BUS275 FINAL
16) ________ is the process of getting products and services from the firm into the hands of customers. A) Product development B) Distribution C) Marketing D) Promoting
B
43) The firm is more likely to have the same brand all over the world on its secondary products than on its primary products.
TRUE
10) Which of the following is an advantage of standardized international marketing? A) reduces marketing costs B) reflects different conditions of product use C) facilitates decentralized control of marketing D) prevents economies of scale in production
A
11) Which of the following is a disadvantage of customized international marketing? A) creates inefficiencies in R&D B) ignores different conditions of product use C) inhibits local marketing initiatives D) ignores differences in buyer behavior patterns
A
14) Which of the following is one of the elements of the promotion mix? A) advertising B) e-commerce C) the internet D) human resources
A
21) Janson Enterprises, a U.S. firm, is exporting medical equipment to an Indonesian firm that has poor credit. Which method of payment would Janson most likely prefer? A) payment in advance B) open account C) letter of credit D) credit card
A
23) A ________ requires payment upon the transfer of title to the goods from the exporter to the importer. A) sight draft B) time draft C) bill of lading D) bill of exchange
A
47) What is the purpose of a binding Decision (or Ruling)?
A binding ruling enables you to get binding pre-entry classification decisions prior to importing a product and filing entries with Customs and Border Protection (CBP) and allows you to get binding guidance about other CBP regulations pertaining to marking the country of origin.
49) What is the role of a freight forwarder?
A freight forwarder is an independent company that acts as your agent in moving the cargo from its point of origin to its overseas destination. They coordinate the shipment of the goods from the factory, arrange to have the cargo loaded onto the vessel, process the documentation on the shipment (bill of lading, special documentation), and assist exporters by advising them about freight costs, port charges, consular fees, cost of special documentation, and handling fees.
46) What is a commodity specialist team and what area do the function in?
A group of import specialists from U.S. Customs who are assigned specific types of goods and are available to respond to any (importing) questions about proper classification of goods for the purpose of charging duties, as well as information regarding specific agency permits, licenses, or certifications. They function in the supply chain area.
1) ________ is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. A) Strategy B) Marketing C) Production D) Management
B
13) Which term refers to the mix of advertising, personal selling, sales promotion, and public relations used by a firm to market its products? A) marketing mix B) promotion mix C) public relations mix D) communications mix
B
19) When paying via ________, the goods are shipped by the exporter and received by the importer before payment, and the exporter then bills the importer for the goods, stipulating the amount, form, and time at which payment is expected. A) payment in advance B) open account C) letters of credit D) countertrade
B
22) What document serves as a title to the goods in question under the document collection payment method? A) sight draft B) bill of lading C) bill of exchange D) trade acceptance
B
24) A ________ extends credit to the importer by requiring payment at some specified time after the importer receives the goods. A) sight draft B) time draft C) bill of lading D) bill of exchange
B
3) Which element of the marketing mix includes the development of policies that bring in revenue and strategically shape the competitive environment? A) product B) pricing C) promotion D) place
B
5) What is the function of pricing in the marketing mix? A) assessing customer needs and values B) developing policies that generate revenue C) increasing the desirability of the product to buyers D) transporting products to customers quickly and inexpensively
B
8) Which of the following is asserted by advocates of standardization? A) customizing products is essential for high profits B) customers in developed countries are similar C) emerging economies are competitive D) differentiation indicates bias
B
15) What element of the promotion mix promotes a close, personal contact with customers? A) advertising B) public relations C) personal selling D) sales promotions
C
18) Theresa, an importer, uses a variety of payment methods when paying for goods. Which of the following is most likely the safest for Theresa? A) letter of credit B) wire transfer C) open account D) payment in advance
C
2) Promotion primarily involves ________. A) developing tangible and intangible features that meet customer needs in diverse markets B) developing policies that generate revenue and strategically shape the competitive environment C) devising ways to enhance the desirability of the product to potential buyers D) getting products to customers via transportation and merchandising
C
25) Which document is issued by a bank and contains its promise to pay the exporter on receiving proof that the exporter has fulfilled all requirements specified in the document? A) bill of lading B) bill of exchange C) letter of credit D) trade acceptance
C
4) Which element of the marketing mix includes devising ways to enhance the desirability of the product or service to potential buyers? A) product B) pricing C) promotion D) place
C
6) IBM is working to adapt its advertising campaign for a market in Europe. What element of the marketing mix is being addressed in this example? A) product B) pricing C) promotion D) place
C
7) In the international marketing mix, the place element focuses on ________. A) revenue policies B) advertising and product image C) transportation and distribution D) location of manufacturing operations
C
9) What advantage does a firm that standardizes its international marketing mix achieve? A) market share B) niche revenues C) economies of scale D) economies of scope
C
48) What is meant by the term "dual use"?
Items that can be used both for commercial and military applications; regulated by Bureau of Industry and Security (BIS).
26) The marketing mix involves a firm's product, price, promotion, and place.
TRUE
27) Standardization allows the firm to develop cost efficiencies in manufacturing, distribution, and promotion while customization allows a firm to tailor the marketing mix to meet customer needs.
TRUE
29) Exchange rate fluctuations contribute to challenges in pricing.
TRUE
31) The payment method of open account is appropriate when the exporter has complete trust in the importer.
TRUE
33) Open account is the safest form of payment from the importer's perspective.
TRUE
34) Both payment in advance and open account share the characteristic of shifting the cash flow burden and risk of default to one party in a transaction.
TRUE
35) Open accounts are best suited for well-established, long-term customers or larger firms with impeccable credit ratings.
TRUE
36) A sight draft requires payment prior to the shipment of the goods.
TRUE
38) The achievement of standardized marketing programs in foreign markets is a realistic target.
TRUE
42) Promotional aspects of packaging will often vary among foreign markets.
TRUE
45) One of the tasks of the export management is to decide whether to quote prices f.o.b. or c.i.f.
TRUE
50) What is the role of a customs broker?
They assist in clearing shipments through customs by preparing and submitting documentation then sorting and releasing the imported goods through customs after paying the required sum of import duty.
40) International marketing occurs when the firm is engaged in licensing.
I HONESTLY DONT KNOW
41) A foreign customer's definition of the firm's product is the same as its domestic customer's definition.
FALSE
44) A firm might drop a product domestically while accelerating its marketing in markets abroad.
FALSE
12) Which component of the marketing mix encompasses all efforts by an international firm to enhance the desirability of its products among potential buyers? A) product B) price C) place D) promotion
D
17) Theresa, an importer, uses a variety of payment methods when paying for goods. Which of the following forms of payment provides the most risk to Theresa? A) letter of credit B) wire transfer C) open account D) payment in advance
D
20) Why would an exporter most likely consider an open account undesirable? A) high fees from host country governments B) heavy reliance on financial institutions C) significant paperwork required D) working capital tied up
D
28) Customized international marketing creates efficiencies in research and development and production.
FALSE
30) Product is the most culture bound of the four Ps.
FALSE
32) Payment in advance is the riskiest method from the exporter's perspective.
FALSE
37) The functions of marketing are different internationally.
FALSE
39) If a firm has a sales or marketing subsidiary abroad it is essentially exporting to itself.
FALSE
