Question 1

The distribution channel process includes all activities, beginning with the manufacturer and ending with the _____.

Accepted Answer

The channel process includes all activities, beginning with the manufacturer and ending with the final consumer.

Question 2

A major trade-off when using home-country middlemen is:

Accepted Answer

A major trade-off when using home-country middlemen is limited control over the entire process.

Question 3

In the context of distribution patterns, the rate of change in retailing around the world appears to be directly related to the _____.

Accepted Answer

Retailing around the world has been in a state of active ferment for several years and the rate of change appears to be directly related to the stage and speed of economic development.

Question 4

Which of the following has proved to be an important 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 5

Which of the following statements is true regarding agent middlemen?

Accepted Answer

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

Question 6

A major disadvantage of _____ is that they can seldom afford to make the kind of market investment needed to establish deep distribution for products.

Accepted Answer

A major disadvantage of export management companies is that they seldom can afford to make the kind of market investment needed to establish deep distribution for products because they must have immediate sales payout to survive.

Question 7

For companies seeking entrance into the complicated Japanese distribution system, _____ offer one of the easiest routes to success because they virtually control distribution through all levels of channels in Japan.

Accepted Answer

For companies seeking entrance into the complicated Japanese distribution system, the Japanese trading company offers one of the easiest routes to success. The omnipresent trading companies virtually control distribution through all levels of channels in Japan. Because trading companies may control many of the distributors and maintain broad distribution channels, they provide the best means for intensive coverage of the market.

Question 8

Which of the following statements is true regarding an export management company (EMC)?

Accepted Answer

Two of the chief advantages of EMCs are minimum investment on the part of the company to get into international markets, and no commitment of company personnel or major expenditure of managerial effort.

Question 9

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

Accepted Answer

Merchant middlemen actually take title to manufacturers' goods and assume the trading risks, so they tend to be less controllable than agent middlemen. Because merchant middlemen primarily are concerned with sales and profit margins on their merchandise, they are frequently criticized for not representing the best interests of a manufacturer.

Question 10

Home-country middlemen are also known as _____ middlemen.

Accepted Answer

Home-country middlemen are also known as domestic middlemen. They are located in the producing firm's country and provide marketing services from a domestic base.

Question 11

In the international business arena, which of the following is considered to be one of Walmart'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 12

In the context of the different types of middlemen, which of the following is an example of a manufacturer's retail store?

Accepted Answer

An important channel of distribution for a large number of manufacturers is the owned, or perhaps franchised, retail store. Disney, Benetton, and many of the classic Italian luxury goods makers take this approach.

Question 13

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

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 14

Which of the following was a goal of the Export Trading Company Act?

Accepted Answer

The Export Trading Company (ETC) Act allows producers of similar products to form export trading companies. A major goal of the ETC Act was to increase U.S. exports by encouraging more efficient export trade services to producers and suppliers to improve the availability of trade finance and to remove antitrust disincentives to export activities.

Question 15

A disadvantage when using home-country middlemen as intermediaries in the distribution process is:

Accepted Answer

A major trade-off when using home-country middlemen is limited control over the entire process.

Question 16

_____ take title to manufacturers' goods and assume the trading risks.

Accepted Answer

Merchant middlemen actually take title to manufacturers' goods and assume the trading risks, so they tend to be less controllable than agent middlemen.

Question 17

James Barker is the marketing manager of a firm with small international sales volume. He is looking for a middleman who can take responsibility for promotion of the company's products, credit arrangements, physical handling, and market research. Also, the middleman must be able to provide information on financial, patent, and licensing matters. In addition, the middleman should agree to work under the name of the firm. Which of the following types of middlemen would be the best choice for Mr. Barker if he wants to meet his objectives?

Accepted Answer

The EMC functions as a low-cost, independent marketing department with direct responsibility to the parent firm. The export management company may take full or partial responsibility for promotion of the goods, credit arrangements, physical handling, market research, and information on financial, patent, and licensing matters.

Question 18

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

Accepted Answer

Sometimes called direct marketing, 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 19

Which of the following statements is true regarding merchant middlemen?

Accepted Answer