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Multiple Choice Quiz
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1
When importers buy products from distributors in one country and sell them in another to distributors who are not part of the manufacturer's regular distribution system _______________ has occurred.
A)indirect marketing
B)parallel importing
C)black marketing
D)multi-channel exporting
E)multi-channel importing
2
Which of the following is another name for parallel importing?
A)indirect marketing
B)black marketing
C)gray marketing
D)simultaneous marketing
E)preferred marketing
3
Which of the following practices can encourage parallel importing?
A)image advertising
B)cooperative advertising
C)comparative advertising
D)exclusive distribution
E)intensive distribution
4
If a firm is concerned only with the marginal or incremental cost of producing goods to be sold in overseas markets, it is engaged in ____________ pricing.
A)variable-cost
B)full-cost
C)breakeven
D)multi-level
E)predatory
5
Which of the following pricing practices assumes a philosophy 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?
A)variable-cost pricing
B)full-cost pricing
C)breakeven pricing
D)multi-level pricing
E)predatory pricing
6
Which of the following pricing strategies is known to stimulate market growth and capture market share by deliberately offering products at low prices?
A)skimming pricing
B)penetration pricing
C)demand-based pricing
D)predatory pricing
E)competition-based pricing
7
When there is a disproportion in price between the exporting country and the importing country, this is called:
A)kinked demand.
B)monopolistic pricing.
C)price escalation.
D)price de-escalation.
E)price oligopoly.
8
When a domestic currency is weak which of the following export strategies is appropriate?
A)engage in nonprice competition
B)shift sourcing and manufacturing overseas
C)deal in countertrade
D)trim profit margins and use marginal-cost pricing
E)use full-costing approach
9
All of the following are considered to be good export strategies to use when domestic currency is strong EXCEPT:
A)improve productivity and engage in vigorous cost reduction.
B)give priority to exports to relatively strong-currency countries.
C)minimize expenditures in local, host-country currency.
D)deal in countertrade with weak-currency countries.
E)all of the above are true export strategies to use when domestic currency is strong.
10
Which of the following is one of the main causes of price escalation for imported products?
A)distribution practices
B)advertising costs
C)productivity issues
D)tariffs
E)quality control
11
If a marketer chooses to ship unassembled goods to a free trade zone in an importing country, the marketer can lower costs in all of the following ways EXCEPT:
A)tariffs may be lower.
B)labor costs may be lower.
C)ocean transportation rates are affected.
D)because of possible local content (such as packaging) tariffs may be further reduced.
E)all of the above are ways to lower costs.
12
Mort Wills has decided that in order to penetrate the Canadian market he must sell his U.S. company's products below the cost of production. Though this strategy might be questionable, it would have the effect of lowering costs. Which of the following terms describes what Mr. Wills is doing with respect to his international marketing strategy?
A)he is engaged in dumping
B)he is engaged in preferential pricing
C)he is engaged in skimming pricing
D)he is engaged in demand-based pricing
E)he is doing none of the above with respect to his pricing strategy
13
Even though the U.S. subsidizes wheat farmers (thereby lowering their costs of production), Canada uses ________________ to ensure that the amount of wheat that can be imported from the United States is limited and will not be harmful to domestic markets.
A)pro-dumping legislation
B)countervailing duties
C)countertrade
D)compensation deals
E)countertrade
14
If a country that is importing demands that the exporting country accept the importing country's products in "like exchange" as payment for any goods shipped, the international pricing strategy being used by the importing country is called:
A)dumping
B)countervailing duties
C)countertrade
D)compensation deals
E)omni trade
15
Another name for intracompany pricing (prices for goods are transferred from a company's operations or sales units in one country to its units elsewhere) is:
A)penetration pricing.
B)skimming pricing.
C)demand-based pricing.
D)monopoly pricing.
E)transfer pricing.





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