Question 1

The internet can reduce costs and therefore price due to:

Accepted Answer

A)  removal of physical distribution. 
B)  trade portals. 
C)  disintermediation. 
D)  all of the above. 
E)  options A and C only. 
A)  removal of physical distribution. 
B)  trade portals. 
C)  disintermediation. 
D)  all of the above. 
E)  options A and C only. D

Question 2

Global pricing strategies are most suited to products targeted at affluent consumers and those with a technical edge.

Accepted Answer

A) True 
 B)False  True

Question 3

Culture can play a role in the setting of a firm's product price in an overseas market.

Accepted Answer

A) True 
 B)False  True

Question 4

In some cultures, everything is negotiable and no one believes that the first price offered is anything but a negotiating ploy. In these cultures, the initial offer by the buyer is treated as:

Accepted Answer

A)  a ceiling price that can be negotiated downward. 
B)  a floor price that can be negotiated downward. 
C)  a ceiling price that can be negotiated upwards. 
D)  a floor price that can be negotiated upwards. 
E)  none of the above. 
A)  a ceiling price that can be negotiated downward. 
B)  a floor price that can be negotiated downward. 
C)  a ceiling price that can be negotiated upwards. 
D)  a floor price that can be negotiated upwards. 
E)  none of the above.

Question 5

An international price skimming strategy attempts to achieve:

Accepted Answer

A)  the largest market share in the quickest possible time. 
B)  the highest possible return in the quickest possible time. 
C)  the highest level of brand awareness in the short term. 
D)  the highest possible return in the long term. 
E)  none of the above. 
A)  the largest market share in the quickest possible time. 
B)  the highest possible return in the quickest possible time. 
C)  the highest level of brand awareness in the short term. 
D)  the highest possible return in the long term. 
E)  none of the above.

Question 6

How important are environmental factors in determining an international price structure? Illustrate your answer with examples taken from a specific country or product.

Accepted Answer

The situation in the foreign and global

Question 7

For terms of sale, ex-works (EXW) is the price of the product at the point of origin.

Accepted Answer

A) True 
 B)False

Question 8

The most likely reason an organisation in the international market would reduce the number of intermediaries in the distribution channel is:

Accepted Answer

A)  to reduce the cost of goods. 
B)  to establish a sales office. 
C)  in response to price changes. 
D)  all of the above. 
E)  options A and B only. 
A)  to reduce the cost of goods. 
B)  to establish a sales office. 
C)  in response to price changes. 
D)  all of the above. 
E)  options A and B only.

Question 9

In deciding which method of payment to accept, the exporter should consider:

Accepted Answer

A)  the creditworthiness of the importer. 
B)  the credit terms offered by competitors. 
C)  the previous track record of the importer in meeting payment obligations. 
D)  all of the above. 
E)  options A and B only. 
A)  the creditworthiness of the importer. 
B)  the credit terms offered by competitors. 
C)  the previous track record of the importer in meeting payment obligations. 
D)  all of the above. 
E)  options A and B only.

Question 10

Revaluation of the importing country's currency causes Australian goods to be more expensive in the importing country.

Accepted Answer

A) True 
 B)False

Question 11

Restrictive trade practices that affect pricing in an overseas market can take various forms. These include:

Accepted Answer

A)  mergers and consolidations. 
B)  monopolies. 
C)  export and import cartels. 
D)  vertical price setting. 
E)  all of the above. 
A)  mergers and consolidations. 
B)  monopolies. 
C)  export and import cartels. 
D)  vertical price setting. 
E)  all of the above.

Question 12

Which of the following is NOT a strategy for Australian exporters to cope with currency fluctuations when the dollar is strong?

Accepted Answer

A)  Stress price benefits. 
B)  Shift sourcing overseas. 
C)  Improve productivity and engage in cost reduction. 
D)  Improve quality, delivery and after-sales service. 
E)  Shift manufacturing offshore. 
A)  Stress price benefits. 
B)  Shift sourcing overseas. 
C)  Improve productivity and engage in cost reduction. 
D)  Improve quality, delivery and after-sales service. 
E)  Shift manufacturing offshore.

Question 13

Market skimming pricing is where products are offered at a high price in an effort to rapidly recover costs.

Accepted Answer

A) True 
 B)False

Question 14

Discuss the various methods of terms of payment, and highlight the benefits and disadvantages of each from a seller's perspective.

Accepted Answer

The various methods of payment have bene

Question 15

Mergers or consolidations and export or import cartels are regarding as being restrictive trade practices.

Accepted Answer

A) True 
 B)False

Question 16

Traditionally, there are two approaches to setting international prices, cost-plus and marketplace pricing.

Accepted Answer

A) True 
 B)False

Question 17

Who would be most likely to request a letter of credit to be issued by a bank?

Accepted Answer

A)  seller 
B)  buyer and seller 
C)  freight provider 
D)  buyer 
E)  all of the above 
A)  seller 
B)  buyer and seller 
C)  freight provider 
D)  buyer 
E)  all of the above

Question 18

Discuss the marketing strategies an Australian firm may need to adopt to manage a high Australian dollar.

Accepted Answer

Because price affects demand in the inte

Question 19

In order to achieve an optimum price for the product in an international market, which of the following pricing methods should a firm use?

