International Marketing: Chapter 12

Selling products in foreign markets at prices lower than those in the producer's home market or at prices lower than cost is known as ______? A) Dumping B) False selling C) No idea D) None of the above

A) Dumping

What is Market Skimming? A) Pricing policy that involved setting prices at a high level to trade off lower volumes with higher margins per unit sold. B) Skimming the market C) Being able to jump into new markets D) None of the above

A) Pricing policy that involved setting prices at a high level to trade off lower volumes with higher margins per unit sold.

Open Account, Consignment Sale, SWIFT are all types of A.) payment methods B.) credit methods C.) supply chain managements D.) none of the above

A.) payment methods

he prices used on goods sold between related parties—such as from division to division or parent company to its subsidiary. A.) transfer pricing B.) warehousing C.) Open Account D.) test pricing

A.) transfer pricing

costs that will be incurred regardless if a particular product is manufactured, such as overhead costs, management, R&D, and buildings. A.) variable costs B.) fixed costs C.) variable pricing D.) full absorption pricing

B.) fixed costs

All the following are types of payment methods EXCEPT: A) Cash in advance B) Letter of Credit C) Open Account D) Paying on the low

D) Paying on the low

What is the unauthorized importing and selling of products intended for one market in another higher-priced market? a) Gray Marketing b) Black market c) International Marketing d) Marketing Research

a) Gray Marketing

What is Hard Currency? a. A currency that is widely traded globally and thus is widely trusted. b. International Marketing c. Marketing Management d. International Management

a. A currency that is widely traded globally and thus is widely trusted.

Firms grant a variety of discounts for a number of reasons, excluding _____. a. Antidumping regulations b. Order Size c. Shipping Charges d. Response to competitive price cuts

a. Antidumping regulations

Which is the most effective type of payment method? a. Cash in Advance b. Letter of credit c. Documentary Collections d. None of the above.

a. Cash in Advance

Export transaction whereby the exporter retains title (ownership) of the goods until the importer sells the goods, and thus the importer does not pay the exporter until the importer sells the product to the next buyer is known as a. Consignment Sale b. Swift c. Marketing d. Data

a. Consignment Sale

All of the following are international Pricing Strategies except a. Consumption level factor b. Firm Level Factors c. Market Specific Factors d. Product Specific Factors

a. Consumption level factor

_________ is a firm level factor. a. Cost structure b. Government intervention c. Life cycle stage d. Effects of exchange rate

a. Cost structure

Demand will __ across markets resulting in different prices. a. Differ b. Stay the same c. Do nothing d. Go insane

a. Differ

Firms sometimes respond to lower-priced international competition by making allegations of _______. ________ occurs when a firm is judged tobe pricing its products below costs to gain market share. a. Dumping b. Price Gouging c. Inflation d. Pricing War

a. Dumping

Selling products in foreign markets at prices lower than those in the producer's home market or at prices lower than cost. a. Dumping b. Transfer pricing c. Market skimming d. Penetration pricing

a. Dumping

The unauthorized importing and selling of products intended for one market in another higher-priced market is also known as a. Gray Marketing b. Data c. Service d. Pink

a. Gray Marketing

Which term describes the unauthorized importing and selling of products intended for one market in another higher priced market? a. Grey marketing b. Penetration pricing c. Market skimming d. Varied costs

a. Grey marketing

A currency that is widely traded globally and thus is widely trusted is also known as a. Hard Currency b. Money c. Diploma d. Banks

a. Hard Currency

What is the pricing policy that involves setting prices at a higher level to trade off lower sales volumes with higher margins per unit sold? a. Market Skimming b. Penetration Pricing c. Predatory Pricing d. Gray Marketing

a. Market Skimming

Which are the main 4 factors considered in International Pricing Strategies? a. Market share pricing, pricing at a premium to the market, pricing on a cost-plus basis and target pricing b. Market share pricing, target pricing, documentary collections and pricing at a premium to the market c. Market share pricing, pricing at a premium to the market, SWIFT and consignment sale d. Market share pricing, pricing at a premium to the market, target pricing and SWIFT

a. Market share pricing, pricing at a premium to the market, pricing on a cost-plus basis and target pricing

