Question 1

In ____, the seller makes a one-time arrangement with a bank to buy a specific account receivable.

Accepted Answer

A)  forfaiting 
B)  factoring 
C)  using bills of exchange 
D)  using cash-in-advance 
E)  open accounts 
A)  forfaiting 
B)  factoring 
C)  using bills of exchange 
D)  using cash-in-advance 
E)  open accounts

Question 2

One of the unscrupulous practices that allows parallel importing to function is when freight forwarders:

Accepted Answer

A)  buy black-market goods. 
B)  send fake paperwork to manufacturers about the final destination of products they handle. 
C)  double the price of goods to retailers. 
D)  steal portions of a consignment. 
E)  fail to pay their outstanding invoices in a timely manner. 
A)  buy black-market goods. 
B)  send fake paperwork to manufacturers about the final destination of products they handle. 
C)  double the price of goods to retailers. 
D)  steal portions of a consignment. 
E)  fail to pay their outstanding invoices in a timely manner.

Question 3

In most countries, channels are _____ and middleman margins _____ than is customary in the United States.

Accepted Answer

A)  longer; higher 
B)  shorter; higher 
C)  longer; lower 
D)  shorter; lower 
E)  bigger; smaller 
A)  longer; higher 
B)  shorter; higher 
C)  longer; lower 
D)  shorter; lower 
E)  bigger; smaller

Question 4

A _____ exists when various companies producing similar products or services work together to control markets for the types of goods and services they produce.

Accepted Answer

A)  cabal 
B)  monopoly 
C)  cartel 
D)  production association 
E)  vertical combine 
A)  cabal 
B)  monopoly 
C)  cartel 
D)  production association 
E)  vertical combine

Question 5

Although full payment in advance is employed infrequently, partial payment (from ______ to _____ percent) in advance is not unusual when the character of the merchandise is such that an incomplete contract can result in heavy loss.

Accepted Answer

A)  5; 10 
B)  10; 20 
C)  60; 75 
D)  25; 50 
E)  25; 30 
A)  5; 10 
B)  10; 20 
C)  60; 75 
D)  25; 50 
E)  25; 30

Question 6

Except for cash in advance, letters of credit afford the least degree of protection for the seller.

Accepted Answer

A) True 
 B)False

Question 7

Domestic cartelization is legal in the United States.

Accepted Answer

A) True 
 B)False

Question 8

By shipping unassembled goods to a free trade zone in an importing country, a marketer can lower costs in a variety of ways. One of these ways is that import taxes are completely skipped by following such a practice.

Accepted Answer

A) True 
 B)False

Question 9

Full-cost pricing is a philosophy that insists that one unit of a product be different from ensuing units and must, therefore, be priced differently.

Accepted Answer

A) True 
 B)False

Question 10

One of the important reasons for manufacturing/assembling in a country's FTZ (free trade zone) is an attempt to reduce price escalation.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is a way that a company can lower costs by shipping unassembled goods to an FTZ in an importing country?

Accepted Answer

A)  Have components manufactured in several countries and ship directly to distributor for assembly to lower manufacturing costs. 
B)  Reduce total shipment quantity count by reassembling goods onboard ocean vessel to reduce ocean transportation rates. 
C)  Declare components as obsolete inventory with no market value to lower import duties. 
D)  Tariffs may be lower because duties are typically assessed at a lower rate for unassembled versus assembled goods. 
E)  Ship smaller components by air carrier and larger components by ocean freight to reduce overall transportation costs. 
A)  Have components manufactured in several countries and ship directly to distributor for assembly to lower manufacturing costs. 
B)  Reduce total shipment quantity count by reassembling goods onboard ocean vessel to reduce ocean transportation rates. 
C)  Declare components as obsolete inventory with no market value to lower import duties. 
D)  Tariffs may be lower because duties are typically assessed at a lower rate for unassembled versus assembled goods. 
E)  Ship smaller components by air carrier and larger components by ocean freight to reduce overall transportation costs.

Question 12

The crucial problem confronting a seller in a countertrade negotiation is determining the value of and _____ for the goods offered.

Accepted Answer

A)  delivery method 
B)  warranties 
C)  insurance 
D)  potential demand 
E)  the cost 
A)  delivery method 
B)  warranties 
C)  insurance 
D)  potential demand 
E)  the cost

Question 13

In a free trade zone, payment of import duties is postponed until the product leaves the free trade zone and enters the country.

Accepted Answer

A) True 
 B)False

Question 14

A(n) _____ duty is a flat charge per physical unit imported, such as 15 cents per bushel of rye.

Accepted Answer

A)  ad valorem 
B)  compound 
C)  prohibitive 
D)  alternative 
E)  specific 
A)  ad valorem 
B)  compound 
C)  prohibitive 
D)  alternative 
E)  specific

Question 15

One of the necessary ingredients in a parallel importing scheme is to have a freight forwarder who is willing to provide fake bills of lading to the original manufacturer.

Accepted Answer

A) True 
 B)False

Question 16

The possibility of a _____ market occurs whenever price differences are greater than the cost of transportation between two markets.

Accepted Answer

A)  black-listed 
B)  direct 
C)  circular 
D)  co-mingled 
E)  parallel 
A)  black-listed 
B)  direct 
C)  circular 
D)  co-mingled 
E)  parallel

Question 17

In most cases, the reason that products which cost relatively little in one country cost more in another is:

Accepted Answer

A)  profiteering. 
B)  inadequate demand. 
C)  inelastic demand. 
D)  elastic demand. 
E)  the high costs of exporting. 
A)  profiteering. 
B)  inadequate demand. 
C)  inelastic demand. 
D)  elastic demand. 
E)  the high costs of exporting.

