Exam 4
The list provided by the International Trade Administration to a potential exporter with the names and addresses of potential distributors in foreign markets, along with businesses they are in, is called the
"best prospects" list
The _____ has resulted in a dramatic shortening of product life cycles.
Acceleration of the pace of technological change
Which of the following factors creates a potential market for new products?
Affluent consumers
When a time draft is drawn on and accepted by a bank, it is known as a
Banker's acceptance
The direct exchange of goods and/or services between two parties without a cash transaction is referred to as
Barter
Which of the following is the most restrictive countertrade arrangement
Barter
_____ is a distinct type of countertrade arrangement.
Barter
In terms of using a third party in international trade, title to the products is given to a bank by the exporter in the form of a document known as a
Bill of lading
Which of the following is issued to an exporter by a common carrier transporting the merchandise and serves as a receipt, a contract, and a document of title?
Bill of lading
_____ is one factor that determines the optimal distribution strategy.
Channel quality
Due to the complexity and diversity of foreign markets, firms sometimes hesitate to seek export opportunities. These firms can best overcome ignorance by
Collecting information
The type of countertrade where a firm agrees to purchase a certain amount of materials back from a country to which a sale is made is called
Counterpurchase
A range of barterlike agreements by which goods and services are traded for other goods and services when they cannot be traded for money is known as
Countertrade
The most comprehensive source of information on export opportunities for U.S. firms is the
Department of Commerce.
_____ can constrain the globalization of markets.
Differences in technical standards
_____ allows a firm to educate potential consumers about the features of a product.
Direct selling
When a bill of lading is used to obtain payment or a written promise of payment before the merchandise is released to the importer, it serves as a
Document of Title
What kind of demand is seen when a small change in price produces a large change in demand?
Elastic
Which of the following allows suppliers, shippers, and the purchasing firm to communicate with each other via the Internet with no time delay?
Electronic data interchange system
Six Sigma refers to a statistically based philosophy that aims to
Eliminate waste
Financing aid that will facilitate exports, imports, and the exchange of commodities between the United States and other countries is provided by the
Ex-Im Bank
Repayment of medium- and long-term loans that U.S. commercial banks make to foreign borrowers for purchasing U.S. exports is guaranteed by the
Ex-Im Bank
Which of the following pricing strategies can run afoul of antidumping regulations?
Experience curve pricing
The Foreign Credit Insurance Association (FCIA) is an association of private commercial institutions operating under the guidance of the
Export-Import Bank
Only large companies have benefited significantly from the moneymaking opportunities of exporting.
False
Which industry is often thought of as one in which global standardization of the marketing mix is the norm?
Financial services
Which of the following includes a grouping of various types of machinery, a common materials handler, and a computer to control the production of a family of parts or products?
Flexible machine cell
In the United States, export credit insurance is provided by the
Foreign Credit Insurance Association
Adopting flexible manufacturing technology to produce a wide variety of end products results in
Increased utilization of individual machines
What kind of demand is seen when a large change in price produces only a small change in demand?
Inelastic
Which of the following institutions within the U.S. Department of Commerce is dedicated to providing businesses with intelligence and assistance for attacking foreign markets?
International Trade Adminsitration
Which of the following is an implication of a mass production system?
It creates massive inventories that have to be stored in large warehouses.
Which of the following is a consequence of using flexible machine cells?
It improves capacity utilization and reduces wastes
Which of the following is true of counterpurchase?
It is a reciprocal buying agreement
Which of the following holds true for products with low value-to-weight ratios?
It is advisable to manufacture them in multiple locations close to major markets.
Which of the following refers to a logistics system designed to deliver parts to a production process as they are needed, not before?
Just-in-time inventory system
_____ was pioneered by Japanese firms during that country's remarkable economic transformation during the 1960s and 1970s.
Just-in-time inventory systems
Which of the following is the initial reason for the establishment of a foreign production facility?
Labor costs are low
Which of the following is a characteristic of fragmented retail systems?
Long channels of distribution
Mass customization reconciles the two goals of
Low cost and product customization
The level of output at which most plant-level scale economies are exhausted is known as
Minimum efficient scale
_____ refers to the fact that a firm's pricing strategy in one market may have an impact on its rivals' pricing strategy in another market.
Multipoint pricing
In the context of barriers to international communication, _____ refers to the amount of other messages competing for a potential consumer's attention.
Noise
_____ is/are a potentially critical variable that can jeopardize the effectiveness of a firm's international communication.
Noise levels
A buying agreement where the exporting country can fulfill the agreement with any firm in the country to which the sale is being made is called a(n)
Offset
Which of the following is a recent trend among international businesses regarding make-or-buy decisions?
Outsourcing decisions are expanding to embrace the production of service activities.
Which of the following is true about firms using a just-in-time (JIT) inventory system?
Parts enter the manufacturing process immediately; they are not warehoused.
