Question 1

"Export price escalation" is the increase in the initial selling price of goods traded across borders.

Accepted Answer

A) True 
 B)False

Question 2

The currency fluctuations in global markets have a big impact on international transactions.What actions can be adapted if the domestic currency is strong?

Accepted Answer

Currency fluctuations complicate the tas

Question 3

GATT and the U.S.Congress have both defined "dumping." What is the difference in their definitions? Why is dumping a major issue in global marketing?

Accepted Answer

GATT defined dumping as the sale of an i

Question 4

All of the following activities must be performed when goods cross international boundaries except:

Accepted Answer

A)  obtaining currency permit, if required. 
B)  packaging the goods for export. 
C)  using cost-based pricing method. 
D)  arranging for ocean freight and preparation. 
E)  obtaining marine insurance and certificate of the policy. 
A)  obtaining currency permit, if required. 
B)  packaging the goods for export. 
C)  using cost-based pricing method. 
D)  arranging for ocean freight and preparation. 
E)  obtaining marine insurance and certificate of the policy.

Question 5

Which automaker was described as using an ethnocentric approach to setting prices in the United States?

Accepted Answer

A)  Toyota 
B)  Nissan 
C)  Volkswagen 
D)  Mercedes 
E)  Lexus 
A)  Toyota 
B)  Nissan 
C)  Volkswagen 
D)  Mercedes 
E)  Lexus

Question 6

Mexican customers generally carry small coins.To keep prices of shampoo and detergent below 11 or 12 pesos,Procter & Gamble is using which method of pricing?

Accepted Answer

A)  price bundling 
B)  target costing 
C)  cost-plus approach 
D)  export price costing 
E)  cost-based pricing 
A)  price bundling 
B)  target costing 
C)  cost-plus approach 
D)  export price costing 
E)  cost-based pricing

Question 7

Gray market goods are trademarked products that are exported from one country to another and sold by authorized persons or organizations.

Accepted Answer

A) True 
 B)False

Question 8

If a distributor's margins are based on the "landed" price of an import shipment,they will be based on:

Accepted Answer

A)  ex-works price. 
B)  transportation costs. 
C)  insurance costs. 
D)  VAT. 
E)  all of the above 
A)  ex-works price. 
B)  transportation costs. 
C)  insurance costs. 
D)  VAT. 
E)  all of the above

Question 9

As a starting point,firms that comply with Western cost-accounting principles typically use the pricing method known as:

Accepted Answer

A)  price bundling. 
B)  target costing. 
C)  cost-plus pricing. 
D)  export price costing. 
E)  full absorption cost. 
A)  price bundling. 
B)  target costing. 
C)  cost-plus pricing. 
D)  export price costing. 
E)  full absorption cost.

Question 10

India's Tata Motors launched the Nano,a radical new design with a rock-bottom sticker price of $2,500.

Accepted Answer

A) True 
 B)False

Question 11

Germany's Bayer Group was fined millions of dollars to settle a lawsuit alleging it had conspired with Archer Daniels Midland and other global companies to set prices for an enzyme used in animal feeds.What was the issue in this lawsuit?

Accepted Answer

A)  price skimming 
B)  market penetration 
C)  price bundling 
D)  price fixing 
E)  dumping 
A)  price skimming 
B)  market penetration 
C)  price bundling 
D)  price fixing 
E)  dumping

Question 12

According to a recent study of European industrial exporters,companies that utilized independent distributors would be most likely to utilize:

Accepted Answer

A)  ethnocentric pricing. 
B)  polycentric pricing. 
C)  regiocentric pricing. 
D)  geocentric pricing. 
E)  extension pricing. 
A)  ethnocentric pricing. 
B)  polycentric pricing. 
C)  regiocentric pricing. 
D)  geocentric pricing. 
E)  extension pricing.

Question 13

A company using geocentric pricing neither fixes a single price worldwide,nor allows subsidiaries or local distributors to make independent pricing decisions.

