Deck 12: International Finance and Pricing Implications

Question 1

Which of the following is not one of the features of letters of credit?

A) Revocable vs. irrevocable
B) Confirmed vs. unconfirmed
C) Transferrable vs. nontransferrable
D) Intermediary vs. direct
E) Deferred payment

Answer 1

D

Question 2

Which of the following occurs when a company exports to a small number of markets or just one key market and then slowly expands into additional countries?

A) Market spreading
B) Market development
C) Market concentration
D) Market fulfillment
E) Market proliferation

Answer 2

C

Question 3

Which of the following remains the most extensively used method of distributing products internationally?

A) Air
B) Water
C) Railroad
D) Pipeline
E) Intermodal

Answer 3

B

Question 4

Which of the following involves growing exports in many different markets simultaneously and rapid expansion to new markets?

A) Market spreading
B) Market development
C) Market concentration
D) Market fulfillment
E) Market proliferation

Question 5

Which of the following is not one of the five tasks of physical distribution?

A)Materials handling
B)Inventory control
C)Product development
D)Inventory location
E)Order processing

Question 6

Which of the following involves a producer or supplier being in charge of marketing to foreign buyers?

A) Direct marketing
B) Direct exporting
C) Direct importing
D) Indirect exporting
E) Indirect importing

Question 7

Which term refers to all of the activities in the physical movement and storage of goods from a producer to a consumer?

A) Distribution
B) Exporting
C) Logistics
D) Importing
E) Marketing channel management

Question 8

Which of the following identifies the point at which merchandise should be reordered along with the amount of volume to reorder?

A) Economic reorder volume
B) Economic reorder point
C) Economic ordering quantity
D) Economic inventory point
E) Economic replenish rate

Question 9

The stock turnover figure represents which of the following?

A) The number of times per year in which the average inventory on hand is sold
B) The number of times per year in which the average inventory on hand is purchased
C) The number of times per year in which the average inventory on hand is transferred
D) The number of times per year in which the average inventory on hand is exported
E) The number of times per year in which the average inventory is counted

Question 10

Which of the following is not one of the internal firm reasons for exporting?

A) Managerial urge
B) Unique product characteristics
C) Economies of scale
D) Product development
E) Overcapacity

Question 11

Which of the following is not one of the external reasons firms use for exporting?

A) Change agents
B) Foreign market features
C) Domestic market features
D) Unsolicited orders
E) Consumer indifference

Question 12

Which of the following terms describes the act of bringing a foreign product into a domestic market?

A) Importing
B) Exporting
C) Dual distribution
D) Channel discrimination
E) Market transporting

Question 13

Which of the following are permanent employees of a buyer who act as agents in indirect exporting?

A) Export commission houses
B) Resident buyers
C) Brokers
D) Direct merchant intermediaries
E) Resident brokers

Question 14

Which of the following means that a manufacturer sells a product to intermediaries who then handle the foreign selling of a product?

A) Direct marketing
B) Direct exporting
C) Direct importing
D) Indirect exporting
E) Indirect importing

Question 15

Which of the following is one of the primary documents required for exporting?

A) Bill of export
B) Export document
C) Export license
D) Export agreement
E) Export certification

Question 16

Which of the following is not one of the major methods of transportation for international distribution that is discussed in the text?

A) Air
B) Water
C) Railroad
D) Pipeline
E) Electronic transmission

Question 17

Which of the following represent foreign buyers in a domestic market and act as purchasing agents for foreign companies?

A) Export commission houses
B) Resident buyers
C) Brokers
D) Direct merchant intermediaries
E) Resident brokers

Question 18

Which of the following work to bring a buyer and seller together and focus on introductions and facilitation of contractual arrangements rather than on handling a product?

A) Export commission houses
B) Resident buyers
C) Brokers
D) Direct merchant intermediaries
E) Resident brokers

Question 19

Which of the following three activities are found with home-based direct exporting?

A) Built-in department, separate export department, export sales subsidiary
B) Built-in department, separate export department, foreign sales branch
C) Built-in department, separate export department, foreign sales subsidiary
D) Built-in department, separate export department, foreign-based distributors
E) Built-in department, separate export department, foreign agents and representatives

Question 20

Which of the following three activities are found with foreign country-based direct exporting?

