Question 1

Durability is one of the five characteristics of a currency.

Accepted Answer

A) True 
 B)False  True

Question 2

Inflation is a nongovernmental factor that affects currency movement.

Accepted Answer

A) True 
 B)False  True

Question 3

Forward rates are the exchange rates for the delivery of a currency at a specific time in the future.

Accepted Answer

A) True 
 B)False  True

Question 4

What instrument allows a company to sell or buy a certain amount of a foreign currency at a set exchange rate on a specific date?

Accepted Answer

A)  Close contracts 
B)  Call contracts 
C)  Pull contracts 
D)  Rescind contracts 
E)  Futures contracts 
A)  Close contracts 
B)  Call contracts 
C)  Pull contracts 
D)  Rescind contracts 
E)  Futures contracts

Question 5

Discuss the various factors that influence currency movement,including individual and business transactions,inflation,interest rates,and trade and investment activity.Explain why international marketers need to monitor these developments.

Accepted Answer

Currency movement is influenced by a var

Question 6

What states that the nominal or stated interest rate of a country is equal to the actual interest rate plus the rate of inflation?

Accepted Answer

A)  Webber effect 
B)  Thomson effect 
C)  Fischer effect 
D)  Wyndam effect 
E)  Zagorski effect 
A)  Webber effect 
B)  Thomson effect 
C)  Fischer effect 
D)  Wyndam effect 
E)  Zagorski effect

Question 7

Discuss the various forms of countertrade that are presented in the text.Use examples to illustrate each form of countertrade.

Accepted Answer

Countertrade is a form of international

Question 8

Companies raise two types of funds in global or local capital markets,including:

Accepted Answer

A)  Debt and capital 
B)  Debt and loans 
C)  Debt and equity 
D)  Equity and stocks 
E)  Equity and loans 
A)  Debt and capital 
B)  Debt and loans 
C)  Debt and equity 
D)  Equity and stocks 
E)  Equity and loans

Question 9

Terms of trade refers to an agreed-upon payment in return for goods and services.

Accepted Answer

A) True 
 B)False

Question 10

The four major types of countertrade that are discussed in the text include all of the following except:

Accepted Answer

A)  Barter 
B)  Buy-back 
C)  Compensation deals 
D)  Counterpurchases 
E)  Call back agreements 
A)  Barter 
B)  Buy-back 
C)  Compensation deals 
D)  Counterpurchases 
E)  Call back agreements

Question 11

Which term represents increases in price as a product moves from one country to another?

Accepted Answer

A)  Price escalations 
B)  Price chain 
C)  Distribution escalations 
D)  Marketing channel costs 
E)  Price redundancy 
A)  Price escalations 
B)  Price chain 
C)  Distribution escalations 
D)  Marketing channel costs 
E)  Price redundancy

Question 12

When a commodity is sold by one subsidiary of a company to another in a second country,what kind of price is set in order to by-pass taxes and tariffs by shifting funds internally?

Accepted Answer

A)  Market based 
B)  Market shirk 
C)  Internal 
D)  Transfer 
E)  Market delayed 
A)  Market based 
B)  Market shirk 
C)  Internal 
D)  Transfer 
E)  Market delayed

Question 13

A trade deficit occurs when a country imports more than it exports.

Accepted Answer

A) True 
 B)False

Question 14

Which states that identical products should be priced identically in different markets,once the price is converted to the same currency in each market?

Accepted Answer

A)  The Law of One Price 
B)  The Law of Price Equalization 
C)  The Law of Market-Based Pricing 
D)  The Law of Expected Value 
E)  The Law of Equal Value 
A)  The Law of One Price 
B)  The Law of Price Equalization 
C)  The Law of Market-Based Pricing 
D)  The Law of Expected Value 
E)  The Law of Equal Value

Question 15

The percentage rate paid for the use of money is referred to as which of the following?

Accepted Answer

A)  Call point 
B)  Interest rate 
C)  Market value 
D)  Market return 
E)  Appreciation effect 
A)  Call point 
B)  Interest rate 
C)  Market value 
D)  Market return 
E)  Appreciation effect

Question 16

The Law of One Price means that:

Accepted Answer

A)  Identical products should be priced identically in different markets, once the price is converted to the same currency in each market. 
B)  Equal prices apply to all products. 
C)  Pricing differentials disappear across national boundaries, once the price has been converted. 
D)  The expected value of a product will be equal to its price. 
E)  Pricing problems occur when a company prices a product differently in other countries. 
A)  Identical products should be priced identically in different markets, once the price is converted to the same currency in each market. 
B)  Equal prices apply to all products. 
C)  Pricing differentials disappear across national boundaries, once the price has been converted. 
D)  The expected value of a product will be equal to its price. 
E)  Pricing problems occur when a company prices a product differently in other countries.

Question 17

A core component of business activity,which can be drastically impacted by international finance issues including currency movements,is which of the following?

