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Parallel imports are the basis of;
a. the gray market
b. counterpurchasing
c. countertrading
d. barter

Under which of the following pricing approaches is the marketer only concerned with the marginal or incremental cost of producing goods to be sold in foreign markets?
a. skimmimg pricing
b. penetration pricing
c. full cost pricing
d. variable cost pricing

Which of the following pricing approaches is MOST likely to result in a firm being accused of dumping?
a. skimming
b. full cost pricing
c. variable cost pricing
d. gray market pricin

Fitzgerald-Paire inc. views pricing as a tool for achieving long term profits, building market share quickly, and delaying/ restricting competitive entry. The company is MOST likely to favour;
a. penetration pricing
b. price skimming
c. prestige pricing
d. gray market pricing

The disproportionate difference in price between the exporting country and the importing country is called;
a. price escalation
b. price destabilization
c. price stagnation
d. price rationalization

F-P Inc. carefully studies the tax structures of each of its client countries and is careful to describe its products in terms that would place them in one of the more "favorable" tax categories. The firm is trying to reduce the costs of international marketing by;
a. lowering the cost of goods
b. lowering distribution costs
c. lowering the tariff rates charged on its products
d. lowering margins

A tax-tree area that is not considered to be part of a country as far as import regulations are concerned is called a(n);
a. MNC
b. FTZ
c. SRC
d. NEC

Products sold below their cost of production or below their cost in the domestic market are said to have been;
a. gray marketed
b. dumped
c. bartered
d. countertraded

The DIRECT exchange of goods between the parties in a business transaction is called;
a. compensation trading
b. counter purchase
c. buy-back
d. barter trading

ALL of the following are reasons for buyers to impose countertrade obligations on sellers EXCEPT;
a. To preserve hard currency resources
b. to improve the balance of trade
c. to gain access to new markets
d. to lower the prices of exported goods.

The decision to standardize or modify advertising messages accross countries should be based on;
a. consumer buying motives
b. media costs
c. product price
d. message length

A global advertising strategy with a standardized basic message that can be modified to accommodate local situations is at the core of;
a. tailored advertising
b. market advertising
c. pattern advertising
d. new-wave advertising

One important reason for uniform promotional packaging accross country markets is the possibility for;
a. language homogenization
b. cost savings
c. cultural sensitivity
d. cost averaging

Fitzgerald-Paire Inc. sells to a small "niche" of consumers in many different countries whose needs can be satisfied by essentially the same product. The company is making use of;
a. global market segments
b. world citizens
c. multi-domestic segmentation
d. market expansion

Effective advertising communication in the international market must ALWAYS overcome barriers associated with;
a. bans on comparative advertising
b. the taxation of media
c. language differences
d. prohibition of nudity

The international advertiser must be a student of culture because the culture of a nation has a major impact on;
a. the way a message is percieved
b. media cost
c. media availability
d. consumer access to media

Which of the following media is especially useful in less developed countries with high illiteracy rates?
a. magazines
b. newspapers
c. radio
d. direct mail

Which of the following media is generally the LEAST regulated medium in most markets?
a. The internet
b. television
c. satellite T.V.
d. radio

Short term efforts directed to the consumer and/ or retailer to encourage trial use, immediate purchase, store patronage or inventory stocking, or to enhance the impact of other components of the promotional mix for the basis of;
a. advertising
b. Public Relations
c. personal selling
d. sales promotion

International communication may fail due to;
a. inadequate media
b. cultural barriers
c. lack of market understanding
d. all of the above

Exchange permits, quotas, import licenses, boycotts, standards and voluntary aggreements are all examples of :
a. harmonization codes
b. validation procedures
c. tariff barriers
d. non-tariff barriers

Tariffs set at a stipulated amount per unit weight or some other measure of quantity are called;
a. quantitative duties
b. specific duties
c. ad-valorem duties
d. value-added duties

Direct limitations on the quantity of certain goods that may be brought into a country during a specified period of time are set by the use of;
a. exchange rate restrictions
b. ad-valorem duties
c. quotas
d. boycotts

Under which of the following INCOTERMs is the buyer responsible for the cost of loading the goods on to the vessel, transportation and insurance?
a. CIF
b. FAS
c, FOB
d. DDP

Fitzgerald-Paire Inc. has traditionally required its customers to pay ALL costs associated with the exportation of its products. The company is utilizing which of the following terms of sale?
a. Ex Works
b. CIF
c. DDP
d. FOB

The Japanese distribution is characterized by all of the following EXCEPT;
a. many small wholesalers dealing with many small retailers
b. laws that protect the retailer ( The foundation of the system)
c. channel control by retailers
d. a business philosophy shaped by a unique culture

The middlemen who facilitate transactions, but do not take title to the goods they handle are called;
a. merchant middlemen
b. transactional middlemen
c. agent middlemen
d. local distributors

Middlemen who take title to the goods they handle are called;
a. agent middlemen
b. merchant middlemen
c. transactional middlemen
d. functional middlemen

F-P Inc. has a small international volume and is not willing to involve its own personnel or capital in the international function. The firm may achieve its goals by using a(n);
a. export management company
b. international marketing department
c. agent middleman
d. franchise agreement

