International Marketing Practice Exam Questions!
(137).jpg "International Marketing Practice Exam Questions! - Quiz")
.
Questions and Answers
- 1.
Different strategies are suitable for different companies depending on their particular situation. This is articulated by the “EPRG Framework”. What are the four options of the EPRG Framework?
- A.
Ethno Policies, Private Polies, Racial Policies, Geography
- B.
Ethnocentrism, Polycentrism, Regiocentrism, Geocentrism
- C.
Energy, Privacy, Real-World, Giggity
- D.
Ethnocentrism, Polycentrism, Racialism, Governmental
Correct Answer
B. Ethnocentrism, Polycentrism, Regiocentrism, GeocentrismExplanation
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.Rate this question:
-
- 2.
For any company looking to expand internationally, be it first-time exporter or a major mltinational, a fundamental question has been, and continues to be:
- A.
New Market, New Product
- B.
New Market, Same Product
- C.
The extent to which the marketing mix should or can be standardized across the countries in which the firm operates
- D.
PDI, PDV
Correct Answer
C. The extent to which the marketing mix should or can be standardized across the countries in which the firm operatesExplanation
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.Rate this question:
-
- 3.
European and Japanese managers have been “thinking international” from the outset (beginning).
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
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.Rate this question:
-
- 4.
Within the firm, it is primarily the ________ or _________ managers who argue for standardization for the sake of economies of scale.
- A.
Production, Finance
- B.
Marketing, Distribution
- C.
Logistic, Manufacturer
- D.
Primary, Secondary
Correct Answer
A. Production, FinanceExplanation
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.Rate this question:
-
- 5.
The process of international market selection is typically done by using _________ to enable a quick and relatively low-cost overview of as many markets as possible.
- A.
Quantitative data
- B.
Secondary data
- C.
Primary data
- D.
All of the above
Correct Answer
B. Secondary dataExplanation
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.Rate this question:
-
- 6.
Ethnocentrism can simply be defined as:
- A.
Developing a simple diverse strategy for new markets
- B.
Develop one strategy for all countries worldwide
- C.
Use everywhere the same strategy as at home.
- D.
Being ethnically centred on a global scale
Correct Answer
C. Use everywhere the same strategy as at home.Explanation
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.Rate this question:
-
- 7.
An overall strategy that involves the firm pouring all of its available resources into one or a select few markets is knows as:
- A.
Maximum investment strategy
- B.
Sprinkler Strategy
- C.
Waterfall Strategy
- D.
Standardization
Correct Answer
C. Waterfall StrategyExplanation
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.Rate this question:
-
- 8.
All of the following are actual modes of market-entry EXCEPT:
- A.
Licensing
- B.
Standardization
- C.
Franchising
- D.
Exporting
Correct Answer
B. StandardizationExplanation
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.Rate this question:
-
- 9.
__________ suggests spreading the company’s resources in order to gain even small footholds across as many markets as possible
- A.
Direct Exporting
- B.
Sprinkler Strategy
- C.
Agent Intermediaries
- D.
Waterfall Strategy
Correct Answer
B. Sprinkler StrategyExplanation
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.Rate this question:
-
- 10.
Conditions that may encourage an organization in a domestic environment to expand are:
- A.
Market Saturation, Slow Population, Growth, Product Adolescence
- B.
Factors related to the firm's industrial sector, or to the company itself and its products
- C.
A unique product with a strong competitive advantage, a forward-looking managerial philosophy, corporate objectives calling for rapid growth, as well as as of the right of talents and skills for international operations
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
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.Rate this question:
-
- 11.
_________ usually means that the company sells to a customer in another country, be it an intermediary or an end-customer.
- A.
Indirect exporting
- B.
Direct Exporting
- C.
Franchising
- D.
Cross selling
Correct Answer
B. Direct ExportingExplanation
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.Rate this question:
-
- 12.
Which of the following alternative market entry modes offers the least risk?
- A.
Consortia
- B.
Strategic International Alliance
- C.
