Deck 14: International Marketing Channels

Question 1

One of the ways that channel control is maintained by manufacturers is through inventory financing.

Answer 1

True

Question 2

One of the distinguishing characteristics of the Japanese channel system is that the channel system is controlled by the great numbers of small resellers found in the country.

Answer 2

False

Question 3

Another term for complementary marketing is piggybacking.

Answer 3

True

Question 4

As modern channel structures continue to evolve importers and retailers are even becoming involved in new product development.

Question 5

One of the newest forms of international distribution is the trading company that accumulates,transports,and distributes goods abroad.

Question 6

The new pattern of international retailing shows greater diversity in its structure than does wholesaling.

Question 7

Merchant middlemen take title to the goods and buy and sell on their own account.

Question 8

Agent middlemen work on commission and arrange for sales in the foreign country but do not take title to the merchandise.

Question 9

If four companies are classified as a Webb-Pomerene Export Association,then the four companies export relationships are exempt from the Sherman Antitrust Act.

Question 10

Agent middlemen take title to the goods and buy and sell on their own account.

Question 11

The term broker is typically applied to a sales corporation 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.

Question 12

The manufacturer's export agent (MEA)takes title to the goods prior to exportation;selling services is the MEA's primary skill.

Question 13

One of Wal-Mart's strengths in distribution is its internal Internet-based system,which makes its transactions with suppliers more efficient and lowers its cost of production.

Question 14

The distribution process includes promotion of goods and services by sellers and resellers.

Question 15

An export management company (EMC)is used by a company,which has a high international volume of goods or services and has plans to build branches in the foreign markets where the EMC operates.

Question 16

The Export Trading Company (ETC)Act allows producers of similar products to form export trading companies.

Question 17

The Structural Impediments Initiative opened Japanese markets to more U.S.businesses.

Question 18

As modern channel structures continue to evolve increasingly smaller retailers are being excluded from expanding outside the home country.

Question 19

The most direct channel in international marketing is when a domestic producer or marketer sells directly to a foreign consumer.

Question 20

By selecting domestic middlemen as intermediaries in the distribution process,companies relegate foreign-market distribution to others.

Question 21

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

A)loyalty
B)direct sales
C)fast delivery
D)variety
E)cutthroat

Question 22

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

A)Direct selling through the mail,by telephone,or door-to-door
B)High-volume wholesale stores
C)Internet selling
D)Discount houses
E)Television advertising

Question 23

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

Question 24

The foundation of the Japanese distribution system is the:

A)middleman.
B)intermediary.
C)manufacturer.
D)small retailer.
E)wholesaler.

Question 25

The trend of modern channel distribution structures is continuing change.Even importers and retailers are becoming involved in __________.

A)disaster risk sharing
B)new product development
C)sharing field-service employees
D)influencing key local politicians
E)financing customer purchases

Question 26

What has been the effect of the Large-Scale Retail Store Location Act in Japan?

A)No large stores (5,382 feet or 500 square meters)are allowed in Japan.
B)Large stores,by way of encouragement of this act,are replacing small retail stores in Japan.
C)Negotiations to pry open new markets for American companies have resulted in relaxation of many of the onerous restrictions on large retailers.
D)It has allowed only Japanese-owned conglomerates to own large stores.
E)Approval for new stores now takes several years even as long as 10 years.

Question 27

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

A)Its squeaky-clean reputation in the international arena.
B)Its internal Internet-based system.
C)Its ability to drive all other competitors out of a market.
D)Its ability to influence foreign governments.
E)Its outreach programs designed to placate small retailers.

Question 28

The distribution process includes all of the following EXCEPT:

A)physical handling of goods.
B)promotion of goods and services.
C)passage of ownership (title).
D)buying and selling negotiations.
E)physical distribution of goods.

Question 29

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.

Question 30

One of the types of channel cost in a foreign market is the bribe that must be paid to enter and flourish in the channel.

Question 31

One of the benefits of forming a Webb-Pomerene Export Association is that there is generally a reduction of export costs.

Question 32

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.

A)export-oriented
B)import-oriented
C)manufacturer-oriented
D)service-oriented
E)customer-oriented

Question 33

Export merchants are located in the producing firm's country and provide marketing services from a domestic base.

Question 34

Which of the following countries has the fewer number of people served per retailer?

A)United States
B)Argentina
C)China
D)Poland
E)Japan

Question 35

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

A)population density
B)a tradition of frequent trips to the store
C)emphasis on service
D)freshness and quality expectations
E)limited commercial real estate plots

Question 36

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

A)variety
B)direct sales
C)cutthroat
D)fast delivery
E)harmony

Question 37

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

A)cutthroat
B)direct sales
C)friendship
D)variety
E)fast delivery

Question 38

The trend of modern channel distribution structures is continuing change.Increasingly smaller retailers are __________.