The following are prerequsisits for successful piggybacking EXCEPT;
a. the product fits existing sales/ distribution channels
b. the product offers an attractive margin
c. the product is totally unrelated to the company's product line
d. the product is likely to be successful and profitable

Fitzgerald-Paire Inc. often employs middlemen whose only function is to put any potential foreign buyers in contact with the firm in return for a commission. The firm is using the services of a(n);
a. selling agent
b. manufacturers agent
c. broker
d. trading company

In the final analysis, the channel is ultimately controlled by the;
a. manufacturer
b. retailer
c. wholesaler
d. consumer

The basis for the evaluation of a middleman is typically;
a. his/her potential productivity
b. reputation
c. performane relative to an agreed sales minimum
d. managerial stability

Generally initial middlemen contracts should be for;
a. 3 years
b. an indefinite term
c. 5 years
d. 1 year

The single MOST essential means of motivating a middleman is the provision of:
a. adequate margins or commissions
b. recognition
c. communication
d. technical assistance

Firms that tend to emphasize cultural sensitivity are MOST likely to advocate:
a. standardized products
b. differentiated products
c. global brands
d. global marketing programs

The worldwide use of a name, term, sign, symbol or design, or combination thereof, to identify the goods and services of one seller and to differentiate them from other competing products is at the core of;
a. national branding
b. generic branding
c. global branding
d. domestic branding

"The Big, Wonderful, Dutch, Windmill, Tulip and Wooden Shoe Company" located in Amsterdam, and all other major urban areas of Holland, promises to feature only genuine Dutch products in its shops is an appeal to;
a. ethnocentrism
b. stereotyping
c. Belgian-bashing
d. a desire for low price/ low quality products

A product is BEST described as;
a. a tangible entity
b. a bundle of satisfactions
c. an intangible entity
d. the functional features

The goal of the marketer of an innovation is to;
a. delay competitive entry
b. minimize the use of advertising
c. avoid risk
d. speed up widespread adoption

Which of the following is NOT technically an innovation?
a. a continuous innovation
b. a congruent innovation
c. a dynamically continuous innovation
d. a discontinuous innovation

Fitzgerald-Paire Inc. is convinced that the primary factor in the success of an innovation is the product's ability to "fit in"with acceptable behaviour, norms and values of the target society. The firm is focusing on the innovation's;
a. complexity
b. observability
c. relative advantages
d. compatibility

Fitzgerald-Paire Inc. has decided to make significant capital investments in basic research to create new product technologies. TRhe firm is focusing on which of the following parts of the Total Product Model (Product Component Model)?
a. support services component
b. core component
c. packaging component
d. marketing mix component

Fitzy Co is developing a global brand and logo to identify all of the products it sells worldwide. The firm is focusing on which part of the Total Product Model (Product Component Model)?
a. support services
b. core
c. packaging
d. marketing mix

ABC International routinely emphasizes guarantees, warranties and post sale service as part of the introduction of any innovation. The firm is focusing on which of the following parts of the product component model?
a. support services component
b. core component
c. packaging component
d. marketing mix component

Fitzgerald-Paire Inc. views the world as its market, and seeks opportunities to develop a standardized marketing mix for entire sets of country markets. The firm is employing a:
a. Domestic Market Extension Concept
b. Multi-Domestic Marketing Concept
c. International Marketing Concept
d. Global Marketing Concept

Under a global market orientation, market segments;
a. reflect differences
b. identify customized markets
c. follow regional differences
d. reflect cross-cultural similarities

All of the following factors impede global standardization EXCEPT;
a. governmental and trade restrictions
b. differences in the availability of media
c. improved global communication
d. cultural differences

The first step in International marketing is ALWAYS;
a. adapting the marketing mix to target markets
b. developing the marketing plan
c. evaluation of potential markets
d. implementation and control

During which of the following stages of the marketing planning process are budgets, sales and profit expectations developed?
a. preliminary analysis and screening
b. adapting the marketiing mix to target markets
c. developing the marketing plan
d. implementation and control

Which of the following actions mark the END of the marketing planning phase?
a. conducting a situation analysis
b. selecting an entry mode and action plan
c. standardizing advertising
d. proposing the budget

Although Fitzgerald Ltd. does not actively seek international sales, the company regularly sells to foreign customers who place orders for their products. The firm is engaged in;
a. joint ventures
b. licensing
c. direct exporting
d. indirect exporting

In which of the following approaches to international marketing does a firm grant a foreign based company the right to use its intellectual property in return for the payment of royalties or fees?
a. exporting
b. licensing
c. joint ventures
d. direct foreign investment

In which of the following is a foreign company provided with a standard package of products, systems and management services in return for market knowledge, capital and personal involvement in management?
a. joint ventures
b. wholly owned subsidiaries
c. consortia
d. franchising

Which of the following methods of foreign market entry seeks to minimize the political and cultural risks by creating a legal partnership with a foreign firm?
a. joint venture
b. direct export
c. lecensing
d. franchising

A business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective is called a;
a. mutual venture
b. strategic offset
c. business partnership
d. strategic alliance