Question 1

Play devil's advocate. Select any American industry and argue persuasively why protectionism is not only patriotic, it is absolutely essential for survival.

Accepted Answer

The answer of Play devil's advocate. Select any American industry...

Question 2

Gray market refers to

Accepted Answer

Gray market refers to the selling of branded products through unauthorized channels of distribution. It involves importing and selling genuine products outside the manufacturer's authorized distribution channels, which often results in lower prices for consumers.

Question 3

When a firm sells a product in a foreign country below its domestic price or below its actual cost, the practice is referred to as

Accepted Answer

The practice of selling a product in a foreign country below its domestic price or below its actual cost is referred to as dumping. This can create unfair competition for local businesses and harm the domestic industry. It is often used as a strategy to enter new markets or to eliminate competition in existing markets.

Question 4

Eastman Kodak accused Japanese rival Fuji Photo Film of selling photographic paper in the United States for 25 percent below what it charges in Japan. In other words, Eastman Kodak accused Fuji of

Accepted Answer

Eastman Kodak accused Fuji Photo Film of dumping, which is the practice of selling goods in a foreign market at a price lower than what they are sold for in the domestic market. This can harm local competitors and lead to an unfair advantage for the foreign company.

Question 5

Give at least one argument for and one argument against protectionism.

Accepted Answer

The answer of Give at least one argument for and...

Question 6

Consider the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. The step that links the seller and its international operations, is the

Accepted Answer

The seller's international marketing headquarters is responsible for coordinating and managing the international distribution channels, linking the seller with its operations in foreign markets.

Question 7

Consider the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. Channels of distribution in global marketing are often long and complex. The availability and quality of retailers and wholesalers as well as transportation, communication, and warehousing facilities are often determined by

Accepted Answer

The availability and quality of retailers and wholesalers as well as transportation, communication, and warehousing facilities are often determined by a country's stage of economic development. Developing countries may have inadequate infrastructure and limited distribution channels, while developed countries will have more sophisticated and established distribution networks. Therefore, the stage of economic development of a country will have a significant impact on the distribution channels through which a product must travel to reach its destination in that country.

Question 8

In international trade, dumping refers to

Accepted Answer

Dumping refers to a firm selling a product in a foreign country below its domestic price or below its actual cost. This practice is often seen as unfair competition and can harm domestic industries by making their products less competitive.

Question 9

Mary Kay, Inc., can be classified as which type of company when marketing its products around the world?

Accepted Answer

The answer of Mary Kay, Inc., can be classified as...

Question 10

Consider the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. In which step of the distribution channel is it suggested that the channels can be very long or surprisingly short?

Accepted Answer

The answer of Consider the distribution channels through which a...

Question 11

Since 1963, the guiding principle of Mary Kay, Inc., has been based on

Accepted Answer

The guiding principle of Mary Kay, Inc. since 1963 has been based on the Golden Rule, which states that one should treat others as they would like to be treated themselves. This principle is reflected in the company's focus on empowering and supporting women, both as customers and as independent sales representatives.

Question 12

A situation where products are bought in a lower-priced country from a manufacturer's authorized reseller, shipped to higher-priced countries, and then sold through unauthorized retailers below the manufacturer's suggested retail price is referred to as

Accepted Answer

This is a classic example of a gray market, where products are legally purchased from an authorized reseller in a lower-priced country and then sold in a higher-priced country through unauthorized channels at a lower price than the manufacturer's suggested retail price. This undermines the manufacturer's attempts to price discriminate and can harm authorized distributors who have agreed to sell at higher prices.

Question 13

The Japanese manufacture tractors for rice paddies. They are smaller than most U.S. tractors and perfect for a weekend farmer who wants to tend to a small garden. The tractors are not sold in the United States through any authorized channels, yet they are available in the United States at prices below the manufacturer's suggested retail price. These Japanese tractors are being sold

Accepted Answer

These Japanese tractors are being sold through the gray market, which refers to the unauthorized distribution of goods that are not available through legitimate channels.

Question 14

Another term for a gray market is

Accepted Answer

A gray market refers to the sale of goods through unauthorized or unofficial channels. This can include parallel importing, which is the process of buying goods from a supplier in a different country and selling them in a different market without the permission of the manufacturer or trademark owner. Therefore, choice D is the best option as it directly relates to the definition of a gray market.

Question 15

The U.S. Commerce Department imposed additional duties of 31 percent to 250 percent on imported photovoltaic products from Chinese solar manufacturers after ruling that they sold them below cost. The Commerce Department took this action in response to what it saw as

Accepted Answer

The Commerce Department imposed additional duties on imported photovoltaic products from Chinese solar manufacturers after ruling that they sold them below cost. This is known as "dumping," which is a practice in which a country exports goods at a price that is lower than the domestic market price.

Question 16

Consider the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. The step that is the channel between two nations, moving the product from one country to another, is the

Accepted Answer

The step that involves moving the product from one country to another is the channel between nations, which is represented by international trade channels. The seller, seller's international marketing headquarters, channels within foreign nations, and final consumers are all part of the distribution channels, but they do not necessarily represent the step between two nations.

Question 17

Consider the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. The distribution channels can be considered to have been successful when the product reaches the

Accepted Answer

The ultimate goal of any distribution channel is to reach the final consumer, who will use and potentially purchase the product. All the intermediate steps and channels are in service of this end goal, making D the correct answer.

Question 18

What global market entry strategy did Mary Kay use when it entered India?

Accepted Answer

The answer of What global market entry strategy did Mary...

Question 19

Consider the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. Which of the following is most likely to involve intermediaries or agents?

Accepted Answer

Channels between nations often involve intermediaries or agents such as freight forwarders, customs brokers, and distributors. These intermediaries help to navigate the complex process of exporting and importing goods between countries. Channels within a foreign nation may also involve intermediaries such as wholesalers or retailers who help to get the product into the hands of the end consumer. The seller and the seller's international marketing headquarters are part of the company's internal channels, while delivery channels and the final consumer are part of the external channels.

Question 20

Before Apple's iPhone 5 was officially for sale in China, it was being sold there. These phones were purchased in the United States and Australia and then resold by unauthorized vendors in China for between $1,700 and $2,000. These products are considered to be part of

Accepted Answer

The products being sold in China were obtained through unauthorized means and were not part of the official distribution channel, thus making them part of the gray market.

Quiz 7: Understanding and Reaching Global Consumers and Markets