What is pricing that involves setting prices at a lower level to trade off higher sales? a. Penetration Pricing b. Market Skimming c. Predatory Pricing Gray Marketing

a. Penetration Pricing

What is market skimming? a. Pricing Policy that involves setting prices at a high level to trade off lower sales volumes with higher margins per unit sold. b. A Pool Skimmer c. An Accounting practice d. Top Management

a. Pricing Policy that involves setting prices at a high level to trade off lower sales volumes with higher margins per unit sold.

What is Market Skimming? a. Pricing policy that involves setting prices at a low level to trade off higher sales b. When you look at two different markets c. Comparing two markers d. All of the above

a. Pricing policy that involves setting prices at a low level to trade off higher sales

What is market skimming? a. Pricing policy that involves setting prices in a high level to trade off lower sales volumes with higher margins per unit sold b. Pricing at the premium to the market c. Pricing on cost-plus basis d. Pricing policy that involves setting prices at a low level

a. Pricing policy that involves setting prices in a high level to trade off lower sales volumes with higher margins per unit sold

What is dumping? a. Selling products in foregn markets at prices lower than those in producers home market or at prices lower than cost b. Illegal trading c. Illegal exports d. Illegal imports

a. Selling products in foregn markets at prices lower than those in producers home market or at prices lower than cost

Which of the following is not an international pricing strategy? a. Talking over situations b. Firm-Level factors c. Market-Specific Factors d. Product-Specific Factors

a. Talking over situations

What is a international pricing strategies? a. Target pricing b. High costs c. Slow shipping d. Low quality

a. Target pricing

What is target pricing? a. The approach that a product's pricing needs to be a specific target price, and then the product is designed to meet that price b. Price standardization c. Uniform pricing d. Premius

a. The approach that a product's pricing needs to be a specific target price, and then the product is designed to meet that price

What is transfer pricing? a. The prices used on goods sold between related parties - such as from division to division or parent company to its subsidiary b. Variable pricing c. Transfer at manufacturing costs d. International payment methods

a. The prices used on goods sold between related parties - such as from division to division or parent company to its subsidiary

What is transfer pricing? a. The prices used on goods sold between related parties- such as from division to division or parent company to its subsidiary b. High prices c. Low prices d. Sales

a. The prices used on goods sold between related parties- such as from division to division or parent company to its subsidiary

What are costs directly related to the making and selling of a product? a. Variable Costs b. Fixed costs c. Dumping d. Cost

a. Variable Costs

_______________ is a pricing strategy in which a firm calculates the price for a product or service that includes only the variable costs associated with making or offering the product or service with no allocation of fixed costs. a. Variable Pricing b. Fixed Pricing c. Dumping d. Full- Absorption Pricing

a. Variable Pricing

Dumping occurs a. When a firm is judged to be pricing its products below costs to gain market share b. When the company dumps its prices c. When the firm makes its prices too high in foreign countries d. None of the above

a. When a firm is judged to be pricing its products below costs to gain market share

When does dumping occur? a. When a firm is judged to be pricing its products below costs to gain market share b. When a firm prices their products hirer than competitors c. When a firm randomly prices product d. When a firm raises price of product

a. When a firm is judged to be pricing its products below costs to gain market share

What is Market Skimming? a. pricing policy that involves setting prices at a high level to trade off lower sales volumes with higher margins per unit sold. b. When someone skims over a target market c. the unauthorized importing and selling of products intended for one market in another higher-priced market. d. The cost to produce a product/service, provide it, market it, and deliver it to the final consumer influences price.

a. pricing policy that involves setting prices at a high level to trade off lower sales volumes with higher margins per unit sold.

