Exam 18: Pricing for International Markets

Explain the process called parallel importing.

Barter houses,which assist in some forms of countertrade,are found mostly in the United States.

Administered pricing is an attempt to establish pricing for an entire market.

In Russia,Johnson & Johnson's 2-in-1 Shower Gel is considered to be a cosmetic (20 percent tariff).J&J would like it to be considered as a soap substitute (15 percent tariff).This points out which of the following strategies that companies generally prefer in foreign markets with respect to tariffs?

What do barter houses do?

One of the important reasons for manufacturing/assembling in a country's FTZ (free trade zone)is an attempt to reduce price escalation.

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

In most cases the reason that products which cost relatively little in one country cost more in another is:

Honda was accused of ____________ when it sold motorcycles in the United States below the price of those same motorcycles sold in Japan.

If a company is selling its products in a foreign market below the cost of production,it will probably be accused of ____________.

For ___________ duties to be invoked,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.

Which of the following is probably the most frequently used form of countertrade?

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

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

If a company is willing to accept countertrade in a foreign market,it often gives the company a:

____________ pricing occurs when the prices of goods from a company's operations or sales units in one country are transferred to its units elsewhere.

United Wheat Growers has agreed to accept 30 percent of the amount owed for a shipment of disease-resistant wheat from a Russian consortium in Russian bakery flour.The only problem is that UWG also produces bakery flour from its wheat.Therefore,UWG has just accepted a competing item as partial payment for something it has sold.This problem often occurs in which of the following forms of countertrade?

A seller delivers irrigation motors to a buyer in Mexico and receives 70 percent payment in pesos and 30 percent in agricultural crops grown on Mexican farmland.This would be an example of which of the following?

If a company is engaging in what is called offset trading,it is using a pricing strategy called __________.

The Ryan 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 Ryan 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?