Question 1

The ____ of 20-somethings in Asia is increased because most still live with their parents.

Accepted Answer

A) income 
B) discretionary income 
C) income taxes 
D) None of the above 
A) income 
B) discretionary income 
C) income taxes 
D) None of the above

Question 2

Tunetoy Industries,a U.S.MNC,has been invited to join a cartel.What advice would you give the firm?

Accepted Answer

A) Do.It will decrease your costs. 
B) Do.It will increase your market coverage. 
C) Don't.It will cause your prices to decrease. 
D) Don't.It's illegal. 
A) Do.It will decrease your costs. 
B) Do.It will increase your market coverage. 
C) Don't.It will cause your prices to decrease. 
D) Don't.It's illegal.

Question 3

In Southeast Asia,consumers in their twenties have a very high discretionary income as a percentage of total income compared to their U.S.counterparts because

Accepted Answer

A) they go to work in their teens. 
B) they save more money. 
C) they marry younger. 
D) many still live with their parents. 
A) they go to work in their teens. 
B) they save more money. 
C) they marry younger. 
D) many still live with their parents.

Question 4

The EU has adopted which principle for dealing with parallel imports?

Accepted Answer

A) National exhaustion 
B) Regional exhaustion 
C) international exhaustion 
D) International exhaustion 
A) National exhaustion 
B) Regional exhaustion 
C) international exhaustion 
D) International exhaustion

Question 5

Paris Pharmaceuticals entered Middle East markets 20 years ago targeting the urban elites.What should Paris Pharmaceuticals consider concerning its pricing in the region?

Accepted Answer

A) Raise prices because the population has increased 
B) Lower prices to avoid dumping charges 
C) Raise prices to avoid dumping charges 
D) Lower prices to target middle classes 
A) Raise prices because the population has increased 
B) Lower prices to avoid dumping charges 
C) Raise prices to avoid dumping charges 
D) Lower prices to target middle classes

Question 6

The European VAT is a form of

Accepted Answer

A) tariff. 
B) quota. 
C) sales tax. 
D) "sin" tax. 
A) tariff. 
B) quota. 
C) sales tax. 
D) "sin" tax.

Question 7

Taberet,a German firm,is concerned about export price escalation in its U.S.market.It should consider

Accepted Answer

A) increasing its transfer prices to the U.S. 
B) promoting its products as luxury items. 
C) joining a U.S.cartel. 
D) joining a German cartel. 
A) increasing its transfer prices to the U.S. 
B) promoting its products as luxury items. 
C) joining a U.S.cartel. 
D) joining a German cartel.

Question 8

When two currencies are involved,there is the risk that a change in exchange rates may occur between the invoicing date and the settlement date for the transaction.

Accepted Answer

A) True 
 B)False

Question 9

The practice of selling a product at a price below actual costs is referred to as

Accepted Answer

A) cartelling. 
B) economies of scale. 
C) hedging. 
D) dumping. 
A) cartelling. 
B) economies of scale. 
C) hedging. 
D) dumping.

Question 10

Most developing countries have adopted which principle for dealing with parallel imports?

Accepted Answer

A) National exhaustion 
B) Regional exhaustion 
C) international exhaustion 
D) International exhaustion 
A) National exhaustion 
B) Regional exhaustion 
C) international exhaustion 
D) International exhaustion

Question 11

Inflation can be managed by lowering interest rates whenever the economy starts to heat up,keeping inflation at 0 to 2 percent.

Accepted Answer

A) True 
 B)False

Question 12

CIF refers to credit,insurance,and freight.

Accepted Answer

A) True 
 B)False

Question 13

Price controls are enforced to combat inflation.

Accepted Answer

A) True 
 B)False

Question 14

Parallel imports are commonly used by MNCs to optimize global pricing.

