Exam 18: Pricing for International Markets

Lowering manufacturing costs can often have a double benefit: The lower price to the buyer may also mean lower tariffs, because most tariffs are levied on a(n) _____ basis.

One way to define the concept of dumping is to say that excess capacity has been cleared from the books of a manufacturer.

Sales at discount stores grew by 78 percent in the late 1990s in Japan. The reason for this remarkable increase was the _____ that Japan experienced in that time period.

One approach to defining the pricing policy of dumping is to say that it is a case where a product is sold in the international arena:

Which of the following, because it encourages retailers to stock large assortments, often creates a favorable condition for parallel importing?

If a company has as its objective to stimulate market growth and capture market share by deliberately offering products at low prices, it will most likely use a pricing strategy called:

What is a countertrade? What are the problems of countertrading?

Discuss the concept of a bill of exchange.

What is a tariff? What are the three basic ways in which tariffs may be levied?

A countervailing duty restricts the amount a country will import by declaring imports to not be in the best interest of the country that is importing.

Drew's company imports materials and parts into an FTZ within the United States and then exports finished products to other countries. Her company will have to pay:

Leasing helps to guarantee better maintenance and service on overseas equipment.

What do barter houses do?

Eliminating costly functional features or lowering overall product quality is a method of minimizing price escalation.

For _____ duties to be invoked, it must be shown that prices are lower in the importing country than in the exporting country and that producers in the importing country are being directly harmed by the dumping.

Setting the right price for a product can be the key to success or failure in the international marketplace.

A reasonable price for goods in the home market may more than double in the foreign market. How do channel length and transportation costs contribute to the price increase?

In a classic case of dumping, prices are _____ in the home-country market and _____ in foreign markets.

If a company has as its objective to reach a market segment that is relatively price insensitive and thus willing to pay a premium price for the value received, it will most likely use a pricing strategy called:

Assuming that the international marketer has produced the right product, initiated the proper channel of distribution, and promoted goods and services correctly, the effort can fail badly if the international marketer fails to: (pick the best answer)