Question 1

Low-priced items can absorb transportation costs more easily than high-priced goods.

Accepted Answer

A) True 
 B)False

Question 2

International inventories can be used by the international corporation as a strategic tool in dealing with currency valuation changes or in hedging against inflation.Which of the following statements is true?

Accepted Answer

A)  By decreasing inventories before an imminent devaluation of a currency instead of holding cash, a corporation may reduce its exposure to devaluation losses. 
B)  In the case of high inflation, holding small inventories provides an important inflation hedge. 
C)  If an increase in tax payments outweighs the hedging benefits to a corporation, the firm needs to increase inventories before devaluation occurs. 
D)  The international inventory manager must balance the cost of maintaining high levels of inventories with the benefits accruing to the firm from hedging against inflation or devaluation. 
A)  By decreasing inventories before an imminent devaluation of a currency instead of holding cash, a corporation may reduce its exposure to devaluation losses. 
B)  In the case of high inflation, holding small inventories provides an important inflation hedge. 
C)  If an increase in tax payments outweighs the hedging benefits to a corporation, the firm needs to increase inventories before devaluation occurs. 
D)  The international inventory manager must balance the cost of maintaining high levels of inventories with the benefits accruing to the firm from hedging against inflation or devaluation.

Question 3

Which of the following best describes gray markets?

Accepted Answer

A)  They are markets where goods or services are illegally trafficked outside the formal ones supported by established state power. 
B)  They are legal markets for goods and services where all the distribution takes place through legal channels. 
C)  They refer to the distribution of used, repaired, recycled, or discontinued products that are in working condition through legal brokers and resellers. 
D)  They refer to authentic and legitimately manufactured trademark items that are produced and purchased abroad but imported by bypassing designated channels. 
A)  They are markets where goods or services are illegally trafficked outside the formal ones supported by established state power. 
B)  They are legal markets for goods and services where all the distribution takes place through legal channels. 
C)  They refer to the distribution of used, repaired, recycled, or discontinued products that are in working condition through legal brokers and resellers. 
D)  They refer to authentic and legitimately manufactured trademark items that are produced and purchased abroad but imported by bypassing designated channels.

Question 4

High-value items are more likely to be shipped by air,particularly if they have a high density.

Accepted Answer

A) True 
 B)False

Question 5

Reverse distribution systems ensure that the firm not only delivers the product to the market but can also retrieve it for subsequent use.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is true about order cycle time?

Accepted Answer

A)  In domestic marketing, the order cycle is frequently longer than in international business. 
B)  Order transmission times remain the same internationally irrespective of the mode of communication used. 
C)  The international marketer should attempt to increase the consistency without an increase in total costs. 
D)  The international marketer should attempt to increase order cycle time without an increase in total costs. 
A)  In domestic marketing, the order cycle is frequently longer than in international business. 
B)  Order transmission times remain the same internationally irrespective of the mode of communication used. 
C)  The international marketer should attempt to increase the consistency without an increase in total costs. 
D)  The international marketer should attempt to increase order cycle time without an increase in total costs.

Question 7

Marketers attend trade fairs to get data on intermediaries in the industry.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true about foreign trade zones?

Accepted Answer

A)  They enforce duty payment for all merchandise. 
B)  Duty payments are not due when the merchandise is shipped into the country from the foreign trade zone. 
C)  If the merchandise is shipped abroad from these zones, no duty payments are ever due. 
D)  They are considered, for purposes of tariff treatment, to be within the customs territory of the country in which they are located. 
A)  They enforce duty payment for all merchandise. 
B)  Duty payments are not due when the merchandise is shipped into the country from the foreign trade zone. 
C)  If the merchandise is shipped abroad from these zones, no duty payments are ever due. 
D)  They are considered, for purposes of tariff treatment, to be within the customs territory of the country in which they are located.

Question 9

Electronic data interchange (EDI)aims for:

Accepted Answer

A)  manual recording of all customer data. 
B)  providing a platform for customers to interact with each other globally. 
C)  standardizing and eliminating the wastes during manufacturing. 
D)  more efficient order processing. 
A)  manual recording of all customer data. 
B)  providing a platform for customers to interact with each other globally. 
C)  standardizing and eliminating the wastes during manufacturing. 
D)  more efficient order processing.

Question 10

By increasing inventories before an imminent devaluation of a currency instead of holding cash,the corporation can reduce its exposure to devaluation losses.

Accepted Answer

A) True 
 B)False

Question 11

A customs broker serves as an agent for an importer with authority to clear inbound goods through customs and ship them on to their destination.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements is true of "A" products in an ABC analysis?

Accepted Answer

A)  They are products that are stocked in all distribution centers, and safety stock levels would be kept high. 
B)  They are products for which immediate delivery is not urgent. 
C)  They are products that are stored only at selected distribution centers around the world. 
D)  They are products for which short delivery time is not important and hence they are stocked only at headquarters. 
A)  They are products that are stocked in all distribution centers, and safety stock levels would be kept high. 
B)  They are products for which immediate delivery is not urgent. 
C)  They are products that are stored only at selected distribution centers around the world. 
D)  They are products for which short delivery time is not important and hence they are stocked only at headquarters.

