Question 1

_________________ costs do not vary with sales volume changes.

Accepted Answer

A)  Demand 
B)  Supply 
C)  Derived 
D)  Fixed 
E)  Variable 
A)  Demand 
B)  Supply 
C)  Derived 
D)  Fixed 
E)  Variable D

Question 2

Cost-based pricing simply adds a mark-up to the cost of goods.

Accepted Answer

A) True 
 B)False  True

Question 3

When a manufacturer of breakfast cereals for humans shifts production to a chicken feed product to overcome the effects of price controls, the firm would be
Following which of the strategies outlined below?

Accepted Answer

A)  adapt the product line. 
B)  shift target segments or market. 
C)  negotiate with the government. 
D)  launch a variant of an existing product. 
E)  predict the incidence of price controls. 
A)  adapt the product line. 
B)  shift target segments or market. 
C)  negotiate with the government. 
D)  launch a variant of an existing product. 
E)  predict the incidence of price controls. B

Question 4

When an exporter uses the _______________________ method, the effect can be negative. Frequent adjustments of prices in response to currency movements will
Distress local channels and customers.

Accepted Answer

A)  local-currency price stability (LCPS) 
B)  pricing-to-market (PTM) 
C)  transfer pricing 
D)  countertrade pricing 
E)  demand mark-up pricing 
A)  local-currency price stability (LCPS) 
B)  pricing-to-market (PTM) 
C)  transfer pricing 
D)  countertrade pricing 
E)  demand mark-up pricing

Question 5

To combat hyperinflation, many governments occasionally impose ______________ controls.

Accepted Answer

A)  commodity 
B)  inflation 
C)  margin 
D)  discount 
E)  price 
A)  commodity 
B)  inflation 
C)  margin 
D)  discount 
E)  price

Question 6

All of the following are considered to be exporter strategies when the domestic currency is strong EXCEPT:

Accepted Answer

A)  conduct conventional cash-for-goods trade. 
B)  engage in nonprice competition by improving quality, delivery, and aftersale service. 
C)  improve productivity and engage in vigorous cost reduction. 
D)  shift sourcing and manufacturing overseas. 
E)  give priority to exports to relatively strong-currency countries. 
A)  conduct conventional cash-for-goods trade. 
B)  engage in nonprice competition by improving quality, delivery, and aftersale service. 
C)  improve productivity and engage in vigorous cost reduction. 
D)  shift sourcing and manufacturing overseas. 
E)  give priority to exports to relatively strong-currency countries.

Question 7

Two major issues confronting international marketers result from currency movement. The first of these is in which currency do we quote our prices? The
Second is:

Accepted Answer

A)  how much of the loss or gain (because of pass through) should be passed to consumers? 
B)  how much should we invest in the local currency? 
C)  how much should we invest in our own currency? 
D)  what role should the central bank play in currency movement? 
E)  should we trust international arbitrage as a means of settling currency value? 
A)  how much of the loss or gain (because of pass through) should be passed to consumers? 
B)  how much should we invest in the local currency? 
C)  how much should we invest in our own currency? 
D)  what role should the central bank play in currency movement? 
E)  should we trust international arbitrage as a means of settling currency value?

Question 8

Large cross-country price gaps open up arbitrage opportunities that lead to _________________ imports from low-price countries to high-price ones.

Accepted Answer

A)  black market 
B)  white market 
C)  zero market 
D)  smuggled 
E)  parallel 
A)  black market 
B)  white market 
C)  zero market 
D)  smuggled 
E)  parallel

Question 9

When sales transactions occur in some form of compensation other than money
(such as trading corn for whiskey), the two trading companies are engaged in
________________.

Accepted Answer

The answer of When sales transactions occur in some form...

Question 10

According to lessons learned in Brazil's hyperinflationary economy, McDonald's will deal with Russia's runaway inflation by using all of the following tools
EXCEPT:

Accepted Answer

A)  emphasize cash flow management. 
B)  control of raw materials. 
C)  institute sales and price setting strategies. 
D)  hedge for potentially substantial distortions in the exchange rate. 
E)  make loans to local franchise investors to bring them past hard times. 
A)  emphasize cash flow management. 
B)  control of raw materials. 
C)  institute sales and price setting strategies. 
D)  hedge for potentially substantial distortions in the exchange rate. 
E)  make loans to local franchise investors to bring them past hard times.