Accepted Answer

A) True 
 B)False

Question 15

The problem with countertrade is that

Accepted Answer

A) it is complex and time consuming. 
B) it leads to a shortage of hard currency. 
C) there may be difficulties in finding a buyer. 
D) Both a and c 
A) it is complex and time consuming. 
B) it leads to a shortage of hard currency. 
C) there may be difficulties in finding a buyer. 
D) Both a and c

Question 16

Foreign exchange fluctuations can affect a firm's profitability forcing it to lower or raise prices to maintain margins.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

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

Question 18

Tin City Bicycles is concerned about parallel imports entering the German market from the U.K.The firm should

Accepted Answer

A) sue parallel importers under the international exhaustion principle. 
B) sue parallel importers under the regional exhaustion principle. 
C) reassess its transfer pricing policy to independent distributors. 
D) None of the above 
A) sue parallel importers under the international exhaustion principle. 
B) sue parallel importers under the regional exhaustion principle. 
C) reassess its transfer pricing policy to independent distributors. 
D) None of the above

Question 19

Governments examine international transfer prices because transfer prices can

Accepted Answer

A) lower tax revenues. 
B) lower GDP. 
C) lower exchange rates. 
D) increase political risk. 
A) lower tax revenues. 
B) lower GDP. 
C) lower exchange rates. 
D) increase political risk.

Question 20

Price controls are usually temporary.

Accepted Answer

A) True 
 B)False

The ____ of 20-somethings in Asia is increased because most still live with their parents.

Tunetoy Industries,a U.S.MNC,has been invited to join a cartel.What advice would you give the firm?

In Southeast Asia,consumers in their twenties have a very high discretionary income as a percentage of total income compared to their U.S.counterparts because

The EU has adopted which principle for dealing with parallel imports?

Paris Pharmaceuticals entered Middle East markets 20 years ago targeting the urban elites.What should Paris Pharmaceuticals consider concerning its pricing in the region?

The European VAT is a form of

Taberet,a German firm,is concerned about export price escalation in its U.S.market.It should consider

When two currencies are involved,there is the risk that a change in exchange rates may occur between the invoicing date and the settlement date for the transaction.

The practice of selling a product at a price below actual costs is referred to as

Most developing countries have adopted which principle for dealing with parallel imports?

Inflation can be managed by lowering interest rates whenever the economy starts to heat up,keeping inflation at 0 to 2 percent.

CIF refers to credit,insurance,and freight.

Price controls are enforced to combat inflation.

Parallel imports are commonly used by MNCs to optimize global pricing.

The problem with countertrade is that

Foreign exchange fluctuations can affect a firm's profitability forcing it to lower or raise prices to maintain margins.

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

Tin City Bicycles is concerned about parallel imports entering the German market from the U.K.The firm should

Governments examine international transfer prices because transfer prices can

Price controls are usually temporary.

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

The ____ of 20-somethings in Asia is increased because most still live with their parents.

Tunetoy Industries,a U.S.MNC,has been invited to join a cartel.What advice would you give the firm?

In Southeast Asia,consumers in their twenties have a very high discretionary income as a percentage of total income compared to their U.S.counterparts because

The EU has adopted which principle for dealing with parallel imports?

Paris Pharmaceuticals entered Middle East markets 20 years ago targeting the urban elites.What should Paris Pharmaceuticals consider concerning its pricing in the region?

The European VAT is a form of

Taberet,a German firm,is concerned about export price escalation in its U.S.market.It should consider

When two currencies are involved,there is the risk that a change in exchange rates may occur between the invoicing date and the settlement date for the transaction.

The practice of selling a product at a price below actual costs is referred to as

Most developing countries have adopted which principle for dealing with parallel imports?

Inflation can be managed by lowering interest rates whenever the economy starts to heat up,keeping inflation at 0 to 2 percent.

CIF refers to credit,insurance,and freight.

Price controls are enforced to combat inflation.

Parallel imports are commonly used by MNCs to optimize global pricing.

The problem with countertrade is that

Foreign exchange fluctuations can affect a firm's profitability forcing it to lower or raise prices to maintain margins.

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

Tin City Bicycles is concerned about parallel imports entering the German market from the U.K.The firm should

Governments examine international transfer prices because transfer prices can

Price controls are usually temporary.

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