question

Which of the following is true regarding the impact of global competition on the business activities in the marketplace?

answer

It has put more power in the hands of the customer

question

Which of the following is the most important criterion for consumers while purchasing products?

answer

Quality

question

What are the two dimensions that help in defining the quality of a product of quality?

answer

Market-perceived quality and performance quality

question

_____ is the term used to describe the changes mandated by local product and service standards.

answer

Product homologation

question

Vital Health Products found out that they had to reduce the length of the tread in their treadmills sold in China owing to the shorter legs of the average Chinese person. By doing this, Vital has achieved product _____.

answer

homologation

question

A European chocolate manufacturer received several complaints from customers about the quality of its product when it began selling them in a tropical country. The firm had to re-package its chocolate bars in an extra plastic wrapper to protect it from the heat and dust. Which of the following factors in the local market dictated product adaptation in the current scenario?

answer

Climatic requirements

question

Booster bar is a popular brand of energy bars in Canada. The company sold these bars singly or in packs of two in the South Asian markets, instead of their regular multiple-item packaging containing 10 or 20 bars to make it more affordable for the consumers. Which of the following requirements of the local market is influencing product adaptation in the above scenario?

answer

Economical requirements

question

A wine company had to market its products with a different name in a foreign market as it was mandatory to translate the name in the local language. The factor that is influencing product adaptation in the above scenario is _____.

answer

legal requirements

question

Adore cosmetics had to increase the SPF value of their sunscreen lotions marketed in the Middle East to provide more protection against UV radiation. Which of the following factors is dictating product adaptation in the above scenario?

answer

Climatic requirements

question

Nuan, a television manufacturer in Korea, had to modify its televisions before introducing it to the Zimbabwean markets, as the country did not have the skills to repair the product in case of a malfunction. The local salesforce too, did not have the sufficient knowledge regarding the installation of the product. The factor that is influencing product adaptation in the above scenario is ________.

answer

technological requirements

question

A clothing company in Singapore which specialized in women's clothing, had to modify its clothes before introducing them to Iranian markets, to suit the needs of women in that country. Women in Iran are expected to cover themselves completely. The company mostly used opaque material and provided accessories like scarves. Which of the following factors is dictating product adaptation in the above scenario?

answer

Cultural requirements

question

_____ is a term used to identify concern with the environmental consequences of a variety of marketing activities.

answer

Green marketing

question

HT motors is introducing a new technology in its cars to improve the mileage of the cars as well as to reduce carbon emissions. The company is also taking measures to improve its production facilities in order to reduce its carbon footprint. These measures employed by HT motors to meet the guidelines issued by the government shows that the company is engaging in ________.

answer

green marketing

question

Which of the following has been at the forefront of the "green movement"?

answer

Europe

question

As part of the "green movement", the European Commission has passed legislation to control all kinds of packaging waste throughout the European Union. Two critical issues that affect product development are the control of the packaging component of solid waste and _____.

answer

consumer demand for environmentally friendly products

question

Which of the following is a physical attribute of a product that is essential for its primary function?

answer

Components

question

An important first step in adapting a product to a foreign market is to determine:

answer

the degree of newness as perceived by the intended market

question

From a sociological viewpoint, any idea perceived as new by a group of people is considered as a(n) _____.

answer

innovation

question

_____ is the process by which innovation spreads.

answer

Diffusion

question

According to Everett Rogers, the goals of the diffusion researcher and the marketer are to shorten the time lag between:

answer

introduction of an idea or product and its widespread adoption

question

According to Everett Rogers, what is the element that differentiates diffusion from other types of communications research?

answer

Time

question

Which of the following is considered to be one of the extraneous variables that affects the rate of diffusion of an object?

answer

The method used to communicate the idea

question

Martin is comparing the characteristics of his company's water filters with those that are already being marketed in the local market. He realizes that there is lot of scope for his filters as they are functionally more advanced, have longer life, and also can be marketed at a competitive price in these markets. The characteristic of his product that will help in wide acceptance of his product is its _____.

answer

relative advantage

question

A product is said to be compatible if:

answer

it complies with the accepted norms, values, and culture of the local market.

question

Carolyn is interested in marketing her company's diet products in Asia. She is studying the acceptable behavior, norms, and values in Asian markets. Carolyn is studying _____.

answer

compatibility

question

A company focusing its efforts on making its new innovation more user-friendly is working on the _____ of the product.