Question 13

Tramp service is available for regular routes and is at service at all times.

Accepted Answer

A) True 
 B)False

Question 14

In international logistics,the objective of the total cost concept is to minimize total cost rather than maximize after-tax profits.

Accepted Answer

A) True 
 B)False

Question 15

A bill of exchange is a document that acknowledges the receipt of goods and represents the basic contract between the shipper and the carrier.

Accepted Answer

A) True 
 B)False

Question 16

The exchange of goods and services via the use of smart mobile handheld devices that allow Web browsing is known as _____.

Accepted Answer

A)  outsourcing 
B)  autonomic networking 
C)  m-commerce 
D)  communication security 
A)  outsourcing 
B)  autonomic networking 
C)  m-commerce 
D)  communication security

Question 17

Facilitating payments by providing a small fee to expedite paperwork through customs is considered illegal.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is a method for classifying products that are most sensitive to delivery times?

Accepted Answer

A)  Economic impact analysis 
B)  ABC analysis 
C)  Cost-benefit analysis 
D)  CPM analysis 
A)  Economic impact analysis 
B)  ABC analysis 
C)  Cost-benefit analysis 
D)  CPM analysis

Low-priced items can absorb transportation costs more easily than high-priced goods.

International inventories can be used by the international corporation as a strategic tool in dealing with currency valuation changes or in hedging against inflation.Which of the following statements is true?

Which of the following best describes gray markets?

High-value items are more likely to be shipped by air,particularly if they have a high density.

Reverse distribution systems ensure that the firm not only delivers the product to the market but can also retrieve it for subsequent use.

Which of the following is true about order cycle time?

Marketers attend trade fairs to get data on intermediaries in the industry.

Which of the following is true about foreign trade zones?

Electronic data interchange (EDI)aims for:

By increasing inventories before an imminent devaluation of a currency instead of holding cash,the corporation can reduce its exposure to devaluation losses.

A customs broker serves as an agent for an importer with authority to clear inbound goods through customs and ship them on to their destination.

Which of the following statements is true of "A" products in an ABC analysis?

Tramp service is available for regular routes and is at service at all times.

In international logistics,the objective of the total cost concept is to minimize total cost rather than maximize after-tax profits.

A bill of exchange is a document that acknowledges the receipt of goods and represents the basic contract between the shipper and the carrier.

The exchange of goods and services via the use of smart mobile handheld devices that allow Web browsing is known as _____.

Facilitating payments by providing a small fee to expedite paperwork through customs is considered illegal.

Which of the following is a method for classifying products that are most sensitive to delivery times?

Global Environmental Drivers

International Trade Frameworks and Policy

The Role of Culture

The Economic Environment

The Political and Legal Environment

Consumer,Industrial,and Government Markets

Strategic Planning

Analyzing People and Markets

Market Entry and Expansion

Marketing Organization,Implementation,and Control

Product Management and Global Brands

Global Marketing of Services

Advertising,Promotion,and Sales

Pricing Strategies and Tactics

Social Networks and Communication

Leadership,Corporate Social Responsibility,and Sustainability

New Directions and Challenges

Filters

Exam 15: Global Distribution and Logistics

Low-priced items can absorb transportation costs more easily than high-priced goods.

International inventories can be used by the international corporation as a strategic tool in dealing with currency valuation changes or in hedging against inflation.Which of the following statements is true?

Which of the following best describes gray markets?

High-value items are more likely to be shipped by air,particularly if they have a high density.

Reverse distribution systems ensure that the firm not only delivers the product to the market but can also retrieve it for subsequent use.

Which of the following is true about order cycle time?

Marketers attend trade fairs to get data on intermediaries in the industry.

Which of the following is true about foreign trade zones?

Electronic data interchange (EDI)aims for:

By increasing inventories before an imminent devaluation of a currency instead of holding cash,the corporation can reduce its exposure to devaluation losses.

A customs broker serves as an agent for an importer with authority to clear inbound goods through customs and ship them on to their destination.

Which of the following statements is true of "A" products in an ABC analysis?

Tramp service is available for regular routes and is at service at all times.

In international logistics,the objective of the total cost concept is to minimize total cost rather than maximize after-tax profits.

A bill of exchange is a document that acknowledges the receipt of goods and represents the basic contract between the shipper and the carrier.

The exchange of goods and services via the use of smart mobile handheld devices that allow Web browsing is known as _____.

Facilitating payments by providing a small fee to expedite paperwork through customs is considered illegal.

Which of the following is a method for classifying products that are most sensitive to delivery times?

Global Environmental Drivers

International Trade Frameworks and Policy

The Role of Culture

The Economic Environment

The Political and Legal Environment

Consumer,Industrial,and Government Markets

Strategic Planning

Analyzing People and Markets

Market Entry and Expansion

Marketing Organization,Implementation,and Control

Product Management and Global Brands

Global Marketing of Services

Advertising,Promotion,and Sales

Pricing Strategies and Tactics

Social Networks and Communication

Leadership,Corporate Social Responsibility,and Sustainability

New Directions and Challenges

Filters