A)experiencing turnover
B)selling out to larger retailers
C)unable to manage change
D)forming trade associations
E)also expanding overseas

Question 39

Cumulative rebates are one way that manufacturers (or middlemen)_____________ the channel.

A)exercise control over
B)control consumers in
C)specialize production output
D)provide personal service in
E)push old merchandise through

Question 40

Middlemen are not clear-cut,precise,easily defined entities.

Question 41

___________ take title to the goods and buy and sell on their own account.

A)Merchant middlemen
B)Brokers
C)Buying offices
D)Export agent
E)Agent middlemen

Question 42

The _____________ is an individual agent middleman or an agent middleman firm providing a selling service for manufacturers that normally covers only one or two markets and operates on straight commission basis.

A)complementary marketer
B)export management company
C)buying office
D)selling group
E)manufacturer's export agent

Question 43

Companies with marketing facilities or contacts in different countries with excess marketing capacity or a desire for a broader product line sometimes take on additional product lines for international distribution.The formal name for this type of marketing is:

A)backhauling.
B)demand shifting.
C)complimentary marketing.
D)shape shifting.
E)Norazi.

Question 44

In Japan,_______________ were an important way to break the trade barrier imposed by the Japanese distribution system.

A)billboard advertising
B)catalog sales
C)retail price maintenance
D)channel pull strategies
E)WTO rulings

Question 45

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

A)Direct catalog sales
B)High-volume wholesale stores
C)Street corner kiosks
D)Discount internet shopping
E)Television advertising

Question 46

The __________ does not serve as the producer's export department but has a short-term relationship,covers only one or two markets,and operates on a straight commission basis.

A)Manufacturers' Retail Store
B)Trading Company
C)Global Retailer
D)Manufacturer's Export Agent
E)Complementary Marketer

Question 47

Another term that is commonly used to describe the activities of complementary marketing is:

A)backhauling.
B)demand shifting.
C)piggybacking.
D)shape shifting.
E)Norazi.

Question 48

Which of the following are frequently criticized for not representing the best interests of a manufacturer.

A)Global wholesalers
B)Trading companies
C)Manufacturer's representatives
D)Merchant middlemen
E)Freelance agent

Question 49

Another term for home-country middlemen is ___________ middlemen.

A)uniform
B)agent
C)merchant
D)domestic
E)regional

Question 50

With respect to the Japanese market,____________ often control many of the distributors and maintain broad distribution channels;therefore,they provide the best means for intensive distribution of this market.

A)trade representatives
B)trading companies
C)brokers
D)export management companies
E)a complimentary marketer

Question 51

Which of the following countries has the largest number of retailers?

A)United States
B)Argentina
C)China
D)Poland
E)Japan

Question 52

Export management companies handle international marketing efforts primarily for:

A)military weaponry
B)relatively high volume importers
C)relatively small volume firms
D)construction equipment services
E)minorities

Question 53

James Barker is looking for a middleman that specializes in researching foreign markets for a client's products.Additionally,he would like this middleman to handle all the routine details of getting his products to the foreign customers that he anticipates that he will have during the next business year.Which of the following would be the best choice for Mr.Barker if he wants to meet his objectives?

A)a buying office
B)an export merchant
C)a trade representative
D)an export management company
E)complimentary marketer

Question 54

What is the basic function of the Export Trading Company Act?

A)it allows U.S.companies to by-pass tax laws with respect to international trading
B)it allows producers of similar products to form export trading companies
C)it allows companies to by-pass trade barriers in foreign countries
D)it allows companies to earn the highest possible profits in foreign countries
E)it allows companies to combine export shipments within single containers

Question 55

An export management company can sell to all of the following members of an international distribution channel EXCEPT:

A)an exporter.
B)an importer.
C)a foreign agent.
D)a foreign retailer.
E)the export management company can sell to all of the above.

Question 56

According to the text,if you were a marketer looking for a unique way (and a successful way)to enter a foreign market that would by-pass most entry barriers,you would choose:

A)television advertising.
B)radio advertising.
C)sports event advertising.
D)direct sales through catalogs.
E)door-to-door selling.

Question 57

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

A)the domestic producer sells directly to a foreign consumer
B)the domestic producer sells to an exporter who then sells to an importer
C)the domestic producer sells to an importer who then sells to a foreign agent
D)the domestic producer sells to a foreign agent who then sells to a foreign retailer
E)the domestic producer sells to an export management company who sells directly to the foreign consumer

Question 58

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?

A)the Sherman Antitrust Act
B)the Federal Communications Act
C)the Federal Trade Commission Act
D)the Pure Food and Labeling Act
E)the Robinson-Patman Act

Question 59

A(n)_____________ is a sales corporation 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.

A)Webb-Pomerene Export Association
B)export merchant
C)export jobber
D)broker
E)foreign sales corporation

Question 60

The __________ are becoming major domestic middlemen for international markets by providing an attractive entry point to international markets for U.S.suppliers with minimum experience.