answer

complexity

question

Mark Harmon has found that using his new digital camera is a snap. He did not even have to read the instruction manual to determine how to turn the camera on, snap a digital picture, and export the picture to his computer. The signs (symbols) on the camera body made it very clear what he was to do to achieve digital photography success. Which of the following characteristics of Mark's "new product" made it easy for him to begin his digital experience?

answer

complexity

question

Fiona asked her product manager for samples to give to potential consumers in Madrid, her new European market. Fiona is trying to reduce the degree of economic and/or social risk, or _____ associated with product use.

answer

trialability

question

A product's _____, refers to the ease with which its benefits can be communicated to the customers.

answer

observability

question

Ingrid is developing promotional materials and product demonstrations to easily communicate the benefits of her cleaning products. Ingrid is trying to enhance the _____ of her products.

answer

observability

question

In general, the rate of diffusion can be postulated as negatively related to _____.

answer

complexity

question

Which of the following factors is mainly responsible for a perceptual bias when interpreting the characteristics of a product?

answer

Market analyst's self-reference criterion.

question

The success achieved by firms when they take their inventions to market is referred to as _____.

answer

conversion-ability

question

The product platform, design features, and functional features are all found in the _____ component of the product, according to the product component model.

answer

core

question

Simone Francis is a specialist in product design. She is responsible for a product's aesthetic as well as functional appearance. With respect to the product component model, in which of the following component categories would Simone's talents most likely be used?

answer

Functional component.

question

If a company wished to alter a product's platform so that the product could be manufactured in a variety of forms, to meet local differences in five different foreign markets, the _____ of the product component model would be in consideration.

answer

core component

question

Omega appliances, a Korean company that manufactures kitchen appliances had to alter the design of its chimneys to suit the needs of the consumers in its Japanese market. The Japanese preferred compact and efficient appliances to fit their small kitchens. The component of the product that had to be altered in the above scenario is the _____.

answer

core component

question

If a company is altering the price of its product to compete with the local companies in the international market, it is focusing on the _____ component of the product, according to the product component model.

answer

packaging

question

Apple Computer had difficulties when it first entered the Japanese market with its Macintosh computers. Some of the computers were returned unused after customers found the wrapping on the instruction manual damaged. Though this would probably be no big deal in the U.S., it was certainly a cause for concern in quality-conscious Japan. To fix the problem, Apple needed to concentrate on which of the following components of the product component model?

answer

Packaging component

question

Bagel's foods had to change the labeling on their products to meet the specifications regarding vegetarian and non-vegetarian foods, set by the government in the Japanese market. They also had to mention the ingredients in Japanese to make it clear for the local customers. The component of the product that is in focus in the above scenario is the _____.

answer

packaging component

question

According to the product component model, installation, repair and maintenance, deliveries, and warranties are all part of the _____ component of the product.

answer

support services

question

In some countries, maintenance of automobiles is not the norm. Cars are not repaired until they break down. Since the consumer is automatically angry with the manufacturer when something goes wrong with the car, repair and maintenance has become a concern of the various automobile manufacturers in this market. In which of the following components of the product component model would the management need to make improvements if problems such as the one above are to be solved?

answer

Support services component.

question

A Korean electronics company had to add detailed instructions regarding the repair and replacement of its product to make it easy for the local consumers to maintain it. Which of the following components of the product is being altered in the given scenario?

answer

Design component.

question

The washing machines marketed by Taichi failed in Asian markets as those countries lacked the skills necessary to repair and maintain their products. Also, the washing machines spares available in local markets were not compatible with these machines. This product failure was a result of lack of attention by the company to the _____ component of the product.

answer

support services

question

Insurance, dry cleaning, and hotel accommodations have intrinsic value resulting from a process, a performance, or an occurrence that only exists while it is being created. Which of the following characteristics of services best matches to the above?

answer

Intangibility

question

Because a service is individually produced and is virtually unique, the service is said to have _____.

answer

heterogeneity

question

Dr. Mark Townes is a dentist practicing in Denver. During a four-day stretch in March, it snowed so heavily that not a single patient was able to visit him. Since all the appointments were missed, he did not make any money for those four days, even though his normal expenses remained. Which of the following characteristics of services is affecting Dr. Townes' business?

