Question 1

A company that views pricing as a static element in a business decision:

Accepted Answer

A)  places a high priority on foreign business. 
B)  sets prices to achieve specific objectives such as targeted return on profit. 
C)  customizes its products for the foreign market. 
D)  views domestic sales as an insignificant source of revenue. 
E)  exports only excess inventory. 
A)  places a high priority on foreign business. 
B)  sets prices to achieve specific objectives such as targeted return on profit. 
C)  customizes its products for the foreign market. 
D)  views domestic sales as an insignificant source of revenue. 
E)  exports only excess inventory.

Question 2

Which of the following is an example of a price-fixing arrangement?

Accepted Answer

A)  Price escalation 
B)  Barter houses 
C)  Letters of credit 
D)  Cartels 
E)  Countertrade 
A)  Price escalation 
B)  Barter houses 
C)  Letters of credit 
D)  Cartels 
E)  Countertrade

Question 3

What is price escalation? Explain.

Accepted Answer

Excess profits exist in some internation

Question 4

Discuss the meaning and nature of cartels. Are these groups beneficial or not? State an example to illustrate your stance.

Accepted Answer

A cartel exists when various companies p

Question 5

When Polar Inc., an American fast-food company, wanted to market its burgers and fries in France, it was asked to accept French wine in return. This is an example of:

Accepted Answer

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

Question 6

_____ duties are levied as a percentage of the value of the goods imported.

Accepted Answer

A)  Specific 
B)  Protective 
C)  Prohibitive 
D)  Ad valorem 
E)  Compound 
A)  Specific 
B)  Protective 
C)  Prohibitive 
D)  Ad valorem 
E)  Compound

Question 7

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

Question 8

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

Question 9

_____ are the primary discriminatory tax that must be taken into account in reckoning with foreign competition.

Accepted Answer

A)  Transfer taxes 
B)  Tariffs 
C)  Tolls 
D)  Excise taxes 
E)  Inflation taxes 
A)  Transfer taxes 
B)  Tariffs 
C)  Tolls 
D)  Excise taxes 
E)  Inflation taxes

Question 10

One of the possible reasons for manufacturing in a third country could be an attempt to _____.

Accepted Answer

A)  standardize middlemen margins 
B)  reduce the credit risk of the seller 
C)  reduce the capital-labor ratio 
D)  increase the inputs used in manufacturing 
E)  reduce manufacturing costs 
A)  standardize middlemen margins 
B)  reduce the credit risk of the seller 
C)  reduce the capital-labor ratio 
D)  increase the inputs used in manufacturing 
E)  reduce manufacturing costs

Question 11

Deflation results in ever-decreasing prices, creating a positive result for consumers, but both put pressure to lower costs on everyone in the supply chain.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following 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 13

Which of the following characterizes the variable-cost pricing approach?

Accepted Answer

A)  In this approach, prices are often set on a cost-plus basis, that is, total costs plus a profit margin. 
B)  This approach insists that no unit of a similar product is different from any other unit in terms of cost. 
C)  This approach insists that each unit must bear its full share of the total fixed and variable cost. 
D)  This approach is suitable when a company has high variable costs relative to its fixed costs. 
E)  In this approach, any contribution to fixed cost after variable costs are covered is profit to the company. 
A)  In this approach, prices are often set on a cost-plus basis, that is, total costs plus a profit margin. 
B)  This approach insists that no unit of a similar product is different from any other unit in terms of cost. 
C)  This approach insists that each unit must bear its full share of the total fixed and variable cost. 
D)  This approach is suitable when a company has high variable costs relative to its fixed costs. 
E)  In this approach, any contribution to fixed cost after variable costs are covered is profit to the company.

Question 14

_____ is a typical payment procedure for established customers where the goods are delivered, and the customer is billed on an end-of-the-month basis.

