Question 1

China is emerging as a global manufacturing powerhouse backed by all of the following EXCEPT:

Accepted Answer

A)  an inexpensive labor force. 
B)  rapidly improving production quality. 
C)  new sources of capital. 
D)  a deliberately overvalued currency. 
E)  a more dynamic private sector. 
A)  an inexpensive labor force. 
B)  rapidly improving production quality. 
C)  new sources of capital. 
D)  a deliberately overvalued currency. 
E)  a more dynamic private sector. D

Question 2

One of the export strategies that can be tried when the domestic currency is weak is to improve productivity and engage in vigorous price reduction.

Accepted Answer

A) True 
 B)False  False

Question 3

If a company is willing to accept countertrade in a foreign market, it often gives the company a:

Accepted Answer

A)  problem with asset management. 
B)  competitive advantage. 
C)  tax problem in its home country. 
D)  greater loss of revenue. 
E)  poor reputation for nonethical activity. 
A)  problem with asset management. 
B)  competitive advantage. 
C)  tax problem in its home country. 
D)  greater loss of revenue. 
E)  poor reputation for nonethical activity. B

Question 4

Exclusive distribution is often used to offset the effects of parallel importing.

Accepted Answer

A) True 
 B)False

Question 5

The United States and _____ have been the most ardent users of antidumping duties.

Accepted Answer

A)  Mercosur 
B)  China 
C)  European Union 
D)  Canada 
E)  ASEAN 
A)  Mercosur 
B)  China 
C)  European Union 
D)  Canada 
E)  ASEAN

Question 6

What is the function of a countervailing duty?

Accepted Answer

A)  To balance revenues against costs. 
B)  To restrict the amount a country will import. 
C)  To provide revenues for someone who uses parallel imports as a growth strategy. 
D)  To expand the amount a country will import. 
E)  To permit the use of foreign currency within the country. 
A)  To balance revenues against costs. 
B)  To restrict the amount a country will import. 
C)  To provide revenues for someone who uses parallel imports as a growth strategy. 
D)  To expand the amount a country will import. 
E)  To permit the use of foreign currency within the country.

Question 7

When PepsiCo first began to market Pepsi Cola in Russia, it was asked to accept an equal amount of Russian vodka as payment in return for permission to sell Pepsi Cola. The formal name for this trading strategy is called:

Accepted Answer

A)  bargaining. 
B)  countervailing trade. 
C)  buy-back. 
D)  countertrade. 
E)  bribery. 
A)  bargaining. 
B)  countervailing trade. 
C)  buy-back. 
D)  countertrade. 
E)  bribery.

Question 8

The company that follows the approach of pricing as a static element:

Accepted Answer

A)  views its export sales as proactive contributions to sales volume. 
B)  sets prices to a specific objective such as targeted market shares. 
C)  places a low priority on foreign business. 
D)  sets prices to achieve a specific objective. 
E)  does not export any excess inventory. 
A)  views its export sales as proactive contributions to sales volume. 
B)  sets prices to a specific objective such as targeted market shares. 
C)  places a low priority on foreign business. 
D)  sets prices to achieve a specific objective. 
E)  does not export any excess inventory.

Question 9

Which of the following is true about free trade zones (FTZs)?

Accepted Answer

A)  In an FTZ, payment of import duties is postponed until the product leaves the FTZ area and enters the country. 
B)  More than 500 FTZs operate throughout the world, processing imported goods. 
C)  An FTZ is, in essence, a taxable enclave and considered part of the country as far as import regulations are concerned. 
D)  When an item leaves an FTZ and is imported officially into the home country of the FTZ, all duties and regulations are imposed. 
E)  Utilizing FTZs typically control price escalation resulting from the layers of taxes, duties, surcharges, and freight charges. 
A)  In an FTZ, payment of import duties is postponed until the product leaves the FTZ area and enters the country. 
B)  More than 500 FTZs operate throughout the world, processing imported goods. 
C)  An FTZ is, in essence, a taxable enclave and considered part of the country as far as import regulations are concerned. 
D)  When an item leaves an FTZ and is imported officially into the home country of the FTZ, all duties and regulations are imposed. 
E)  Utilizing FTZs typically control price escalation resulting from the layers of taxes, duties, surcharges, and freight charges.

