Question 1

A ________ exists when various companies producing similar products or services work together to control markets for the types of goods and services they produce.

Accepted Answer

A)  cabal 
B)  monopoly 
C)  cartel 
D)  producers' association 
E)  competitive market

Question 2

Lower prices to the buyer may also mean lower tariffs, because most tariffs are levied on a(n) ________ basis.

Accepted Answer

A)  specific 
B)  alternative 
C)  accrual 
D)  shorter, lower 
E)  ad valorem

Question 3

In a deflationary market, in order to win the trust of consumers, it is essential for a company to

Accepted Answer

A)  engage in forfaiting agreements with consumers. 
B)  spend more on advertising and stall the production of products. 
C)  allow prices to escalate and target the price insensitive segment of the market. 
D)  keep prices low and raise brand value. 
E)  form a cartel to control the dynamics of the market.

Question 4

When Burger Boys an American fast-food company, wanted to market its burgers and fries in France, it was asked to import French mustard to the United States in return. This is an example of

Accepted Answer

A)  bargaining. 
B)  countervailing duties. 
C)  buy-back. 
D)  countertrade. 
E)  bribery.

Question 5

With ________, the seller assumes all risk until the actual dollars are received.

Accepted Answer

A)  open accounts 
B)  irrevocable letters of credit 
C)  bills of exchange 
D)  factoring agreements 
E)  forfaiting contracts

Question 6

Differentiate the two ways price decisions are viewed.

Accepted Answer

The answer of Differentiate the two ways price decisions are...

Question 7

Dumping has been defined as the situation in which a product is sold in the international market

Accepted Answer

A)  at a price below the cost of production. 
B)  only to the premium, price insensitive segment of the market. 
C)  where the demand for the product is lower than in the domestic market. 
D)  at a higher price than in the domestic market. 
E)  at the same price as in the domestic market.

Question 8

Involving fewer middlemen in distribution means higher overall taxes.

Accepted Answer

A) True 
 B)False

Question 9

Cosmeticon, a U.S.-based firm, has recently started exporting cosmetics to India. Cosmeticon has introduced a new range of mineral-based makeup products for the first time in the Indian market. As Cosmeticon has no competitors in this segment of the Indian cosmetics market, it has set a very high price for its products in order to reach the premium, price insensitive segment of the market. This is an example of

Accepted Answer

A)  penetration pricing policy. 
B)  psychological pricing policy. 
C)  bundling. 
D)  price skimming. 
E)  cost-based pricing policy.

Question 10

________ distribution, a practice often used by companies to maintain high retail margins to encourage retailers to maintain the exclusive-quality image of a product, can create a favorable condition for parallel importing.

Accepted Answer

A)  Exclusive 
B)  Speculative 
C)  Intensive 
D)  Lateral 
E)  Dual

Question 11

What are common reasons why price escalation occurs in international marketing?

Accepted Answer

The answer of What are common reasons why price escalation...

Question 12

Cartels have the ability to maintain control of markets for indefinite periods.

Accepted Answer

A) True 
 B)False

Question 13

What is an example of a price-fixing arrangement most directly associated with international marketing?

Accepted Answer

A)  price escalation 
B)  barter houses 
C)  letters of credit 
D)  cartels 
E)  countertrade

Question 14

The possibility of a parallel market occurs when price differences are less than the cost of transportation between two markets.

Accepted Answer

A) True 
 B)False

Question 15

A crucial problem confronting a seller in a countertrade negotiation is determining the ________ for the goods offered as payment.

Accepted Answer

A)  delivery method 
B)  warranties 
C)  insurance premiums 
D)  potential demand 
E)  the cost

Question 16

OPEC is an example of a ________; it can control the price of oil by controlling the market.

Accepted Answer

A)  cabal 
B)  monopoly 
C)  cartel 
D)  producers' association 
E)  competitive market

Question 17

Countertrading does not benefit countries that face a shortage of hard currencies with which to trade.

Accepted Answer

A) True 
 B)False

Question 18

A company manufactures extremely specialized equipment for medical imaging. Because of its value, when the company exports this equipment overseas to hospitals, it generally requires ________, which is a nonrefundable deposit.

Accepted Answer

A)  a letter of credit 
B)  a dollar draft 
C)  a forfaiting contract 
D)  cash in advance 
E)  an open account

Question 19

In general, price decisions are viewed in two ways: pricing as a static element in a business decision, and pricing

Accepted Answer

A)  that depends on factors that are often beyond the control of a company. 
B)  as more a phenomenon of luck than planning. 
C)  as an active instrument of accomplishing marketing objectives. 
D)  that is determined by local sales managers. 
E)  that is static no matter the market.

Question 20

Discuss the meaning and nature of cartels. Are these groups beneficial? State an example.

Accepted Answer

The answer of Discuss the meaning and nature of cartels....

Exam 18: Pricing for International Markets

A ________ exists when various companies producing similar products or services work together to control markets for the types of goods and services they produce.

Lower prices to the buyer may also mean lower tariffs, because most tariffs are levied on a(n) ________ basis.

In a deflationary market, in order to win the trust of consumers, it is essential for a company to

When Burger Boys an American fast-food company, wanted to market its burgers and fries in France, it was asked to import French mustard to the United States in return. This is an example of

With ________, the seller assumes all risk until the actual dollars are received.

Differentiate the two ways price decisions are viewed.

Dumping has been defined as the situation in which a product is sold in the international market

Involving fewer middlemen in distribution means higher overall taxes.

________ distribution, a practice often used by companies to maintain high retail margins to encourage retailers to maintain the exclusive-quality image of a product, can create a favorable condition for parallel importing.

What are common reasons why price escalation occurs in international marketing?

Cartels have the ability to maintain control of markets for indefinite periods.

What is an example of a price-fixing arrangement most directly associated with international marketing?

The possibility of a parallel market occurs when price differences are less than the cost of transportation between two markets.

A crucial problem confronting a seller in a countertrade negotiation is determining the ________ for the goods offered as payment.

OPEC is an example of a ________; it can control the price of oil by controlling the market.

Countertrading does not benefit countries that face a shortage of hard currencies with which to trade.

A company manufactures extremely specialized equipment for medical imaging. Because of its value, when the company exports this equipment overseas to hospitals, it generally requires ________, which is a nonrefundable deposit.

In general, price decisions are viewed in two ways: pricing as a static element in a business decision, and pricing

Discuss the meaning and nature of cartels. Are these groups beneficial? State an example.