What is dumping? a. selling products in foreign markets at prices lower than those in the producer's home market or at prices lower than cost. b. When you put your trash in the garbage c. When the prices are used on goods sold between related parties—such as from division to division or parent company to subsidiary. d. a payment method whereby the buyer pays in full or in part before the seller sends or makes the goods. Also known as prepayment.

a. selling products in foreign markets at prices lower than those in the producer's home market or at prices lower than cost.

What is a pricing policy that involves setting prices at a high level to trade off lower sales volumes with higher margins per unit sold? a) Penetration pricing b) Market skimming c) Gray marketing d) International Pricing Policy

b) Market skimming

For currency inconvertibility, which one is the simplest form of countertrade whereby parties to a transaction directly exchange goods for goods? a. Countertrade b. Barter c. Hard currency d. Offset

b. Barter

What could a firm do to be more competitive internationally? a. Allocate fixed costs to all products b. Begin with a policy of variable pricing c. Sell products in foreign markets at lower prices than the home market d. Never change product prices

b. Begin with a policy of variable pricing

_______ occurs when a firm is judged to be pricing its products below costs to gain market share. a. supply chain b. Dumping c. fixed costs d. variable costs

b. Dumping

What is not an allocating cost strategy? a. Variable cost b. Federal costs c. Variable pricing d. Full-absorption pricing

b. Federal costs

______ are costs that occur regardless if a particular product is manufactured, such as overhead costs, management, R&D, and buildings. a. Variable Costs b. Fixed Costs c. Pinorrering Costs d. Full-absorption costs

b. Fixed Costs

Gray Marketing is the unauthorized _______ and selling of products intended for one market in another ______ priced market. a. Exporting, Lower b. Importing, Higher c. Shipping, fairly d. Importing, Fairly

b. Importing, Higher

As in domestic markets, __________ is an important determinant of demand for a product a. Transportation costs b. International pricing c. Delivery costs d. None of the above

b. International pricing

What is not a factor in international pricing? a. Retailing price to a firms costs and profit goals b. Maintain a healthy relationship throughout employees c. Monitoring price-setting behavior by competitors d. Analyzing the need to coordinate pricing in multiple foreign markets

b. Maintain a healthy relationship throughout employees

_______is a pricing policy that involves setting prices at a high level to trade off lower sales volumes with higher margin per unit sold a. Penetration pricing b. Market skimming c. Both a & b d. None of the above

b. Market skimming

Gray marketing is a factor in which of the following categories? a. Firm-level factors b. Market-specific factors c. Product-specific factors d. None of the following

b. Market-specific factors

A pricing policy that involves setting prices at a high level to trade off lower sales volumes with higher margins per unit sold. a. Penetration pricing b. Marketing Skimming c. High pricing d. Trade off pricing

b. Marketing Skimming

A payment method whereby the seller extends credit to the buyer such that the buyer typically does not have to pay for the goods in advance but instead some time later. a. Consignment Sale b. Open Account c. SWIFT d. Letter of Credit

b. Open Account

Rolls Royce is an example of which pricing strategy? a. Market share pricing b. Pricing at a premium to the market c. Pricing on a cost-plus basis d. Target pricing

b. Pricing at a premium to the market

What is not a market specific factor? a. Consumers ability to buy b. Sales c. Government d. Distribution channels

b. Sales

What is dumping? a. Giving up and abandoning all your products b. Selling products in a foreign market at lower prices than those in the producer's home market or at prices lower than cost c. Dropping the price of products when they are not selling d. Giving control of your company to someone else

b. Selling products in a foreign market at lower prices than those in the producer's home market or at prices lower than cost

Dumping is____________. (txt 339) a. Regulations preventing the selling of products in foreign markets at prices lower than those in the producer's home market or at prices lower than cost. b. Selling products in foreign markets at prices lower than those in the producer's home market or at prices lower than cost. c. The throwing of excessive waste into the ocean by firms d. Regulations preventing the throwing of excessive waste into the oceans by firms.

b. Selling products in foreign markets at prices lower than those in the producer's home market or at prices lower than cost.

