MKTG 445 EXAM 2 (Chapter 8)
Volkswagen distributes cars in the U.S. through company-owned and franchised dealerships and provides financing through company-owned Volkswagen Credit. This is an example of which of the following?
Direct market representation
Which of the following are the two major advantages to direct representation in a market?
Control and communications
Mother hen, piggyback exporter, or export vendor are other names for which of the following?
Cooperative exporter
American Express moved its service center to Mumbai. Which of the following is probably the reason the center was subsequently moved back to Phoenix?
Customer needs
Which of the following is an independent marketing intermediary that acts as the export department for two or more non-competing manufacturers?
Export Management Company (EMC)
Stihl, a German manufacturer of hand-held outdoor equipment, assigns exclusive dealerships around the world. What type of distribution organization are these dealers?
Export distributor
Which of the following distinguishes export marketing from export selling?
Export marketing focuses on the needs of the consumer, while export selling focuses on product distribution.
Which of the following requires a classification system for all products and services that will cross national borders?
Harmonized Tariff System (HTS)
KIND® is planning to expand distribution of its health bars to South Africa. The company forecasts a low volume of sales in the first year. Which type of market-country export organization would be most appropriate?
Independent distributor
Which of the following is the key advantage of making export responsibility a part of a domestic employee's job description?
It is a low-cost arrangement requiring no additional personnel.
Why did Japanese automakers choose to produce cars in the United States?
Japan was concerned about market access.
In response to new tariffs imposed by the EU, Harley Davidson announced plans to move production for motorcycles destined for Europe to plants in Thailand and India. This is an example of which of the following?
Offshoring
Which of the following is a government policy that discourages imports?
Quota
Which of the following refers to a geographic entity that offers manufacturers simplified customs procedures, operational flexibility, and a general environment of relaxed regulations?
Special economic zones (SEZ)
Which of the following can be considered the "three Rs" (rules, rate schedules, and regulations) of global business?
Tariffs
Which of the following is a government program that supports exports?
Tax incentives
Why do some companies establish an in-house organization for export responsibilities?
To maintain maximum control of the export function.
Customs duties that are based on a percentage of the value of the goods are a(an) ____________.
ad valorem duty
For the United States, the first wave of non-manufacturing outsourcing primarily affected ________.
call centers
Research has shown that although profitability is an important expected benefit of exporting, other advantages include ________.
improved ability to deal with economic fluctuations in the home market
Why did the WTO rule that American incentives through the foreign sales corporation (FSC) were illegal?
Any tax break contingent on exports was an illegal subsidy.
With export selling, which of the following is NOT a consideration?
Adapting the domestic marketing mix to the new environment
In stage seven of the exporting developmental process, what markets are being considered?
All markets
Creative Irish Gifts imports Waterford Crystal to sell through their catalog and online. Waterford Glass Company requires a guarantee of funds from Creative Irish Gifts' bank before processing the order. This is an example of:
A letter of credit (L/C)
In a discussion of trade financing, what document specifies how much and by what means the exporter-seller wants to be paid?
A pro forma invoice
