Question 1

What is the function of a countervailing duty?

Accepted Answer

A)  To balance revenues against costs. 
B)  To restrict the amount a country will import. 
C)  To increase revenues from parallel imports. 
D)  To expand the amount a country will import. 
E)  To permit the use of foreign currency within the country. 
A)  To balance revenues against costs. 
B)  To restrict the amount a country will import. 
C)  To increase revenues from parallel imports. 
D)  To expand the amount a country will import. 
E)  To permit the use of foreign currency within the country.

Question 2

Administered pricing attempts to establish pricing for an entire market.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Longer channels of distribution help keep prices under control.

Accepted Answer

A) True 
 B)False

Question 5

One approach to defining the pricing policy of dumping is to say that it is a case where a product is sold in the international market:

Accepted Answer

A)  at a price below the cost of production. 
B)  only to those that can pay for it. 
C)  where the demand for the good is higher than in the domestic market. 
D)  at a higher price than in the domestic market. 
E)  at the same price as in the domestic market. 
A)  at a price below the cost of production. 
B)  only to those that can pay for it. 
C)  where the demand for the good is higher than in the domestic market. 
D)  at a higher price than in the domestic market. 
E)  at the same price as in the domestic market.

Question 6

Assembly in the importing country is a way companies attempt to lower prices and avoid dumping charges. These assembly plants are known as _____ plants.

Accepted Answer

A)  antidumping 
B)  screwdriver 
C)  import-oriented 
D)  export-oriented 
E)  automated 
A)  antidumping 
B)  screwdriver 
C)  import-oriented 
D)  export-oriented 
E)  automated

Question 7

In countries where large shares of the population are moving into middle-income classes, penetration pricing becomes irrelevant as a tool to stimulate market growth.

Accepted Answer

A) True 
 B)False

Question 8

An irrevocable, confirmed letter of credit means that a U.S. bank accepts responsibility to pay the seller regardless of the financial situation of the buyer or foreign bank.

Accepted Answer

A) True 
 B)False

Question 9

The Floral Group, an importing organization in New York, has just bought an excessive amount of perfume from perfume manufacturer in Paris. Unknown to the perfume manufacturer, the Floral Group has sold 25 percent of its order to distributors in France that have been unable to purchase any products from the perfume manufacturer. Which of the following best describes the transaction that has just taken place?

Accepted Answer

A)  Black-listed importing 
B)  Direct importing 
C)  Circular importing 
D)  Co-mingled importing 
E)  Parallel importing 
A)  Black-listed importing 
B)  Direct importing 
C)  Circular importing 
D)  Co-mingled importing 
E)  Parallel importing

Question 10

Which of the following is essential while making price quotations for international sale?

Accepted Answer

A)  Price quotations can be made only if it is shown that prices are lower in the importing country than in the exporting country. 
B)  Price quotations must specify the currency to be used and the credit terms of the transaction. 
C)  The price quotation and contract should define only the quantity of goods and not necessarily the quality. 
D)  Price quotations must be quoted only in terms of electronic trade dollars. 
E)  Price quotations need to specify the transportation charges but need not necessarily state what type of documentation needs to be used. 
A)  Price quotations can be made only if it is shown that prices are lower in the importing country than in the exporting country. 
B)  Price quotations must specify the currency to be used and the credit terms of the transaction. 
C)  The price quotation and contract should define only the quantity of goods and not necessarily the quality. 
D)  Price quotations must be quoted only in terms of electronic trade dollars. 
E)  Price quotations need to specify the transportation charges but need not necessarily state what type of documentation needs to be used.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Fewer middlemen may mean higher overall taxes.

Accepted Answer

A) True 
 B)False

Question 13

For countervailing duties to be invoked, it must be shown that prices are higher in the importing country than in the exporting country.

Accepted Answer

A) True 
 B)False

Question 14

_____ results from the added costs incurred as a result of exporting products from one country to another.

Accepted Answer

A)  Price deflation 
B)  The pricing mechanism 
C)  Price escalation 
D)  Price gouging 
E)  Price fixing 
A)  Price deflation 
B)  The pricing mechanism 
C)  Price escalation 
D)  Price gouging 
E)  Price fixing

Question 15

Which of the following is true of a company that views prices as an active instrument of accomplishing marketing objectives?

Accepted Answer

A)  The company sets prices to achieve specific objectives. 
B)  The company follows market prices to achieve specific objectives. 
C)  The company exports only excess inventory. 
D)  The company views its export sales as an insignificant source of revenue. 
E)  The company places a low priority on foreign business. 
A)  The company sets prices to achieve specific objectives. 
B)  The company follows market prices to achieve specific objectives. 
C)  The company exports only excess inventory. 
D)  The company views its export sales as an insignificant source of revenue. 
E)  The company places a low priority on foreign business.