Costs directly related to the marketing and selling of a product is called a. Fixed cost b. Variable costs c. Secondary costs d. None of the above

b. Variable costs

What's an economic risk? a. the risk that, when foreign financial statements are restated (translated) into the firm's home currency, this action reduces the firm's profits. b. the risk that, over time, a firm will lose profits or become less competitive in its international sales due to foreign exchange rate changes. c. the risk that results from changes in the value of foreign currency such that the exporter will receive less domestic currency than anticipated and thus diminish the exporting firm's financial results. d. None of the above

b. the risk that, over time, a firm will lose profits or become less competitive in its international sales due to foreign exchange rate changes.

Which one is NOT an international pricing strategy? a. Market Share Pricing b. Pricing at a Premium to the market c. Basic Pricing d. Target Pricing

c. Basic Pricing

Factors in International Pricing a. Market specific factors and product-specific factors b. International pricing strategies and firm-level factors c. Both a and b d. None of the above

c. Both a and b

What is not a primary means of transfer pricing? a. Transfer at manufacturing cost b. Transfer at arm's length c. Dumping d. Transfer at cost plus

c. Dumping

What is the act of selling products for less than the cost to gain market share? a. Lowering b. Dropping c. Dumping d. Splitting

c. Dumping

Which term describes selling products in foreign markets at prices lower than those in the producer's home market or at prices lower than cost? a. Grey marketing b. Penetration pricing c. Dumping d. Varied costs

c. Dumping

The unauthorized importing and selling of products intended for one market in another higher-priced market is called a. Blue marketing b. Green marketing c. Gray marketing d. None of the above

c. Gray marketing

A currency that is widely traded globally and thus is widely trusted? a. Solid currency b. Valid currency c. Hard currency d. Legitimate currency

c. Hard currency

______ a common form of export financing where the buyers bank agrees to pay the seller (exporter) as long as the seller fulfills the terms of the LC a. Documentary Collections b. Cash in advance c. Letter of Credit d. None of the above

c. Letter of Credit

Pricing policy that involves setting prices at a high level to trade off lower sales volumes with higher margins per unit sold. a. Dumping b. Transfer pricing c. Market skimming d. Penetration pricing

c. Market skimming

_____ is pricing policy that involves setting prices at a high level to trade off lower sales volumes with higher margins per unit sold a. Penetration pricing b. Price and the product life cycle c. Market skimming d. Demand

c. Market skimming

Which one is not part of the Market-Specific Factors? a. Consumers' Ability to Buy b. Inflation c. Penetration Pricing d. Distribution Channels

c. Penetration Pricing

What is market skimming? a. Gray marketing b. Penetration pricing c. Pricing policy that involved setting prices at a high level to trade off lower sales volumes with higher margins per unit sold d. Inflation

c. Pricing policy that involved setting prices at a high level to trade off lower sales volumes with higher margins per unit sold

Dumping refers to when- a. A market corporate tax b. Prices reflecting maximizing profits c. Selling products in foreign markets at prices lower than those in the producer's home market or at prices lower than cost. d. None of the above

c. Selling products in foreign markets at prices lower than those in the producer's home market or at prices lower than cost.

Hard currency is... a. Widely traded globally and not trusted b. Traded domestically and trust c. Widely traded globally and widely trusted d. Traded domestically and no trusted

c. Widely traded globally and widely trusted

Which is not an international pricing strategy? a. Pricing at a premium to the market b. Pricing on a cost-plus basis c. You don't need an international pricing strategy d. Target pricing

c. You don't need an international pricing strategy

What is foreign exchange hedging? a. Trimming your bushes in a different country b. Specific financial products c. techniques used by firms operating internationally to reduce or eliminate foreign exchange risk. d. None of the above

c. techniques used by firms operating internationally to reduce or eliminate foreign exchange risk.