Accepted Answer

A)  Market exchanges 
B)  Marketing channels 
C)  Tariffs 
D)  Costs 
E)  Profits 
A)  Market exchanges 
B)  Marketing channels 
C)  Tariffs 
D)  Costs 
E)  Profits

Question 18

Discuss the various international financing factors that affect international pricing that are discussed in the text including exchange rate fluctuations,price escalations,and administered prices.How do these issues affect international marketing strategy?

Accepted Answer

International financing factors can have

Question 19

Nongovernmental factors that affect currency movement include all of the following except:

Accepted Answer

A)  Individual and business transactions 
B)  Inflation 
C)  Proprietary business plans 
D)  Interest rates 
E)  Trade and investment activities 
A)  Individual and business transactions 
B)  Inflation 
C)  Proprietary business plans 
D)  Interest rates 
E)  Trade and investment activities

Question 20

Indirect rates are calculated using the home currency price per unit against that of the foreign currency.

Accepted Answer

A) True 
 B)False

Durability is one of the five characteristics of a currency.

Inflation is a nongovernmental factor that affects currency movement.

Forward rates are the exchange rates for the delivery of a currency at a specific time in the future.

What instrument allows a company to sell or buy a certain amount of a foreign currency at a set exchange rate on a specific date?

Discuss the various factors that influence currency movement,including individual and business transactions,inflation,interest rates,and trade and investment activity.Explain why international marketers need to monitor these developments.

What states that the nominal or stated interest rate of a country is equal to the actual interest rate plus the rate of inflation?

Discuss the various forms of countertrade that are presented in the text.Use examples to illustrate each form of countertrade.

Companies raise two types of funds in global or local capital markets,including:

Terms of trade refers to an agreed-upon payment in return for goods and services.

The four major types of countertrade that are discussed in the text include all of the following except:

Which term represents increases in price as a product moves from one country to another?

When a commodity is sold by one subsidiary of a company to another in a second country,what kind of price is set in order to by-pass taxes and tariffs by shifting funds internally?

A trade deficit occurs when a country imports more than it exports.

Which states that identical products should be priced identically in different markets,once the price is converted to the same currency in each market?

The percentage rate paid for the use of money is referred to as which of the following?

The Law of One Price means that:

A core component of business activity,which can be drastically impacted by international finance issues including currency movements,is which of the following?

Discuss the various international financing factors that affect international pricing that are discussed in the text including exchange rate fluctuations,price escalations,and administered prices.How do these issues affect international marketing strategy?

Nongovernmental factors that affect currency movement include all of the following except:

Indirect rates are calculated using the home currency price per unit against that of the foreign currency.

Introduction to International Marketing

Culture and Cross-Cultural Marketing

Global Trade and Integration

Country Selection and Entry Strategies

International Marketing Planning Organization and Control

Markets and Segmentation in an International Context

International Positioning

Market Research in the International Environment

International Product and Brand Marketing

International Pricing

International Finance and Pricing Implications

International Marketing Channel Management

International Distribution: Exporting and Retailing

Globally Integrated Marketing Communications

International Sales Promotions and Public Relations

Filters

Exam 10: International Product Standardization and Adaptation

Durability is one of the five characteristics of a currency.

Inflation is a nongovernmental factor that affects currency movement.

Forward rates are the exchange rates for the delivery of a currency at a specific time in the future.

What instrument allows a company to sell or buy a certain amount of a foreign currency at a set exchange rate on a specific date?

Discuss the various factors that influence currency movement,including individual and business transactions,inflation,interest rates,and trade and investment activity.Explain why international marketers need to monitor these developments.

What states that the nominal or stated interest rate of a country is equal to the actual interest rate plus the rate of inflation?

Discuss the various forms of countertrade that are presented in the text.Use examples to illustrate each form of countertrade.

Companies raise two types of funds in global or local capital markets,including:

Terms of trade refers to an agreed-upon payment in return for goods and services.

The four major types of countertrade that are discussed in the text include all of the following except:

Which term represents increases in price as a product moves from one country to another?

When a commodity is sold by one subsidiary of a company to another in a second country,what kind of price is set in order to by-pass taxes and tariffs by shifting funds internally?

A trade deficit occurs when a country imports more than it exports.

Which states that identical products should be priced identically in different markets,once the price is converted to the same currency in each market?

The percentage rate paid for the use of money is referred to as which of the following?

The Law of One Price means that:

A core component of business activity,which can be drastically impacted by international finance issues including currency movements,is which of the following?

Discuss the various international financing factors that affect international pricing that are discussed in the text including exchange rate fluctuations,price escalations,and administered prices.How do these issues affect international marketing strategy?

Nongovernmental factors that affect currency movement include all of the following except:

Indirect rates are calculated using the home currency price per unit against that of the foreign currency.

Introduction to International Marketing

Culture and Cross-Cultural Marketing

Global Trade and Integration

Country Selection and Entry Strategies

International Marketing Planning Organization and Control

Markets and Segmentation in an International Context

International Positioning

Market Research in the International Environment

International Product and Brand Marketing

International Pricing

International Finance and Pricing Implications

International Marketing Channel Management

International Distribution: Exporting and Retailing

Globally Integrated Marketing Communications

International Sales Promotions and Public Relations

Filters