Question 1

What is the difference between variable-cost pricing and full-cost pricing?

Accepted Answer

In variable-cost pricing, the firm is co

Question 2

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)  producers' association 
E)  competitive market 
A)  cabal 
B)  monopoly 
C)  cartel 
D)  producers' association 
E)  competitive market

Question 3

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

Accepted Answer

A)  Trade unions 
B)  Barter houses 
C)  Industry associations 
D)  Swap centers 
E)  Satellite towns 
A)  Trade unions 
B)  Barter houses 
C)  Industry associations 
D)  Swap centers 
E)  Satellite towns

Question 4

Countertrading does not benefit countries that face a shortage of hard currencies with which to trade.

Accepted Answer

A) True 
 B)False

Question 5

Explain the concept of administered pricing.

Accepted Answer

Administered pricing is an attempt to es

Question 6

Sales on open accounts are recommended when shipping is hazardous.

Accepted Answer

A) True 
 B)False

Question 7

A company uses _____ when the objective is to reach a segment of the market that is relatively price insensitive and thus willing to pay a premium price for the value received.

Accepted Answer

A)  penetration pricing 
B)  everyday low pricing 
C)  full-cost pricing 
D)  price skimming 
E)  psychological pricing 
A)  penetration pricing 
B)  everyday low pricing 
C)  full-cost pricing 
D)  price skimming 
E)  psychological pricing

Question 8

With _____, the seller assumes all risk until the actual dollars are received.

Accepted Answer

A)  open accounts 
B)  irrevocable letters of credit 
C)  dollar drafts 
D)  factoring 
E)  forfaiting 
A)  open accounts 
B)  irrevocable letters of credit 
C)  dollar drafts 
D)  factoring 
E)  forfaiting

Question 9

If the supply of a good in a market is limited, a company may follow a _____ approach to maximize revenue and to match demand to supply.

Accepted Answer

A)  penetration pricing 
B)  psychological pricing 
C)  variable-cost pricing 
D)  full-cost pricing 
E)  price skimming 
A)  penetration pricing 
B)  psychological pricing 
C)  variable-cost pricing 
D)  full-cost pricing 
E)  price skimming

Question 10

Firms that are unfamiliar with overseas marketing and firms that produce industrial goods orient their pricing solely on the basis of:

Accepted Answer

A)  cultural differences in perceptions of pricing. 
B)  market segmentation from market to market. 
C)  the costs of production of the good. 
D)  market segmentation from country to country. 
E)  competitive pricing in the market. 
A)  cultural differences in perceptions of pricing. 
B)  market segmentation from market to market. 
C)  the costs of production of the good. 
D)  market segmentation from country to country. 
E)  competitive pricing in the market.

Question 11

Which of the following approaches to pricing is suitable when a company has high variable costs relative to its fixed costs?

Accepted Answer

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

Question 12

Lush Cosmetics, a firm based in the U.S., recently started exporting cosmetics to India. Lush introduced a new range of mineral-based makeup for the first time in the Indian market. It was also priced much higher than the other brands in the market. This is an example of _____.

Accepted Answer

A)  a penetration pricing policy 
B)  a psychological pricing policy 
C)  bundling 
D)  price skimming 
E)  cost-based pricing policy 
A)  a penetration pricing policy 
B)  a psychological pricing policy 
C)  bundling 
D)  price skimming 
E)  cost-based pricing policy

Question 13

What do barter houses do?

Accepted Answer

A)  Specialize in trading goods acquired through barter arrangements. 
B)  Acquire goods from producers in other countries through barter arrangements. 
C)  Buy and hold bartered goods for resellers. 
D)  Insure any barter goods. 
E)  Auction bartered goods for sellers. 
A)  Specialize in trading goods acquired through barter arrangements. 
B)  Acquire goods from producers in other countries through barter arrangements. 
C)  Buy and hold bartered goods for resellers. 
D)  Insure any barter goods. 
E)  Auction bartered goods for sellers.

Question 14

The costs of production may be lowered if a firm ships unassembled goods to a free trade zone (FTZ) in an importing country because:

Accepted Answer

A)  wages and other overheads may be higher in an FTZ. 
B)  locally-produced components do not qualify for tariffs. 
C)  unassembled goods may qualify for lower freight rates. 
D)  the finished goods are exported to other countries. 
E)  goods imported in an FTZ qualify for the same level of tariffs as other imported goods. 
A)  wages and other overheads may be higher in an FTZ. 
B)  locally-produced components do not qualify for tariffs. 
C)  unassembled goods may qualify for lower freight rates. 
D)  the finished goods are exported to other countries. 
E)  goods imported in an FTZ qualify for the same level of tariffs as other imported goods.

Question 15

The creation of a free trade zone leads to:

Accepted Answer

A)  a decline in exports. 
B)  an increase in taxes and duties levied on a good. 
C)  reduced price escalation. 
D)  a fall in imports. 
E)  higher labor costs and overheads. 
A)  a decline in exports. 
B)  an increase in taxes and duties levied on a good. 
C)  reduced price escalation. 
D)  a fall in imports. 
E)  higher labor costs and overheads.