Accepted Answer

A) True 
 B)False

Question 14

In the Uruguay round of GATT negotiations,many countries took issue with the U.S.system of laws,in part because historically the U.S.Commerce Department almost always ruled in favor of the U.S.company that filed the complaint.This was related to the laws pertaining to:

Accepted Answer

A)  black marketing. 
B)  market skimming. 
C)  gray marketing. 
D)  dumping. 
E)  licensing. 
A)  black marketing. 
B)  market skimming. 
C)  gray marketing. 
D)  dumping. 
E)  licensing.

Question 15

A market ________ pricing strategy calls for setting price levels that are low enough to quickly build market share.

Accepted Answer

A)  gray 
B)  skimming 
C)  penetration 
D)  holding 
E)  cost-based 
A)  gray 
B)  skimming 
C)  penetration 
D)  holding 
E)  cost-based

Question 16

Free alongside ship (FAS)named port is the Incoterm for a transaction in which the seller places the shipment alongside the vessel upon which the goods will be transported out of the country.

Accepted Answer

A) True 
 B)False

Question 17

A global company that uses market skimming as a pricing strategy is likely to invite charges of "dumping" by competitors in host-country markets.

Accepted Answer

A) True 
 B)False

Question 18

A firm without much export experience uses the rigid cost-based pricing method.Which of the following considerations is the exporter ignoring?

Accepted Answer

A)  Is the price competitive in view of local market conditions? 
B)  Does the price reflect the product's quality? 
C)  Will authorities in export markets view the price as reasonable or exploitative? 
D)  Does the price take antidumping laws into consideration? 
E)  all of the above 
A)  Is the price competitive in view of local market conditions? 
B)  Does the price reflect the product's quality? 
C)  Will authorities in export markets view the price as reasonable or exploitative? 
D)  Does the price take antidumping laws into consideration? 
E)  all of the above

Question 19

Which of the following forms of countertrade does not require use of money or credit between parties?

Accepted Answer

A)  barter 
B)  switch trading 
C)  offset 
D)  compensation trading 
E)  none of the above 
A)  barter 
B)  switch trading 
C)  offset 
D)  compensation trading 
E)  none of the above

Question 20

Transfer pricing is a term that applies to transactions between different divisions or units of the same company.

Accepted Answer

A) True 
 B)False

"Export price escalation" is the increase in the initial selling price of goods traded across borders.

The currency fluctuations in global markets have a big impact on international transactions.What actions can be adapted if the domestic currency is strong?

GATT and the U.S.Congress have both defined "dumping." What is the difference in their definitions? Why is dumping a major issue in global marketing?

All of the following activities must be performed when goods cross international boundaries except:

Which automaker was described as using an ethnocentric approach to setting prices in the United States?

Mexican customers generally carry small coins.To keep prices of shampoo and detergent below 11 or 12 pesos,Procter & Gamble is using which method of pricing?

Gray market goods are trademarked products that are exported from one country to another and sold by authorized persons or organizations.

If a distributor's margins are based on the "landed" price of an import shipment,they will be based on:

As a starting point,firms that comply with Western cost-accounting principles typically use the pricing method known as:

India's Tata Motors launched the Nano,a radical new design with a rock-bottom sticker price of $2,500.

Germany's Bayer Group was fined millions of dollars to settle a lawsuit alleging it had conspired with Archer Daniels Midland and other global companies to set prices for an enzyme used in animal feeds.What was the issue in this lawsuit?

According to a recent study of European industrial exporters,companies that utilized independent distributors would be most likely to utilize:

A company using geocentric pricing neither fixes a single price worldwide,nor allows subsidiaries or local distributors to make independent pricing decisions.

In the Uruguay round of GATT negotiations,many countries took issue with the U.S.system of laws,in part because historically the U.S.Commerce Department almost always ruled in favor of the U.S.company that filed the complaint.This was related to the laws pertaining to:

A market ________ pricing strategy calls for setting price levels that are low enough to quickly build market share.

Free alongside ship (FAS)named port is the Incoterm for a transaction in which the seller places the shipment alongside the vessel upon which the goods will be transported out of the country.