Accepted Answer

A)  An open account 
B)  A letter of credit 
C)  A bill of exchange 
D)  Cash in advance 
E)  Forfaiting 
A)  An open account 
B)  A letter of credit 
C)  A bill of exchange 
D)  Cash in advance 
E)  Forfaiting

Question 15

Dumping in the world markets is likely to increase when:

Accepted Answer

A)  domestic production capacity is low. 
B)  demand in the home country is low. 
C)  demand in the foreign country is low. 
D)  foreign production capacity is high. 
E)  cost of production is low. 
A)  domestic production capacity is low. 
B)  demand in the home country is low. 
C)  demand in the foreign country is low. 
D)  foreign production capacity is high. 
E)  cost of production is low.

Question 16

In a _____ market, it is essential for a company to keep prices low and raise brand value to win the trust of consumers.

Accepted Answer

A)  fragmented 
B)  monopolistic 
C)  competitive 
D)  deflationary 
E)  consolidated 
A)  fragmented 
B)  monopolistic 
C)  competitive 
D)  deflationary 
E)  consolidated

Question 17

Explain the two different views of what constitutes price decisions.

Accepted Answer

In general, price decisions are viewed t

Question 18

Which of the following is true of the full-cost pricing approach?

Accepted Answer

A)  In this approach, any contribution to fixed cost after variable costs are covered is profit to the company. 
B)  In this approach, the firm is concerned only with the marginal or incremental cost of producing goods to be sold in overseas markets. 
C)  In this approach, prices are often set on a cost-plus basis, that is, total costs plus a profit margin. 
D)  This approach is a practical approach to pricing when a company has high fixed costs and unused production capacity. 
E)  This approach insists that each unit of a similar product is treated differently in terms of cost. 
A)  In this approach, any contribution to fixed cost after variable costs are covered is profit to the company. 
B)  In this approach, the firm is concerned only with the marginal or incremental cost of producing goods to be sold in overseas markets. 
C)  In this approach, prices are often set on a cost-plus basis, that is, total costs plus a profit margin. 
D)  This approach is a practical approach to pricing when a company has high fixed costs and unused production capacity. 
E)  This approach insists that each unit of a similar product is treated differently in terms of cost.

Question 19

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 20

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

A company that views pricing as a static element in a business decision:

Which of the following is an example of a price-fixing arrangement?

What is price escalation? Explain.

Discuss the meaning and nature of cartels. Are these groups beneficial or not? State an example to illustrate your stance.

When Polar Inc., an American fast-food company, wanted to market its burgers and fries in France, it was asked to accept French wine in return. This is an example of:

_____ duties are levied as a percentage of the value of the goods imported.

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

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

_____ are the primary discriminatory tax that must be taken into account in reckoning with foreign competition.

One of the possible reasons for manufacturing in a third country could be an attempt to _____.

Deflation results in ever-decreasing prices, creating a positive result for consumers, but both put pressure to lower costs on everyone in the supply chain.

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

Which of the following characterizes the variable-cost pricing approach?

_____ is a typical payment procedure for established customers where the goods are delivered, and the customer is billed on an end-of-the-month basis.

Dumping in the world markets is likely to increase when:

In a _____ market, it is essential for a company to keep prices low and raise brand value to win the trust of consumers.

Explain the two different views of what constitutes price decisions.

Which of the following is true of the full-cost pricing approach?

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

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

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

A company that views pricing as a static element in a business decision:

Which of the following is an example of a price-fixing arrangement?

What is price escalation? Explain.

Discuss the meaning and nature of cartels. Are these groups beneficial or not? State an example to illustrate your stance.

When Polar Inc., an American fast-food company, wanted to market its burgers and fries in France, it was asked to accept French wine in return. This is an example of:

_____ duties are levied as a percentage of the value of the goods imported.

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

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

_____ are the primary discriminatory tax that must be taken into account in reckoning with foreign competition.

One of the possible reasons for manufacturing in a third country could be an attempt to _____.

Deflation results in ever-decreasing prices, creating a positive result for consumers, but both put pressure to lower costs on everyone in the supply chain.

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

Which of the following characterizes the variable-cost pricing approach?

_____ is a typical payment procedure for established customers where the goods are delivered, and the customer is billed on an end-of-the-month basis.

Dumping in the world markets is likely to increase when:

In a _____ market, it is essential for a company to keep prices low and raise brand value to win the trust of consumers.

Explain the two different views of what constitutes price decisions.

Which of the following is true of the full-cost pricing approach?

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

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

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