Question 11

Global pricing contract (GPCs) are demanded by governments.

Accepted Answer

A) True 
 B)False

Question 12

___________________ simply adds a mark-up to the cost of the goods.

Accepted Answer

A)  Demand-based pricing 
B)  Negotiated pricing 
C)  Cost-based pricing 
D)  Markup-based pricing 
E)  Target return pricing 
A)  Demand-based pricing 
B)  Negotiated pricing 
C)  Cost-based pricing 
D)  Markup-based pricing 
E)  Target return pricing

Question 13

When sales take place between related entities of the same company, ___________ is often used.

Accepted Answer

A)  local-currency price stability (LCPS) 
B)  pricing-to-market (PTM) 
C)  transfer pricing 
D)  countertrade pricing 
E)  demand mark-up pricing 
A)  local-currency price stability (LCPS) 
B)  pricing-to-market (PTM) 
C)  transfer pricing 
D)  countertrade pricing 
E)  demand mark-up pricing

Question 14

Inflation in an economy is an example of a(n) ________________ impact on pricing decisions.

Accepted Answer

A)  direct 
B)  indirect 
C)  artificial 
D)  planned 
E)  uncontrollable 
A)  direct 
B)  indirect 
C)  artificial 
D)  planned 
E)  uncontrollable

Question 15

Which of the following are considered to be exporter strategies when the domestic currency is weak?

Accepted Answer

A)  conduct conventional cash-for-goods trade. 
B)  engage in nonprice competition by improving quality, delivery, and aftersale service. 
C)  improve productivity and engage in vigorous cost reduction. 
D)  shift sourcing and manufacturing overseas. 
E)  give priority to exports to relatively strong-currency countries. 
A)  conduct conventional cash-for-goods trade. 
B)  engage in nonprice competition by improving quality, delivery, and aftersale service. 
C)  improve productivity and engage in vigorous cost reduction. 
D)  shift sourcing and manufacturing overseas. 
E)  give priority to exports to relatively strong-currency countries.

Question 16

LCPS stands for:

Accepted Answer

local-curr

Question 17

When demand is highly price sensitive, the company needs to consider how it can _________________ from a global perspective.

Accepted Answer

A)  raise prices 
B)  lower prices 
C)  lower service 
D)  raise quality 
E)  reduce costs 
A)  raise prices 
B)  lower prices 
C)  lower service 
D)  raise quality 
E)  reduce costs

Question 18

Huge government deficits are examples of a(n) ________________ impact on pricing decisions.

Accepted Answer

A)  direct 
B)  indirect 
C)  artificial 
D)  planned 
E)  uncontrollable 
A)  direct 
B)  indirect 
C)  artificial 
D)  planned 
E)  uncontrollable

Question 19

According to the text, once brand loyalty has been established, _____________ will play less of a role as a purchase criterion.

Accepted Answer

A)  promotion 
B)  service 
C)  product 
D)  price 
E)  place 
A)  promotion 
B)  service 
C)  product 
D)  price 
E)  place

Question 20

According to the textbook, factors that impact global pricing decisions include
company, customers, competition, technology.

Accepted Answer

A) True 
 B)False

_________________ costs do not vary with sales volume changes.

Cost-based pricing simply adds a mark-up to the cost of goods.

When a manufacturer of breakfast cereals for humans shifts production to a chicken feed product to overcome the effects of price controls, the firm would be Following which of the strategies outlined below?

When an exporter uses the _______________________ method, the effect can be negative. Frequent adjustments of prices in response to currency movements will Distress local channels and customers.

To combat hyperinflation, many governments occasionally impose ______________ controls.

All of the following are considered to be exporter strategies when the domestic currency is strong EXCEPT:

Two major issues confronting international marketers result from currency movement. The first of these is in which currency do we quote our prices? The Second is:

Large cross-country price gaps open up arbitrage opportunities that lead to _________________ imports from low-price countries to high-price ones.

