Question 1

_____ has long been considered the most effective nontariff barrier to the Japanese market.

Accepted Answer

Distribution in Japan has long been considered the most effective nontariff barrier to the Japanese market.

Question 2

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

Accepted Answer

High population density; the tradition of frequent trips to the store; an emphasis on service, freshness, and quality; and wholesalers who provide financial assistance, frequent deliveries of small lots, and other benefits combine to support the high number of small stores.

Question 3

Which of the following distribution structures is considered as a traditional distribution structure?

Accepted Answer

An import-oriented distribution structures is considered as a traditional distribution structure.

Question 4

The foundation of the Japanese distribution system is the:

Accepted Answer

Small retailers are considered to be the foundation of the Japanese distribution system.

Question 5

In the international business arena, which of the following is considered to be one of Wal-Mart's strengths?

Accepted Answer

One of Walmart's strengths is its internal Internet-based system, which makes its transactions with suppliers highly efficient and lowers its cost of operations.

Question 6

_____ is/are often the approach of choice in markets with insufficient or underdeveloped distribution systems.

Accepted Answer

Selling directly to the consumer through mail, by telephone, or door-to-door is often the approach of choice in markets with insufficient or underdeveloped distribution systems.

Question 7

With respect to international marketing, ideally, a Web site should be translated into the languages of the target market.

Accepted Answer

Ideally, a Web site should be translated into the languages of the target markets. This translation may not be financially feasible for some companies, but at least the most important pages of the site should be translated.

Question 8

Which of the following statements is true regarding an import-oriented distribution structure?

Accepted Answer

An import-oriented distribution structure is considered as a traditional distribution structure. The import-oriented distribution systems are local rather than national in scope, and the relationship between the importer and any middleman in the marketplace is considerably different from that found in a mass-marketing system. Since the importer-wholesaler traditionally performs most marketing functions, independent agencies that provide advertising, marketing research, warehousing and storage etc. are nonexistent or underdeveloped.

Question 9

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.

Accepted Answer

In an import-oriented or traditional 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.

Question 10

Using foreign-country middlemen moves the manufacturer away from the market and the company becomes less involved with problems of language, physical distribution, communications, and financing.

Accepted Answer

Using foreign-country middlemen moves the manufacturer closer to the market and involves the company more closely with problems of language, physical distribution, communications, and financing.

Question 11

Which of the following have proved to be a successful way to break the trade barrier imposed by the Japanese distribution system?

Accepted Answer

Direct sales through catalogs have proved to be a successful way to enter foreign markets. In Japan, it has been an important way to break the trade barrier imposed by the Japanese distribution system.

Question 12

Sears, Roebuck and _____ of France have created GlobalNetXchange (www.gnx.com), a retail exchange that allows retailers and their suppliers to conduct transactions online.

Accepted Answer

Sears, Roebuck and Carrefour of France have created GlobalNetXchange (www.gnx.com), a retail exchange that allows retailers and their suppliers to conduct transactions online.

Question 13

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

Accepted Answer

Japanese distribution channel follows a relationship-oriented business philosophy that emphasizes loyalty, harmony, and friendship.

Question 14

In the U.S., if you terminate an agent, you are required to pay 10 percent of the agent's average annual compensation, multiplied by the number of years the agent served, as a final settlement.

Accepted Answer

In the United States, this termination is usually a simple action regardless of the type of middlemen; they are simply dismissed. However, in other parts of the world, the middleman often has some legal protection that makes termination difficult. In Colombia, for example, if you terminate an agent, you are required to pay 10 percent of the agent's average annual compensation, multiplied by the number of years the agent served, as a final settlement.

Question 15

An e-vendor in a foreign market can generally ignore culture as an important variable because the commerce is being done via the Internet that is culturally insensitive.

Accepted Answer

The Web site and the product must be culturally neutral or adapted to fit the uniqueness of a market, because culture does matter.

Question 16

In Japan, under the Large-Scale Retail Store Law, all proposals for new "large" stores were first judged by the Ministry of ____.

Accepted Answer

In Japan, under the Large-Scale Retail Store Law, all proposals for new "large" stores were first judged by the Ministry of International Trade and Industry.

Question 17

The distribution process includes all of the following EXCEPT:

Accepted Answer

The distribution process includes the physical handling and distribution of goods, the passage of ownership (title), and-most important from the standpoint of marketing strategy-the buying and selling negotiations between producers and middlemen and between middlemen and customers.

Question 18

All the following statements are true regarding a Japanese market EXCEPT:

Accepted Answer

The Japanese consumer contributes to the continuation of the traditional nature of the distribution system through frequent buying trips, small purchases, favoring personal service over price, and a proclivity for loyalty to brands perceived to be of high quality.

Question 19

General Motors, ____, and DaimlerChrysler have created a single online site called Covisint (www.covisint.com) for purchasing automotive parts from suppliers, which is expected to save the companies millions of dollars.

Accepted Answer

General Motors, Ford Motor Company, and DaimlerChrysler have created a single online site called Covisint (www.covisint.com) for purchasing automotive parts from suppliers, which is expected to save the companies millions of dollars.

Question 20

As channels grow longer, the ability of a manufacturer to control price, volume, promotion, and type of outlets increases.

Accepted Answer

As channels grow longer, the ability of a manufacturer to control price, volume, promotion, and type of outlets diminishes.

Quiz 15: International Marketing Channels