answer

Perishability

question

A characteristic of a service is that it is _____, since it cannot be stored and must be consumed simultaneously with its creation.

answer

perishable

question

Adam, a hairstylist at a salon in Seattle, styles his customers in various ways. His work looks different on different people even though he has styled all of them. This unique character of a service that is unique for every customer as it is individually produced is referred to as ______.

answer

heterogeneity

question

Which is the largest services export of the United States, ranking behind only capital goods and industrial supplies when all exports are counted?

answer

International tourism.

question

How do the vast majority of services enter a foreign market?

answer

Licensing, franchising, or direct investment

question

Marketers of consumer services face four kinds of barriers in the global marketplace. Which of the following of these barriers is in force when a foreign market requires that services (such as banking or insurance) originate within the country itself and not from outside sources?

answer

Protectionism

question

The Red Lobster seafood restaurant is considering opening branch operations in China. However, the restaurant chain's labor union has already pointed out a potential problem with this expansion. In China, it is considered to be in bad taste to allow employees to collect tips for service. Since a great portion of a typical wait-staff person's compensation comes in the form of tips, the union would like to know how employees would be compensated for this loss. The above example illustrates which of the following barriers a consumer services marketer faces in a foreign market?

answer

Cultural requirements for adaptation.

question

Maxcare, an insurance firm based in California had difficulties expanding their operations to Asian markets, as most of their target countries had strict regulations on transferring the details of the customers among the different branches of the firm. The company had to obtain an approval from its customers before sharing their personal information with their branches in other countries. Which of the following barriers is affecting the services of the insurance firm in the above scenario?

answer

Controls on transborder data flows

question

A name, term, sign, symbol, design, or combination used worldwide to identify goods or services of one seller and to differentiate them from those of competitors is called a(n) _____.

answer

global brand

question

The Norton group, a manufacturer of toiletries and cleaning products uses the name Cleanex, for most its products in all of their international markets. The name has created a universal appeal for their products as customers identify their products with the name. Hence, Cleanex can be regarded as a _____.

answer

global brand

question

The _____ effect refers to the possibility that the place of manufacture may affect product or brand image.

answer

country-of-origin

question

A shoe manufacturer in Puerto Ria shipped his entire production to San Francisco and brought it back to his home country to market it as "Made in the U.S." He knew that people would prefer buying products made in the U.S. rather than those that are domestically produced. The factor that is influencing the perception of the customers in the above scenario is called _____.

answer

country-of-origin effect

question

Consumers have broad but somewhat vague stereotypes about specific countries and specific product categories that they judge "best." Which of the following would not fit in the "best" stereotype scheme?

answer

American chocolate

question

In Russia, products are divided into two categories— "ours" and "imported." This is an example of:

answer

ethnocentrism

question

Which of the following is true of the distribution process?

answer

It includes buying and selling negotiations.

question

In a _____ distribution structure, an importer controls a fixed supply of goods and the marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers.

answer

traditional

question

Which of the following statements is true of a traditional distribution structure?

answer

The marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers.

question

Which of the following distribution structures is also known as a traditional distribution structure?

answer

Import-oriented

question

Which of the following statements is true regarding an import-oriented distribution structure?

answer

The importer-wholesaler traditionally performs most of the marketing functions

question

_____ has long been considered the most effective nontariff barrier to the Japanese market.

answer

The Japanese distribution structure

question

_____ are considered to be the foundation of the Japanese distribution system.

answer

Small retailers

question

Which of the following characterizes the business philosophy of the Japanese distribution channels?

answer

Loyalty

question

Which of the following statements is true of the Japanese market?

answer

The Japanese distribution structure supports long-term dealer-supplier relationships

question

In Japan, under the Large-Scale Retail Store Law, all proposals for new "large" stores are first judged by the _____.

answer

Ministry of International Trade and Industry

question

In the international business arena, which of the following is considered to be one of Walmart's strengths?

answer

Internal Internet-based system.

question

General Motors, _____, and DaimlerChrysler have created a single online site called Covisint for purchasing automotive parts from suppliers.

answer

Ford Motor Company

question

Which of the following countries has the largest number of retailers?

answer

China

question

In the context of distribution patterns, the rate of change in retailing around the world appears to be directly related to the _____.

answer

speed of economic development

question

_____ is often the approach of choice in markets with insufficient or underdeveloped distribution systems.

answer

Direct marketing

question

Which of the following has proved to be an important way to break the trade barrier imposed by the Japanese distribution system?