Accepted Answer

A)  cost-plus pricing 
B)  marketplace pricing 
C)  full-cost recovery 
D)  marginal cost recovery 
E)  options A and B in combination 
A)  cost-plus pricing 
B)  marketplace pricing 
C)  full-cost recovery 
D)  marginal cost recovery 
E)  options A and B in combination

Question 20

For a market penetration pricing strategy to be successful in international markets, it is necessary to have:

Accepted Answer

A)  highly differentiated products. 
B)  specialised distribution channels. 
C)  mass markets and price-sensitive consumers. 
D)  a niche segment of the market in the overseas country. 
E)  wealthy consumers who can afford the product. 
A)  highly differentiated products. 
B)  specialised distribution channels. 
C)  mass markets and price-sensitive consumers. 
D)  a niche segment of the market in the overseas country. 
E)  wealthy consumers who can afford the product.

The internet can reduce costs and therefore price due to:

Global pricing strategies are most suited to products targeted at affluent consumers and those with a technical edge.

Culture can play a role in the setting of a firm's product price in an overseas market.

In some cultures, everything is negotiable and no one believes that the first price offered is anything but a negotiating ploy. In these cultures, the initial offer by the buyer is treated as:

An international price skimming strategy attempts to achieve:

How important are environmental factors in determining an international price structure? Illustrate your answer with examples taken from a specific country or product.

For terms of sale, ex-works (EXW) is the price of the product at the point of origin.

The most likely reason an organisation in the international market would reduce the number of intermediaries in the distribution channel is:

In deciding which method of payment to accept, the exporter should consider:

Revaluation of the importing country's currency causes Australian goods to be more expensive in the importing country.

Restrictive trade practices that affect pricing in an overseas market can take various forms. These include:

Which of the following is NOT a strategy for Australian exporters to cope with currency fluctuations when the dollar is strong?

Market skimming pricing is where products are offered at a high price in an effort to rapidly recover costs.

Discuss the various methods of terms of payment, and highlight the benefits and disadvantages of each from a seller's perspective.

Mergers or consolidations and export or import cartels are regarding as being restrictive trade practices.

Traditionally, there are two approaches to setting international prices, cost-plus and marketplace pricing.

Who would be most likely to request a letter of credit to be issued by a bank?

Discuss the marketing strategies an Australian firm may need to adopt to manage a high Australian dollar.

In order to achieve an optimum price for the product in an international market, which of the following pricing methods should a firm use?

For a market penetration pricing strategy to be successful in international markets, it is necessary to have:

Rationale for International Marketing

Avoiding the Pitfalls of the International Political and Legal Environment

Catering for the Social and Cultural Environment of International Marketing

Technology Change and International Marketing

Contemporary Environmental Variables in International Marketing

Research in International Markets

International Market Selection and Entry

International Competitive Strategy

Internationalization, Relationships and Networks

Globalization

Planning for Effective International Marketing

Modifying Products for International Markets

Promotion in International Marketing

Effective International Distribution

Marketing Services and Projects Overseas

International Marketing in the Decade Ahead

Filters

Exam 14: International Pricing for Profit

The internet can reduce costs and therefore price due to:

Global pricing strategies are most suited to products targeted at affluent consumers and those with a technical edge.

Culture can play a role in the setting of a firm's product price in an overseas market.

In some cultures, everything is negotiable and no one believes that the first price offered is anything but a negotiating ploy. In these cultures, the initial offer by the buyer is treated as:

An international price skimming strategy attempts to achieve:

How important are environmental factors in determining an international price structure? Illustrate your answer with examples taken from a specific country or product.

For terms of sale, ex-works (EXW) is the price of the product at the point of origin.

The most likely reason an organisation in the international market would reduce the number of intermediaries in the distribution channel is:

In deciding which method of payment to accept, the exporter should consider:

Revaluation of the importing country's currency causes Australian goods to be more expensive in the importing country.

Restrictive trade practices that affect pricing in an overseas market can take various forms. These include:

Which of the following is NOT a strategy for Australian exporters to cope with currency fluctuations when the dollar is strong?

Market skimming pricing is where products are offered at a high price in an effort to rapidly recover costs.

Discuss the various methods of terms of payment, and highlight the benefits and disadvantages of each from a seller's perspective.

Mergers or consolidations and export or import cartels are regarding as being restrictive trade practices.

Traditionally, there are two approaches to setting international prices, cost-plus and marketplace pricing.

Who would be most likely to request a letter of credit to be issued by a bank?

Discuss the marketing strategies an Australian firm may need to adopt to manage a high Australian dollar.

In order to achieve an optimum price for the product in an international market, which of the following pricing methods should a firm use?

For a market penetration pricing strategy to be successful in international markets, it is necessary to have:

Rationale for International Marketing

Avoiding the Pitfalls of the International Political and Legal Environment

Catering for the Social and Cultural Environment of International Marketing

Technology Change and International Marketing

Contemporary Environmental Variables in International Marketing

Research in International Markets

International Market Selection and Entry

International Competitive Strategy

Internationalization, Relationships and Networks

Globalization

Planning for Effective International Marketing

Modifying Products for International Markets

Promotion in International Marketing

Effective International Distribution

Marketing Services and Projects Overseas

International Marketing in the Decade Ahead

Filters