Contract Manufacturing
- D.
Mergers and Acquistions
Correct Answer
C. Contract ManufacturingExplanation
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.Rate this question:
-
- 13.
Which of the following alternative market entry modes offers the most control and risk?
- A.
Franchising
- B.
Licensing
- C.
Greenfield
- D.
Strategic Alliance
Correct Answer
C. GreenfieldExplanation
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.Rate this question:
-
- 14.
______________ are a partnership of two or more companies that join forces to create a separate legal entity.
- A.
International Joint Ventures
- B.
International Consortia
- C.
Mergers and Acquisitions
- D.
Co-Branding
Correct Answer
A. International Joint VenturesExplanation
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.Rate this question:
-
- 15.
An unconscious reference to one’s own culterual values, experiences, and knowledge as a basis for decisions.
- A.
Self-Reference Criterion
- B.
Pro Globalist
- C.
Tolerance Effect
- D.
Culture
Correct Answer
A. Self-Reference CriterionExplanation
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.Rate this question:
-
- 16.
For managers selling capital equipment and big-ticket industrial services, understanding the concept of ________ demand is absolutely fundamental to their sucess.
- A.
Kinked
- B.
Sliding
- C.
Multiple
- D.
Derived
Correct Answer
D. DerivedExplanation
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.Rate this question:
-
- 17.
The concept of quality encompasses many factors, and the perception of quality rests solely with the _____________.
- A.
Price
- B.
Value
- C.
Sellers
- D.
Customer
Correct Answer
D. CustomerExplanation
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.Rate this question:
-
- 18.
ISO 9000 concerns the registration and certification of a manufacturer's ___________.
- A.
Goods
- B.
Services
- C.
Quality systems
- D.
MIS
Correct Answer
C. Quality systemsExplanation
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".Rate this question:
-
- 19.
The __________ measures customers' satisfaction and perceptions of quality of a representative sample of U.S goods and services.
- A.
ISO 9000
- B.
MIS
- C.
ACSI
- D.
API
Correct Answer
C. ACSIExplanation
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.Rate this question:
-
- 20.
The ability to match the acceptable behaviour, norms, and values is called a product's:
- A.
Relative advantage
- B.
Compatibility
- C.
Complexity
- D.
Trial-ability
Correct Answer
B. CompatibilityExplanation
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.Rate this question:
-
- 21.
One of the early problems faced by BMW when it attempted to market its line of automobiles in the United States was a severe shortage of spare parts. If BMW's management makes the decision to correct this problem, in which of the following components of the product component model would management need to make improvement?
- A.
Core component
- B.
Functional component
- C.
Support services component
- D.
First stage component
Correct Answer
C. Support services componentExplanation
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.Rate this question:
-
- 22.
How do the vast majority of services enter a foreign market?
- A.
Exporting
- B.
Importing
- C.
Brokers
- D.
Licensing, Franchising, or Direct Investment
Correct Answer
D. Licensing, Franchising, or Direct InvestmentExplanation
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.Rate this question:
-
- 23.
A successful _______ is the most valuable resource a company has.
- A.
Marketing Campaign
- B.
CEO
- C.
Product
- D.
Brand
Correct Answer
D. BrandExplanation
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.Rate this question:
-
- 24.
Any influence that the company of manufacture, assembly, or design has on a consumer's positive or negative perception of a product is called the:
- A.
Polar effect
- B.
Alteration effect
- C.
Country-of-origin effect
- D.
Transferation effect
Correct Answer
C. Country-of-origin effectExplanation
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.Rate this question:
-
- 25.
The foundation of the Japaense distribution system is the:
- A.
Middleman
- B.
Upperman
- C.
Small retailer
- D.
Big retailer
Correct Answer
C. Small retailerExplanation
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.Rate this question:
-
- 26.
Web sales are characterized as having which of the following challenging aspects?
- A.
Delivery of goods
- B.
Discounts for volume purchase
- C.
Consumer loyalty
- D.
