Question 1

Which of the following obviously leave(s) sellers in a position where most of the problems of international commercial finance work to their disadvantage?

Accepted Answer

A)  Letters of credit 
B)  Dollar drafts 
C)  Forfaiting 
D)  Cash-in-advance 
E)  Open accounts 
A)  Letters of credit 
B)  Dollar drafts 
C)  Forfaiting 
D)  Cash-in-advance 
E)  Open accounts

Question 2

Companies that use pricing to achieve marketing objectives are engaged in static pricing.

Accepted Answer

A) True 
 B)False

Question 3

Barter houses, which assist in some forms of countertrade, are found mostly in the United States.

Accepted Answer

A) True 
 B)False

Question 4

What is the difference between forfaiting and factoring?

Accepted Answer

Forfaiting is similar to factoring, but

Question 5

_____ are the primary outside source of aid for companies beset by the uncertainty of a countertrade.

Accepted Answer

A)  Auction quarters 
B)  Barter houses 
C)  Trade camps 
D)  Swap centers 
E)  Switch hubs 
A)  Auction quarters 
B)  Barter houses 
C)  Trade camps 
D)  Swap centers 
E)  Switch hubs

Question 6

Currency exchange rate swings are considered by many global companies to be a(n):

Accepted Answer

A)  opportunity for windfall profits. 
B)  uncontrollable without a strong U.S. dollar. 
C)  standard seasonal variation. 
D)  cost of doing business. 
E)  major pricing problem. 
A)  opportunity for windfall profits. 
B)  uncontrollable without a strong U.S. dollar. 
C)  standard seasonal variation. 
D)  cost of doing business. 
E)  major pricing problem.

Question 7

Price skimming is a more profitable strategy than penetration pricing if it maximizes revenues as a base for fighting the competition that is sure to come.

Accepted Answer

A) True 
 B)False

Question 8

Barter may be used to reduce a country's foreign debt.

Accepted Answer

A) True 
 B)False

Question 9

When the value of the dollar is weak relative to the buyer's currency, companies generally employ _____.

Accepted Answer

A)  competition-based pricing 
B)  demand-based pricing 
C)  supply-based pricing 
D)  psychological pricing 
E)  cost-plus pricing 
A)  competition-based pricing 
B)  demand-based pricing 
C)  supply-based pricing 
D)  psychological pricing 
E)  cost-plus pricing

Question 10

Except for cash in advance, _____ afford(s) the greatest degree of protection for the seller.

Accepted Answer

A)  open accounts 
B)  letters of credit 
C)  bills of exchange 
D)  factoring 
E)  forfaiting 
A)  open accounts 
B)  letters of credit 
C)  bills of exchange 
D)  factoring 
E)  forfaiting

Question 11

Countertrade is often used by international marketers to gain entry into a country. PepsiCo used this strategy when it agreed to:

Accepted Answer

A)  offer a more lucrative contract than rival Coca-Cola. 
B)  package its Russian products in red rather than blue packages. 
C)  exchange Pepsi syrup for Russian vodka. 
D)  pressurize the U.S. government into giving PepsiCo an exclusive contract with Russia. 
E)  merge with KFC and Taco Bell. 
A)  offer a more lucrative contract than rival Coca-Cola. 
B)  package its Russian products in red rather than blue packages. 
C)  exchange Pepsi syrup for Russian vodka. 
D)  pressurize the U.S. government into giving PepsiCo an exclusive contract with Russia. 
E)  merge with KFC and Taco Bell.

Question 12

A foreign trade zone is an important method for controlling which of the following?

Accepted Answer

A)  Theft 
B)  Labor problems at home 
C)  Price escalation 
D)  Profiteering 
E)  Deflation 
A)  Theft 
B)  Labor problems at home 
C)  Price escalation 
D)  Profiteering 
E)  Deflation

Question 13

One important reason for manufacturing in a third country is an attempt to _____ and thus price escalation.

Accepted Answer

A)  increase the number of successful product introductions 
B)  deliver products to market in half the time 
C)  continue to increase margins annually 
D)  improve reliability 
E)  reduce manufacturing costs 
A)  increase the number of successful product introductions 
B)  deliver products to market in half the time 
C)  continue to increase margins annually 
D)  improve reliability 
E)  reduce manufacturing costs

Question 14

A company can lower costs by shipping unassembled goods to an FTZ in an importing country through which of the following ways?

Accepted Answer

A)  Reduce total shipment quantity count by reassembling goods onboard ocean vessel to reduce ocean transportation rates. 
B)  Declare components as obsolete inventory with no market value to lower import duties. 
C)  Ocean transportation rates are affected by weight and volume; unassembled goods may qualify for lower freight rates. 
D)  Ship smaller components by air carrier and larger components by ocean freight to reduce overall transportation costs. 
E)  Have components manufactured in several countries and ship directly to distributor for assembly to lower manufacturing costs. 
A)  Reduce total shipment quantity count by reassembling goods onboard ocean vessel to reduce ocean transportation rates. 
B)  Declare components as obsolete inventory with no market value to lower import duties. 
C)  Ocean transportation rates are affected by weight and volume; unassembled goods may qualify for lower freight rates. 
D)  Ship smaller components by air carrier and larger components by ocean freight to reduce overall transportation costs. 
E)  Have components manufactured in several countries and ship directly to distributor for assembly to lower manufacturing costs.