answer

Direct sales through catalogs

question

Which of the following are frequently criticized for not representing the best interests of a manufacturer?

answer

Merchant middlemen

question

_____ take title to manufacturers' goods and assume the trading risks.

answer

Merchant middlemen

question

The distribution channel process includes all activities, beginning with the manufacturer and ending with the _____.

answer

final consumer

question

Which of the following statements is true regarding agent middlemen?

answer

They work on commission and arrange for sales in the foreign country

question

Which of the following statements is true regarding merchant middlemen?

answer

They assume trading risks

question

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

answer

the limited control over the distribution process

question

A major trade-off when using home-country middlemen is:

answer

the large amount of commission charged by the home-country middlemen.

question

Home-country middlemen are also known as _____ middlemen.

answer

domestic

question

In the context of the different types of middlemen, which of the following is an example of a manufacturer's retail store?

answer

Benetton

question

James Barker is the marketing manager of a firm with small international sales volume. He is looking for a middleman who can take responsibility for promotion of the company's products, credit arrangements, physical handling, and market research. Also, the middleman must be able to provide information on financial, patent, and licensing matters. In addition, the middleman should agree to work under the name of the firm. Which of the following types of middlemen would be the best choice for Mr. Barker if he wants to meet his objectives?

answer

An export management company

question

Which of the following statements is true regarding an export management company (EMC)?

answer

It calls for a minimum investment from the parent firm to get into international markets

question

A major disadvantage of _____ is that they can seldom afford to make the kind of market investment needed to establish deep distribution for products.

answer

export management companies

question

For companies seeking entrance into the complicated Japanese distribution system, _____ offer one of the easiest routes to success because they virtually control distribution through all levels of channels in Japan.

answer

trading companies

question

Which of the following was a goal of the Export Trading Company Act?

answer

To remove antitrust disincentives to export activities

question

Which of the following arrangements are undertaken when a firm wants to keep its seasonal distribution channels functioning throughout the year?

answer

Complementary marketing

question

Complementary marketing is commonly known as _____.

answer

piggybacking

question

Companies with marketing facilities in different countries with excess marketing capacity sometimes take on additional product lines for international distribution. The formal name for this type of marketing is:

answer

complementary marketing

question

A(n) _____ is an individual agent middleman or an agent middleman firm providing a selling service for manufacturers that covers only one or two markets.

answer

manufacturer's export agent

question

A _____ provides a selling service for a manufacturer, has a short-term relationship, and operates on a straight commission basis.

answer

manufacturer's export agent

question

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

answer

The Sherman Antitrust Act

question

A(n) _____ is a domestic middleman set up in a foreign country or U.S. possession that can obtain a corporate tax exemption on a portion of the earnings generated by the sale or lease of export property.

answer

foreign sales corporation

question

Which of the following is a type of domestic middleman?

answer

Export Management Companies

question

In the context of 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.

answer

foreign sales corporations

question

Which of the following is true of foreign sales corporations?

answer

They can function as a principal or a commissioned agent

question

Which of the following factors affects the choice of distribution channels?

answer

Available distribution intermediaries

question

Which of the following is one of the six Cs of distribution channel strategy?

answer

Continuity

question

In the context of factors affecting choice of channels, one of the key elements in distribution decisions includes _____.

answer

the functions performed by middlemen

question

Which of the following is a critical element associated with using a particular type of middleman?

answer

Cash-flow patterns

question

In which of the following modes of distribution in the foreign market will a company have to make maximum financial investment?

answer

Direct sales force

question

Which of the following is one of the highest costs of doing business in China?

answer

Capital required to maintain effective distribution

question

Which of the following modes of distribution affords the most control over the distribution channels but often at a cost that is not practical?

answer

Direct sales force

question

One of the reasons that channels of distribution often pose longevity problems is that most middlemen _____.

answer

have little loyalty to their vendors

question

_____ is an area that should be on a checklist of criteria for evaluating middlemen servicing a market.

answer

Productivity

question

Which of the following actions should be taken to begin with the search for prospective middlemen?

answer

Studying the target market.

question

Experienced exporters suggest that the only way to select a middleman is:

answer

to personally talk to ultimate consumers to find whom they consider to be the best distributors

question

Sixty percent of the Japanese population lives in the _____ market area, which essentially functions as one massive city.

