Reference no: EM133299302
Questions
1. Which of the following is a major responsibility of the U.S. Customs Service?
a. to operate foreign trade zones
b. to certify maquiladoras
c. to clear goods for entry into the U.S.
d. to determine cultural differences in other countries that might affect the ability of U.S. firms to do business there
2. Areas designated by the government to delay or avoid taxes are
a. foreign trade zones
b. free trade areas
c. economic communities
d. maquilidoras
3. The international marketer is not concerned about
a. The role of government in an economy
b. Foreign investment in an economy
c. Climate in a country
d. The international marketer is concerned with all of these
4. A marketing orientation by the firm would indicated ______ pricing by the exporter.
a. Ex-Factory
b. f.o.b.
c. f.a.s.
d. c.i.f.
5. Common payment methods are: 1. Cash in Advance 2. Consignment 3. Open Account 4. Time or Sight Drafts (Bill of Exchange). The order of decreasing attractiveness to the exporter would be:
a. 1,2,3,4
b. 1.4.3.2
c. 1,3,2,4
d. 1,4,2,3
6. Suppose a product is sold by an exporter for $100, the mark up by the importer is 50%, a tariff duty is imposed of 20 percent ad valorem and paid by the importer. For how much will the importer sell it?
a. $170
b. $200
c. $180
d. $150
7. The European Community (EC), in all of its dimensions, is currently an example of
a. a customs union
b. a free trade area
c. an economic union
d. a common market
8. Which of the following exists in a free trade area?
a. no tariffs among the members
b. a common external tariff
c. a common currency
d. a common language
9. The commitment of resources to one foreign locale may result in foregoing projects in other countries because
a. factor endowment relationships are altered in the process of making a commitment
b. firms seldom have sufficient resources to take advantage of all the opportunities apparent to them
c. regulations of many common markets require companies to forego multiple production locations.
10. Which of the following would ordinarily be classified as a political risk?
a. a change in the exchange rate
b. price competition from a government owned competitor
c. government approval of a competitor's investment in the same market
d. government requirement to switch the purchase of materials from an imported to a domestic source
11. The marketing philosophy "We make what we sell" is most likely useful when the foreign country
a. has a small market potential, and there is very formidable competition for the company's existing product line in that country
b. has a small market potential, and there is little competition for the company's existing product line in that country.
c. is growing rapidly, but there are formidable competitors for the company's existing product line in that foreign country
d. is growing rapidly, and there is little competition for the company's existing product line in that country.
12. Pull as opposed to push in the promotion mix is most apt to take precedence when
a. the price of a product is high relative to income
b. there are fewer self service sales
c. there are few governmental regulation on advertising
13. Which is the following is a major responsibility of the U.S. Customs Service?
to operate foreign trade zones
to certify maquiladoras
to clear goods for entry into the U.S.
to determine cultural differences in other countries that might affect the ability of U.S. firms to do business there
14. Which of the following can be accomplished with a foreign trade zone?
a. Foreign goods can be processed and transshipped abroad, avoiding import tariffs
b. Domestic goods can be moved into the zone in order to achieve export status and avoid having to pay import duties
c. Foreign goods can be stored there before sale in the United States and be declared ineligible for import duties
d. Domestic goods can be moved into the zone to achieve import status prior to their actual use.
15. Transfer pricing
a. is the pricing strategy on inventory sold between related entities
b. can make it easier to evaluate performance among different subsidiaries of the same parent company
c. is the pricing strategy on goods transferred from one country to another between companies that are not linked together in ownership
d. is not influence by the external environment since it is based on goods bought and sold internal to the organization.