International Marketing Final Ch. 15 and 17

Which of the following is true of the distribution process?
It excludes the physical handling of goods.

It includes activities related to the promotion of goods and services.

The ownership title remains with the distributor even on completion of the transaction.

It includes buying and selling negotiations between middlemen and customers.

Middlemen do not play a role in the distribution process.

Identify an accurate statement about import-oriented distribution structures.
Several independent agencies providing functions such as advertising, marketing research, and financing are a part of this distribution structure.

The relationship between the importer and any middleman is different from that found in a mass-marketing system.

The idea of a channel as a chain of intermediaries performing specific activities and each selling to a smaller unit beneath it until the chain reaches the consumer is common.

These distribution systems are national rather than local in scope.

The marketing system develops around the philosophy of selling an unlimited supply of goods at low prices to a large number of affluent customers.

_____ is a part of the relationship-oriented business philosophy that characterizes Japanese distribution channels.
Fast delivery

Direct sale



Price war

Which of the following statements is true of the Japanese market?
Japanese manufacturers are independent of wholesalers.

The costs of Japanese consumer goods are among the lowest in the world.

The Japanese distribution structure supports short-term dealer-supplier relationships.

Large stores serve an important role for Japanese consumers.

Japanese consumers favor personal service over lower-priced goods.

Three automobile companies have created a single online site called Covisint ( for purchasing automotive parts from suppliers, which is expected to save the companies millions of dollars. Which of the following is one of these three companies?
Toyota Motor Corporation

Honda Motor Company

Tesla Motors

Nissan Motor Company

General Motors

Which of the following statements is true about retail patterns?
Small dominant retailers can be sold to directly, but there is no adequate way to reach large retailers who handle a great volume of sales.

The extremes in size in retailing are drastically different from those that are observed in wholesaling.

Selling directly to the consumer is often the approach of choice in markets with sufficient or developed distribution systems.

Retailing shows greater diversity in its structure than does wholesaling.

Direct sales through catalogs have proved to be an unsuccessful way to enter foreign markets.

The activities in a distribution channel process begin with the _____.





Which of the following is true of agent middlemen?
they take title to the merchandise

By using agents, the manufacturer maintains the right to establish policy guidelines.

they are less controllable by manufacturers than are merchant middlemen

they are frequently criticized for not representing the best interests of a manufacturer

they assume the risks of trading

Identify an accurate statement about merchant middlemen.
they take title to manufacturers’ goods

they are more controllable by manufacturers than agent middlemen

they do not assume the risks of trading

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

they represent the best interests of a manufacturer

Companies not wanting to become immediately involved with the complexities of international marketing will most likely use the services of _____ middlemen.





IKEA, Costco, and Sears Roebuck are examples of _____.
export management companies

trading companies

export associations

global retailers

complementary marketers

Which of the following statements is true of an export management company?
It ranges in size from 100 to 250 people.

It works under the name of the manufacturing firm.

It does not have direct responsibility to the parent company.

It acts as a middleman for companies willing to involve their own personnel in international functions.

It acts as a middleman for firms with relatively large international volume.

____ is one of the six Cs of distribution channel strategy.





Robert wants to export goods manufactured by his company to a new foreign market. He needs to select a middleman. He discusses the matter with some experienced exporters. Which of the following ways of selecting a middleman are they most likely to suggest?
Speak to the consumers of the product personally to find whom they consider to be the best distributors.

Issue a request-for-proposal to all distributors in the target market and evaluate their responses.

Consult other manufacturers of similar products and select the distributor recommended by them.

Consult trade organizations and select the distributor recommended by them.

Conduct a background check on all the distributors available in the target market.

Which of the following is involved in a physical distribution system?
human accounting

transportation mode

advertising and promotion of goods

grievance handling

after-sales services

In the context of interpersonal selling, a company’s most direct tie to the customer is the

general manager.



marketing manager.

Which of the following is the reason why an international sales force in Germany can make greater use of expatriates?
The standard of living is low.

The language is easy to master.

It is a developing country.

It is an information-oriented culture.

It is a relationship-oriented society.

An expatriate sales force is most likely to have an advantage over a local sales force when selling
consulting services.

in relationship-oriented countries.

a low-technology product.

requires an extensive background of information.

a product that requires the most complete local knowledge.

In the context of international salespeople, personnel from the home country assigned to foreign countries are specifically referred to as
local nationals.

foreign managers.


native managers.


Which of the following is one of the advantages that an expatriate salesperson has over a native sales person?
proven dependability

fewer legal barriers

better understanding of distribution channels

narrowing of the cultural gap

elimination of the risk of employee-poaching

Which of the following is a chief disadvantage of hiring an expatriate salesperson?
adverse effect on the prestige of the product

deterioration of product quality

lack of technological expertise

inadequate knowledge of the company

legal barriers

Which of the following is an advantage of teams managed by virtual expatriates?
Managers can have close contact with their subordinates.

Managers have closer contact with their customers.

Companies are benefitted by diversity-driven creativity.

Managers possess complete local knowledge.

Problems related to cross-cultural communications can be avoided.

Which of the following is an advantage that a sales force consisting of local nationals has over a sales force of expatriates?
They are more efficient in influencing the personnel at the home office.

They will be better able to lead a company through referral networks.

They are more knowledgeable about the company and its product line.

They are likely to have superior technical expertise.

They are less likely to accept any form of bribe.

Which of the following is most likely to be the reason for the reduced influence of foreign nationals in a sales force?
Foreign nationals are not keen on keeping relationships at home office warm.

Foreign nationals have limited English communication skills.

Foreign nationals lack the knowledge of local culture and prevalent practices.

Foreign nationals cannot build a close relationship with subordinates and customers.

Foreign nationals are corrupt and often leak company secrets.

Clara is a British national working for a German company. She has been sent to China to manage the sales department of the company. Clara is a(n)
long-term virtual expatriate.

native salesperson.

third-country national.

short-term virtual expatriate.

local national.

Which of the following is true of third-country nationals?
They are virtual expatriates who work from home.

They are paid better than their U.S. counterparts.

They are expatriates who work from their home country.

U.S. firms have to pay double tax when hiring third-country nationals.

They are expatriates from their own countries working for a foreign company in a third country.

Which of the following is a quality of international sales and marketing personnel?
They should not have cultural empathy as this might distract them from their main purpose.

When working in a foreign country, they must be capable of taking decisions that are not influenced by the habits of the market.

They should consider their culture to be superior so that they can represent a positive image of their country’s products.

They should be hypersensitive to the behavioral variations in different countries.

They require emotional stability and a high level of flexibility.

Which of the following is the main reason for the failure of individual incentives to motivate employees in Japan?
emphasis on collectivism

high corruption levels

practice of cultural chauvinism

democratic form of government

emphasis on capitalism

_____ is one of the means of motivation and control of sales representatives in relationship-oriented cultures like Japan.
An individual incentive plan

Corporate culture

An individual financial reward

Attraction of a foreign assignment

An individual commission system

A significant difference between companies with the least amount of returnee attrition and companies with the highest attrition is the _____.
existence of a specialized expatriate department

existence of a personal career plan

opportunity to continue with cultural training

offer of increased compensation

existence of a family migration plan

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