Reference no: EM132287507

1. Which of the following is not among the most common types of driving forces?

Product innovation, marketing innovation, and increasing globalization of the industry

Changes in the long-term industry growth rate, changes in who buys the product and how they use it, and growing buyer preferences for differentiated products

Changes in interest rates, changes in the number of seller-supplier collaborative alliances, and changes in overall industry profitability

Emerging new Internet applications and capabilities, technological change, and the diffusion of technical know-how across more companies and more countries

Changes in cost and efficiency, the entry or exit of major firms, and changing societal concerns, attitudes, and lifestyles

2. Leonora is an Italian cell phone manufacturer. After exploring the Italian and U.S. markets, the company is now interested in selling its products in Argentina. Company executives are currently debating whether to price its cell phones in Argentina higher than what it charges its current consumers in Italy and the U.S. Leonora plans to set up a subsidiary to oversee its Argentina operations.

Which of the following, if true, would weaken the argument for a price higher than what current customers are charged?

A The Argentinian government charges significant tariffs on all imported consumer electronics.

B Argentinian consumers do not perceive Leonora’s offerings as premium products.

C Leonora was accused of ethics violations when it sold its products for cut-rate prices in the U.S.

D Research shows that Argentinian consumer spending on electronics is increasing.

E The affluent segment of the Argentinian market has increased steadily over time.

3. In an effort to increase profitability, a large company producing personal care products like toothpaste, deodorant and shampoo wants to export its newest products to foreign markets. Some executives in the company are reluctant to pursue this option because of possible differences in personal care practices around the world. The president of the company admits that there are variations in culture, but he has faith that their products are the best on the market, domestic or foreign, which should, he says, make them the most attractive products on the market.

Which situation, if true, most hinders the company’s exportation possibilities?

A This company’s products are not the most attractive products on the market.

B Legislation making personal care products analogous to pharmaceutical products, and therefore heavily regulated, were recently passed.

C This company’s products are not the highest-quality ones on the market.

D Residents of other countries believe that the personal care products made by this company are the best, albeit the most expensive, on the market.

E Some residents of other countries have a bias that the products made by this company are worse than other products locally available.

4. A transaction in which one company sells to another its obligation to purchase something in a foreign country is known as ________.

A offset

B buyback

C barter

D switch trading

E counter purchase

5. Imagine that your company has designed and built a factory that manufactures motorcycles in a foreign country. As payment, your company receives motorcycles built in that factory that are then sold in other foreign markets. This scenario best illustrates ______.

A a back-to-back transaction

B a compensation deal

C a barter

D a counterpurchase

E a buy-back agreement

6. Cindy manages a transatlantic shipping company. She has been approached by a Spanish company, which would like to hire her to transport its goods to a customer in the United States. What document should Cindy procure so she can prove that she was authorized to transport Spanish goods to U.S. ports?

A a commercial invoice

B a certificate of origin

C a letter of credit

D a bill of lading

E a certificate of origin

7. In Country X, the rate of production of goods is steadily rising, while the rate of exporting is staying steady. While some government officials want to capitalize on the rising production by increasing exports to enhance the financial stability of the country, others want to keep the goods in the country. The president has passed a law that offers subsidies to companies that increase their export rate by more than 10% in the coming year.

Supporters of increasing exports to increase financial stability base their position on which of the following assumptions?

A The importation business is strong.

B Increased exports result in increased revenue

C Other countries want to import goods to Country X.

D Other countries are willing to pay the same price for the goods as is paid on the national market.

E The majority of U.S. citizens support both importation and exportation.

8. Which of the following is the definition for arbitrageurs?

A This sort of importer looks for products around the world that it can import and profitably sell to local citizens.

B This sort of importer uses foreign sourcing to optimize, in terms of price or quality, the inputs fed into a supply chain.

C This sort of importer has filled unsolicited orders from foreign buyers but it passively, if at all, investigates international trade options.

D This sort of importer looks to foreign sourcing to get the highest-quality product at the lowest possible price.

E This sort of company commands little to no knowledge about importing.

9. You work in a large agricultural firm that ships grain overseas to foreign markets. They take the grain and make quality baked goods that they send back to you for sale in lieu of payment. Which type of system is this?

A barter

B open account

C counterpurchase

D buy-back

E payment in advance