Payment
Correct Answer
A. Delivery of goodsExplanation
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.Rate this question:
-
- 27.
If you were a marketer looking for a unique way to enter a foreign market that would by-pass most entry barriers, you would choose:
- A.
Sports event advertising
- B.
Merchant intermediaries
- C.
Carrot munching
- D.
Direct sales through catalogues
Correct Answer
D. Direct sales through cataloguesExplanation
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.Rate this question:
-
- 28.
Which of the following external intermediaries does not take title to the goods that they process?
- A.
Merchant intermediaries
- B.
Export merchants
- C.
Trading companies
- D.
Agent intermediaries
Correct Answer
D. Agent intermediariesExplanation
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.Rate this question:
-
- 29.
James Bond is looking for an intermediary that specialies in researching foreign markets for a client's products. Additionally, he would like this intermediary to handle all the routine details of getting his products to the foreign customers that he anticipates he will have during the next business year. Which of the following would be the best choice for Mr. Bond if he wants to meet his objectives?
- A.
Export management company
- B.
Import management company
- C.
A jobber
- D.
A robber
Correct Answer
A. Export management companyExplanation
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.Rate this question:
-
- 30.
____________ is a term used to identify concern with the environmental consequences of a variety of marketing activities.
Correct Answer
green marketingExplanation
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.Rate this question:
- 31.
The process by which innovation spreads throughout a population is called product ___________.
Correct Answer
diffusionExplanation
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.Rate this question:
- 32.
The American Cusomter Satisfaction Index (ACSI) measures customers' satisfaction and perceptions of ___________ of a representative sample of U.S. goods and services.
Correct Answer
qualityExplanation
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.Rate this question:
- 33.
Trading companies accumulate, transport, and __________ goods from many countries.
Correct Answer
distributeExplanation
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.Rate this question:
- 34.
- __________ do not take title to the products they handle and represent the principal rather than themselves. They work on commission and arrange for sales (or purchase). The producer assumes trading risk but maintains the right to establish policy guidelines and prices and to require its agents to provide sales records and customer information
Correct Answer
agent intermediariesExplanation
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.Rate this question:
- 35.
____________ take title and buy and sell on their own account. They take product ownership and assume the trading risks, so they are less controllable than agent intermediaries. Because they are concerned primarily with sales and profit margins on merchandise they own, they are criticized for not representing the producer’s best interests.
Correct Answer
merchant intermediariesExplanation
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.Rate this question:
- 36.
As Global Retailers like Idea, Costco, Toys “R” Us, or Wal-Mart expand their global coverage, they are becoming major _________ for international markets
- A.
Domestic intermediaries
- B.
International intermediaries
- C.
Globally renowned
- D.
EMC
Correct Answer
A. Domestic intermediariesExplanation
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.Rate this question:
-
- 37.
- 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
- Manage the r-5 P’s for the manufacturer abroad
- A.
Export Management Company (EMC)
- B.
Import Management Company (IMC)
- C.
Sexport Management Company (SMC)
- D.
Trading Company
Correct Answer
A. Export Management Company (EMC)Explanation
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.Rate this question:
- 38.
The MEA is an individual or firm providing a selling service for manufacturers The MEA operates only on a commission bases The MEA’s do business in their own names rather than in the name of the client
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
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.Rate this question:
-
- 39.
MEA stands for Manufacturer Export Agent
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
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.Rate this question:
-
- 40.
A _______________ is a variety of intermediaries performing low-cost agent services
- The term is typically implied as Import-export brokers (intermediary function of bringing buyers and sellers together and who do not have a continuing relationship with their clients)
- Most of them specialize in one or more product lines, in which they are expert and have global contacts
Correct Answer
home country brokerExplanation
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.Rate this question:
- 41.
A ________________ is a company set up in a foreign country that can obtain a corporate tax exemption on a portion of the earnings generated by the sale or lease of export property
Correct Answer
foreign sales corporationExplanation
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.Rate this question:
- 42.