A) Built-in department, separate export department, export sales subsidiary
B) Built-in department, separate export department, foreign sales branch
C) Built-in department, separate export department, foreign sales subsidiary
D) Foreign sales branch, foreign sales subsidiary, and foreign-based distributors and agents
E) Foreign sales branch, foreign sales subsidiary, and export sales subsidiary

Question 21

Economic order quantity:

A) Identifies the supplier from which merchandise should be reordered
B) Specifies the rate at which inventory is being sold
C) Notifies the supplier that inventory should be shipped
D) Identifies the number of consumers purchasing inventory
E) Identifies the point at which merchandise should be reordered

Question 22

Combining motor carriers and air carriers in a delivery effort is known as which of the following?

A) Birdybacking
B) Fishbacking
C) Piggybacking
D) Railbacking
E) Piggyboating

Question 23

A large retail store that also carries grocers is a:

A) Convenience store
B) Supermarket
C) Hypermarket
D) Specialty store
E) Distribution center

Question 24

A store that offers a limited number of products plus gasoline is a:

A) Convenience store
B) Supermarket
C) Hypermarket
D) Specialty store
E) Shopping center

Question 25

Which method of transporting goods would not be used when shipping from Japan to Australia?

A) Air
B) Water
C) Railroad
D) Pipeline
E) Motor carrier

Question 26

When a restaurant needs fresh fish for a Friday lunch special,which type of utility is needed?

A) Time
B) Place
C) Possession
D) Communication
E) Logistical

Question 27

A sporting goods store is a:

A) Convenience store
B) Supermarket
C) Hypermarket
D) Specialty store
E) Wholesale outlet

Question 28

Which of the following may be the best approach for an international marketer to use when entering a foreign market and barriers can be created to keep competitors from exporting to a market?

A) Market concentration
B) Market development
C) Market spreading
D) Market channeling
E) Market proliferation

Question 29

Making sure a product is available when a consumer needs it provides which of the following types of utility?

A) Place
B) Time
C) Possession
D) Communication
E) Logistical

Question 30

Providing information to other channel members and customers provides which type of utility?

A) Place
B) Time
C) Possession
D) Communication
E) Logistical

Question 31

Which of the following describes the practice of loading flatbed trailers on rail cars for delivery on part of a distribution route,at which point they are transferred back to trucks for the balance of the delivery?

A) Birdybacking
B) Fishbacking
C) Piggybacking
D) Railbacking
E) Piggyboating

Question 32

Making a product available at a place that is convenient for buyers provides which of the following types of utility?

A) Place
B) Time
C) Possession
D) Communication
E) Logistical

Question 33

Transferring ownership of products to consumers provides which of the following types of utility?

A) Place
B) Time
C) Possession
D) Communication
E) Logistical

Question 34

Which of the following describes the decrease in per unit cost resulting from an increased number of products manufactured?

A) Economies of scale
B) Economies of scope
C) Law of diminishing returns
D) Law of supply and demand
E) Law of diminishing margins

Question 35

When a company orders from a supplier because leaders receive valuable tips about the competition,which type of utility is present?

A) Time
B) Place
C) Possession
D) Communication
E) Logistical

Question 36

Trade associations,governmental agencies,and port authorities are which of the following?

A) Change agents
B) Outside forces
C) Regulatory bodies
D) Change intermediaries
E) Investment companies

Question 37

Which country has the highest level of rail line availability?

A) United States
B) United Kingdom
C) Argentina
D) Brazil
E) China

Question 38

Which of the following is not a major type of retailing in international marketing?

A) Convenience stores
B) Supermarkets
C) Hypermarkets
D) Specialty stores
E) Rack jobbers

Question 39

Combining water carriers and motor carriers in a delivery effort is known as which of the following?

A) Birdybacking
B) Fishbacking
C) Piggybacking
D) Railbacking
E) Piggyboating

Question 40

Which type of store offers widely available,intensively distributed products to consumers?

A) Convenience
B) Supermarkets
C) Hypermarkets
D) Department
E) Specialty

Question 41

Which of the following is a type of warehouse facility not owned by the manufacturer?