When sales transactions occur in some form of compensation other than money (such as trading corn for whiskey), the two trading companies are engaged in ________________.

According to lessons learned in Brazil's hyperinflationary economy, McDonald's will deal with Russia's runaway inflation by using all of the following tools EXCEPT:

Global pricing contract (GPCs) are demanded by governments.

___________________ simply adds a mark-up to the cost of the goods.

When sales take place between related entities of the same company, ___________ is often used.

Inflation in an economy is an example of a(n) ________________ impact on pricing decisions.

Which of the following are considered to be exporter strategies when the domestic currency is weak?

LCPS stands for:

When demand is highly price sensitive, the company needs to consider how it can _________________ from a global perspective.

Huge government deficits are examples of a(n) ________________ impact on pricing decisions.

According to the text, once brand loyalty has been established, _____________ will play less of a role as a purchase criterion.

According to the textbook, factors that impact global pricing decisions include company, customers, competition, technology.

Globalization Imperative

Economic Environment

Financial Environment

Global Cultural Environment and Buying Behavior

Political and Legal Environment

Global Marketing Research

Global Segmentation and Positioning

Global Marketing Strategies

Global Market Entry Strategies

Global Product Policy Decisions I: Developing New Products for Global Markets

Global Product Policy Decisions Ii: Marketing Products and Services

Global Communication Strategies

Sales Management

Global Logistics and Distribution

Export and Import Management

Planning, Organization, and Control of Global Marketing Operations

Marketing Strategies for Emerging Markets

Global Marketing and the Internet

Sustainable Marketing in the Global Marketplace

Filters

Exam 12: Global Pricing

_________________ costs do not vary with sales volume changes.

Cost-based pricing simply adds a mark-up to the cost of goods.

When a manufacturer of breakfast cereals for humans shifts production to a chicken feed product to overcome the effects of price controls, the firm would be Following which of the strategies outlined below?

When an exporter uses the _______________________ method, the effect can be negative. Frequent adjustments of prices in response to currency movements will Distress local channels and customers.

To combat hyperinflation, many governments occasionally impose ______________ controls.

All of the following are considered to be exporter strategies when the domestic currency is strong EXCEPT:

Two major issues confronting international marketers result from currency movement. The first of these is in which currency do we quote our prices? The Second is:

Large cross-country price gaps open up arbitrage opportunities that lead to _________________ imports from low-price countries to high-price ones.

When sales transactions occur in some form of compensation other than money (such as trading corn for whiskey), the two trading companies are engaged in ________________.

According to lessons learned in Brazil's hyperinflationary economy, McDonald's will deal with Russia's runaway inflation by using all of the following tools EXCEPT:

Global pricing contract (GPCs) are demanded by governments.

___________________ simply adds a mark-up to the cost of the goods.

When sales take place between related entities of the same company, ___________ is often used.

Inflation in an economy is an example of a(n) ________________ impact on pricing decisions.

Which of the following are considered to be exporter strategies when the domestic currency is weak?

LCPS stands for:

When demand is highly price sensitive, the company needs to consider how it can _________________ from a global perspective.

Huge government deficits are examples of a(n) ________________ impact on pricing decisions.

According to the text, once brand loyalty has been established, _____________ will play less of a role as a purchase criterion.

According to the textbook, factors that impact global pricing decisions include company, customers, competition, technology.

Globalization Imperative

Economic Environment

Financial Environment

Global Cultural Environment and Buying Behavior

Political and Legal Environment

Global Marketing Research

Global Segmentation and Positioning

Global Marketing Strategies

Global Market Entry Strategies

Global Product Policy Decisions I: Developing New Products for Global Markets

Global Product Policy Decisions Ii: Marketing Products and Services

Global Communication Strategies

Sales Management

Global Logistics and Distribution

Export and Import Management

Planning, Organization, and Control of Global Marketing Operations

Marketing Strategies for Emerging Markets

Global Marketing and the Internet

Sustainable Marketing in the Global Marketplace

Filters