A global company that uses market skimming as a pricing strategy is likely to invite charges of "dumping" by competitors in host-country markets.

A firm without much export experience uses the rigid cost-based pricing method.Which of the following considerations is the exporter ignoring?

Which of the following forms of countertrade does not require use of money or credit between parties?

Transfer pricing is a term that applies to transactions between different divisions or units of the same company.

Introduction to Global Marketing

The Global Economic Environment

The Global Trade Environment

Social and Cultural Environments

The Political, Legal, and Regulatory Environments

Global Information Systems and Market Research

Segmentation, Targeting, and Positioning

Importing,Exporting,and Sourcing

Global Market Entry Strategies: Licensing, Investment, and Strategic Alliances

Brand and Product Decisions in Global Marketing

Global Marketing Channels and Physical Distribution

Global Marketing Communications Decisions I: Advertising and Public Relations

Global Marketing Communications Decisions II: Sales Promotion, personal Selling, and Special Forms of Marketing Communication

Global Marketing and the Digital Revolution

Strategic Elements of Competitive Advantage

Leadership, Organization, and Corporate Social Responsibility

Filters

Exam 11: Pricing Decisions

"Export price escalation" is the increase in the initial selling price of goods traded across borders.

The currency fluctuations in global markets have a big impact on international transactions.What actions can be adapted if the domestic currency is strong?

GATT and the U.S.Congress have both defined "dumping." What is the difference in their definitions? Why is dumping a major issue in global marketing?

All of the following activities must be performed when goods cross international boundaries except:

Which automaker was described as using an ethnocentric approach to setting prices in the United States?

Mexican customers generally carry small coins.To keep prices of shampoo and detergent below 11 or 12 pesos,Procter & Gamble is using which method of pricing?

Gray market goods are trademarked products that are exported from one country to another and sold by authorized persons or organizations.

If a distributor's margins are based on the "landed" price of an import shipment,they will be based on:

As a starting point,firms that comply with Western cost-accounting principles typically use the pricing method known as:

India's Tata Motors launched the Nano,a radical new design with a rock-bottom sticker price of $2,500.

Germany's Bayer Group was fined millions of dollars to settle a lawsuit alleging it had conspired with Archer Daniels Midland and other global companies to set prices for an enzyme used in animal feeds.What was the issue in this lawsuit?

According to a recent study of European industrial exporters,companies that utilized independent distributors would be most likely to utilize:

A company using geocentric pricing neither fixes a single price worldwide,nor allows subsidiaries or local distributors to make independent pricing decisions.

In the Uruguay round of GATT negotiations,many countries took issue with the U.S.system of laws,in part because historically the U.S.Commerce Department almost always ruled in favor of the U.S.company that filed the complaint.This was related to the laws pertaining to:

A market ________ pricing strategy calls for setting price levels that are low enough to quickly build market share.

Free alongside ship (FAS)named port is the Incoterm for a transaction in which the seller places the shipment alongside the vessel upon which the goods will be transported out of the country.

A global company that uses market skimming as a pricing strategy is likely to invite charges of "dumping" by competitors in host-country markets.

A firm without much export experience uses the rigid cost-based pricing method.Which of the following considerations is the exporter ignoring?

Which of the following forms of countertrade does not require use of money or credit between parties?

Transfer pricing is a term that applies to transactions between different divisions or units of the same company.

Introduction to Global Marketing

The Global Economic Environment

The Global Trade Environment

Social and Cultural Environments

The Political, Legal, and Regulatory Environments

Global Information Systems and Market Research

Segmentation, Targeting, and Positioning

Importing,Exporting,and Sourcing

Global Market Entry Strategies: Licensing, Investment, and Strategic Alliances

Brand and Product Decisions in Global Marketing

Global Marketing Channels and Physical Distribution

Global Marketing Communications Decisions I: Advertising and Public Relations

Global Marketing Communications Decisions II: Sales Promotion, personal Selling, and Special Forms of Marketing Communication

Global Marketing and the Digital Revolution

Strategic Elements of Competitive Advantage

Leadership, Organization, and Corporate Social Responsibility

Filters