Question : 71) Which type of countertrade arrangement required by governments seeking : 1353418

71) Which type of countertrade arrangement is required by governments seeking to reduce the budgetary impact of expenditures for defense or telecommunications?

A) barter

B) switch trading

C) offset

D) compensation trading

E) none of the above

72) If a company’s home currency strengthens, it is:

A) a favorable turn of events for the typical exporter.

B) an unfavorable turn of events for the typical exporter.

C) a favorable turn of events since the revenues increase in home currency.

D) an unfavorable turn of events for exporter’s home country.

E) neither favorable nor unfavorable turn of events for the typical exporter.

73) To win a contract to supply the United Kingdom with AWACS military aircraft, Boeing agreed to purchase products from the United Kingdom whose value was equivalent to 130% of the contract. This type of pricing arrangement, which is common when the customer is a foreign government and the product has military applications, is known as:

A) barter.

B) switch trading.

C) compensation trading.

D) offset.

E) dumping.

74) Givenchy and Christian Dior’s Dune fragrance are two of the luxury perfume brands that are sometimes diverted from authorized channels for sale at mass-retail outlets. This practice is referred to as:

A) barter.

B) switch trading.

C) gray market.

D) offset.

E) dumping.

75) Suppose that World Corp. signs a contract to build a lumber processing plant in Siberia. If World Corp. signs a second contract agreeing to take partial payment for the plant in the form of lumber products produced at the plant, it is engaging in:

A) barter.

B) switch trading.

C) offset.

D) compensation trading.

E) a hybrid countertrade arrangement.

76) When one of the parties to a barter transaction is not willing to accept the goods included in the transaction, that party is likely to utilize the services of a:

A) switch trader.

B) Foreign Trade Organization.

C) Foreign Sales Corporation.

D) Mittelstand owner.

E) broker.

77) The country which has the highest rates of value-added tax (VAT) in the European Union is:

A) Germany.

B) Italy.

C) France.

D) Denmark.

E) Switzerland.

78) Despite the high expenses associated with operating elegant stores and purchasing advertising space in upscale magazines, the premium retail prices that luxury goods like Louis Vuitton command translate into handsome profits. The Louis Vuitton brand alone accounts for 60% of LVMH’s operating profit. On the other hand, Louis Vuitton spends $10 million annually battling:

A) EU regulations.

B) counterfeiters in countries such as Turkey, South Korea, & Italy.

C) competitors in European countries.

D) suppliers of needed materials.

E) export freight and taxes.

79) Luxury good marketers found a new way to combat gray market imports into the United States. In March 1995, the U.S. Supreme Court let stand an appeals court ruling prohibiting a discount drugstore chain from selling Givenchy perfume without permission. The distinctive packaging of the perfume is also protected by the U.S. Copyright law. The ruling implies that:

A) Givenchy can only be sold in copyrighted packages.

B) Costco and Walmart will no longer be able to sell Givenchy.

C) Costco and Walmart will be able to sell Givenchy with authorization.

D) gray marketers will be able to market with authorization.

E) discount drugstores cannot market a product resembling Givenchy’s perfumes.

80) One of the reasons why the initial enthusiasm for OLPC [one laptop per child] did not translate into firm commitments for orders was:

A) the computer XO was not rugged enough to handle heavy use and abuse.

B) the computer XO was not dust and water proof, dust being a major problem in many countries.

C) the higher price of computer XO.

D) the images were bright even in sunlight.

E) the computer XO did not have Wi-Fi community.