_____ is a hidden cost to basing production in a foreign location.
Poor product quality
_____ refers to the use of price as a competitive weapon to drive weaker competitors out of a national market.
Predatory pricing
_____ exists whenever consumers in different countries are charged different prices for the same product.
Price discrimination
A measure of the responsiveness of demand for a product to changes in price is known as
Price elasticity of demand
While seeking opportunities for profitable exporting, large firms generally tend to be
Proactive
_____ is/are an element of a firm's marketing mix.
Product attributes
Once accepted by the drawee, a time draft becomes a(n)
Promise to pay by the accepting party
Which of the following communication strategies relies primarily on mass media advertising as opposed to personal selling?
Pull strategy
Which of the following marketing strategies relies on access to advertising media?
Pull strategy
Which of the following communication strategies relies primarily on personal selling rather than mass media advertising?
Push strategy
Which of the following is an objective of lean production?
Reducing setup times for complex equipment
Which of the following is the process of planning, implementing, and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods, and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal?
Reverse logistics
The Small Business Administration oversees almost 11,500 volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses through its program known as the
Service Corps of Retired Executives
_____ is a statistically based philosophy that aims to reduce defects, boost productivity, eliminate waste, and cut costs throughout a company.
Six sigma
Which of the following organizations runs the Service Corps of Retired Executives (SCORE) program?
Small Business Admin
The government organization that employs 76 district international trade officers and 10 regional international trade officers throughout the United States as well as a 10-person international trade staff in Washington, D.C. to help potential exporters is the
Small Business Administration
In terms of communication strategy, _____ refers to the situation when the receiver of a message evaluates the message based on the status or image of the sender.
Source effects
A type of countertrade where a third-party trading house buys the firm's counterpurchase credits and sells them to another firm that can better use them is called
Switch Trading
The use of a specialized third-party trading house in a countertrade arrangement is known as
Switch Trading
In the modern era, countertrade arose in the 1960s as a way to purchase imports for
The Soviet Union
_____ has caused proprietary software solutions to implement electronic data interchange systems become obsolete.
The internet
Which of the following is true of high value-to-weight ratio products?
Their transportation costs account for a very small percentage of total costs.
_____ asserted in an article in the Harvard Business Review that modern transportation and communications technologies are facilitating a convergence of certain tastes and preferences among consumers in the more advanced countries of the world.
Theodore Levitt
Which of the following statements is true of industrial products such as steel?
They serve needs that are the same all over the world.
Which of the following is a philosophy that was widely adopted, first by Japanese companies and then American companies during the 1980s and early 1990s and from which the Six Sigma methodology directly descended?
Total quality management
When a time draft is drawn on and accepted by a business firm, it is known as a(n)
Trade acceptance
A product's value-to-weight ratio affects location decisions primarily because of its influence on
Transportation costs
Technological factors are making it feasible for firms to concentrate manufacturing facilities at optimal locations. The major brakes on this trend are
Transportation costs and trade barriers
The total quality management philosophy was developed by a number of American consultants. Which of the following individuals is one of them?
W. Edward Deming
Under a more traditional system as opposed to a just-in-time inventory system, warehousing parts for weeks before they are used will
allow many defective parts to be produced before a problem is recognized.
If a firm is unable to keep its national markets separate, individuals or businesses may undercut its attempt at price discrimination by engaging in
arbitrage
The number of intermediaries between the product (or manufacturer) and the consumer is referred to as
channel length
When a company achieves mass customization via flexible manufacturing technologies, it increases the company's
customer responsiveness
In the context of strategic pricing, _____ takes place whenever a firm sells a product for a price that is less than the cost of producing it.
dumping
What do firms now typically use via the Internet to coordinate the flow of materials into manufacturing, through manufacturing, and out to customers?
electronic data interchange
Pull strategies tend to be emphasized
for consumer goods
Which of the following is an objective of logistics?
manage a firm's global supply chain at a low cost
If a firm possesses proprietary product technology, the best option for that firm would be to
manufacture the product in-house so that it does not lose its competitive advantage.
Which of the following terms refers to the production of a variety of end products at a unit cost that could once be achieved only through bulk production of a standardized output?
mass customization
Which of the following is a factor that contributes to greater retail concentration in developed countries?
number of households with refrigerators and freezers
The sogo shosha of Japan
proactively and continuously seek export opportunities for their affiliated companies.
Flexible manufacturing technologies are specially targeted at enabling companies to
produce customized products without a significant cost penalty.
Two product features impact location decisions. Which of the two reduces the need for local responsiveness?
product's ability to serve universal needs
A second strategic objective shared by production and supply chain management is to increase product quality. In this context, quality means
reliability
Japan's great trading houses are referred to as
sogo shosha
One way to reduce the risks associated with a global supply chain that operates on just-in-time principles is to
source inputs from several suppliers located in different countries.
Concentration of production makes most sense when
trade barriers are low
When is decentralization of manufacturing facilities most appropriate?
when the production technology has low minimum efficient scale
