IMM

Question 1

ALL of the following are reasons for buyers to impose countertrade obligations on sellers EXCEPT;

Accepted Answer

√ to lower the prices of exported goods.

Question 2

The DIRECT exchange of goods between the parties in a business transaction is called;

Accepted Answer

√ barter trading

Question 3

Products sold below their cost of production or below their cost in the domestic market are said to have been;

Accepted Answer

√ dumped

Question 4

. A tax-tree area that is not considered to be part of a country as far as import regulations are concerned is called a(n);

Accepted Answer

MNC √ FTZ SRC NEC

Question 5

F-P Inc. carefully studies the tax structures of each of ots client countries and is careful to describe its products in terms that would plave them in one of the more "favourable" tax categories. The firm is trying to reduce the costs of internatio

Accepted Answer

lowering the cost of goods lowering distribution costs √ lowering the tariff rates charged on its products lowering margins

Question 6

The disproportionate difference in price between the exporting country and the importing country is called;

Accepted Answer

√ price escalation price destabilization price stagnation price rationalization

Question 7

. Fitzgerald-Paire inc. views pricing as a tool for achieving long term profits, building market share quickly, and delaying/ restricting competitive entry. The company is MOST likely to favour;

Accepted Answer

√ penetration pricing price skimming prestige pricing gray market pricing

Question 8

which of the following pricing approaches is MOST likely to result in a firm being accused of dumping?

Accepted Answer

skimming full cost pricing √ variable cost pricing gray market pricing

Question 9

Under which of the following pricing approaches is the marketer only concerned with the marginal or incremental cost of producing goods to be sold in foreign markets?

Accepted Answer

skimmimg pricing penetration pricing full cost pricing √ variable cost pricing

Question 10

Parallel imports are the basis of;

Accepted Answer

√ the gray market counterpurchasing countertrading barter

Question 11

International communication may fail due to;

Accepted Answer

inadequate media cultural barriers lack of market understanding √ all of the above

Question 12

Short term efforts directed to the consumer and/ or retailer to encourage trial use, immediate purchase, store patronage or inventory stocking, or to enhance the impact of other components of the promotional mix for the basis of;

Accepted Answer

advertising Public Relations personal selling √ sales promotion

Question 13

Which of the following media is generally the LEAST regulated medium in most markets?

Accepted Answer

√ The internet television satellite T.V. radio

Question 14

Which of the following media is especially useful in less developed countries with high illiteracy rates?

Accepted Answer

magazines newspapers √ radio direct mail

Question 15

The international advertiser must be a student of culture because the culture of a nation has a major impact on;

Accepted Answer

√ the way a message is percieved media cost media availability consumer access to media

Question 16

Effective advertising communication in the international market must ALWAYS overcome barriers associated with;

Accepted Answer

bans on comparative advertising the taxation of media √ language differences prohibition of nudity

Question 17

Fitzgerald-Paire Inc. sells to a small "niche" of consumers in many different countries whose needs can be satisfied by essentially the same product. The company is making use of;

Accepted Answer

√ global market segments world citizens multi-domestic segmentation market expansion

Question 18

One important reason for uniform promotional packaging accross country markets is the possibility for;

Accepted Answer

language homogenization √ cost savings cultural sensitivity cost averaging

Question 19

One important reason for uniform promotional packaging accross country markets is the possibility for;

Accepted Answer

language homogenization √ cost savings cultural sensitivity cost averaging

Question 20

A global advertising strategy with a standardized basic message that can be modified to accommodate local situations is at the core of;

Accepted Answer

tailored advertising market advertising √ pattern advertising new-wave advertising

Question 21

The decision to standardize or modify advertising messages accross countries should be based on;

Accepted Answer

√ consumer buying motives media costs product price message length

Question 22

Fitzgerald-Paire Inc. has traditionally required its customers to pay ALL costs associated with the exportation of its products. The company is utilizing which of the following terms of sale?

Accepted Answer

√ Ex Works CIF DDP FOB

Question 23

Under which of the following INCOTERMs is the buyer responsible for the cost of loading the goods on to the vessel, transportation and insurance?

Accepted Answer

CIF √ FAS FOB DDP

Question 24

Direct limitations on the quantity of certain goods that may be brought into a country during a specified period of time are set by the use of;

Accepted Answer

exchange rate restrictions ad-valorem duties √ quotas boycotts

Question 25

Tariffs set at a stipulated amount per unit weight or some other measure of quantity are called;

Accepted Answer

quantitative duties √ specific duties ad-valorem duties value-added duties

Question 26

1. Exchange permits, quotas, import licenses, boycotts, standards and voluntary aggreements are all examples of :

Accepted Answer

harmonization codes validation procedures tariff barriers √ non-tariff barriers

Question 27

The single MOST essential means of motivating a middleman is the provision of:

Accepted Answer

√ adequate margins or commissions recognition communication technical assistance

Question 28

Generally initial middlemen contracts should be for;

Accepted Answer

3 years an indefinite term 5 years √ 1 year

Question 29

The basis for the evaluation of a middleman is typically;

Accepted Answer

his/her potential productivity reputation √ performane relative to an agreed sales minimum managerial stability

Question 30

In the final analysis, the channel is ultimately controlled by the;

Accepted Answer

manufacturer retailer wholesaler √ consumer

Question 31

Fitzgerald-Paire Inc. often employs middlemen whose only function is to put any potential foreign buyers in contact with the firm in return for a commission. The firm is using the services of a(n);

Accepted Answer

selling agent manufacturers agent √ broker trading company

Question 32

The following are prerequsisits for successful piggybacking EXCEPT;

Accepted Answer

. the product fits existing sales/ distribution channels the product offers an attractive margin √ the product is totally unrelated to the company's product line the product is likely to be successful and profitable

Question 33

F-P Inc. has a small international volume and is not willing to involve its own personnel or capital in the international function. The firm may achieve its goals by using a(n);

Accepted Answer

√ export management company international marketing department agent middleman franchise agreement

Question 34

Middlemen who take title to the goods they handle are called;

Accepted Answer

agent middlemen √ merchant middlemen transactional middlemen functional middlemen

Question 35

2. The middlemen who facilitate transactions, but do not take title to the goods they handle are called;

Accepted Answer

merchant middlemen transactional middlemen √ agent middlemen local distributors

Question 36

The Japanese distribution is characterized by all of the following EXCEPT;

Accepted Answer

many small wholesalers dealing with many small retailers laws that protect the retailer ( The foundation of the system) √ channel control by retailers a business philosophy shaped by a unique culture

Question 37

ABC International routinely emphasizes guarantees, warranties and post sale service as part of the introduction of any innovation. The firm is focusing on which of the following parts of the product component model?

Accepted Answer

√ support services component core component packaging component marketing mix component

International Marketing Management (Subject) / IMM (Lesson)