A)Manufacturers' Retail Stores
B)Trading Companies
C)Global Retailers
D)Complementary Marketers
E)Export Management Companies

Question 61

No matter which level of distribution is examined,there is a clear correlation between the middleman's ___________ and sales volume produced.

A)position
B)motivation
C)control
D)closeness to the manufacturer
E)degree of freedom

Question 62

One of the highest costs of doing business in China is the __________ to maintain effective distribution.

A)modes of transportation
B)permits required
C)ability to deliver services
D)capital required
E)inventory

Question 63

Which of the following is NOT a type of domestic middlemen?

A)Manufacturers' Retail Stores
B)Trading Companies
C)Global Corporate Marketers
D)Complementary Marketers
E)Export Management Companies

Question 64

Henriette's company lacks sufficient funds to fully develop international distribution channels.Which of the following channel strategy Cs will her company need to consider?

A)cost
B)control
C)coverage
D)capital
E)continuity

Question 65

One of the reasons that channels of distribution often pose longevity problems is __________.

A)if key individual of middlemen firms retires,the company may lose its distribution
B)most middlemen do not maintain sufficient inventory to serve customers
C)most middlemen tend to slow down distribution to extract higher commissions
D)some middlemen lack product knowledge resulting in low sales volume
E)none of the above

Question 66

One of the reasons that channels of distribution often pose longevity problems is __________.

A)most middlemen do not maintain sufficient inventory to serve customers
B)some middlemen lack product knowledge resulting in low sales volume
C)most middlemen have little loyalty to their vendors
D)most middlemen tend to slow down distribution to extract higher commissions
E)none of the above

Question 67

A/n __________ specialization in a given field often enables it to offer a level of service that could not be attained by the manufacturer without years of groundwork.

A)ETC
B)FSC
C)GDP
D)MEA
E)EMC

Question 68

One of the critical elements associated with using a particular type of middleman is __________.

A)ability to deliver services
B)number of employees
C)modes of transportation
D)established in target market
E)capital requirements

Question 69

_____________________ is a controversial type of sales corporation that can obtain a special tax exemption on a portion its earnings.

A)Foreign sales corporation
B)Selling agents corporation
C)Trading sales association
D)Export promotion company
E)Direct marketing partnership

Question 70

Distribution channels vary depending on which of the following?

A)language and dialect spoken
B)distance from manufacturer
C)e-commerce
D)target market size
E)internet access

Question 71

__________ is one of the basic subject areas that should be on a checklist of criteria for evaluating middlemen serving a market.

A)climate and humidity variations
B)geography or terrain
C)local culture and traditions
D)productivity or volume
E)access to air freight

Question 72

One of the critical elements associated with using a particular type of middleman is __________.

A)fluent in local language
B)cash-flow patterns
C)number of employees
D)fleet vehicles
E)established in target market

Question 73

__________ is one of the basic subject areas that should be on a checklist of criteria for evaluating middlemen serving a market.

A)climate and humidity variations
B)location (geography or terrain)of business
C)traditions of the business
D)reputation of the business
E)access to the internet

Question 74

One of the key elements in distribution decisions includes __________.

A)the selection of optimum container sizes
B)volume discounts and rebates
C)the functions performed by middlemen
D)the foreign language local advertising modes
E)the functions of foreign manufacturers.Purchase goods directly from foreign manufacturers and sell to wholesalers and retailers and to industrial customers.

Question 75

Distribution channels vary depending on which of the following?

A)distance from manufacturer
B)language and dialect spoken
C)available distribution intermediaries
D)internet access
E)e-commerce

Question 76

Distribution channels vary depending on which of the following?

A)distance from manufacturer
B)competition
C)e-commerce
D)language and dialect spoken
E)internet access

Question 77

A variety of factors affect choice of channels in a foreign market.All of the following points should be addressed prior to the selection process EXCEPT:

A)identify specific target markets within and across countries.
B)specify marketing goals in terms of volume,market share,and profit margin requirements.
C)specify financial and personnel commitments to the development of international distribution.
D)identify control,length of channels,terms of sale,and channel relationships.
E)identify decision-making processes and languages of prospective middlemen.

Question 78

The __________ allowed American business firms to join forces in export activities without being subject to the Sherman Antitrust Act.

A)Export Trading Company Act
B)Roebuck-Guillaume Act of 1936
C)Webb-Pomerene Act of 1918
D)North American Free Trade Agreement
E)Global Harmonization Task Force

Question 79

In China,it is often necessary to use varied distribution forms to reach customers.If a company is using manufacturer's agents,a direct sales force,merchant wholesalers,and small retailers to sell goods to this massive market,which of the following Cs of channel strategy is receiving the attention of the company in its strategy process?

A)cost
B)control
C)coverage
D)capital
E)continuity

Question 80

Valerie's company can't seem to keep customers.Which of the following channel strategy Cs should her company consider?

A)cost
B)control
C)coverage
D)character
E)continuity