MGT 302 - Exam 4

Which of the following is compensated for professional services or expertise supplied to a foreign subsidiary by the parent company?

A fee

Which of the following is a main difference between a concentrated retail system and a fragmented retail system?

A few retailers supply most of the market in a concentrated system whereas many retailers are present in a fragmented system.

Which of the following is a question to address when configuring the communication strategy of the marketing mix for a product

Are rebates, coupons, and other sale offers a widespread activity to motivate customers in the international market segment

Which of the following refers to an order written by an exporter instructing an importer, or an importer's agent, to pay a specified amount of money at a specified time?

Bill of exchange

Which of the following is the technique that financial managers use to try to quantify the benefits, costs, and risks of an investment?

Capital budgeting

_______ is the technique financial managers use to try to quantify the benefits, costs, and risks of an investment.

Capital budgeting

Many strategists argue that firms should centralise R&D activity in the United States. Which of the following statements, if true, would weaken this statement?

Competition among U.S. firms has deteriorated in the recent past.

Other things being equal, the rate of new product development seems to be greater in countries where ....

intense competition is present

Lessard and Lorange refer to company-generated forecasts of future spot rates as the _______ .

internal forward rate

_______ is defined as the systematic collection, recording, analysis and interpretation of data to provide knowledge that is useful for decision making in a ...

international market research

As a contract, the bill of lading specifies that the carrier

is obligated to provide a transportation service in return for a certain charge.

A letter of credit is a document

issued by a bank at the request of an importer.

A major advantage of countertrade is that it

it helps firms finance export deals when there are no other means.

Although the initial cost of capital may be greater with local borrowing, it may be better to borrow locally if the

local currency is expected to depreciate on the foreign exchange market.

A firm may wish to consider _______ for investments in countries where the local currency is expected to depreciate on the foreign exchange market.

local debt financing

A firm might very aspects of its _______ from country to country to take into account local differences in distribution systems, government regulations, and the like.

marketing mix

A push strategy emphasizes _______.

personal selling

Transnational investment occurs when a firm based in one country enters another country to

put money in the stocks of bonds of a firm based in that country.

Using multilateral netting in international businesses helps firms

reduce the transaction costs.

A person based in Japan buys the shares of General Motors through the New York Stock Exchange. This is an example of _______ .

transnational investment

A letter of credit awards the title of a product or service to the issuing bank.

False

Decisions that concern the management of fixed costs that organizations incur are referred to as money management decisions.

False

Demand is said to be elastic when a large change in price produces only a small change in demand.

False

In a fragmented retail system, there are few retailers with one owning a major share of the market.

False

The European Union has little or no influence on its members when it comes to accounting standards.

False

The Export-Import Bank is an agency of the United Nations and its mission is promoting global trade.

False

The IASB has the authority to enforce its standards across world's trading nations.

False

The main principle of countertrade is to accept advance payments for goods and services that are exported to another country.

False

The _______ writes the generally accepted accounting principles by which the financial statements of U.S. firms must be prepared.

Financial Accounting Standards Board

Export credit insurance is provided by the _______ , an association of private commercial institutions operating under the guidance of the Export-Import Bank.

Foreign Credit Insurance Association (FCIA)

A loan between a parent and its subsidiary channeled through a financial intermediary, usually a large international bank.

Fronting loan

Which of the following is a factor that determines the bank changes on a letter of credit?

Importer's creditworthiness

Which of the following would help a company reduce the risk of developing products for which there is little or no demand?

Integrating R&D and marketing department

_______ is an international market research company based in Paris, France, and is the only major international market research firm that is controlled and operated by market researchers

Ipsos

Which of the following is a valid observation of the Export-Import (Ex-Im) Bank?

It is an independent agency of the U.S. government and promotes international trade.

Identify a common difficulty that traders face when exporting goods or services to other countries.

Many customers require face-to-face negotiations on their home turf.

_______ refers to identifying distinct groups of consumers whose purchasing behavior differs from others in important ways.

Market segment

_______ decisions attempt to manage a firm's working capital.

Money management

Which of the following is true of many novice exporters?

Novice exporters often have a poor understanding of competitive conditions in the foreign market.

Which of the following is the main objective of the SCORE program administered by the SBA?

Providing one-on-one counseling to active and new-to-export businesses.

A drawback of relying on an export management company is that a company can fail to develop its own exporting capabilities.

True

A pull strategy uses mass media advertising to communicate the marketing message to potential consumers.

True

A sight draft is payable on presentation to the drawee.

True

Accountants argue that it may not be appropriate to evaluate managers of subsidiaries based solely on indicators of profitability because they do not operate in a uniform environment.

True

Cash balances are typically deposited in liquid accounts, such as overnight money market accounts.

True

Most international businesses require all budgets and performance data within the firm to be expressed in the corporate currency.

True

Multipoint pricing is an issue when two or more international businesses compete against each other in two or more national markets.

True

One big impediment to exporting is the simple lack of knowledge about the opportunities available in other countries.

True

Payment of dividends is the most common method by which firms transfer funds from foreign subsidiaries to the parent company.

True

Switch trading refers to the use of a specialized third-party trading house in a countertrade agreement.

True

The distribution channel is very short when a producer sells directly to the consumer.

True

The marketing mix is the set of choices the firm offers to its targeted markets.

True

The most important aspect of cultural differences is most likely the impact of tradition.

True

A counterpurchase occurs when

a firm agrees to buy a certain amount of materials back from a country to which a sale is made.

Demand is said to be elastic when

a small change in price produces a large change in demand.

Which of the following is the first step in the international market research process?

Defining the research objectives

If a marketer is asking "Where is the product typically bought by customers in the international market segments?," what element of the marketing mix is she addressing?

Distribution strategy

A(n)_______ occurs when a firm builds a plant in a country and agrees to take a certain percentage of the plant's output as a partial payment for the contract.

buyback

Barter refers to the

direct exchange of goods or services without a cash transaction.

According to Lessard-Lorange model, the _______ rate is the spot exchange rate when the budget and performance are being compared.

ending