Question 1

In a ________ 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 a traditional distribution structure, an importer controls a fixed supply of goods, and the marketing system is often developed around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers. This approach is typical in scenarios where the goods are rare or unique, catering to a niche market that values exclusivity and is willing to pay premium prices.

Question 2

Legal advice is not necessary when entering distribution contracts with middlemen.

Accepted Answer

Legal advice is crucial when entering distribution contracts with middlemen to ensure that the terms are clear, fair, and legally binding, protecting all parties involved.

Question 3

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 does not necessarily move the manufacturer away from the market; instead, it can help the company navigate local challenges such as language, distribution, and communication by leveraging the middlemen's expertise and local presence.

Question 4

A change of transportation mode can affect a change in packaging and handling, inventory costs, warehousing time and cost, and delivery charges.

Accepted Answer

Changing the mode of transportation can necessitate adjustments in packaging to protect goods during transit, impact inventory costs due to differences in delivery times, affect warehousing needs and associated costs based on storage requirements, and alter delivery charges based on the efficiency and cost structure of the chosen transportation method.

Question 5

Selecting a middleman is usually as simple as asking for a recommendation from a company's local manager.

Accepted Answer

Selecting a middleman involves a comprehensive process that includes evaluating various factors such as the middleman's market coverage, reputation, compatibility with the company's goals, and financial stability, among others. It goes beyond just getting a recommendation from a local manager.

Question 6

What makes Walmart's transactions with suppliers highly efficient and lowers its cost of operations?

Accepted Answer

Walmart's internal Internet-based system with suppliers allows for efficient inventory management, quick response to stock needs, and streamlined communication, significantly reducing operational costs and enhancing supply chain efficiency.

Question 7

General Motors, ________, and DaimlerChrysler have created a single online site called Covisint for purchasing automotive parts from suppliers.

Accepted Answer

Ford Motor Company, along with General Motors and DaimlerChrysler, was involved in the creation of Covisint, an online marketplace for purchasing automotive parts.

Question 8

Channels of distribution often pose longevity problems as they tend to be small institutions.

Accepted Answer

Channels of distribution are often small institutions, which can make them vulnerable to changes in the market or competition. This can lead to longevity problems, as they may not be able to adapt or survive in the face of these challenges.

Question 9

Which feature characterizes the business philosophy of Japanese distribution channels?

Accepted Answer

Japanese distribution channels are known for their emphasis on loyalty, both in terms of long-term relationships between suppliers and distributors and in terms of loyalty to the end customers. This loyalty often leads to a preference for established relationships over new ones, even if the new ones might offer a cost advantage.

Question 10

In an import-oriented distribution structure,

Accepted Answer

In an import-oriented distribution structure, the importer-wholesaler typically takes on most of the marketing functions, including distribution and sales, due to their central role in the supply chain.

Question 11

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

Accepted Answer

The Ministry of International Trade and Industry (MITI) was responsible for judging proposals for new "large" stores under the Large-Scale Retail Store Law in Japan. This was part of MITI's role in regulating and promoting the Japanese economy, including the retail sector.

Question 12

Trading companies provide the best means for intensive coverage of the market in Japan.

Accepted Answer

In Japan, trading companies, known as "sogo shosha," play a crucial role in the economy by offering extensive networks and expertise, thus providing the best means for intensive market coverage across various industries.

Question 13

Distribution in ________ has long been considered the most effective nontariff barrier to that market.

Accepted Answer

Japan has historically been known for its complex distribution systems, which act as a significant non-tariff barrier for companies trying to enter the market. This complexity includes layers of wholesalers and a strong emphasis on relationships, making it difficult for foreign companies to penetrate the market efficiently.

Question 14

What group is considered to be the foundation of the Japanese distribution system?

Accepted Answer

The answer of What group is considered to be the...

Question 15

In the United States, if a middleman is terminated, the company is required to pay 1 percent of the middleman's average annual compensation multiplied by the number of years the middleman served as a final settlement.

Accepted Answer

In the United States, there is no federal law that mandates a company to pay a middleman a specific percentage of their average annual compensation multiplied by the number of years served as a final settlement upon termination. Settlements or severance pay are often based on company policy, contract terms, or negotiations rather than a statutory formula.

Question 16

Ideally, a website should be translated into the languages of the target market.

Accepted Answer

Translating a website into the languages of the target market enhances accessibility, user experience, and engagement, making it more likely to attract and retain users from those markets.

Question 17

The ________ process includes the physical handling and distribution of goods, the passage of ownership (title), and the buying and selling negotiations between producers and middlemen and between middlemen and customers.

Accepted Answer

The answer of The ________ process includes the physical handling...

Question 18

Which distribution structure is also known as a traditional distribution structure?

Accepted Answer

An import-oriented distribution structure is often referred to as a traditional distribution structure because it focuses on importing goods and distributing them within a country, following conventional methods.

Question 19

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

Accepted Answer

E-commerce is significantly influenced by cultural factors, including language, consumer behavior, and local customs, which can affect the success of an online business in foreign markets.

Question 20

A physical distribution system involves only the physical movement of goods.

Accepted Answer

A physical distribution system involves not only the physical movement of goods but also other activities such as order processing, warehousing, inventory management, and transportation planning to ensure goods are delivered efficiently and effectively to the end customer.

Quiz 15: International Marketing Channels