Export & import Ch 10

_______ are imitation products passed off as legitimate trademarks, patents, or copyrighted works.

Counterfeit goods

________ take ownership of the merchandise when it enters their country and accept all the risks associated with generating local sales.

Distributors

Which of the following statements is true about international promotions?

Firms that standardize advertising often control campaigns from the home office.

________ is a countertrade whereby one company sells to another its obligation to make a purchase in a given country.

Switch trading

As a promotional strategy, manufacturers of products that are commonly sold through department and grocery stores often use ________.

a push strategy

Which of the following normally takes the form of a wire transfer of money from the bank account of the importer directly to that of the exporter prior to shipment of merchandise?

advance payment

A company proposes that in exchange for a hard-currency sale, it will make a hard-currency purchase of an unspecified product from the buyer nation in the future. Which of the following is the company proposing?

an offset

Which of the following is the oldest known form of countertrade?

barter

Which of the following is a marketplace of underground transactions that typically appear because a product is either illegal or tightly regulated?

black market

A form of countertrade that usually typifies long-term relationships between the companies involved is called ________.

buyback

The physical path a product follows on its way to customers is called a(n) ________.

distribution channel

Export/import financing in which a bank acts as an intermediary without accepting financial risk is called ________.

documentary collection

A(n) ________ exports products on behalf of an indirect exporter.

export management company

Which of the following is the most common method of buying and selling goods internationally?

exporting and importing

Governments in developing countries impose fewer consumer protection laws in order to ________.

hold down production costs and consumer prices

Which of the following occurs when a company sells its products to intermediaries who then resell to buyers in a target market?

indirect exporting

Which of the following steps of the strategy development process for exports involves establishing relationships with potential local distributors?

initiation of meetings

Which of the following is a strategic factor that influences a company's international entry mode selection?

market size

The process of sending messages about products to target markets is called ________.

marketing communication

Which of the following financing methods entails the greatest risk for exporters?

open account

Which of the following circumstances would best require a push strategy to be implemented for product promotion?

products in question are industrial goods

The term ________ refers to a company's efforts to reach distribution channels and target customers through communications such as personal selling, advertising, public relations, and direct marketing.

promotion mix

Which of the following promotional strategies is being used by a company that hires a fleet of trucks to drive through village squares and hand out free trial packages to potential end users?

pull strategy

A ________ strategy is best suited for the promotion of industrial products because potential buyers usually need to be informed about a product's special features before purchase.

push

Which of the following is a push strategy that companies use to promote their products?

retail product stocking