Question : 41) All of the following activities must be performed when : 1353415

 

41) All of the following activities must be performed when goods cross international boundaries except:

A) obtaining currency permit, if required.

B) packaging the goods for export.

C) using cost-based pricing method.

D) arranging for ocean freight and preparation.

E) obtaining marine insurance and certificate of the policy.

42) A manufacturer attempting to set prices for its products in export markets must realize that CIF, VAT, and distributor markup all lead to:

A) currency devaluations.

B) dumping charges.

C) market skimming.

D) price escalation.

E) market penetration.

43) The following activities must be performed when goods cross international boundaries except:

A) obtaining currency permit.

B) packing goods for export.

C) transporting the goods.

D) preparing a land bill of lading.

E) receiving payments.

44) If a distributor’s margins are based on the “landed” price of an import shipment, they will be based on:

A) ex-works price.

B) transportation costs.

C) insurance costs.

D) VAT.

E) all of the above

45) Coffee bearing the Fairtrade label signifies that the coffee is:

A) sponsored by an organization that supports price decisions.

B) pure and free of contamination and grown organically.

C) purchased with no taxes and duties paid to exporters.

D) donated by a Catholic organization to its members.

E) purchased with farmers getting a fair share based on the quality.

46) Which of the following does not contribute to price escalation in global marketing?

A) shipping and insurance charges

B) value added taxes (VAT)

C) different Incoterms as incentives

D) duties and tariffs

E) fluctuating exchange rates

47) In July 2001, the euro’s value relative to the dollar was about €1.00 = $0.85. By November 2009, the euro had strengthened to €1.00 = $1.48. In February 2012, one euro was equal to $1.33. All other things being equal, if a European-based global company wants to preserve margins for goods exported to the U.S. market, the company should:

A) raise prices in dollars.

B) switch to cost-based pricing.

C) adopt a policy of market penetration pricing.

D) reduce prices in dollars.

E) use skimming pricing.

48) Which of the following would not be used by an exporter with a weak home-country currency?

A) Expand product line and add more costly features.

B) Speed repatriation of foreign-earned income.

C) Buy advertising, insurance, and other services in home-country market.

D) Shift sourcing outside home-country market.

E) Exploit marketing opportunities in all markets.

49) Suppose a company selling in various country markets makes statements such as “we know what the customer wants, and he or she will have to pay for it.” This is an indication of a(n) ________ approach to setting prices.

A) ethnocentric

B) polycentric

C) regiocentric

D) geocentric

E) adaptation

50) All of the listed advantages are for “Extension or Ethnocentric” pricing strategy except:

A) it does not respond to the competitive and market conditions of each national market.

B) it calls for the per-unit price of an item to be the same all over the world.

C) it is extremely simple since it does not require information on market condition.

D) it does not require competitive conditions for implementation.

E) the importer must absorb freight and import duties.

 

 

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