Question 18

What is the best way to describe the relationship of international currencies to one another?

Accepted Answer

A)  All currencies are related to the dollar for contractual purposes. 
B)  There is a stable standard in the world against which all other currencies are pegged. 
C)  All major currencies are free floating relative to one another. 
D)  The UN mandates currency valuation. 
E)  The World Bank mandates currency valuation. 
A)  All currencies are related to the dollar for contractual purposes. 
B)  There is a stable standard in the world against which all other currencies are pegged. 
C)  All major currencies are free floating relative to one another. 
D)  The UN mandates currency valuation. 
E)  The World Bank mandates currency valuation.

Question 19

_____ pricing most often is used to acquire and hold share of market as a competitive maneuver.

Accepted Answer

A)  Penetration 
B)  Psychological 
C)  Bundle 
D)  Skimming 
E)  Premium 
A)  Penetration 
B)  Psychological 
C)  Bundle 
D)  Skimming 
E)  Premium

Question 20

Firms unfamiliar with overseas marketing and firms producing industrial goods orient their pricing solely on:

Accepted Answer

A)  cultural differences in perceptions of pricing. 
B)  market segmentation from market to market. 
C)  a cost basis. 
D)  market segmentation from country to country. 
E)  competitive pricing in the marketplace. 
A)  cultural differences in perceptions of pricing. 
B)  market segmentation from market to market. 
C)  a cost basis. 
D)  market segmentation from country to country. 
E)  competitive pricing in the marketplace.

In ____, the seller makes a one-time arrangement with a bank to buy a specific account receivable.

One of the unscrupulous practices that allows parallel importing to function is when freight forwarders:

In most countries, channels are _ and middleman margins _ than is customary in the United States.

A _____ exists when various companies producing similar products or services work together to control markets for the types of goods and services they produce.

Although full payment in advance is employed infrequently, partial payment (from __ to _ percent) in advance is not unusual when the character of the merchandise is such that an incomplete contract can result in heavy loss.

Except for cash in advance, letters of credit afford the least degree of protection for the seller.

Domestic cartelization is legal in the United States.

By shipping unassembled goods to a free trade zone in an importing country, a marketer can lower costs in a variety of ways. One of these ways is that import taxes are completely skipped by following such a practice.

Full-cost pricing is a philosophy that insists that one unit of a product be different from ensuing units and must, therefore, be priced differently.

One of the important reasons for manufacturing/assembling in a country's FTZ (free trade zone) is an attempt to reduce price escalation.

Which of the following is a way that a company can lower costs by shipping unassembled goods to an FTZ in an importing country?

The crucial problem confronting a seller in a countertrade negotiation is determining the value of and _____ for the goods offered.

In a free trade zone, payment of import duties is postponed until the product leaves the free trade zone and enters the country.

A(n) _____ duty is a flat charge per physical unit imported, such as 15 cents per bushel of rye.

One of the necessary ingredients in a parallel importing scheme is to have a freight forwarder who is willing to provide fake bills of lading to the original manufacturer.

The possibility of a _____ market occurs whenever price differences are greater than the cost of transportation between two markets.

In most cases, the reason that products which cost relatively little in one country cost more in another is:

What is the best way to describe the relationship of international currencies to one another?

_____ pricing most often is used to acquire and hold share of market as a competitive maneuver.

Firms unfamiliar with overseas marketing and firms producing industrial goods orient their pricing solely on:

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

In ____, the seller makes a one-time arrangement with a bank to buy a specific account receivable.

One of the unscrupulous practices that allows parallel importing to function is when freight forwarders:

In most countries, channels are _____ and middleman margins _____ than is customary in the United States.

A _____ exists when various companies producing similar products or services work together to control markets for the types of goods and services they produce.

Although full payment in advance is employed infrequently, partial payment (from ______ to _____ percent) in advance is not unusual when the character of the merchandise is such that an incomplete contract can result in heavy loss.

Except for cash in advance, letters of credit afford the least degree of protection for the seller.

Domestic cartelization is legal in the United States.

By shipping unassembled goods to a free trade zone in an importing country, a marketer can lower costs in a variety of ways. One of these ways is that import taxes are completely skipped by following such a practice.

Full-cost pricing is a philosophy that insists that one unit of a product be different from ensuing units and must, therefore, be priced differently.

One of the important reasons for manufacturing/assembling in a country's FTZ (free trade zone) is an attempt to reduce price escalation.

Which of the following is a way that a company can lower costs by shipping unassembled goods to an FTZ in an importing country?

The crucial problem confronting a seller in a countertrade negotiation is determining the value of and _____ for the goods offered.

In a free trade zone, payment of import duties is postponed until the product leaves the free trade zone and enters the country.

A(n) _____ duty is a flat charge per physical unit imported, such as 15 cents per bushel of rye.

One of the necessary ingredients in a parallel importing scheme is to have a freight forwarder who is willing to provide fake bills of lading to the original manufacturer.

The possibility of a _____ market occurs whenever price differences are greater than the cost of transportation between two markets.

In most cases, the reason that products which cost relatively little in one country cost more in another is:

What is the best way to describe the relationship of international currencies to one another?

_____ pricing most often is used to acquire and hold share of market as a competitive maneuver.

Firms unfamiliar with overseas marketing and firms producing industrial goods orient their pricing solely on:

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

In most countries, channels are _ and middleman margins _ than is customary in the United States.

Although full payment in advance is employed infrequently, partial payment (from __ to _ percent) in advance is not unusual when the character of the merchandise is such that an incomplete contract can result in heavy loss.