________________ purchase goods from a large number of manufacturers, ship them to foreign countries, and take full responsibility for their marketing.
Correct Answer
export merchantsExplanation
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.Rate this question:
- 43.
Which of the following international intermediaries often has exclusive sales rights in a specific country and works in close cooperation with the manufacturer?
- A.
Foreign-country broker
- B.
Managing agent
- C.
Dealer
- D.
Foreign distributor
Correct Answer
D. Foreign distributorExplanation
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.Rate this question:
-
- 44.
Distribution channels vary depending on which of the following?
- A.
Target market size
- B.
Competition
- C.
Available distribution intermediaries
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
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.Rate this question:
-
- 45.
There are 5 C's in the distribution channel, what are they?
- A.
Character
- B.
Coverage
- C.
Cash
- D.
Consistency
- E.
Continuity
- F.
Cabbage
- G.
Control
- H.
Cost
Correct Answer(s)
A. Character
B. Coverage
E. Continuity
G. Control
H. CostExplanation
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.Rate this question:
-
- 46.
Which country has more retailers than the rest of the world combined?
- A.
Japan
- B.
China
- C.
India
- D.
Germany
Correct Answer
B. ChinaExplanation
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.Rate this question:
-
- 47.
Which of the following C's must be considered if the company is to achieve the optimum volume of sales, secure a reasonable market share, and gain satisfactory market penetration?
- A.
Coverage
- B.
Control
- C.
Character
- D.
Continuity
Correct Answer
A. CoverageExplanation
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.Rate this question:
-
- 48.
Which of the following C's must be considered with regard to ownership of the sales force and distribution system?
- A.
Control
- B.
Cost
- C.
Continuity
- D.
Coverage
Correct Answer
A. ControlExplanation
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.Rate this question:
-
- 49.
Canada is the only G8 country that does not have _________ of any kind.
- A.
24-hour rule
- B.
Port security
- C.
B2B legislation
- D.
Free trade zones
Correct Answer
D. Free trade zonesExplanation
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.Rate this question:
-
- 50.
A ___________ is a tax-free enclave in which imported goods can be stored or processed. It is alsonot considered part of the country as far as import and other regulations are concerned
- A.
Free trade zone
- B.
Port storage centre
- C.
Corporate housing unit
- D.
Manufacturing den
Correct Answer
A. Free trade zoneExplanation
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.Rate this question:
-
- Accounting Quizzes
- Agriculture Quizzes
- Automotive Quizzes
- Brand Quizzes
- Business Accounting Quizzes
- Business Analyst Quizzes
- Business Development Quizzes
- Business Environment Quizzes
- Business Etiquette Quizzes
- Business Finance Quizzes
- Business Math Quizzes
- Business Organization Quizzes
- Business Plan Quizzes
- Business Process Quizzes
- Business Study Quizzes
- Business Technology Quizzes
- CEO Quizzes
- Collaboration Quizzes
- Company Quizzes
- Construction Quizzes
- Consumer Quizzes
- CSR Quizzes
- Customer Quizzes
- Development Quizzes
- Ecommerce Quizzes
- Employment Quizzes
- Entrepreneurship Quizzes
- Finance Quizzes
- Hospitality Quizzes
- Human Resources Quizzes
- Industry Quizzes
- International Business Quizzes
- Introduction To Business Quizzes
- Investment Quizzes
- Logistics Quizzes
- Management Quizzes
- Manufacturing Quizzes
- Material Quizzes
- Media Quizzes
- Office Quizzes
- Organization Quizzes
- Principles Of Business Quizzes
- Printing Quizzes
- Product Quizzes
- Publishing Quizzes
- Real Estate Quizzes
- Retail Quizzes
- Sales Quizzes
- SAP Business One Quizzes
- Small Business Quizzes
- Source Quizzes
- Supply Quizzes
- Survey Quizzes
- Telecommunication Quizzes
- Trade Quizzes
- Training Quizzes
- Transportation Quizzes
- Warehouse Quizzes
- Welding Quizzes
Back to top