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 increase the amount a country will export 
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 increase the amount a country will export 
E)  To permit the use of foreign currency within the country

Question 2

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 3

For _____ to be levied on a product, it must be shown that prices are lower in the importing country than in the exporting country and that producers in the importing country are being directly harmed by the dumping of the product.

Accepted Answer

A)  countertrade duties 
B)  domestic protection duties 
C)  countervailing duties 
D)  foreign practice duties 
E)  import restriction duties 
A)  countertrade duties 
B)  domestic protection duties 
C)  countervailing duties 
D)  foreign practice duties 
E)  import restriction duties

Question 4

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 goods. 
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 goods. 
D)  market segmentation from country to country. 
E)  competitive pricing in the market.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Dumping in the world markets is most 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 7

Leasing helps guarantee better maintenance and service on overseas equipment.

Accepted Answer

A) True 
 B)False

Question 8

Lush Cosmetics Corp., a U.S.-based firm, has recently started exporting cosmetics to India. Lush has introduced a new range of mineral-based makeup products for the first time in the Indian market. As Lush has no competitors in this segment of the Indian cosmetics market, it has set a very high price for its products in order to reach the premium, price insensitive segment of the market. This is an example of _____.

Accepted Answer

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

Question 9

Price escalation could lead to the sales of exported goods being confined to a limited segment of wealthy, price-insensitive customers.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)  Lease revenue tends to fluctuate greatly. 
B)  Leased equipment rarely breaks down. 
C)  Leasing helps guarantee better maintenance on overseas equipment. 
D)  Leasing keeps companies from using experimental equipment. 
E)  Leasing is less risky than outright sale of equipment. 
A)  Lease revenue tends to fluctuate greatly. 
B)  Leased equipment rarely breaks down. 
C)  Leasing helps guarantee better maintenance on overseas equipment. 
D)  Leasing keeps companies from using experimental equipment. 
E)  Leasing is less risky than outright sale of equipment.

Question 11

A cartel 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) True 
 B)False

Question 12

Companies following the _____ philosophy insist 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 pricing 
B)  fixed-cost pricing 
C)  variable-cost pricing 
D)  demand-based pricing 
E)  premium pricing 
A)  full-cost pricing 
B)  fixed-cost pricing 
C)  variable-cost pricing 
D)  demand-based pricing 
E)  premium pricing

Question 13

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 the biggest problem with countertrading. 
C)  The use of countertrading to sell a product implies that the demand for the product 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 the biggest problem with countertrading. 
C)  The use of countertrading to sell a product implies that the demand for the product 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 14

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 15

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

Accepted Answer

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

Question 16

As the price of a particular product remains the same in different markets, the product sold in one country may be exported to another and undercut the prices charged in that country.

Accepted Answer

A) True 
 B)False

Question 17

Cartels have the ability to maintain control of markets for indefinite periods.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

In variable-cost pricing, the firm is co

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

_____, a practice often used by companies to maintain high retail margins to encourage retailers to maintain the exclusive-quality image of a product, can create a favorable condition for parallel importing.

Accepted Answer

A)  Exclusive distribution 
B)  Speculative distribution 
C)  Intensive distribution 
D)  Lateral distribution 
E)  Dual distribution 
A)  Exclusive distribution 
B)  Speculative distribution 
C)  Intensive distribution 
D)  Lateral distribution 
E)  Dual distribution

What is the function of a countervailing duty?

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.

For _____ to be levied on a product, it must be shown that prices are lower in the importing country than in the exporting country and that producers in the importing country are being directly harmed by the dumping of the product.

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

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

Dumping in the world markets is most likely to increase when:

Leasing helps guarantee better maintenance and service on overseas equipment.

Price escalation could lead to the sales of exported goods being confined to a limited segment of wealthy, price-insensitive customers.

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

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

Companies following the _____ philosophy insist 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.

Which of the following is true of countertrading?

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

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

As the price of a particular product remains the same in different markets, the product sold in one country may be exported to another and undercut the prices charged in that country.

Cartels have the ability to maintain control of markets for indefinite periods.

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

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

_____, a practice often used by companies to maintain high retail margins to encourage retailers to maintain the exclusive-quality image of a product, can create 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

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

Inventive Negotiations With International Customers, Partners, and Regulators

Filters

Exam 18: Pricing for International Markets

What is the function of a countervailing duty?

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.

For _____ to be levied on a product, it must be shown that prices are lower in the importing country than in the exporting country and that producers in the importing country are being directly harmed by the dumping of the product.

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

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

Dumping in the world markets is most likely to increase when:

Leasing helps guarantee better maintenance and service on overseas equipment.

Price escalation could lead to the sales of exported goods being confined to a limited segment of wealthy, price-insensitive customers.

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

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

Companies following the _____ philosophy insist 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.

Which of the following is true of countertrading?

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

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

As the price of a particular product remains the same in different markets, the product sold in one country may be exported to another and undercut the prices charged in that country.

Cartels have the ability to maintain control of markets for indefinite periods.

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

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

_____, a practice often used by companies to maintain high retail margins to encourage retailers to maintain the exclusive-quality image of a product, can create 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

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

Inventive Negotiations With International Customers, Partners, and Regulators

Filters