answer

Tokyo-Nagoya-Osaka

question

Most middlemen have little loyalty to their vendors. They handle brands in good times when the line is making money but quickly reject such products within a season or a year if they fail to produce during that period. This is an example of problems associated with which of the following six Cs of channel strategy?

answer

Continuity

question

Apex Corporation is a wholesaler for Global Electronics in the French market. Global Electronics discovered that Apex Corp. was diverting some of their goods to the English market. Apex Corp. could get a greater profit in the English market because the goods were bought by the firm at a cheaper price in France. In the context of the above scenario, which of the following forms of business is Apex engaged in?

answer

Parallel importing

question

In the context of controlling middlemen, parallel importing is also known as _____.

answer

secondary wholesaling

question

E-commerce is more developed in _____ than the rest of the world, partly because of the lower cost of access to the Internet than found elsewhere.

answer

the United States

question

In the context of the Internet in international marketing channels, technically, e-commerce is a form of _____ selling.

answer

direct

question

In the context of cultural reactions when engaging in e-commerce, the color red is associated with socialism in _____.

answer

Spain

question

Which of the following is true of a physical distribution system?

answer

It includes transportation mode, inventory quantities, and packing

question

Assuming that the international marketer has produced the right product, used the proper channel of distribution, and promoted the good correctly, the effort can fail badly if the international marketer fails to:

answer

set the right price for the goods or services

question

In general, price decisions are viewed in two ways. Which of the following is one of them?

answer

Pricing is an active instrument of accomplishing marketing objectives

question

Which of the following is true of a company that views prices as an active instrument of accomplishing marketing objectives?

answer

The company sets prices to achieve specific objectives

question

A company that views pricing as a static element in a business decision:

answer

exports only excess inventory

question

The Floral Group, an importing organization in New York, has just bought an excessive amount of perfume from perfume manufacturer in Paris. Unknown to the perfume manufacturer, the Floral Group has sold 25 percent of its order to distributors in France that have been unable to purchase any products from the perfume manufacturer. Which of the following best describes the transaction that has just taken place?

answer

Parallel importing

question

Since it encourages retailers to stock large assortments of a product, the practice of _____ distribution often creates a favorable condition for parallel importing.

answer

exclusive

question

Firms that are unfamiliar with overseas marketing and firms that produce industrial goods orient their pricing solely on the basis of:

answer

the costs of production of the good.

question

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

answer

variable-cost

question

Which of the following characterizes the variable-cost pricing approach?

answer

In this approach, any contribution to fixed cost after variable costs are covered is profit to the company

question

_____ pricing is a practical approach to pricing when a company has high fixed costs and unused production capacity.

answer

Marginal-cost

question

In _____ pricing, the philosophy is that no unit of a similar product is different from any other unit in terms of cost and that each unit must bear its full share of the total fixed and variable cost.

answer

full-cost

question

Which of the following approaches to pricing is suitable when a company has high variable costs relative to its fixed costs?

answer

Full-cost pricing

question

Which of the following is true of the full-cost pricing approach?

answer

In this approach, prices are often set on a cost-plus basis, that is, total costs plus a profit margin

question

A company uses _____ when the objective is to reach a segment of the market that is relatively price insensitive and thus willing to pay a premium price for the value received.

answer

price skimming

question

If the supply of a good in a market is limited, a company may follow a _____ approach to maximize revenue and to match demand to supply.

answer

price skimming

question

A _____ policy is used to stimulate market and sales growth by deliberately offering products at low prices.

answer

penetration pricing

question

Lush Cosmetics, a firm based in the U.S., recently started exporting cosmetics to India. Lush introduced a new range of mineral-based makeup for the first time in the Indian market. It was also priced much higher than the other brands in the market. This is an example of _____.

answer

price skimming

question

In most cases, the reason that products which cost relatively little in one country cost more in another is:

answer

the costs of exporting

question

_____ results from the added costs incurred as a result of exporting products from one country to another.

answer

Price escalation

question

A(n) _____ duty is a flat charge per physical unit imported

answer

specific

question

_____ duties are levied as a percentage of the value of the goods imported.

answer

Ad valorem

question

_____ are the primary discriminatory tax that must be taken into account in reckoning with foreign competition.

answer

Tariffs

question

In a _____ market, it is essential for a company to keep prices low and raise brand value to win the trust of consumers.

answer

deflationary

question

Which of the following is true of international currencies?

answer

All major currencies are free floating relative to one another

question

When the value of the dollar is weak relative to the buyer's currency, sellers generally employ _____ pricing

answer

cost-plus

question

When the Indian rupee depreciated against the U.S. dollar, PC manufacturers who were dependent on imported parts had to _____ in order to retain their profit margins.

answer

raise the price of PCs

question

The final price of an imported product is likely to be high if:

answer

middleman markups are not standardized.

question

One of the possible reasons for manufacturing in a third country could be an attempt to _____.

answer

reduce manufacturing costs

question

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

answer

ad valorem

question

The creation of a free trade zone leads to

answer

reduced price escalation

question

Drew's company imports materials and parts into a free trade zone (FTZ) within the United States and then exports finished products to other countries. Her company will:

answer

not have to pay tariffs on the imported materials and parts

question

Which of the following is true of free trade zones (FTZs)?

answer

In an FTZ, payment of import duties is postponed until the product leaves the FTZ area and enters the country

question

By shipping unassembled goods to a free trade zone (FTZ) in an importing country, a marketer can lower costs because

answer

duties are assessed at lower rates for unassembled goods

question

A marketer may face lower costs by shipping unassembled goods to a free trade zone (FTZ) in an importing country because

answer

wages may be lower in the importing country

question

The costs of production may be lowered if a firm ships unassembled goods to a free trade zone (FTZ) in an importing country because:

answer

unassembled goods may qualify for lower freight rates

question

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 market:

answer

at a price below the cost of production

question

What is the function of a countervailing duty?

answer

To restrict the amount a country will import

question

A _____, which restricts the amount a country will import, may be imposed on foreign goods benefiting from subsidies, whether in production, export, or transportation

answer

minimum access volume

question

For _____ duties to be levied on a good, it must be shown that prices are lower in the importing country than in the exporting country and that producers in the importing country are being directly harmed by dumping

answer

countervailing

question

Dumping in the world markets is likely to increase when:

answer

demand in the home country is low

question

Assembly in the importing country is a way companies attempt to lower prices and avoid dumping charges. These assembly plants are known as _____ plants

answer

screwdriver

question

An important selling technique to alleviate high prices and capital shortages for capital equipment is the _____ system.

answer

leasing

question

Which of the following would be considered an advantage of leasing equipment rather than owning it?

answer

Leasing helps guarantee better maintenance on overseas equipment

question

When Polar Inc., an American fast-food company, wanted to market its burgers and fries in France, it was asked to accept French wine in return. This is an example of:

answer

countertrade

question

The use of countertrade in international trade:

answer

allows trade with countries short of hard currency

question

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

answer

potential demand

question

Which of the following is true of counter trading?

answer

Frequently there is inadequate time to conduct a market analysis in a countertrade negotiation

question

What do barter houses do?

answer

Specialize in trading goods acquired through barter arrangements

question

_____ are the primary outside source of aid for companies beset by the uncertainty of a countertrade.

answer

Barter houses

question

Which of the following is essential while making price quotations for international sale?

answer

Price quotations must specify the currency to be used and the credit terms of the transaction

question

In general, the end goal of all _____ is to reduce the impact of price competition or eliminate it

answer

administered pricing activities

question

Which of the following is an example of a price-fixing arrangement?

answer

Cartels

question

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

answer

cartel

question

_____ is a typical payment procedure for established customers where the goods are delivered, and the customer is billed on an end-of-the-month basis.

answer

An open account

question

A(n) _____ means that once the seller has accepted the credit, the buyer cannot alter it in any way without permission of the seller.

answer

irrevocable letter of credit

question

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

answer

dollar drafts

question

Which of the following leave(s) sellers in a position where most of the problems of international commercial finance work to their disadvantage?

answer

Open accounts

question

In a(n) _____, the seller makes a one-time arrangement with a bank or other financial institution to take over responsibility for collecting the account receivable

answer

forfaiting transaction

question

Which of the following is true of open accounts?

answer

Sales on open accounts are not generally recommended when there is political unrest in the importer's country

question

In _____, a company has an ongoing relationship with a bank that routinely buys its short-term accounts receivable at a discount.

answer

factoring

International Marketing Final Exam (Ch. 13, 15, & 18) – Flashcards

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