Question 1

One of the export strategies that can be tried when the domestic currency is weak is to improve productivity and engage in vigorous cost reduction.

Accepted Answer

A) True 
 B)False

Question 2

As a form of countertrade,a compensation deal involves trading one set of goods for another.

Accepted Answer

A) True 
 B)False

Question 3

One of the unscrupulous practices that allows parallel importing to function is when freight forwarders:

Accepted Answer

A) buy black-market goods. 
B) send fake paperwork to manufacturers about the final destination of products they handle. 
C) double the price of goods to retailers. 
D) steal portions of a consignment. 
E) fail to pay their outstanding invoices in a timely manner. 
A) buy black-market goods. 
B) send fake paperwork to manufacturers about the final destination of products they handle. 
C) double the price of goods to retailers. 
D) steal portions of a consignment. 
E) fail to pay their outstanding invoices in a timely manner.

Question 4

Which of the following is a way that a company can lower costs by shipping unassembled goods to an FTZ in an importing country?

Accepted Answer

A) ship smaller components by air carrier and larger components by ocean freight to reduce overall transportation costs. 
B) if labor costs are lower in the importing country,substantial savings may be realized in the final product cost. 
C) have components manufactured in several countries and ship directly to distributor for assembly to lower manufacturing costs. 
D) declare components as obsolete inventory with no market value to lower import duties. 
E) reduce total shipment quantity count by reassembling goods onboard ocean vessel to reduce ocean transportation rates. 
A) ship smaller components by air carrier and larger components by ocean freight to reduce overall transportation costs. 
B) if labor costs are lower in the importing country,substantial savings may be realized in the final product cost. 
C) have components manufactured in several countries and ship directly to distributor for assembly to lower manufacturing costs. 
D) declare components as obsolete inventory with no market value to lower import duties. 
E) reduce total shipment quantity count by reassembling goods onboard ocean vessel to reduce ocean transportation rates.

Question 5

What are the benefits of transfer pricing?

Accepted Answer

The benefits are (a)lowering duty costs

Question 6

A direct exchange of goods between two parties in a transaction is called:

Accepted Answer

A) barter. 
B) a compensation deal. 
C) counterpurchase. 
D) buy-back. 
E) reciprocity. 
A) barter. 
B) a compensation deal. 
C) counterpurchase. 
D) buy-back. 
E) reciprocity.

Question 7

One of the types of countertrade is barter.

Accepted Answer

A) True 
 B)False

Question 8

_________ is a direct exchange of goods between two parties in a transaction.

Accepted Answer

The answer of _________ is a direct exchange of goods...

Question 9

___________ channels of distribution can help keep prices under control.

Accepted Answer

The answer of ___________ channels of distribution can help keep...

Question 10

One way to define the concept of dumping is to say that excess capacity has been cleared from the books of a manufacturer.

Accepted Answer

A) True 
 B)False

Question 11

If a company has as its objective to stimulate market growth and capture market share by deliberately offering products at low prices,it will most likely use a pricing strategy called:

Accepted Answer

A) penetration pricing. 
B) escalator pricing. 
C) prestige pricing. 
D) skimming pricing. 
E) oligopolistic pricing. 
A) penetration pricing. 
B) escalator pricing. 
C) prestige pricing. 
D) skimming pricing. 
E) oligopolistic pricing.

Question 12

Currency exchange rate swings are considered by many global companies to be a major __________ problem.

Accepted Answer

The answer of Currency exchange rate swings are considered by...

Question 13

What is the best way to describe international currencies relationship to one another?

Accepted Answer

A) all currencies are related to the dollar for contractual purposes 
B) there is a stable standard in the world against which all other currencies are pegged 
C) all major currencies are free floating relative to one another 
D) the U.N.mandates currency valuation 
E) the World Bank mandates currency valuation 
A) all currencies are related to the dollar for contractual purposes 
B) there is a stable standard in the world against which all other currencies are pegged 
C) all major currencies are free floating relative to one another 
D) the U.N.mandates currency valuation 
E) the World Bank mandates currency valuation

Question 14

Parallel importing has also been called __________ marketing.

Accepted Answer

The answer of Parallel importing has also been called __________...

Question 15

Which of the following is a way that a company can lower costs by shipping unassembled goods to an FTZ in an importing country?

Accepted Answer

A) reduce total shipment quantity count by reassembling goods onboard ocean vessel to reduce ocean transportation rates. 
B) declare components as obsolete inventory with no market value to lower import duties. 
C) ocean transportation rates are affected by weight and volume;unassembled goods may qualify for lower freight rates. 
D) ship smaller components by air carrier and larger components by ocean freight to reduce overall transportation costs. 
E) have components manufactured in several countries and ship directly to distributor for assembly to lower manufacturing costs. 
A) reduce total shipment quantity count by reassembling goods onboard ocean vessel to reduce ocean transportation rates. 
B) declare components as obsolete inventory with no market value to lower import duties. 
C) ocean transportation rates are affected by weight and volume;unassembled goods may qualify for lower freight rates. 
D) ship smaller components by air carrier and larger components by ocean freight to reduce overall transportation costs. 
E) have components manufactured in several countries and ship directly to distributor for assembly to lower manufacturing costs.

