Question 1

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

Accepted Answer

A tariff, or duty, is a special form of taxation. Tariffs and other forms of import taxes serve to discriminate against all foreign goods. A tariff may be levied for the purpose of protecting a market or for increasing government revenue. A tariff is a fee charged when goods are brought into a country from another country. The level of tariff is typically expressed as the rate of duty and may be levied as specific, ad valorem, or compound. A specific duty is a flat charge per physical unit imported. Ad valorem duties are levied as a percentage of the value of the goods imported. Compound duties include both a specific and an ad valorem charge.

Question 2

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 C

Question 3

Cartels have the ability to maintain control for indefinite periods.

Accepted Answer

A) True 
 B)False  False

Question 4

Leasing helps guarantee better maintenance and service on overseas equipment.

Accepted Answer

A) True 
 B)False

Question 5

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

Question 6

What are the essential features required while making price quotations?

Accepted Answer

In quoting the price of goods for intern

Question 7

What is the difference between forfaiting and factoring?

Accepted Answer

Forfaiting is similar to factoring, but

Question 8

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

Accepted Answer

Countertrade is a pricing tool that ever

Question 9

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

Accepted Answer

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

Question 10

A(n) _____ duty is a flat charge per physical unit imported.

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 11

Which of the following is true of countertrading?

Accepted Answer

A)  Frequently there is inadequate time to conduct a market analysis in a countertrade negotiation. 
B)  Identifying countries that have a history of countertrading is one of the major problems with countertrades. 
C)  The use of countertrading to sell a good implies that the demand for the good is highly elastic. 
D)  Countertrading does not benefit countries that face a shortage of hard currencies with which to trade. 
E)  The U.S. dollar is the reserve currency that is used in countertrades. 
A)  Frequently there is inadequate time to conduct a market analysis in a countertrade negotiation. 
B)  Identifying countries that have a history of countertrading is one of the major problems with countertrades. 
C)  The use of countertrading to sell a good implies that the demand for the good is highly elastic. 
D)  Countertrading does not benefit countries that face a shortage of hard currencies with which to trade. 
E)  The U.S. dollar is the reserve currency that is used in countertrades.

Question 12

In bills of exchange, the credit of one or more banks is involved.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is true of open accounts?

Accepted Answer

A)  Sales on open accounts are very common method of payment in foreign trade. 
B)  Sales on open accounts are generally recommended when special merchandise is ordered by the buyer. 
C)  Sales on open accounts are not generally recommended when there is political unrest in the importer's country. 
D)  When the country of the importer imposes difficult exchange restrictions, the best payment arrangement recommended is open accounts. 
E)  Sales on open accounts are less risky for the seller when it involves new buyers. 
A)  Sales on open accounts are very common method of payment in foreign trade. 
B)  Sales on open accounts are generally recommended when special merchandise is ordered by the buyer. 
C)  Sales on open accounts are not generally recommended when there is political unrest in the importer's country. 
D)  When the country of the importer imposes difficult exchange restrictions, the best payment arrangement recommended is open accounts. 
E)  Sales on open accounts are less risky for the seller when it involves new buyers.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Eliminating costly functional features or lowering overall product quality can minimize price escalation.

Accepted Answer

A) True 
 B)False

Question 16

Lower prices to the buyer may also mean lower tariffs, because most tariffs are levied on a(n) _____ basis.

Accepted Answer

A)  specific 
B)  alternative 
C)  accrual 
D)  shorter; lower 
E)  ad valorem 
A)  specific 
B)  alternative 
C)  accrual 
D)  shorter; lower 
E)  ad valorem

Question 17

In _____ pricing, the philosophy is that no unit of a similar product is different from any other unit in terms of cost and that each unit must bear its full share of the total fixed and variable cost.

Accepted Answer

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

Question 18

Letters of credit shift the buyer's credit risk to the bank issuing the letter of credit.

Accepted Answer

A) True 
 B)False

Question 19

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

Question 20

Which of the following is true of 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)  FTZs operate throughout the world, replacing imported goods with domestic goods. 
C)  An FTZ is, in essence, a taxable enclave and considered part of the country as far as import regulations are concerned. 
D)  An FTZ benefits export companies but does not offer any advantages to an importer. 
E)  The creation of FTZs typically increases taxes, duties, surcharges, and freight charges on imported goods. 
A)  In an FTZ, payment of import duties is postponed until the product leaves the FTZ area and enters the country. 
B)  FTZs operate throughout the world, replacing imported goods with domestic goods. 
C)  An FTZ is, in essence, a taxable enclave and considered part of the country as far as import regulations are concerned. 
D)  An FTZ benefits export companies but does not offer any advantages to an importer. 
E)  The creation of FTZs typically increases taxes, duties, surcharges, and freight charges on imported goods.

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

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

Cartels have the ability to maintain control for indefinite periods.

Leasing helps guarantee better maintenance and service on overseas equipment.

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

What are the essential features required while making price quotations?

What is the difference between forfaiting and factoring?

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

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

A(n) _____ duty is a flat charge per physical unit imported.

Which of the following is true of countertrading?

In bills of exchange, the credit of one or more banks is involved.

Which of the following is true of open accounts?

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

Eliminating costly functional features or lowering overall product quality can minimize price escalation.

Lower prices to the buyer may also mean lower tariffs, because most tariffs are levied on a(n) _____ basis.

In _____ pricing, the philosophy is that no unit of a similar product is different from any other unit in terms of cost and that each unit must bear its full share of the total fixed and variable cost.

Letters of credit shift the buyer's credit risk to the bank issuing the letter of credit.

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

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

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

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

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

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

Cartels have the ability to maintain control for indefinite periods.

Leasing helps guarantee better maintenance and service on overseas equipment.

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

What are the essential features required while making price quotations?

What is the difference between forfaiting and factoring?

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

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

A(n) _____ duty is a flat charge per physical unit imported.

Which of the following is true of countertrading?

In bills of exchange, the credit of one or more banks is involved.

Which of the following is true of open accounts?

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

Eliminating costly functional features or lowering overall product quality can minimize price escalation.

Lower prices to the buyer may also mean lower tariffs, because most tariffs are levied on a(n) _____ basis.

In _____ pricing, the philosophy is that no unit of a similar product is different from any other unit in terms of cost and that each unit must bear its full share of the total fixed and variable cost.

Letters of credit shift the buyer's credit risk to the bank issuing the letter of credit.

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

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

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

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