Question 15

Which of the following would be considered to be an advantage of leasing rather than owning?

Accepted Answer

A)  Lease revenue tends to fluctuate greatly 
B)  Leased equipment rarely breaks down 
C)  Leasing helps guarantee better maintenance and service on overseas equipment 
D)  Leasing keeps companies from using experimental equipment 
E)  Leasing allows immediate use 
A)  Lease revenue tends to fluctuate greatly 
B)  Leased equipment rarely breaks down 
C)  Leasing helps guarantee better maintenance and service on overseas equipment 
D)  Leasing keeps companies from using experimental equipment 
E)  Leasing allows immediate use

Question 16

In U.S. domestic trade, the typical payment procedure for established customers is a(n):

Accepted Answer

A)  open account. 
B)  letter of credit. 
C)  bill of exchange. 
D)  cash in advance. 
E)  forfaiting. 
A)  open account. 
B)  letter of credit. 
C)  bill of exchange. 
D)  cash in advance. 
E)  forfaiting.

Question 17

In ____, a company has an ongoing relationship with a bank that routinely buys its short-term accounts receivable at a discount.

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 18

_____ pricing is a practical approach to pricing when a company has high fixed costs and unused production capacity.

Accepted Answer

A)  Full-cost 
B)  Cost-plus 
C)  Marginal-cost 
D)  Demand-based 
E)  Supply-based 
A)  Full-cost 
B)  Cost-plus 
C)  Marginal-cost 
D)  Demand-based 
E)  Supply-based

Question 19

This approach to pricing is suitable when a company has high variable costs relative to its fixed costs.

Accepted Answer

A)  Full-cost 
B)  Marginal-cost 
C)  Cost-plus 
D)  Demand-based 
E)  Supply-based 
A)  Full-cost 
B)  Marginal-cost 
C)  Cost-plus 
D)  Demand-based 
E)  Supply-based

Question 20

One of the primary functions of a cartel is to control markets for its goods and services.

Accepted Answer

A) True 
 B)False

Which of the following obviously leave(s) sellers in a position where most of the problems of international commercial finance work to their disadvantage?

Companies that use pricing to achieve marketing objectives are engaged in static pricing.

Barter houses, which assist in some forms of countertrade, are found mostly in the United States.

What is the difference between forfaiting and factoring?

_____ are the primary outside source of aid for companies beset by the uncertainty of a countertrade.

Currency exchange rate swings are considered by many global companies to be a(n):

Price skimming is a more profitable strategy than penetration pricing if it maximizes revenues as a base for fighting the competition that is sure to come.

Barter may be used to reduce a country's foreign debt.

When the value of the dollar is weak relative to the buyer's currency, companies generally employ _____.

Except for cash in advance, _____ afford(s) the greatest degree of protection for the seller.

Countertrade is often used by international marketers to gain entry into a country. PepsiCo used this strategy when it agreed to:

A foreign trade zone is an important method for controlling which of the following?

One important reason for manufacturing in a third country is an attempt to _____ and thus price escalation.

A company can lower costs by shipping unassembled goods to an FTZ in an importing country through which of the following ways?

Which of the following would be considered to be an advantage of leasing rather than owning?

In U.S. domestic trade, the typical payment procedure for established customers is a(n):

In ____, a company has an ongoing relationship with a bank that routinely buys its short-term accounts receivable at a discount.

_____ pricing is a practical approach to pricing when a company has high fixed costs and unused production capacity.

This approach to pricing is suitable when a company has high variable costs relative to its fixed costs.

One of the primary functions of a cartel is to control markets for its goods and services.

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

Which of the following obviously leave(s) sellers in a position where most of the problems of international commercial finance work to their disadvantage?

Companies that use pricing to achieve marketing objectives are engaged in static pricing.

Barter houses, which assist in some forms of countertrade, are found mostly in the United States.

What is the difference between forfaiting and factoring?

_____ are the primary outside source of aid for companies beset by the uncertainty of a countertrade.

Currency exchange rate swings are considered by many global companies to be a(n):

Price skimming is a more profitable strategy than penetration pricing if it maximizes revenues as a base for fighting the competition that is sure to come.

Barter may be used to reduce a country's foreign debt.

When the value of the dollar is weak relative to the buyer's currency, companies generally employ _____.

Except for cash in advance, _____ afford(s) the greatest degree of protection for the seller.

Countertrade is often used by international marketers to gain entry into a country. PepsiCo used this strategy when it agreed to:

A foreign trade zone is an important method for controlling which of the following?

One important reason for manufacturing in a third country is an attempt to _____ and thus price escalation.

A company can lower costs by shipping unassembled goods to an FTZ in an importing country through which of the following ways?

Which of the following would be considered to be an advantage of leasing rather than owning?

In U.S. domestic trade, the typical payment procedure for established customers is a(n):

In ____, a company has an ongoing relationship with a bank that routinely buys its short-term accounts receivable at a discount.

_____ pricing is a practical approach to pricing when a company has high fixed costs and unused production capacity.

This approach to pricing is suitable when a company has high variable costs relative to its fixed costs.

One of the primary functions of a cartel is to control markets for its goods and services.

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