Question 16

In general, the end goal of all _____ is to reduce the impact of price competition or eliminate it.

Accepted Answer

A)  reciprocal pricing 
B)  administered pricing activities 
C)  free trade agreements 
D)  export-oriented trade strategies 
E)  price skimming 
A)  reciprocal pricing 
B)  administered pricing activities 
C)  free trade agreements 
D)  export-oriented trade strategies 
E)  price skimming

Question 17

Assuming that the international marketer has produced the right product, used the proper channel of distribution, and promoted the good correctly, the effort can fail badly if the international marketer fails to:

Accepted Answer

A)  inform the host government of all its marketing objectives. 
B)  set the right price for the goods or services. 
C)  work with trade union representatives. 
D)  consider the environmental impact of its goods or services. 
E)  work on a franchise basis in the country. 
A)  inform the host government of all its marketing objectives. 
B)  set the right price for the goods or services. 
C)  work with trade union representatives. 
D)  consider the environmental impact of its goods or services. 
E)  work on a franchise basis in the country.

Question 18

The crucial problem confronting a seller in a countertrade negotiation is determining the _____ for the goods offered as payment.

Accepted Answer

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

Question 19

To remain price competitive when the dollar is strong, export-oriented companies must find ways to offset the higher price caused by currency values.

Accepted Answer

A) True 
 B)False

Question 20

Since it encourages retailers to stock large assortments of a product, the practice of _____ distribution often creates a favorable condition for parallel importing.

Accepted Answer

A)  exclusive 
B)  selective 
C)  intensive 
D)  global 
E)  dual 
A)  exclusive 
B)  selective 
C)  intensive 
D)  global 
E)  dual

What is the function of a countervailing duty?

Administered pricing attempts to establish pricing for an entire market.

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

Longer channels of distribution help keep prices under control.

One approach to defining the pricing policy of dumping is to say that it is a case where a product is sold in the international market:

Assembly in the importing country is a way companies attempt to lower prices and avoid dumping charges. These assembly plants are known as _____ plants.

In countries where large shares of the population are moving into middle-income classes, penetration pricing becomes irrelevant as a tool to stimulate market growth.

An irrevocable, confirmed letter of credit means that a U.S. bank accepts responsibility to pay the seller regardless of the financial situation of the buyer or foreign bank.

Which of the following is essential while making price quotations for international sale?

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

Fewer middlemen may mean higher overall taxes.

For countervailing duties to be invoked, it must be shown that prices are higher in the importing country than in the exporting country.

_____ results from the added costs incurred as a result of exporting products from one country to another.

Which of the following is true of a company that views prices as an active instrument of accomplishing marketing objectives?

In general, the end goal of all _____ is to reduce the impact of price competition or eliminate it.

Assuming that the international marketer has produced the right product, used the proper channel of distribution, and promoted the good correctly, the effort can fail badly if the international marketer fails to:

The crucial problem confronting a seller in a countertrade negotiation is determining the _____ for the goods offered as payment.

To remain price competitive when the dollar is strong, export-oriented companies must find ways to offset the higher price caused by currency values.

Since it encourages retailers to stock large assortments of a product, the practice of _____ distribution often creates a favorable condition for parallel importing.

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 function of a countervailing duty?

Administered pricing attempts to establish pricing for an entire market.

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

Longer channels of distribution help keep prices under control.

One approach to defining the pricing policy of dumping is to say that it is a case where a product is sold in the international market:

Assembly in the importing country is a way companies attempt to lower prices and avoid dumping charges. These assembly plants are known as _____ plants.

In countries where large shares of the population are moving into middle-income classes, penetration pricing becomes irrelevant as a tool to stimulate market growth.

An irrevocable, confirmed letter of credit means that a U.S. bank accepts responsibility to pay the seller regardless of the financial situation of the buyer or foreign bank.

Which of the following is essential while making price quotations for international sale?

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

Fewer middlemen may mean higher overall taxes.

For countervailing duties to be invoked, it must be shown that prices are higher in the importing country than in the exporting country.

_____ results from the added costs incurred as a result of exporting products from one country to another.

Which of the following is true of a company that views prices as an active instrument of accomplishing marketing objectives?

In general, the end goal of all _____ is to reduce the impact of price competition or eliminate it.

Assuming that the international marketer has produced the right product, used the proper channel of distribution, and promoted the good correctly, the effort can fail badly if the international marketer fails to:

The crucial problem confronting a seller in a countertrade negotiation is determining the _____ for the goods offered as payment.

To remain price competitive when the dollar is strong, export-oriented companies must find ways to offset the higher price caused by currency values.

Since it encourages retailers to stock large assortments of a product, the practice of _____ distribution often creates a favorable condition for parallel importing.

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