What is not a product-specific factor? a) Demand b) Price and the product life cycle c) Price and the product line d) Item Selection

d) Item Selection

What is not a type of payment method? a. Documentary collection b. Letter of credit c. Cash in advance d. All are types of transfer pricing

d. All are types of transfer pricing

Currency inconvertibility includes... a. Offset b. Buyback c. Switch trading d. All of the above

d. All of the above

International pricing strategies include... (chapter 12, slide 2) a. Firm-level factors b. Market-specific factors c. Product specific factors d. All of the above

d. All of the above

What factors play into International Pricing Strategies? a. Firm-level factors b. Market-specific factors c. Product-specific factors d. All of the above

d. All of the above

What is a factor of international pricing? a. Firm-Level factors b. Market-Specific Factors c. Product-Specific Factors d. All of the above

d. All of the above

Which of the following are factors of International pricing strategies? a. Firm-level factors b. Market-specific factors c. Product-specific factors d. All of the above

d. All of the above

Which of the following is included in the product-specific factors section in order to set prices internationally? a. Demand b. Life cycle stage c. Product line d. All of the above

d. All of the above

Which of the following is not one of the three primary means of transfer pricing? a. Transfer at manufacturing cost b. Transfer at arm's length c. Transfer at cost plus d. All of the above

d. All of the above

Which of these are a part of price and firm cost structure a. manufacturing cost and service deliveries b. Marketing costs c. Shipping and transportation costs d. All of the above

d. All of the above

Which is a factor in international pricing? a. Relating price to the firm's costs and profit goals b. Evaluating customer's ability to buy in various country markets c. Analyzing the need to coordinate pricing in various foreign markets d. All the above

d. All the above

What is not a primary mean of transfer pricing? a. Transfer at manufacturing cost b. Transfer at arm's length c. Transfer at cost-plus d. All the above are transfer pricing

d. All the above are transfer pricing

Selling products in foreign markets at prices lower than those in the producer's home market or at prices lower than cost. a. Penetration pricing b. Transfer pricing c. Target pricing d. Dumping

d. Dumping

Setting high prices to trade off lower sales volumes with higher profit margins is known as? a. Market penetration b. Market trade-off c. Market swapping d. Market skimming

d. Market skimming

In open account sales: a. The seller utilizes a foreign bank to collect payment for a transaction b. The exporter retains ownership until the importer sells the goods c. The bank commits to pay the seller if the terms of the letter of credit are fulfilled d. The goods purchased are not paid for prior to shipment, but 30, 60, or 90 days after

d. The goods purchased are not paid for prior to shipment, but 30, 60, or 90 days after

What is Gray Marketing? a. The authorized importing and selling of products intended for one market in another high-priced market. b. Shipping and transportation in a high-priced market. c. Pricing policy that involves setting prices at a high level to trade off lower sales volumes with higher margins per unit sold d. The unauthorized importing and selling of products intended for one market in another higher-priced market.

d. The unauthorized importing and selling of products intended for one market in another higher-priced market.

What is Gray Marketing? a. Pricing policy that involves setting prices at a high level to trade off lower sales volumes with higher margins per unit sold. b. Pricing policy that involves setting prices at a low level to trade off higher sales (attracting a larger number of consumers) with lower margins per unit sold. c. Pricing may reflect maximizing profits over the entire product life cycle rather than at each and every stage of the product's life. d. The unauthorized importing and selling of products intended for one market in another higher-priced market.

d. The unauthorized importing and selling of products intended for one market in another higher-priced market.

What are types of payment methods? a. Open account b. SWIFT c. Cash in advance d. Transfer pricing

d. Transfer pricing

What is the grey market? a. Authorized selling of product b. Authorized importing of products c. Authorized selling and importing of product d. Unauthorized importing and selling of products

d. Unauthorized importing and selling of products

Which term describes the costs directly related to the marketing and selling of a product? a. Grey marketing b. Penetration pricing c. Market skimming d. Varied costs

d. Varied costs

Which of the following is an international pricing strategy? a. Market share pricing b. Pricing on a cost-plus basis c. Pricing at a premium to the market d. Target pricing e. All of the above

e. All of the above