Question 1

Political risk is a controllable variable, which the exporter controls through paying extra taxes or import duties.

Accepted Answer

A) True 
 B)False  False

Question 2

The costs of modifying the product for foreign markets are considered export-related costs.

Accepted Answer

A) True 
 B)False  True

Question 3

The final export price of a good is negotiated in person.

Accepted Answer

A) True 
 B)False  True

Question 4

The marginal cost method of pricing considers the direct costs of producing and selling products for export. What costs need to be excluded in these direct costs?

Accepted Answer

A)   currency fluctuations
B)   potential government regulations in future legislative sessions
C)   fixed costs, R&D and domestic overhead
D)   weather forecasts, especially in regards to El Nino

Question 5

A draft is a form of government currency used to pay duty on products shipped across country boundaries.

Accepted Answer

A) True 
 B)False

Question 6

Free on board (FOB) applies to what kind of shipments?

Accepted Answer

A)   Rail
B)   Truck
C)   Air
D)   Vessel

Question 7

Prices quoted ex-works (EXW) are when the seller agrees to place the goods at the disposal of the buyer at the specified place on the date or within the fixed period. At which point do these prices apply?

Accepted Answer

A)   At the end of the contract
B)   Only at the point of origin
C)   Throughout the entire process
D)   Before, during and after the process

Question 8

Which one of the following is not a description of a letter of credit?

Accepted Answer

A)   Irrevocable versus revocable.
B)   Instant versus prolonged.
C)   Confirmed versus unconfirmed.
D)   Revolving versus non-revolving.

Question 9

Which of the following is not a general price-setting strategy in international marketing?

Accepted Answer

A)   Base plus cost margin
B)   Standard worldwide price
C)   Dual pricing
D)   Market-differentiated pricing

Question 10

VAT is a form of government sanction which is imposed on the full export selling price which represents a government action to products introduced from another country. What does VAT represent?

Accepted Answer

A)   Visions and Trust
B)   Variable Actions Transcontinental
C)   Value added tax
D)   Variable annuity tax

Question 11

Because international currency is fluid, neither party will get harmed if the exchange rate is different in one country versus another.

Accepted Answer

A) True 
 B)False

Question 12

Why has Price become such a dynamic element of the marketing mix?

Accepted Answer

The answer of Why has Price become such a dynamic...

Question 13

Which of the following does not apply to Freight Forwarders?

Accepted Answer

A)   They act as facilitators and advisors and help keeping down some of the export-related costs.
B)   They can prepare quotations.
C)   They pay for the shipping and absorb the costs.
D)   Ensure that unexpected charges do not cause the exporter to lose money.

Question 14

As in all marketing decisions, the marketing intermediaries establish the basic premise for pricing.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not a general alternative pricing mechanism?

Accepted Answer

A)   Posting
B)   Skimming
C)   Market Pricing
D)   Penetration

Question 16

Through foreign sourcing, the exporter may accrue an additional benefit to lower costs. An expert may be refunded up to 99 percent of duties paid on imported goods when they are exported or incorporated in articles that are subsequently exported within five years of the importation. What is this called?

Accepted Answer

A)   Foreign sourcing
B)   Zipping imports
C)   Duty drawbacks
D)   Long term pressure

Question 17

Price is the only element of the marketing mix that is revenue generating.

Accepted Answer

A) True 
 B)False

Question 18

The most favorable term to the exporter is cash in advance.

Accepted Answer

A) True 
 B)False

Question 19

In the cost-plus method of pricing, there is one major drawback that sometimes precludes exports from using it. What is this drawback?

Accepted Answer

A)   The cost of the final price may be so high that the firm's competitiveness is compromised.
B)   It is so variable that the actual price cannot be substantiated.
C)   There is high turnover of product resulting in costing fluctuations.
D)   Each of the elements has to be examined individually, providing complex structures grids.

Question 20

_________ price is set regardless of the buyer and maybe based on average unit costs of fixed, variable or export related costs.

Accepted Answer

A)   Pinnacle
B)   Situational
C)   Standard worldwide price
D)   Export variable price

Exam 11: Export Pricing

Political risk is a controllable variable, which the exporter controls through paying extra taxes or import duties.

The costs of modifying the product for foreign markets are considered export-related costs.

The final export price of a good is negotiated in person.

The marginal cost method of pricing considers the direct costs of producing and selling products for export. What costs need to be excluded in these direct costs?

A draft is a form of government currency used to pay duty on products shipped across country boundaries.

Free on board (FOB) applies to what kind of shipments?

Prices quoted ex-works (EXW) are when the seller agrees to place the goods at the disposal of the buyer at the specified place on the date or within the fixed period. At which point do these prices apply?

Which one of the following is not a description of a letter of credit?

Which of the following is not a general price-setting strategy in international marketing?

VAT is a form of government sanction which is imposed on the full export selling price which represents a government action to products introduced from another country. What does VAT represent?

Because international currency is fluid, neither party will get harmed if the exchange rate is different in one country versus another.

Why has Price become such a dynamic element of the marketing mix?

Which of the following does not apply to Freight Forwarders?

As in all marketing decisions, the marketing intermediaries establish the basic premise for pricing.

Which of the following is not a general alternative pricing mechanism?

Price is the only element of the marketing mix that is revenue generating.

The most favorable term to the exporter is cash in advance.

In the cost-plus method of pricing, there is one major drawback that sometimes precludes exports from using it. What is this drawback?

_________ price is set regardless of the buyer and maybe based on average unit costs of fixed, variable or export related costs.