Question 16

What is the function of a countervailing duty?

Accepted Answer

A) Its function is to balance revenues against costs. 
B) Its function is to restrict the amount a country will import. 
C) Its function is to provide revenues for someone who uses parallel imports as a growth strategy. 
D) Its function is to do A,B,and C above. 
E) Its function is not revealed by any of the above. 
A) Its function is to balance revenues against costs. 
B) Its function is to restrict the amount a country will import. 
C) Its function is to provide revenues for someone who uses parallel imports as a growth strategy. 
D) Its function is to do A,B,and C above. 
E) Its function is not revealed by any of the above.

Question 17

An important selling technique to alleviate high prices and capital shortages for capital equipment is the __________ system.

Accepted Answer

A) leasing 
B) anti-dumping 
C) direct buy-back 
D) consignment 
E) rental 
A) leasing 
B) anti-dumping 
C) direct buy-back 
D) consignment 
E) rental

Question 18

Prices of goods transferred from a company's operations or sales units in one country to its units elsewhere may be adjusted to enhance the ultimate profit of the company as a whole.This is called intracompany pricing.

Accepted Answer

A) True 
 B)False

Question 19

Barter may be used to reduce a country's foreign debt.

Accepted Answer

A) True 
 B)False

Question 20

Exclusive distribution is often used to offset the effects of parallel importing.

Accepted Answer

A) True 
 B)False

One of the export strategies that can be tried when the domestic currency is weak is to improve productivity and engage in vigorous cost reduction.

As a form of countertrade,a compensation deal involves trading one set of goods for another.

One of the unscrupulous practices that allows parallel importing to function is when freight forwarders:

Which of the following is a way that a company can lower costs by shipping unassembled goods to an FTZ in an importing country?

What are the benefits of transfer pricing?

A direct exchange of goods between two parties in a transaction is called:

One of the types of countertrade is barter.

_________ is a direct exchange of goods between two parties in a transaction.

___________ channels of distribution can help keep prices under control.

One way to define the concept of dumping is to say that excess capacity has been cleared from the books of a manufacturer.

If a company has as its objective to stimulate market growth and capture market share by deliberately offering products at low prices,it will most likely use a pricing strategy called:

Currency exchange rate swings are considered by many global companies to be a major __________ problem.

What is the best way to describe international currencies relationship to one another?

Parallel importing has also been called __________ marketing.

Which of the following is a way that a company can lower costs by shipping unassembled goods to an FTZ in an importing country?

What is the function of a countervailing duty?

An important selling technique to alleviate high prices and capital shortages for capital equipment is the __________ system.

Prices of goods transferred from a company's operations or sales units in one country to its units elsewhere may be adjusted to enhance the ultimate profit of the company as a whole.This is called intracompany pricing.

Barter may be used to reduce a country's foreign debt.

Exclusive distribution is often used to offset the effects of 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

Emerging Markets

Multinational Market Regions and Market Groups

Global Marketing Management: Planning and Organization

Products and Services for Consumers

Products and Services for Businesses

International Marketing Channels

Exporting and Logistics: Special Issues for Business

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

One of the export strategies that can be tried when the domestic currency is weak is to improve productivity and engage in vigorous cost reduction.

As a form of countertrade,a compensation deal involves trading one set of goods for another.

One of the unscrupulous practices that allows parallel importing to function is when freight forwarders:

Which of the following is a way that a company can lower costs by shipping unassembled goods to an FTZ in an importing country?

What are the benefits of transfer pricing?

A direct exchange of goods between two parties in a transaction is called:

One of the types of countertrade is barter.

_________ is a direct exchange of goods between two parties in a transaction.

___________ channels of distribution can help keep prices under control.

One way to define the concept of dumping is to say that excess capacity has been cleared from the books of a manufacturer.

If a company has as its objective to stimulate market growth and capture market share by deliberately offering products at low prices,it will most likely use a pricing strategy called:

Currency exchange rate swings are considered by many global companies to be a major __________ problem.

What is the best way to describe international currencies relationship to one another?

Parallel importing has also been called __________ marketing.

Which of the following is a way that a company can lower costs by shipping unassembled goods to an FTZ in an importing country?

What is the function of a countervailing duty?

An important selling technique to alleviate high prices and capital shortages for capital equipment is the __________ system.

Prices of goods transferred from a company's operations or sales units in one country to its units elsewhere may be adjusted to enhance the ultimate profit of the company as a whole.This is called intracompany pricing.

Barter may be used to reduce a country's foreign debt.

Exclusive distribution is often used to offset the effects of 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

Emerging Markets

Multinational Market Regions and Market Groups

Global Marketing Management: Planning and Organization

Products and Services for Consumers

Products and Services for Businesses

International Marketing Channels

Exporting and Logistics: Special Issues for Business

Integrated Marketing Communications and International Advertising

Personal Selling and Sales Management

Negotiating With International Customers, Partners, and Regulators

Filters