Question 1

Another term for parallel importing is:

Accepted Answer

A) the black market. 
B) manufacturer black-listing. 
C) government piracy. 
D) gray-market goods. 
E) forwarded market.

Question 2

If a company is engaged in transfer pricing,it can avoid penalties imposed by the IRS if it will enter into an agreement with the IRS called a(n):

Accepted Answer

A) a buy-back agreement. 
B) lend-lease agreement. 
C) Advanced Pricing Agreement. 
D) Proactive Pricing Agreement. 
E) a reciprocal agreement.

Question 3

When PepsiCo first began to market Pepsi Cola in Russia,it was asked to accept an equal amount of Russian vodka as payment in return for permission to sell Pepsi Cola.The formal name for this trading strategy is called:

Accepted Answer

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

Question 4

Countertrade includes barter,compensation deals,____________ and __________.

Accepted Answer

The answer of Countertrade includes barter,compensation deals,____________ and __________....

Question 5

One approach to defining the pricing policy of dumping is to say that it is a case where a product is sold in the international arena:

Accepted Answer

A) below the cost of production. 
B) to only those that can pay for it. 
C) to get rid of excess supply. 
D) to get rid of old or useless merchandise. 
E) to rid the domestic market of potentially harmful substances and products.

Question 6

When the value of the dollar is weak relative to the buyer's currency,companies generally employ __________ pricing.

Accepted Answer

A) competition-based pricing 
B) demand-based pricing 
C) supply-based pricing 
D) psychological pricing 
E) cost-plus pricing

Question 7

If a company has as its objective to reach a market segment that is relatively price insensitive and thus willing to pay a premium price for the value received,it will most likely use a pricing strategy called:

Accepted Answer

A) penetration pricing. 
B) everyday low pricing. 
C) value-based pricing. 
D) skimming pricing. 
E) oligopolistic pricing.

Question 8

By shipping unassembled goods to a free trade zone in an importing country,a marketer can lower costs in a variety of ways.One of these ways is that import taxes are completely skipped by following such a practice.

Accepted Answer

A) True 
 B)False

Question 9

Michael McDonald has sold machine lathes to a company in Mexico.In order to make his sale,Mr.McDonald has agreed to accept 30 percent of the amount owed in finished goods made by the plant that bought the machine lathes.Which of the following countertrade options is Mr.McDonald using?

Accepted Answer

A) barter 
B) compensation deal 
C) counterpurchase 
D) buy-back 
E) subornation

Question 10

Setting the right price for a product can be the key to success or failure in the international marketplace.

Accepted Answer

A) True 
 B)False

Question 11

Often when a new technology is introduced,marketers keep the price high,selling to only those consumers who most want the technology.These marketers are using a _____________ pricing for their products.

Accepted Answer

The answer of Often when a new technology is introduced,marketers...

Question 12

A foreign trade zone is an important method for controlling which of the following?

Accepted Answer

A) theft. 
B) labor problems at home. 
C) price escalation. 
D) profiteering. 
E) deflation.

Question 13

What is the difference between variable-cost pricing and full-cost pricing.

Accepted Answer

The answer of What is the difference between variable-cost pricing...

Question 14

Will's company uses countertrade as a marketing and pricing tool.His company has a _______ countertrade strategy.

Accepted Answer

A) proactive 
B) reactive 
C) standard 
D) nondescript 
E) highly volatile

Question 15

In ____________ pricing,the firm is concerned only with the marginal or incremental cost of producing goods to be sold in overseas markets.

Accepted Answer

A) full-cost 
B) fixed-cost 
C) variable-cost 
D) demand-based 
E) supply-based

Question 16

One of the primary functions of a cartel is to control markets for its goods and services.

Accepted Answer

A) True 
 B)False

Question 17

List and briefly characterize the four forms of countertrade.

Accepted Answer

The answer of List and briefly characterize the four forms...

Question 18

Leasing helps to guarantee better maintenance and service on overseas equipment.

Accepted Answer

A) True 
 B)False

Question 19

A company uses skimming pricing as an objective when it desires to reach a market segment that is relatively price insensitive and thus willing to pay a premium price for the value received.

Accepted Answer

A) True 
 B)False

Question 20

In a free trade zone,payment of import duties is postponed until the product leaves the free trade zone and enters the country.

Accepted Answer

A) True 
 B)False

Exam 18: Pricing for International Markets

Another term for parallel importing is:

If a company is engaged in transfer pricing,it can avoid penalties imposed by the IRS if it will enter into an agreement with the IRS called a(n) :

When PepsiCo first began to market Pepsi Cola in Russia,it was asked to accept an equal amount of Russian vodka as payment in return for permission to sell Pepsi Cola.The formal name for this trading strategy is called:

Countertrade includes barter,compensation deals,__ and .

One approach to defining the pricing policy of dumping is to say that it is a case where a product is sold in the international arena:

When the value of the dollar is weak relative to the buyer's currency,companies generally employ __________ pricing.

If a company has as its objective to reach a market segment that is relatively price insensitive and thus willing to pay a premium price for the value received,it will most likely use a pricing strategy called:

By shipping unassembled goods to a free trade zone in an importing country,a marketer can lower costs in a variety of ways.One of these ways is that import taxes are completely skipped by following such a practice.

Michael McDonald has sold machine lathes to a company in Mexico.In order to make his sale,Mr.McDonald has agreed to accept 30 percent of the amount owed in finished goods made by the plant that bought the machine lathes.Which of the following countertrade options is Mr.McDonald using?

Setting the right price for a product can be the key to success or failure in the international marketplace.

Often when a new technology is introduced,marketers keep the price high,selling to only those consumers who most want the technology.These marketers are using a _____________ pricing for their products.

A foreign trade zone is an important method for controlling which of the following?

What is the difference between variable-cost pricing and full-cost pricing.

Will's company uses countertrade as a marketing and pricing tool.His company has a _______ countertrade strategy.

In ____________ pricing,the firm is concerned only with the marginal or incremental cost of producing goods to be sold in overseas markets.

One of the primary functions of a cartel is to control markets for its goods and services.

List and briefly characterize the four forms of countertrade.

Leasing helps to guarantee better maintenance and service on overseas equipment.

A company uses skimming pricing as an objective when it desires to reach a market segment that is relatively price insensitive and thus willing to pay a premium price for the value received.

In a free trade zone,payment of import duties is postponed until the product leaves the free trade zone and enters the country.