Question 10

What is the difference between variable-cost pricing and full-cost pricing?

Accepted Answer

In variable-cost pricing, the firm is co

Question 11

The company that follows the approach of viewing prices as an active instrument:

Accepted Answer

A)  views its export sales as passive contributions to sales volume. 
B)  sets prices to achieve targeted returns on profit. 
C)  places a low priority on foreign business. 
D)  follows market prices. 
E)  probably exports only excess inventory. 
A)  views its export sales as passive contributions to sales volume. 
B)  sets prices to achieve targeted returns on profit. 
C)  places a low priority on foreign business. 
D)  follows market prices. 
E)  probably exports only excess inventory.

Question 12

Sales on open accounts are generally recommended when the country of the importer imposes difficult exchange restrictions.

Accepted Answer

A) True 
 B)False

Question 13

In Russia, Johnson & Johnson's 2-in-1 Shower Gel is considered to be a cosmetic (20 percent tariff). J&J would like it to be considered as a soap substitute (15 percent tariff). This points out which of the following strategies that companies generally prefer in foreign markets with respect to tariffs?

Accepted Answer

A)  Shift the demand for the high tariff product. 
B)  Ask for reclassification of the product to a lower customs classification. 
C)  Question the host country's definitions. 
D)  Withdraw the product from a country that is obviously ripping-off manufacturers. 
E)  Switch to typical generic labeling. 
A)  Shift the demand for the high tariff product. 
B)  Ask for reclassification of the product to a lower customs classification. 
C)  Question the host country's definitions. 
D)  Withdraw the product from a country that is obviously ripping-off manufacturers. 
E)  Switch to typical generic labeling.

Question 14

A good way to describe price escalation is to define the term as being the added costs incurred as a result of exporting products from one country to another.

Accepted Answer

A) True 
 B)False

Question 15

In _____ pricing, the firm is concerned only with the marginal or incremental cost of producing goods to be sold in overseas markets.

Accepted Answer

A)  full-cost 
B)  fixed-cost 
C)  variable-cost 
D)  demand-based 
E)  supply-based 
A)  full-cost 
B)  fixed-cost 
C)  variable-cost 
D)  demand-based 
E)  supply-based

Question 16

A ____, which restricts the amount a country will import, may be imposed on foreign goods benefiting from subsidies, whether in production, export, or transportation.

Accepted Answer

A)  trigger volume 
B)  trigger price 
C)  minimum access volume 
D)  market access opportunity 
E)  substantial cause 
A)  trigger volume 
B)  trigger price 
C)  minimum access volume 
D)  market access opportunity 
E)  substantial cause

Question 17

With ____, the seller assumes all risk until the actual dollars are received.

Accepted Answer

A)  open accounts 
B)  irrevocable letters of credit 
C)  dollar drafts 
D)  factoring 
E)  forfaiting 
A)  open accounts 
B)  irrevocable letters of credit 
C)  dollar drafts 
D)  factoring 
E)  forfaiting

Question 18

Deflation causes consumer prices to escalate, and consumers face ever-rising prices that eventually exclude many of them from the market.

Accepted Answer

A) True 
 B)False

Question 19

A(n) _____ means that once the seller has accepted the credit, the buyer cannot alter it in any way without permission of the seller.

Accepted Answer

A)  open account 
B)  irrevocable letter of credit 
C)  bill of lading 
D)  bill of exchange 
E)  forfaiting 
A)  open account 
B)  irrevocable letter of credit 
C)  bill of lading 
D)  bill of exchange 
E)  forfaiting

Question 20

Parallel imports develop when importers buy products from more than one country.

Accepted Answer

A) True 
 B)False

China is emerging as a global manufacturing powerhouse backed by all of the following EXCEPT:

One of the export strategies that can be tried when the domestic currency is weak is to improve productivity and engage in vigorous price reduction.

If a company is willing to accept countertrade in a foreign market, it often gives the company a:

Exclusive distribution is often used to offset the effects of parallel importing.

The United States and _____ have been the most ardent users of antidumping duties.

What is the function of a countervailing duty?

