Question

11. The added costs incurred as a result of exporting products from one country to another are called:

price deflation.

pricing mechanisms.

price escalation.

price gouging.

price translation.

12. Which of the following generally bears the burden for (pays for) taxes and tariffs associated with importing goods from another country?

the original manufacturer

the wholesaler

the retailer

the government of the host country

the consumer that buys the goods

13. Currency exchange rate swings are considered by many global companies to be __________.

an opportunity for windfall profits

an uncontrollable without a strong U.S. dollar

a standard seasonal variation

cost of doing business

a major pricing problem

14. When PepsiCo first began to market Pepsi Cola in Russia, it was asked to accept an equal amount of Russian vodka as payment in return for permission to sell Pepsi Cola. The formal name for this trading strategy is called:

bargaining.

countervailing trade.

buy-back.

countertrade.

bribery.

15. Another term for transfer pricing is:

fixed-base pricing.

variable-cost pricing.

demand-based pricing.

premium pricing.

intracompany pricing.

16. In a(n) ______________ 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.

export-oriented

import-oriented

manufacturer-oriented

service-oriented

customer-oriented

17. The foundation of the Japanese distribution system is the:

middleman.

intermediary.

manufacturer.

small retailer.

wholesaler.

18. Which of the following does NOT contribute to explaining why Japan has a high number of small stores?

population density

a tradition of frequent trips to the store

emphasis on service

freshness and quality expectations

limited commercial real estate plots

19.Which of the following is an area of emphasis that characterizes Japanese distribution channels?

variety

direct sales

cutthroat

fast delivery

harmony

20.Which of the following illustrations would provide the domestic producer the most control with respect to a distribution channel in a foreign market?

the domestic producer sells directly to a foreign consumer

the domestic producer sells to an exporter who then sells to an importer

the domestic producer sells to an importer who then sells to a foreign agent

the domestic producer sells to a foreign agent who then sells to a foreign retailer

the domestic producer sells to an export management company who sells directly to the foreign consumer

Answer 1

11.The added costs incurred as a result of exporting products from one country to another country are called

price escalation

(There is a difference in prices of goods in the domestic market as compared to the foreign market.This increase in price is due to increase in transportation and exporting costs.Price escalation is the sum of all the costs which are incurred in order to make the product available in the foreign market)

12.Which of the following generally bears the for (pay offs) taxes and tariffs associated while importing tariffs from another country?

consumers that buy the goods.

(When goods are imported from another country they often come with taxes and tariffs attached to them.As this would reduce the profit of the supplier if he bore them,these taxes and payoffs are transferred to the consumers who buy the product.As a result there is an increase in price for the consumers.)

13.Currency exchange rate swings are considered by many global companies to be

a major pricing problem.

(As there are currency exchange rate swings,global companies find it difficult to set a fixed price,as due to changes in exchange rate it affects their profit,and so it is considered as a major pricing problem by them)

14.When PepsiCo first began to market Pepsi Cola in Russia,it was asked to accept an equal amount of Russian Vodka as payment in return for permission to sell Pepsi Cola.The formal name for this trading strategy is called

Counter trade

(Normally trade between countries involves exchange of goods or services for cash.But in the case of counter trade goods or services are exchanged for goods or services,eliminating hard cash.In the above example when PepsiCo was asked to accept Russian vodka in exchange of the permission to sell Pepsi Cola, it eliminated cash completely and so it is an example of counter trade)