Question 16

The use of countertrade in international trade:

Accepted Answer

A)  allows trade with countries short of hard currency. 
B)  reduces a firm's competitive advantage. 
C)  could increase the tax liabilities of trading firms. 
D)  leads to a loss of revenue. 
E)  is considered unethical. 
A)  allows trade with countries short of hard currency. 
B)  reduces a firm's competitive advantage. 
C)  could increase the tax liabilities of trading firms. 
D)  leads to a loss of revenue. 
E)  is considered unethical.

Question 17

A _____ policy is used to stimulate market and sales growth by deliberately offering products at low prices.

Accepted Answer

A)  penetration pricing 
B)  variable-cost pricing 
C)  premium pricing 
D)  price skimming 
E)  full-cost pricing 
A)  penetration pricing 
B)  variable-cost pricing 
C)  premium pricing 
D)  price skimming 
E)  full-cost pricing

Question 18

In a(n) _____, the seller makes a one-time arrangement with a bank or other financial institution to take over responsibility for collecting the account receivable.

Accepted Answer

A)  forfaiting transaction 
B)  factoring transaction 
C)  barter transaction 
D)  cash-in-advance payment 
E)  open account 
A)  forfaiting transaction 
B)  factoring transaction 
C)  barter transaction 
D)  cash-in-advance payment 
E)  open account

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

A marketer may face lower costs by shipping unassembled goods to a free trade zone (FTZ) in an importing country because:

Accepted Answer

A)  locally-produced components may not be used in production. 
B)  wages may be lower in the importing country. 
C)  FTZs levy higher taxes and surcharges on imported goods. 
D)  ocean transportation rates may not be affected by the weight and volume of the components. 
E)  duties may be assessed at a higher rate for unassembled goods. 
A)  locally-produced components may not be used in production. 
B)  wages may be lower in the importing country. 
C)  FTZs levy higher taxes and surcharges on imported goods. 
D)  ocean transportation rates may not be affected by the weight and volume of the components. 
E)  duties may be assessed at a higher rate for unassembled goods.

What is the difference between variable-cost pricing and full-cost pricing?

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

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

Countertrading does not benefit countries that face a shortage of hard currencies with which to trade.

Explain the concept of administered pricing.

Sales on open accounts are recommended when shipping is hazardous.

A company uses _____ when the objective is to reach a segment of the market that is relatively price insensitive and thus willing to pay a premium price for the value received.

With _____, the seller assumes all risk until the actual dollars are received.

If the supply of a good in a market is limited, a company may follow a _____ approach to maximize revenue and to match demand to supply.

Firms that are unfamiliar with overseas marketing and firms that produce industrial goods orient their pricing solely on the basis of:

Which of the following approaches to pricing is suitable when a company has high variable costs relative to its fixed costs?

Lush Cosmetics, a firm based in the U.S., recently started exporting cosmetics to India. Lush introduced a new range of mineral-based makeup for the first time in the Indian market. It was also priced much higher than the other brands in the market. This is an example of _____.

What do barter houses do?

The costs of production may be lowered if a firm ships unassembled goods to a free trade zone (FTZ) in an importing country because:

The creation of a free trade zone leads to:

The use of countertrade in international trade:

A _____ policy is used to stimulate market and sales growth by deliberately offering products at low prices.

In a(n) _____, the seller makes a one-time arrangement with a bank or other financial institution to take over responsibility for collecting the account receivable.

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

A marketer may face lower costs by shipping unassembled goods to a free trade zone (FTZ) in an importing country because:

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 the difference between variable-cost pricing and full-cost pricing?

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

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

Countertrading does not benefit countries that face a shortage of hard currencies with which to trade.

Explain the concept of administered pricing.

Sales on open accounts are recommended when shipping is hazardous.

A company uses _____ when the objective is to reach a segment of the market that is relatively price insensitive and thus willing to pay a premium price for the value received.

With _____, the seller assumes all risk until the actual dollars are received.

If the supply of a good in a market is limited, a company may follow a _____ approach to maximize revenue and to match demand to supply.

Firms that are unfamiliar with overseas marketing and firms that produce industrial goods orient their pricing solely on the basis of:

Which of the following approaches to pricing is suitable when a company has high variable costs relative to its fixed costs?

Lush Cosmetics, a firm based in the U.S., recently started exporting cosmetics to India. Lush introduced a new range of mineral-based makeup for the first time in the Indian market. It was also priced much higher than the other brands in the market. This is an example of _____.

What do barter houses do?

The costs of production may be lowered if a firm ships unassembled goods to a free trade zone (FTZ) in an importing country because:

The creation of a free trade zone leads to:

The use of countertrade in international trade:

A _____ policy is used to stimulate market and sales growth by deliberately offering products at low prices.

In a(n) _____, the seller makes a one-time arrangement with a bank or other financial institution to take over responsibility for collecting the account receivable.

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

A marketer may face lower costs by shipping unassembled goods to a free trade zone (FTZ) in an importing country because:

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