A) Market-based warehouses
B) Contractual warehouses
C) Third-party warehouses
D) Intermediary channel warehouses
E) Government-owned warehouses

Question 42

If many competitors already exist in a market,which strategy will lead to a higher market share?

A) Market concentration
B) Market development
C) Market spreading
D) Market channeling
E) Market proliferation

Question 43

Market spreading occurs when a company exports in a small number of markets and then slowly expands into additional countries.

Question 44

Marketing concentration involves growing exports in many different markets simultaneously and rapid expansion to new markets.

Question 45

Unsolicited orders are the most common reasons for beginning exporting.

Question 46

The possession of unique assets that consumers want to purchase increases the potential for a company to make profits from exporting a product.

Question 47

Exporting to foreign countries always leads to lower risks for a company.

Question 48

Which of the following identifies merchandise in a shipment?

A) Market channel license
B) Bill of lading
C) Draft for payment
D) Export agreement
E) Export draft

Question 49

One internal reason for exporting exists when a company leader has experience in a particular country.

Question 50

Which of the following specifies the exact amount of raw materials that are in a shipment?

A) Bill of lading
B) Certificate of shipment
C) Bill of confirmation
D) Letter of export
E) Term of export

Question 51

Exporting products to a foreign country rarely helps a company pursue an expansion opportunity.

Question 52

Exporting can be stimulated by latent demand.

Question 53

Which of the following is the simplest form of home-based direct exporting?

A) Built-in departments
B) Separate export departments
C) Export sales subsidiary
D) Sales branches
E) Sales subsidiary

Question 54

Economies of scale often lead to profitable exporting opportunities.

Question 55

Which of the following represents the most secure option for exporters regarding financing?

A) Bill of lading
B) Certificate of understanding
C) Bill of financing
D) Letter of credit
E) Terms of sale

Question 56

Which of the following types of license is relatively complicated and contains far more information pertaining to the various regulations that apply to the product being exported?

A) Legitimate
B) Validated
C) Concentrated
D) General
E) Channel

Question 57

Foreign market similarities with a domestic market generally increase confidence that exporting will be a successful international marketing tactic.

Question 58

Which of the following requires that a buyer pay for goods before receiving them?

A) Market channel license
B) Bill of lading
C) Document against payment
D) Document against acceptance
E) Bill of first refusal

Question 59

Exporting a product can be a successful strategy for dealing with seasonal demand for a product in a home country.

Question 60

In international exporting,what type of license applies to products that are not highly regulated,and the license typically declares the product,its value,and final destination?

A) Legitimate
B) Validated
C) Concentrated
D) General
E) Channel

Question 61

The most secure financing document for exporters is a letter of credit.

Question 62

Direct exporting and export marketing represent two different concepts.

Question 63

Most companies choose either market concentration or market spreading,but not both strategies.

Question 64

A foreign sales subsidiary offers little authority and independence to foreign exporting activities.

Question 65

A confirmed letter of credit is a letter in which a bank explicitly confirms the credit in writing on the letter itself.

Question 66

Brokers work to bring buyers and sellers together.

Question 67

A document against acceptance refers to drafts in which a buyer must pay for goods before receiving title for them.

Question 68

Validated export licenses apply to products that are not highly regulated.

Question 69

The export license is one of the primary documents necessary for exporting.

Question 70

Export commission houses represent foreign buyers in a domestic market.

Question 71

Export selling means that a manufacturer sells a product to intermediaries that then handle the foreign selling of the product.

Question 72

Carrying costs refer to the monies needed to finance inventory and warehouse a product.

Question 73

A revocable letter of credit refers to a letter in which the importer bank can cancel or change terms of agreement without getting approval from all parties.

Question 74

Air transportation remains a relatively inexpensive form of international distribution.

Question 75

The ultimate objective of a logistics program is to meet the needs of customers in a convenient and timely fashion at the lowest possible cost.

Question 76

A document against payment refers to drafts in which a buyer agrees to pay the exporter by a certain time and the agreement must be signed before the buyer receives title to the goods.

Question 77

Indirect exporting and export selling represent the same concept.

Question 78

Export merchants are not involved with importing.

Question 79

Agents take ownership of products,while merchants do not.

Question 80

Marketers experience loss of control with export marketing.