When PepsiCo first began to market Pepsi Cola in Russia, it was asked to accept an equal amount of Russian vodka as payment in return for permission to sell Pepsi Cola. The formal name for this trading strategy is called:

The company that follows the approach of pricing as a static element:

Which of the following is true about free trade zones (FTZs)?

What is the difference between variable-cost pricing and full-cost pricing?

The company that follows the approach of viewing prices as an active instrument:

Sales on open accounts are generally recommended when the country of the importer imposes difficult exchange restrictions.

A good way to describe price escalation is to define the term as being the added costs incurred as a result of exporting products from one country to another.

In _____ pricing, the firm is concerned only with the marginal or incremental cost of producing goods to be sold in overseas markets.

A ____, which restricts the amount a country will import, may be imposed on foreign goods benefiting from subsidies, whether in production, export, or transportation.

With ____, the seller assumes all risk until the actual dollars are received.

Deflation causes consumer prices to escalate, and consumers face ever-rising prices that eventually exclude many of them from the market.

A(n) _____ means that once the seller has accepted the credit, the buyer cannot alter it in any way without permission of the seller.

Parallel imports develop when importers buy products from more than one country.

The Scope and Challenge of International Marketing

The Dynamic Environment of International Trade

History and Geography: The Foundations of Culture

Cultural Dynamics in Assessing Global Markets

Culture, Management Style, and Business Systems

The Political Environment: A Critical Concern

The International Legal Environment: Playing by the Rules

Developing a Global Vision Through Marketing Research

Economic Development and the Americas

Europe, Africa, and the Middle East

The Asia Pacific Region

Global Marketing Management: Planning and Organization

Products and Services for Consumers

Products and Services for Businesses

International Marketing Channels

Integrated Marketing Communications and International Advertising

Personal Selling and Sales Management

Negotiating With International Customers, Partners, and Regulators

Filters

Exam 18: Pricing for International Markets

China is emerging as a global manufacturing powerhouse backed by all of the following EXCEPT:

One of the export strategies that can be tried when the domestic currency is weak is to improve productivity and engage in vigorous price reduction.

If a company is willing to accept countertrade in a foreign market, it often gives the company a:

Exclusive distribution is often used to offset the effects of parallel importing.

The United States and _____ have been the most ardent users of antidumping duties.

What is the function of a countervailing duty?

When PepsiCo first began to market Pepsi Cola in Russia, it was asked to accept an equal amount of Russian vodka as payment in return for permission to sell Pepsi Cola. The formal name for this trading strategy is called:

The company that follows the approach of pricing as a static element:

Which of the following is true about free trade zones (FTZs)?

What is the difference between variable-cost pricing and full-cost pricing?

The company that follows the approach of viewing prices as an active instrument:

Sales on open accounts are generally recommended when the country of the importer imposes difficult exchange restrictions.

A good way to describe price escalation is to define the term as being the added costs incurred as a result of exporting products from one country to another.

In _____ pricing, the firm is concerned only with the marginal or incremental cost of producing goods to be sold in overseas markets.

A ____, which restricts the amount a country will import, may be imposed on foreign goods benefiting from subsidies, whether in production, export, or transportation.

With ____, the seller assumes all risk until the actual dollars are received.

Deflation causes consumer prices to escalate, and consumers face ever-rising prices that eventually exclude many of them from the market.

A(n) _____ means that once the seller has accepted the credit, the buyer cannot alter it in any way without permission of the seller.

Parallel imports develop when importers buy products from more than one country.

The Scope and Challenge of International Marketing

The Dynamic Environment of International Trade

History and Geography: The Foundations of Culture

Cultural Dynamics in Assessing Global Markets

Culture, Management Style, and Business Systems

The Political Environment: A Critical Concern

The International Legal Environment: Playing by the Rules

Developing a Global Vision Through Marketing Research

Economic Development and the Americas

Europe, Africa, and the Middle East

The Asia Pacific Region

Global Marketing Management: Planning and Organization

Products and Services for Consumers

Products and Services for Businesses

International Marketing Channels

Integrated Marketing Communications and International Advertising

Personal Selling and Sales Management

Negotiating With International Customers, Partners, and Regulators

Filters