Question 1

As a company grows in exporting sophistication,it should not become involved with an export trading company because

Accepted Answer

A)   fixed costs are too high.
B)   variable costs are too high.
C)   it is a violation of international law.
D)   customers abroad are customers of the export trading company, not the exporter.
E)   None of the above D

Question 2

The customs status of a maquiladora is similar to that of

Accepted Answer

A)   a foreign trade zone located only in the United States.
B)   a foreign trade zone located only in Mexico.
C)   a Customs office.
D)   what is outlined in the Foreign Corrupt Practices Act.
E)   None of the above E

Question 3

When they first go into international trading,most companies first do so after careful planning and thoughtful strategic planning.

Accepted Answer

A) True 
 B)False  False

Question 4

Maquiladoras are located on the border between

Accepted Answer

A)   France and Germany.
B)   Spain and Portugal.
C)   Quebec and Ontario.
D)   the United States and Mexico.
E)   None of the above

Question 5

If tariffs on a finished product are higher than tariffs on the parts of the product,the product is said to be in an inverted tariff structure.

Accepted Answer

A) True 
 B)False

Question 6

A form of piggy-backing in which a successful exporter involves one of its suppliers-or a company that makes a complementary product-in the markets that the exporter has developed is sometimes referred to as ____________________ exporting.

Accepted Answer

The answer of A form of piggy-backing in which a...

Question 7

A company has a foreign subsidiary (a wholly-owned foreign enterprise,WOFE)for which it builds a brand new facility.This facility is called a(n)____________________ operation.

Accepted Answer

The answer of A company has a foreign subsidiary (a...

Question 8

An exporter has the most control over its foreign sales through a(n)

Accepted Answer

A)   sales or marketing subsidiary.
B)   export trading company.
C)   export management company.
D)   agent.
E)   distributor.

Question 9

What strategy is often followed when access to the market is limited by high tariffs or non-tariff barriers,when shipping costs are prohibitive,or when the exporter is not interested in pursuing the market?

Accepted Answer

A)   use of a foreign trade zone
B)   use of an agent
C)   use of an export management company
D)   use of a maquiladora
E)   None of the above

Question 10

United States companies are prohibited from giving bribes in foreign countries by the ____________________ Act.

Accepted Answer

The answer of United States companies are prohibited from giving...

Question 11

There are two types of factors included in the entry decision for an exporter: factors that are market-driven and factors that are company- or product-driven.

Accepted Answer

A) True 
 B)False

Question 12

The fee a licensee pays a licensor for each use of an intellectual property is called a(n)

Accepted Answer

A)   tariff.
B)   excise.
C)   royalty.
D)   finder's fee.
E)   None of the above

Question 13

A distributor takes much less risk in its relationship with an exporter than does an agent and experiences much lower costs.

Accepted Answer

A) True 
 B)False

Question 14

While agents,because they are small businesses,are in many countries protected by that country's labor law,distributors,because they tend to be larger and are assumed to be more sophisticated,are covered in most countries by ____________________ law.

Accepted Answer

The answer of While agents,because they are small businesses,are in...

Question 15

By channeling its export sales through a foreign sales corporation,a U.S.company can reduce its tax rate on profits from export sales from 45 percent to 30 percent.

Accepted Answer

A) True 
 B)False

Question 16

Attempts to reduce business practices that include corruption and bribery have been made by the

Accepted Answer

A)   W.O.F.E.
B)   sogo shosha.
C)   Organisation for Economic Co-operation and Development.
D)   foreign labor laws that protect agents.
E)   None of the above

Question 17

Usually,a distributor is located

Accepted Answer

A)   near the exporter.
B)   in the importing country.
C)   near the capital city of the importing country.
D)   in a neighboring country.
E)   None of the above.

Question 18

Among all marketing mix decisions,distribution is the part of the mix that is the easiest or most likely to be adjusted.

Accepted Answer

A) True 
 B)False

Question 19

In an international environment some companies choose to ____________________ their intellectual property,such as trademarks,copyrights,or designs to foreign firms.

Accepted Answer

The answer of In an international environment some companies choose...

Question 20

When a firm realizes that it wants to exploit the possibilities that sales abroad can bring,and decides to become directly involved in its exporting activities,it is said to be involved in

Accepted Answer

A)   indirect exporting.
B)   parallel imports.
C)   foreign trade zones.
D)   active exporting.
E)   None of the above

Exam 4: Methods of Entry into Foreign Markets

As a company grows in exporting sophistication,it should not become involved with an export trading company because

The customs status of a maquiladora is similar to that of

When they first go into international trading,most companies first do so after careful planning and thoughtful strategic planning.

Maquiladoras are located on the border between

If tariffs on a finished product are higher than tariffs on the parts of the product,the product is said to be in an inverted tariff structure.

A form of piggy-backing in which a successful exporter involves one of its suppliers-or a company that makes a complementary product-in the markets that the exporter has developed is sometimes referred to as ____________________ exporting.

A company has a foreign subsidiary (a wholly-owned foreign enterprise,WOFE)for which it builds a brand new facility.This facility is called a(n)____________________ operation.

An exporter has the most control over its foreign sales through a(n)

What strategy is often followed when access to the market is limited by high tariffs or non-tariff barriers,when shipping costs are prohibitive,or when the exporter is not interested in pursuing the market?

United States companies are prohibited from giving bribes in foreign countries by the ____________________ Act.

There are two types of factors included in the entry decision for an exporter: factors that are market-driven and factors that are company- or product-driven.

The fee a licensee pays a licensor for each use of an intellectual property is called a(n)

A distributor takes much less risk in its relationship with an exporter than does an agent and experiences much lower costs.

While agents,because they are small businesses,are in many countries protected by that country's labor law,distributors,because they tend to be larger and are assumed to be more sophisticated,are covered in most countries by ____________________ law.

By channeling its export sales through a foreign sales corporation,a U.S.company can reduce its tax rate on profits from export sales from 45 percent to 30 percent.

Attempts to reduce business practices that include corruption and bribery have been made by the

Usually,a distributor is located

Among all marketing mix decisions,distribution is the part of the mix that is the easiest or most likely to be adjusted.

In an international environment some companies choose to ____________________ their intellectual property,such as trademarks,copyrights,or designs to foreign firms.

When a firm realizes that it wants to exploit the possibilities that sales abroad can bring,and decides to become directly involved in its exporting activities,it is said to be involved in