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

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 distribution channel strategy?

answer

Continuity

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.

MKT 774 – Ch 15 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards