International Marketing Practice Exam Questions!

Canada's policy of not allowing foreign-market cartels if they have a negative impact on the Canadian economy is a measure to protect and promote the country's economic interests. By prohibiting such cartels, Canada aims to ensure fair competition, prevent price manipulation, and safeguard its domestic industries from unfair practices that could harm the economy. This policy aligns with Canada's commitment to maintaining a level playing field and protecting its economic sovereignty.

Penetration pricing is a pricing strategy where a company sets a low initial price for its product to attract customers and gain a larger market share. By offering a lower price compared to competitors, the company aims to encourage customers to switch from rival brands and choose their product instead, ultimately capturing a larger portion of the market. This strategy can help the company establish a strong customer base and increase its market presence.

MEA stands for Manufacturer Export Agent. This is a correct statement. A Manufacturer Export Agent (MEA) is a person or a company that acts as an intermediary between manufacturers and foreign buyers. The MEA helps manufacturers export their products to international markets by handling various tasks such as finding buyers, negotiating contracts, and managing logistics. They play a crucial role in facilitating international trade and expanding the reach of manufacturers in global markets.

The international communications process involves several steps. Firstly, there is an information source, which is the origin of the message. The information is then encoded, meaning it is translated into a form that can be transmitted. Next, the message is sent through a message channel, such as email or phone. The recipient then decodes the message, interpreting the encoded information. Finally, there is the feedback step, where the recipient provides a response or reaction to the message. This allows for effective communication and ensures that the intended message is understood.

Deflation is a situation where there is a sustained decrease in the general price level of goods and services. This can be beneficial for consumers as it increases their purchasing power since they can buy more for less money. However, it puts pressure on everyone in the supply chain to lower costs in order to maintain profitability. This is because lower prices mean lower profit margins, which can lead to reduced wages, job cuts, and even business closures. Therefore, the statement that deflation puts pressure on everyone in the supply chain to lower costs is true.

The EPRG Framework categorizes different strategies that companies can adopt based on their approach to international business. Ethnocentrism refers to a company's focus on its home country and its belief that its products and practices are superior. Polycentrism is when a company adapts its products and practices to each local market. Regiocentrism involves focusing on a specific region and tailoring strategies accordingly. Geocentrism is a global approach where companies integrate global and local perspectives. These options represent the different strategies that companies can choose from based on their particular situation.

A partnership of two or more companies that join forces to create a separate legal entity is known as an International Joint Venture (IJV). In an IJV, the participating companies pool their resources, expertise, and capital to pursue a specific business opportunity or project in a foreign market. This allows them to share risks, costs, and profits while leveraging each other's strengths and gaining access to new markets. The creation of a separate legal entity ensures that the IJV operates independently and has its own governance structure, allowing for a more efficient and effective collaboration between the partnering companies.

Distribution channels vary depending on the target market size, competition, and available distribution intermediaries. The target market size influences the choice of distribution channels as larger markets may require more extensive channels to reach a wider audience. Competition also plays a role in determining distribution channels, as companies may need to differentiate themselves by using unique channels. Additionally, the availability of distribution intermediaries, such as wholesalers or retailers, affects the selection of channels as companies must work with the intermediaries that are accessible in a particular market. Therefore, all of these factors contribute to the variation in distribution channels.

Standardization is not a mode of market-entry because it refers to the process of creating uniform products or services that can be sold in multiple markets without any modifications. It is a strategy used to reduce costs and increase efficiency, but it does not involve entering new markets. Licensing, franchising, and exporting, on the other hand, are all modes of market-entry where a company expands its operations into new markets either by granting licenses to other companies, establishing franchise agreements, or directly selling products or services to customers in foreign markets.

European and Japanese managers have been "thinking international" from the outset, meaning that they have been considering global perspectives and strategies right from the beginning. This suggests that these managers have a mindset that is open to international markets, cultures, and opportunities. They are likely to have a global outlook and approach in their decision-making and business practices.

Dumping is defined in two ways, depending on whether a product is sold internationally below its cost of production or below its selling price in the home market. This means that if a product is sold at a price lower than the cost of producing it, or at a price lower than what it is sold for in the domestic market, it is considered as dumping. Dumping can be a strategy used by companies to gain a competitive advantage in international markets by undercutting prices and potentially harming domestic industries.

Strategic International Alliances refer to synergistic relationships established between different organizations or parties to achieve a common goal. In such alliances, all parties involved benefit from the collaboration. These alliances are formed to leverage each other's strengths, resources, and expertise, leading to mutual growth and success. Through strategic international alliances, organizations can expand their market reach, access new technologies or markets, share risks and costs, and gain a competitive advantage in the global business landscape.

The correct answer is the extent to which the marketing mix should or can be standardized across the countries in which the firm operates. This question is asking about the level of standardization that a company should aim for in its marketing strategies when expanding internationally. It is important for companies to consider whether they should adapt their marketing mix to suit the preferences and needs of each individual market or if they can successfully implement a standardized approach across all countries. This decision can impact the company's ability to effectively reach and appeal to its target audience in different markets.

International Joint Ventures are a partnership of two or more companies that join forces to create a separate legal entity. In this type of collaboration, the companies pool their resources, expertise, and market knowledge to pursue a specific business opportunity in a foreign market. By forming a separate legal entity, the companies can share the risks, costs, and profits of the venture while maintaining their own identities and autonomy. This allows them to access new markets, leverage each other's strengths, and benefit from shared knowledge and resources.

The given answer is true because it accurately describes the role of a Manufacturer's Sales Representative (MEA). MEAs are individuals or firms that act as intermediaries between manufacturers and customers, selling the manufacturer's products on their behalf. They operate on a commission basis, earning a percentage of the sales they generate. MEAs conduct business in their own names, meaning they represent themselves rather than the manufacturer they are selling for. This distinction is important as it allows MEAs to build their own reputation and customer base.

A free trade zone is a designated area where imported goods can be stored or processed without being subject to taxes. It is also considered separate from the rest of the country in terms of import and other regulations. In a free trade zone, businesses can benefit from reduced customs duties and trade barriers, making it an attractive location for international trade and investment.

The correct answer is Sprinkler Strategy. The explanation for this answer is that the sprinkler strategy suggests spreading the company's resources in order to gain even small footholds across as many markets as possible. This approach involves entering multiple markets simultaneously and targeting a broad range of customers. By doing so, the company can minimize risks associated with focusing on a single market and increase its chances of success by diversifying its operations. This strategy is often used by companies looking to expand globally and maximize their market reach.

The American Customer Satisfaction Index (ACSI) measures customers' satisfaction and perceptions of quality of a representative sample of U.S. goods and services. This means that the ACSI assesses how customers perceive the overall quality of the products and services they have received. It takes into account factors such as reliability, durability, performance, and features, among others, to gauge customer satisfaction. By measuring quality, the ACSI provides valuable insights into how well businesses are meeting customer expectations and helps identify areas for improvement.

An export management company would be the best choice for Mr. Bond if he wants to meet his objectives. An export management company specializes in researching foreign markets for a client's products and also handles all the routine details of getting the products to the foreign customers. This would allow Mr. Bond to focus on other aspects of his business while the export management company takes care of the logistics and market research required for international trade.

ISO 9000 is a set of standards that focuses on quality management systems. It provides guidelines for organizations to ensure that their processes and procedures meet certain quality standards. The registration and certification process of ISO 9000 is specifically related to the evaluation and approval of a manufacturer's quality systems. This includes assessing the manufacturer's ability to consistently produce goods or services that meet customer requirements and comply with relevant regulations. Therefore, the correct answer is "quality systems".

The term "self-reference criterion" refers to the unconscious tendency to use one's own cultural values, experiences, and knowledge as a basis for making decisions. This means that individuals often rely on their own background and perspective when evaluating and judging situations, which can lead to biased or limited decision-making. In this context, the answer choice "Self-Reference Criterion" accurately describes this concept.

Compatibility refers to the ability of a product to match the acceptable behavior, norms, and values of its users or target market. A product that is compatible with the values and expectations of its users is more likely to be accepted and adopted. It means that the product aligns with the existing beliefs and practices of the users, making it easier for them to integrate it into their lives. Compatibility is an important factor in determining the success and adoption of a product.

The ownership of the sales force and distribution system requires consideration of control. This means that the company needs to have the ability to manage and direct the activities of the sales force and distribution system. Without control, the company may not be able to effectively implement its strategies, ensure consistent performance, or make necessary adjustments to meet market demands. Control is essential for maintaining the overall effectiveness and efficiency of the sales force and distribution system.

Leasing can be a substantive benefit for developing countries where services are often unavailable. By leasing equipment, these countries can have access to the necessary tools and resources without having to invest in purchasing them outright. Additionally, leasing helps guarantee better maintenance and service of overseas equipment, ensuring its longevity and effectiveness. Compared to direct sales, leasing also provides more stable revenue over a period of time, allowing for better financial planning and sustainability.

The correct answer is "all of the above" because governments have various methods to control prices. They can grant subsidies to lower prices, act as a purchasing monopsony or selling monopoly to manipulate prices, and even permit or encourage businesses to collude in setting manipulative prices. These actions are all strategies that governments can employ to influence and control the prices of goods and services in the market.

Culture is learned through acculturation, social institutions, socialization, role modeling, peers, parents, etc. Culture refers to the beliefs, values, customs, behaviors, and artifacts that characterize a group or society. It is transmitted from one generation to another through various socialization processes. Acculturation involves learning and adopting the cultural practices and norms of a different group. Social institutions such as education, family, and religion play a crucial role in transmitting cultural values and beliefs. Role modeling and peer influence also contribute to the acquisition and reinforcement of cultural behaviors and practices. Therefore, culture is the correct answer in this context.

The forward price is the number of dollars to be paid in a foreign currency bought or sold 30, 90, 180 days from today. This is where businesses prefer to be because it allows them to lock in a specific exchange rate for future transactions, reducing the risk of currency fluctuations. The forward price also includes a bank premium, which is the additional cost charged by the bank for providing this service.

In countries with rapid inflation, the value of the currency decreases rapidly, causing prices to increase at a high rate. As a result, the cost of replacing goods becomes higher than their selling price. This leads to goods being sold below their cost of replacement in order to attract buyers and maintain sales. Therefore, the statement is true.

Green marketing is a term used to identify concern with the environmental consequences of a variety of marketing activities. It refers to the practice of promoting products or services that are environmentally friendly or sustainable. Green marketing aims to educate consumers about the environmental benefits of certain products and encourages them to make more eco-conscious purchasing decisions. This can include using recycled materials, reducing energy consumption, or supporting ethical sourcing practices. By adopting green marketing strategies, businesses can appeal to environmentally conscious consumers and contribute to a more sustainable future.

Full-Cost Pricing is the correct answer. This pricing approach ensures that each unit of a product bears its full share of both fixed and variable costs. It is suitable for companies with high variable costs compared to fixed costs. In such cases, prices are often set by adding a profit margin to the total costs, ensuring that all costs are covered and a profit is made.

The vast majority of services enter a foreign market through licensing, franchising, or direct investment. This means that companies either grant licenses to foreign entities to operate their services, establish franchise agreements with local businesses, or directly invest in setting up their own operations in the foreign market. Exporting and importing refer to the exchange of goods, while brokers act as intermediaries in facilitating business transactions. Therefore, licensing, franchising, or direct investment are the most common methods for services to expand into foreign markets.

Understanding the concept of derived demand is critical for managers selling capital equipment and big-ticket industrial services. Derived demand refers to the demand for a product or service that is dependent on the demand for another product or service. In this context, it means that the demand for capital equipment and industrial services is derived from the demand for the products or services that these equipment and services support or enhance. Managers need to understand this concept to effectively anticipate and meet the needs of their customers in the industrial sector.

A cartel exists when various companies producing similar products or services work together to control their markets. This allows them to coordinate their actions, such as setting prices or limiting production, in order to maximize their profits and minimize competition. Cartels are typically formed in industries with few competitors and high barriers to entry, and they are often illegal as they restrict free market competition.

Greenfield is the market entry strategy that involves the most risk and the most control in foreign direct investment. This strategy refers to establishing a new subsidiary or facility from scratch in a foreign country. It requires significant investment and entails higher risks due to the need for extensive market research, infrastructure development, and regulatory compliance. However, it also offers the highest level of control as the company has complete ownership and can tailor the operations to its specific requirements.

Transaction risk refers to the potential for a change in exchange rates between the invoicing date and the settlement date of a transaction. This means that if there is a delay between the time the transaction is invoiced and the time it is settled, the exchange rates may fluctuate, leading to potential losses or gains for the parties involved in the transaction. Therefore, transaction risk is the most appropriate term to describe this particular type of risk.

Within a firm, it is primarily the production and finance managers who argue for standardization for the sake of economies of scale. Production managers focus on streamlining processes and reducing costs by standardizing production methods and materials. Finance managers advocate for standardization to achieve cost savings and efficiency in financial operations, such as procurement and budgeting. Both departments recognize the benefits of standardization in achieving economies of scale, which can lead to lower costs and increased profitability for the firm.

Direct exporting usually means that the company sells its products directly to a customer in another country, without the involvement of any intermediaries. This can be done through various channels such as online platforms, distributors, or sales representatives. Direct exporting allows the company to have more control over its international sales and build direct relationships with customers in different markets. It also gives the company the opportunity to understand the specific needs and preferences of customers in different countries and tailor its products or services accordingly.

A successful brand is the most valuable resource a company has because it represents the company's reputation, image, and customer loyalty. A strong brand can differentiate a company from its competitors, attract and retain customers, and command premium prices. It encompasses the company's values, mission, and promise to customers, creating a sense of trust and familiarity. A successful brand can also lead to increased market share and profitability, as customers are more likely to choose a brand they recognize and trust. Therefore, a strong brand is crucial for long-term success and sustainability in the business.

The Porter's Forces Model is a framework used to analyze the competitive environment of an industry. It identifies five forces that shape competition: existing competition between suppliers, threat of new market entrants, bargaining power of buyers, power of suppliers, and threat of substitute products. This model helps businesses understand the dynamics of their industry and develop strategies to gain a competitive advantage.

BMW's management would need to make improvement in the support services component of the product component model. This component includes after-sales services such as spare parts availability. By addressing the severe shortage of spare parts, BMW can ensure that customers have access to the necessary parts and enhance their overall experience with the brand.

The concept of quality encompasses many factors, such as durability, performance, and aesthetics. However, the perception of quality ultimately lies with the customer. It is the customer who determines whether a product or service meets their expectations and fulfills their needs. Their satisfaction with the product or service will depend on their individual preferences, experiences, and requirements. Therefore, the customer's perception plays a crucial role in determining the quality of a product or service.

Cultural myopia refers to a failure to understand the market and culture of a foreign country due to the influence of one's own cultural biases and assumptions. This can lead to misunderstandings, misinterpretations, and ineffective business strategies. It is a form of ethnocentrism where individuals or companies believe that their own cultural norms and practices are superior and fail to adapt to the local market.

The correct answer is Export Management Company (EMC). An EMC works on commission and becomes an integral part of the marketing operations of its clients. It functions as a low-cost, independent marketing department with direct responsibility to the parent firm. This means that the EMC helps the parent firm in exporting its products by managing the marketing operations and acting as a representative abroad. The other options, Import Management Company (IMC), Sexport Management Company (SMC), and Trading Company, do not accurately describe the role of a company that works on commission and becomes an integral part of the marketing operations of its clients.

The correct answer is the Organization of Petroleum Exporting Countries (OPEC). OPEC is an international cartel comprised of 13 oil-producing countries. It was formed to coordinate and unify the policies of its member countries in order to stabilize oil markets and ensure a steady income for its members. OPEC has a major impact on the global oil industry and influences oil prices and production levels.

Coverage is an important factor that must be considered if a company wants to achieve the optimum volume of sales, secure a reasonable market share, and gain satisfactory market penetration. Coverage refers to the extent to which a company's products or services are available and accessible to potential customers. By ensuring that the company's offerings are widely available and easily accessible, it increases the likelihood of attracting customers and generating sales. Without adequate coverage, the company may struggle to reach its target market and achieve its sales and market share goals.

The term "diffusion" refers to the process of how new ideas, products, or innovations spread throughout a population. In the context of the question, it is specifically referring to the spread of innovation. This term is commonly used in the field of marketing and product management to understand how and why certain products or ideas become widely adopted by the general public.

Aspects of integrated marketing communications work best when coordinated and reinforced with a consistent advertising campaign. This is because advertising plays a crucial role in reaching a wide audience and promoting a consistent brand message across different channels. By coordinating all aspects of marketing communications with advertising, companies can ensure a cohesive and unified approach to their promotional efforts, leading to better brand recognition and customer engagement.

The correct answer is "Use everywhere the same strategy as at home." This statement aligns with the concept of ethnocentrism, which refers to the tendency to view one's own culture or group as superior and to judge others based on its standards. In the context of business, ethnocentrism implies applying the same strategies and practices used in the home country to all international markets, without considering the unique cultural, social, and economic factors of each market. This approach can hinder adaptation and limit success in foreign markets.

China has more retailers than the rest of the world combined because it has a massive population of over 1.4 billion people, which creates a huge consumer market. The country has a strong retail industry, with a wide range of local and international brands operating in various sectors such as clothing, electronics, and food. China's rapid economic growth and urbanization have also contributed to the expansion of its retail sector, attracting both domestic and foreign retailers to establish a presence in the country. As a result, China has surpassed other countries in terms of the number of retailers, making it the correct answer to this question.

In Chinese culture, the number 8 is considered lucky because it sounds similar to the word for "wealth" or "prosper" in Chinese. It is often associated with good fortune, success, and financial abundance. On the other hand, the number 4 is considered unlucky because it sounds similar to the word for "death" in Chinese. It is often associated with bad luck, misfortune, and even superstition. Therefore, in China, the number 8 is associated with luck, while the number 4 is associated with death.

The correct answer is "All of the above". This is because all the conditions mentioned in the previous statements can encourage an organization in a domestic environment to expand. Market saturation and slow population growth may push a company to explore new markets and expand internationally. Factors related to the firm's industrial sector or its own products can also create opportunities for expansion. Additionally, having a unique product with a strong competitive advantage, a forward-looking managerial philosophy, and corporate objectives calling for rapid growth, as well as the availability of talented and skilled individuals for international operations, can all contribute to the decision to expand.

Trading companies play a crucial role in the global supply chain as they gather goods from various countries and transport them to different destinations. However, their primary function is to distribute these goods to the intended recipients or markets. By efficiently distributing goods, trading companies ensure that products reach their customers in a timely and organized manner, contributing to the smooth flow of international trade.

Variable-cost pricing is a practical approach for firms with high fixed costs and unused production capacity. This pricing strategy focuses on the marginal or incremental cost of procuring goods to be sold in overseas markets. By considering only the variable costs, such as raw materials and direct labor, the firm can set prices that cover these costs and contribute to profitability. This approach allows the company to make use of its excess capacity and generate additional revenue without incurring additional fixed costs.

Canada is the only G8 country that does not have free trade zones. Free trade zones are designated areas where goods can be imported, stored, processed, and re-exported without being subject to customs duties or other trade barriers. These zones promote international trade and attract foreign investment by providing businesses with advantageous conditions for conducting trade. While other G8 countries have established free trade zones to boost their economies, Canada has not implemented such zones. This may be due to different economic policies or priorities in Canada compared to other G8 nations.

Monochronic time refers to a linear and sequential approach to time, where promptness and adherence to schedules are highly valued. This is typically seen in low context societies where communication is explicit and direct. On the other hand, polychronic time refers to a more flexible and fluid approach to time, where the focus is on building and maintaining human relationships. This is commonly found in high context societies where communication is more implicit and relies on shared understanding.

The process of international market selection is typically done by using secondary data to enable a quick and relatively low-cost overview of as many markets as possible. Secondary data refers to information that has already been collected by someone else, such as government agencies, research organizations, or industry associations. This data can include market reports, surveys, statistics, and other sources of information that can provide insights into different markets. By using secondary data, companies can save time and resources compared to collecting primary data, which involves conducting their own research and data collection.

All of the options provided, Walmart and Costco, are examples of hypermarkets. A hypermarket is a large retail store that combines a supermarket and a department store, offering a wide range of products under one roof. Both Walmart and Costco are well-known hypermarket chains, known for their extensive product offerings and large store sizes. Therefore, the answer "All of the above" is correct as it includes both Walmart and Costco as examples of hypermarkets.

In Scotland, the people tend to be soft-spoken and private. It takes time to build relationships, but business counterparts seem friendlier after bonds are established.

Agent intermediaries do not take title to the goods that they process. This means that they do not legally own the goods that they handle. Instead, they act as a middleman between the buyer and seller, facilitating the transaction without taking ownership of the goods. Agent intermediaries typically earn a commission or fee for their services, but they do not have the same level of financial risk or responsibility as other intermediaries who take title to the goods.

Understanding the concept of derived demand is crucial for managers selling capital equipment and big-ticket industrial services. Derived demand refers to the demand for a product or service that is driven by the demand for another product or service. In this context, the demand for capital equipment and industrial services is derived from the demand for the goods or services that these equipment and services support or facilitate. Therefore, understanding derived demand helps managers align their offerings with the needs and demands of their customers, ultimately leading to their success.

Merchant intermediaries are entities that take title to products and engage in buying and selling on their own account. They assume the trading risks and have ownership of the products, making them less controllable than agent intermediaries. Their primary focus is on sales and profit margins, which can lead to criticism for not prioritizing the best interests of the producer.

Price escalation refers to the additional costs that occur when exporting products from one country to another. These costs can include transportation fees, tariffs, customs duties, and other expenses related to international trade. Price escalation can make products more expensive in the importing country compared to the domestic market, which can affect the competitiveness of the exported goods.

The spot price is the number of dollars to be paid for a particular foreign currency purchased or sold today. It represents the current market value of the currency and is used for immediate transactions. The dot price, purchase price, and Carey Price are unrelated terms and do not refer to the specific concept mentioned in the question.

Greenfield refers to establishing a new wholly-owned subsidiary in a foreign market. This mode of entry offers the most control and risk because the company has complete ownership and can make all decisions independently. It also involves significant investment and carries the risk of failure due to unfamiliarity with the local market. Franchising and licensing involve partnering with local entities and therefore offer less control and risk. Strategic alliance involves collaborating with another company, sharing control and risk.

The correct answer is Waterfall Strategy. A waterfall strategy refers to the approach where a firm concentrates all its available resources in one or a few markets. This strategy involves pouring all efforts, investments, and resources into these selected markets, aiming to achieve maximum penetration and dominance. By focusing on a limited number of markets, the firm can allocate its resources effectively and efficiently, allowing for better market understanding, higher customer satisfaction, and increased market share.

Quality can be defined on two dimensions: market-perceived quality (secondary reviews) and performance quality (reviews based on experience). Market-perceived quality refers to the perception of quality by the market or customers, often influenced by branding, reputation, and word-of-mouth. Performance quality, on the other hand, is based on the actual performance and functionality of a product or service. Therefore, the correct answer is market-perceived quality / performance quality.

Skimming pricing is a pricing strategy used by companies to target a market segment that is willing to pay a premium price for the value received. This strategy involves initially setting a high price for a product or service and then gradually lowering it over time as competition increases or as the product becomes more widely available. By using skimming pricing, the company aims to maximize its profits from the segment of customers who are less price-sensitive and value the product's unique features or benefits. This strategy is often used for innovative or high-demand products where customers are willing to pay a premium for exclusivity or early access.

Web sales are characterized as having the challenging aspect of delivery of goods. Unlike physical stores where customers can immediately take their purchases home, web sales require the goods to be shipped or delivered to the customer's location. This introduces various challenges such as ensuring timely and reliable delivery, managing logistics and shipping costs, and handling potential issues like damaged or lost packages. Therefore, delivery of goods is a significant aspect that requires careful management in web sales.

Contract manufacturing offers the least risk among the alternative market entry modes listed. This is because in contract manufacturing, a company outsources the production of its products to a third-party manufacturer. The company does not have to invest in setting up its own manufacturing facilities or bear the risks associated with production. Instead, it can focus on its core competencies and rely on the expertise of the contract manufacturer. This reduces the financial and operational risks typically involved in entering a new market, making contract manufacturing a low-risk option.

The country-of-origin effect refers to the influence that the company's country of manufacture, assembly, or design has on a consumer's perception of a product. This effect suggests that consumers may form positive or negative perceptions based on the country in which the product is made. Factors such as reputation, quality, and cultural stereotypes associated with the country can impact consumer attitudes towards the product.

The correct answer is "process of acceptance" because in order for markets to understand higher individualism, lower power index, and lower uncertainty, they need to go through a process of acceptance. This process involves acknowledging and recognizing these cultural factors and adapting marketing strategies accordingly. It requires understanding the cultural nuances and preferences of the target market, and making necessary adjustments to effectively reach and engage with the target audience.

In variable-cost pricing, the firm focuses solely on the marginal or incremental cost of producing goods for overseas markets. This means that the pricing strategy is based on the additional cost incurred in producing and selling each unit of the product. The firm does not consider fixed costs or full costs, which include overhead expenses. Instead, variable-cost pricing allows the firm to adjust prices based on the specific costs associated with producing and selling goods in different overseas markets.

The small retailer is the foundation of the Japanese distribution system because they play a crucial role in connecting producers with consumers. Small retailers are typically local shops or businesses that directly interact with customers and provide them with a wide range of products. They serve as intermediaries between manufacturers and consumers, ensuring that goods are efficiently distributed and reach the end-users. These small retailers often have strong relationships with both producers and customers, allowing them to understand market demand and provide personalized services. Their presence and contribution are essential in maintaining a well-functioning distribution network in Japan.

Parallel importing refers to the practice of importers buying products from distributors in one country and selling them in another country to distributors who are not part of the manufacturer's regular and authorized distribution system. This allows importers to bypass the manufacturer's official distribution channels and sell the products at potentially lower prices. It is a common practice in international trade and can sometimes lead to conflicts with manufacturers and authorized distributors. The answer "Parallel Importing" accurately describes this practice.

Agent intermediaries are individuals or companies that act as representatives for a producer or principal. They do not own the products they handle but work on commission to arrange sales or purchases. The producer assumes the trading risk and sets policy guidelines, prices, and requirements for sales records and customer information. Agent intermediaries play a crucial role in connecting the producer with customers and facilitating transactions while representing the interests of the principal.

The American Customer Satisfaction Index (ACSI) is a measurement tool that assesses customers' satisfaction and perceptions of quality for a representative sample of U.S goods and services. It is widely used to evaluate and compare customer satisfaction across different industries and companies. The ACSI provides valuable insights into customer preferences and helps organizations identify areas for improvement in order to enhance customer satisfaction and loyalty.

Disintermediation refers to the elimination of intermediaries or middlemen in the distribution channel. With the advent of the internet, companies can now directly reach and sell to customers, bypassing traditional brick and mortar channel members such as wholesalers, retailers, and agents. This global effect is due to the internet's ability to connect buyers and sellers from different parts of the world, reducing the need for physical intermediaries. Therefore, disintermediation is the correct answer as it accurately describes the elimination of brick and mortar channel members resulting from the internet's global impact.

A quota is a specific unit/dollar limit applied to a type of good. This means that only a certain amount or value of the good can be imported or exported. Quotas are often used to protect domestic industries by limiting competition from foreign goods. They can also be used to regulate the supply and demand of certain goods in the market.

Domestic cartelization is not legal in North America. Cartelization refers to the practice of several companies in the same industry colluding to set prices or control the market, which is generally considered anti-competitive behavior and is illegal in many countries, including the United States and Canada. Therefore, the correct answer is False.

Argentina, Brazil, Paraguay, and Uruguay all belong to MERCOSUR. MERCOSUR is a regional trade bloc in South America that aims to promote free trade and economic integration among its member countries. It was established in 1991 and has since expanded to include several other countries in the region. The inclusion of these four countries in MERCOSUR indicates their commitment to fostering economic cooperation and reducing trade barriers within South America.

Direct sales through catalogues would be a unique way to enter a foreign market that bypasses most entry barriers. This method allows the marketer to directly reach potential customers without the need for physical presence or setting up local distribution channels. By using catalogues, the marketer can showcase their products or services and take orders from customers, providing a convenient and accessible way for them to make purchases. This approach eliminates the need for expensive advertising campaigns or reliance on local intermediaries, making it a cost-effective and efficient strategy for entering a foreign market.

A foreign distributor often has exclusive sales rights in a specific country and works closely with the manufacturer. They act as an intermediary between the manufacturer and the local market, handling the distribution, marketing, and sales of the manufacturer's products in that country. The distributor typically has a deep understanding of the local market and its dynamics, allowing them to effectively promote and sell the manufacturer's products. Their close cooperation with the manufacturer ensures a strong partnership and alignment of goals in expanding the product's reach in the foreign market.

The correct answer is diffusion of innovations. The concept of diffusion of innovations refers to the process by which new ideas, products, or technologies spread and are adopted by individuals or groups within a society. Relative advantage, compatibility, complexity, trialability, and observability are all factors that influence the rate and extent of adoption of a new product by consumers.

International consortia involve a larger number of participants than IJVs and represent a partnership formed to work on a specific project. This means that international consortia are formed by multiple organizations or companies from different countries to collaborate on a particular project or initiative. Unlike IJVs, which are typically formed by two companies, international consortia involve more than three participants, allowing for a broader range of expertise and resources to be brought together for the project's success.

Homogeneity is not one of the four unique characteristics of services. The four unique characteristics of services are intangibility, inseparability, heterogeneity, and perishability. Intangibility refers to the fact that services cannot be seen, touched, or felt before they are consumed. Inseparability means that services are produced and consumed simultaneously. Heterogeneity implies that services can vary in quality and consistency due to the involvement of human factors. Perishability indicates that services cannot be stored or saved for future use. However, homogeneity, which means uniformity or sameness, is not considered a unique characteristic of services.

Canada is considered the 7th largest trading nation based on its international trade volume. This ranking is determined by the total value of goods and services that Canada imports and exports with other countries. As the 7th largest trading nation, Canada has a significant presence in the global market and plays a crucial role in international trade.

As Global Retailers like Idea, Costco, Toys "R" Us, or Wal-Mart expand their global coverage, they are becoming major domestic intermediaries for international markets. Domestic intermediaries refer to companies or organizations that operate within a specific country and facilitate the distribution of goods and services between producers and consumers. In this case, these global retailers are establishing their presence in various countries and acting as intermediaries by importing products from their home country and distributing them in international markets.

A foreign sales corporation is a company established in a foreign country that can benefit from a corporate tax exemption on a portion of the earnings generated through the sale or lease of export property. This means that the company can avoid paying taxes on a certain percentage of the profits made from exporting goods or services. This tax exemption is designed to incentivize companies to engage in international trade and promote economic growth.

The emergence of pan-European communications media suggests that companies need to push the balance toward more standardized promotional efforts. This is because pan-European communications media allows companies to reach a larger and more diverse audience across different countries. By standardizing their promotional efforts, companies can ensure consistency and uniformity in their messaging and branding, making it easier to communicate effectively and efficiently to this wider audience. Customized and differentiated promotional efforts may not be as effective in reaching and engaging a diverse pan-European audience.

This type of promotion, using a Carnival Truck, is able to achieve nearly 100% coverage of retailers in the village. The promotional effort stimulates sales and encourages local retailers to stock the product by giving them prior notice of the Carnival Truck's arrival.

A home country broker refers to an intermediary who provides low-cost agent services in the import-export industry. They specialize in specific product lines and have extensive global contacts. These brokers bring together buyers and sellers, but unlike other intermediaries, they do not maintain a long-term relationship with their clients. They are experts in their field and operate within their home country.

Export merchants are individuals or companies that engage in the business of purchasing goods from a large number of manufacturers, shipping them to foreign countries, and taking full responsibility for their marketing. They act as intermediaries between manufacturers and foreign markets, facilitating the process of exporting goods. Export merchants typically have extensive knowledge of international trade regulations, logistics, and marketing strategies, allowing them to effectively promote and sell the products in foreign markets. Their role is crucial in expanding international trade and connecting manufacturers with customers worldwide.

A countervailing duty is a tariff or tax imposed on imported goods that are benefiting from subsidies in their country of origin. This duty is imposed to offset the unfair advantage that these subsidized goods have over domestic products. It is a measure taken by a country to protect its domestic industries from unfair competition and to ensure a level playing field for all market participants. The countervailing duty helps to prevent the dumping of subsidized goods in the domestic market, which could harm local industries and lead to job losses.

In Russia, the first meeting is considered a formality where the counterparts will assess the credibility of the person. It is important to be warm and approachable during this meeting to make a good impression and build trust.

The correct answer is Peru. In Peru, personal selling tips relate to individuals and not corporate entities. It is important to establish personal rapport and not switch your representative in the middle of negotiations.

The Foreign Exchange Market (FOR-EX) is known for being the most liquid market, with a daily volume of approximately $1.5 trillion. It operates 24 hours a day and is largely unregulated, meaning it does not have a securities exchange commission.

Media inadequacy is a chief reason that international communications may fail because if the media used for communication, such as internet, satellite, or telephone lines, are not reliable or efficient, it can result in disruptions, delays, or even complete failure of communication. Inadequate media can lead to poor signal quality, dropped calls, slow internet speeds, or difficulty in transmitting data, which can hinder effective international communication.

The 5 C's in the distribution channel are character, coverage, continuity, control, and cost. These factors are important for a successful distribution channel. Character refers to the reputation and values of the channel members. Coverage is the extent to which the channel reaches the target market. Continuity ensures a consistent and uninterrupted flow of products. Control involves managing and coordinating the channel activities. Cost refers to the expenses associated with the distribution process.

Rokeach's Theory states that terminal values are end states of existence that individuals and society consider worth striving for. These values represent the ultimate goals or ideals that people aim to achieve in their lives. On the other hand, instrumental values are beliefs about the preferable modes of conduct that individuals and society consider important in order to achieve the terminal values. Instrumental values guide individuals in their day-to-day actions and behavior, serving as means to attain the desired end states or terminal values.