Question 1

Agent middlemen work on commission and do not take title to the merchandise.

Accepted Answer

A) True 
 B)False

Question 2

Distribution in ________ has long been considered the most effective nontariff barrier to that market.

Accepted Answer

A)  China 
B)  Japan 
C)  the U.S. 
D)  Western Europe 
E)  Canada

Question 3

What is one of the six Cs of distribution channel strategy?

Accepted Answer

A)  communication 
B)  continuity 
C)  capacity 
D)  commission 
E)  contribution

Question 4

What is true of foreign sales corporations?

Accepted Answer

A)  They are commonly called piggybackers. 
B)  They can only be related to a manufacturing parent and not an independent broker. 
C)  They virtually control distribution through all levels of channels in Japan. 
D)  They accumulate, transport, and distribute goods from many countries. 
E)  They can function as a principal or a commissioned agent.

Question 5

What is secondary wholesaling and when might it be used?

Accepted Answer

The answer of What is secondary wholesaling and when might...

Question 6

Globally, wholesaling shows a greater diversity in its distribution structure than does retailing.

Accepted Answer

A) True 
 B)False

Question 7

Which statement is true regarding an export management company (EMC)?

Accepted Answer

A)  It acts as a middleman for firms with relatively large international sales volume. 
B)  It operates under its own name while providing services to another firm. 
C)  It does not have direct responsibility to the parent firm. 
D)  It acts as a middleman for firms willing to involve their own personnel in international functions. 
E)  It calls for smaller investment from the parent firm to get into international markets.

Question 8

Which feature characterizes the business philosophy of Japanese distribution channels?

Accepted Answer

A)  loyalty 
B)  direct sales 
C)  fast delivery 
D)  variety 
E)  price competition

Question 9

In the context of distribution structures, one of Walmart's strengths is its ability to work with distributors one-on-one.

Accepted Answer

A) True 
 B)False

Question 10

What subject area should be on the checklist of criteria for evaluating middlemen servicing a market?

Accepted Answer

A)  flexibility 
B)  sensitivity 
C)  cultural empathy 
D)  productivity 
E)  breadth of knowledge

Question 11

A website and the product must be culturally neutral, which can be a problem when it comes to color. For instance, the color red is associated with socialism in

Accepted Answer

A)  the United States. 
B)  China. 
C)  Brazil. 
D)  Uruguay. 
E)  Spain.

Question 12

The Webb-Pomerene Act of 1918 made it possible for American business firms to join forces in export activities without being subject to the

Accepted Answer

A)  Sherman Antitrust Act. 
B)  Federal Communications Act. 
C)  Trade Commission Act. 
D)  Food, Drug, and Cosmetics Act. 
E)  Robinson-Patman Act.

Question 13

Which group takes title to manufacturers' goods and assume the trading risks?

Accepted Answer

A)  merchant middlemen 
B)  brokers 
C)  buying offices 
D)  export agent 
E)  agent middlemen

Question 14

A disadvantage when using home-country middlemen as intermediaries in the distribution process is the

Accepted Answer

A)  large financial investment required. 
B)  limited control over the distribution process. 
C)  large managerial investments required. 
D)  limited number of retailers in the foreign country who can be reached. 
E)  large amount of commission.

Question 15

Company B found out that the middleman it was using was skimming money from its profits, so it decided it had to terminate the relationship. What does Company B need to know before terminating a middleman in a foreign country?

Accepted Answer

The answer of Company B found out that the middleman...

Question 16

One reason channels of distribution often pose longevity problems is that most middlemen

Accepted Answer

A)  do not maintain sufficient inventory to serve customers. 
B)  lack product knowledge resulting in low sales volume. 
C)  have little loyalty to their vendors. 
D)  tend to slow down distribution to extract higher commissions. 
E)  do not have sufficient knowledge of the target market.

Question 17

What makes Walmart's transactions with suppliers highly efficient and lowers its cost of operations?

Accepted Answer

A)  clean business reputation 
B)  internal Internet-based system with suppliers 
C)  lack of competitors 
D)  outreach programs to placate small retailers 
E)  ability to influence foreign governments

Question 18

The Japanese distribution structure has four distinguishing features. Discuss these and explain how they impact Japan's market.

Accepted Answer

The answer of The Japanese distribution structure has four distinguishing...

Question 19

According to experienced exporters, what is the only effective way to select a middleman?

Accepted Answer

A)  Conduct a background check on all the distributors available in the target market. 
B)  Issue a request-for-proposal to all distributors in the target market and evaluate their responses. 
C)  Consult other manufacturers of similar products and select the distributor recommended by them. 
D)  Consult trade organizations and select the distributor recommended by them. 
E)  Talk personally to ultimate consumers to find whom they consider to be the best distributors.

Question 20

In the context of the types of domestic middlemen, the WTO in 2003 ruled ________ to be in violation of international trade rules, thus starting a major trade dispute with the European Union.

Accepted Answer

A)  foreign sales corporations 
B)  direct marketing partnerships 
C)  trading companies 
D)  export promotion companies 
E)  Webb-Pomerene export associations

Exam 15: International Marketing Channels

Agent middlemen work on commission and do not take title to the merchandise.

Distribution in ________ has long been considered the most effective nontariff barrier to that market.

What is one of the six Cs of distribution channel strategy?

What is true of foreign sales corporations?

What is secondary wholesaling and when might it be used?

Globally, wholesaling shows a greater diversity in its distribution structure than does retailing.

Which statement is true regarding an export management company (EMC) ?

Which feature characterizes the business philosophy of Japanese distribution channels?

In the context of distribution structures, one of Walmart's strengths is its ability to work with distributors one-on-one.

What subject area should be on the checklist of criteria for evaluating middlemen servicing a market?

A website and the product must be culturally neutral, which can be a problem when it comes to color. For instance, the color red is associated with socialism in

The Webb-Pomerene Act of 1918 made it possible for American business firms to join forces in export activities without being subject to the

Which group takes title to manufacturers' goods and assume the trading risks?

A disadvantage when using home-country middlemen as intermediaries in the distribution process is the

Company B found out that the middleman it was using was skimming money from its profits, so it decided it had to terminate the relationship. What does Company B need to know before terminating a middleman in a foreign country?

One reason channels of distribution often pose longevity problems is that most middlemen

What makes Walmart's transactions with suppliers highly efficient and lowers its cost of operations?

The Japanese distribution structure has four distinguishing features. Discuss these and explain how they impact Japan's market.

According to experienced exporters, what is the only effective way to select a middleman?

In the context of the types of domestic middlemen, the WTO in 2003 ruled ________ to be in violation of international trade rules, thus starting a major trade dispute with the European Union.