaser of a parallel import. 
A) the product they sell can be purchased cheaper elsewhere. 
B) the product they sell might be counterfeit. 
C) authorized dealers need not honor the manufacturer warranty on a parallel import. 
D) authorized dealers could sue the purchaser of a parallel import.

Question 10

Cell phone penetration in rural India was stymied by unreliable mail service.

Accepted Answer

A) True 
 B)False

Question 11

In a market with few large buyers,prices are usually lower than in markets with many small buyers.

Accepted Answer

A) True 
 B)False

Question 12

Companies try to accumulate more profits in a high-tax country in order to help governments increase tax revenue.

Accepted Answer

A) True 
 B)False

Question 13

The price paid by an importing or buying unit of a multinational firm to an exporting unit of the same firm is known as

Accepted Answer

A) marginal price. 
B) international transfer price. 
C) transaction risk. 
D) fixed price. 
A) marginal price. 
B) international transfer price. 
C) transaction risk. 
D) fixed price.

Question 14

Countertrade is popular among customers who prefer to pay with hard currency.

Accepted Answer

A) True 
 B)False

Question 15

CIF refers to classified industrial freight.

Accepted Answer

A) True 
 B)False

Question 16

The amount of money left after the basic necessities of food,shelter,and clothing are met is known as ____________________ income.

Accepted Answer

The answer of The amount of money left after the...

Question 17

ABC Automobiles entered Asian markets 20 years ago targeting the urban elites.What should ABC consider concerning its pricing in the region?

Accepted Answer

A) Lower prices because Asia's GDP has increased 
B) Raise prices because Latin America's GDP has increased 
C) Lower prices to target middle classes 
D) Raise prices to discourage parallel imports across the region 
A) Lower prices because Asia's GDP has increased 
B) Raise prices because Latin America's GDP has increased 
C) Lower prices to target middle classes 
D) Raise prices to discourage parallel imports across the region

Question 18

Latin Shoes wants to shut down parallel imports between France and Germany.Why might this be difficult to do?

Accepted Answer

A) France applies the national exhaustion principle. 
B) Germany applies the national exhaustion principle. 
C) The EU applies the international exhaustion principle. 
D) The EU applies the regional exhaustion principle. 
A) France applies the national exhaustion principle. 
B) Germany applies the national exhaustion principle. 
C) The EU applies the international exhaustion principle. 
D) The EU applies the regional exhaustion principle.

Question 19

Firms can control parallel imports by reducing prices in higher priced markets and limiting supplies to wholesalers in lower priced markets.

Accepted Answer

A) True 
 B)False

Question 20

When the value of the euro drops against the U.S.dollar,

Accepted Answer

A) European products become cheaper in the U.S.market. 
B) European products become more expensive to sell in the U.S.market. 
C) there are no changes in the prices. 
D) European product quality decreases. 
A) European products become cheaper in the U.S.market. 
B) European products become more expensive to sell in the U.S.market. 
C) there are no changes in the prices. 
D) European product quality decreases.

A South African law requires parallel importers to alert consumers to the fact that their products might be counterfeit.

Parallel imports hurt governments because they do not pay taxes.

Indopharm is negotiating for a major contract to supply pharmaceuticals to the Malaysian military.However,the Malaysian government wants the firm to take half payment in Malaysian palm oil.The firm should

Free on board (FOB)designates that the buyer is responsible for the costs of shipping and insuring a purchased product.

Karavel Foods entered the Latin American market 20 years ago targeting the urban elites.What should Karavel Foods consider concerning its pricing in the region?

Countertrade is complex and time consuming,and it is sometimes difficult to find a buyer for the merchandise accepted as a part of a transaction.

Compensation transactions are typical for large governmental purchases,such as defense projects,especially when a country wants to obtain some extra exports in exchange for the awarding of a contract.

The government of Thailand is concerned that MNCs are adjusting transfer prices to their Thai subsidiaries in order to decrease their income tax liability in Thailand.The Thai government should

A law in South Africa requires parallel importers to alert consumers to the fact that

Cell phone penetration in rural India was stymied by unreliable mail service.

In a market with few large buyers,prices are usually lower than in markets with many small buyers.

Companies try to accumulate more profits in a high-tax country in order to help governments increase tax revenue.

The price paid by an importing or buying unit of a multinational firm to an exporting unit of the same firm is known as

Countertrade is popular among customers who prefer to pay with hard currency.

CIF refers to classified industrial freight.

The amount of money left after the basic necessities of food,shelter,and clothing are met is known as ____________________ income.

ABC Automobiles entered Asian markets 20 years ago targeting the urban elites.What should ABC consider concerning its pricing in the region?

Latin Shoes wants to shut down parallel imports between France and Germany.Why might this be difficult to do?

Firms can control parallel imports by reducing prices in higher priced markets and limiting supplies to wholesalers in lower priced markets.

When the value of the euro drops against the U.S.dollar,

Introduction to Global Marketing

The Global Economy

Cultural and Social Forces

Political and Regulatory Climate

Global Markets

Global Competitors

Global Marketing Research

Global Market Participation

Global Market Entry Strategies

Global Product Strategies

Global Strategies for Services,Brands,and Social Marketing

Managing Global Distribution Channels

Global Promotion Strategies

Managing Global Advertising

Organizing for Global Marketing

Filters

Exam 12: Pricing for International and Global Markets

A South African law requires parallel importers to alert consumers to the fact that their products might be counterfeit.

Parallel imports hurt governments because they do not pay taxes.

Indopharm is negotiating for a major contract to supply pharmaceuticals to the Malaysian military.However,the Malaysian government wants the firm to take half payment in Malaysian palm oil.The firm should

Free on board (FOB)designates that the buyer is responsible for the costs of shipping and insuring a purchased product.

Karavel Foods entered the Latin American market 20 years ago targeting the urban elites.What should Karavel Foods consider concerning its pricing in the region?

Countertrade is complex and time consuming,and it is sometimes difficult to find a buyer for the merchandise accepted as a part of a transaction.

Compensation transactions are typical for large governmental purchases,such as defense projects,especially when a country wants to obtain some extra exports in exchange for the awarding of a contract.

The government of Thailand is concerned that MNCs are adjusting transfer prices to their Thai subsidiaries in order to decrease their income tax liability in Thailand.The Thai government should

A law in South Africa requires parallel importers to alert consumers to the fact that

Cell phone penetration in rural India was stymied by unreliable mail service.

In a market with few large buyers,prices are usually lower than in markets with many small buyers.

Companies try to accumulate more profits in a high-tax country in order to help governments increase tax revenue.

The price paid by an importing or buying unit of a multinational firm to an exporting unit of the same firm is known as

Countertrade is popular among customers who prefer to pay with hard currency.

CIF refers to classified industrial freight.

The amount of money left after the basic necessities of food,shelter,and clothing are met is known as ____________________ income.

ABC Automobiles entered Asian markets 20 years ago targeting the urban elites.What should ABC consider concerning its pricing in the region?

Latin Shoes wants to shut down parallel imports between France and Germany.Why might this be difficult to do?

Firms can control parallel imports by reducing prices in higher priced markets and limiting supplies to wholesalers in lower priced markets.

When the value of the euro drops against the U.S.dollar,

Introduction to Global Marketing

The Global Economy

Cultural and Social Forces

Political and Regulatory Climate

Global Markets

Global Competitors

Global Marketing Research

Global Market Participation

Global Market Entry Strategies

Global Product Strategies

Global Strategies for Services,Brands,and Social Marketing

Managing Global Distribution Channels

Global Promotion Strategies

Managing Global Advertising

Organizing for Global Marketing

Filters