Deck 8: Importing,exporting,and Sourcing

Question 1

What are some of the advantages of exporting and what is needed to be successful in export marketing?

Answer 1

Studies show that export procedural expertise and sufficient corporate resources are required for successful exporting. ^{<\sup>An interesting finding was that even the most experienced exporters express lack of confidence in their knowledge about shipping arrangements,payment procedures,and regulations.The study also showed that,although profitability is an important expected benefit of exporting,other advantages include increased flexibility and resiliency and improved ability to deal with sales fluctuations in the home market.Although research generally supports the proposition that the probability of being an exporter increases with firm size,it is less clear whether export intensity-that is,the ratio of export sales to total sales-is positively correlated with firm size.}

Question 2

The only marketing mix element that is applicable in export selling is:

A)price.
B)product.
C)promotion.
D)place.
E)process.

Answer 2

D

Question 3

Export marketing is the integrated marketing of goods and services that are destined for customers in international markets.What does the marketing require?

Answer 3

Export marketing targets the customer in the context of the total market environment.The export marketer does not simply take the domestic product "as is" and sell it to international customers.To the export marketer,the product offered in the home market represents a starting point.It is then modified as needed to meet the preferences of international target markets.In order to formulate a good exporting strategy the following points should be considered:
1.An understanding of the target market environment
2.The use of marketing research and identification of market potential
3.Decisions concerning product design,pricing,distribution channels,advertising,and communications-the marketing mix.
The export marketer should also set prices to fit the marketing strategy and does not merely extend home-country pricing to the target market.Charges incurred in export preparation,transportation,and financing must be taken into account in determining prices.Finally,the export marketer also adjusts strategies and plans for communication and distribution to fit the market.In other words,effective communication about product features or uses to buyers in different export markets may require creating brochures with different copy,photographs,or artwork.

Question 4

Which of the following is not true about a personal visit to size up the market firsthand and begin the development of an actual export-marketing program?

A)confirm assumptions regarding market potential
B)contradict assumptions regarding market potential
C)gather additional data to help make decisions
D)develop a marketing plan in cooperation with local agents
E)arrange a face-to-face meeting and avoid going to trade shows

Question 5

Research discovered that even the most experienced exporters express lack of confidence in their knowledge about shipping arrangements,payment procedures,and regulations.

Question 6

After the research effort has zeroed in on potential markets,marketers should:

A)work on understanding the target market environment.
B)modify methods used for marketing research.
C)identify products that can be marketed.
D)make decisions concerning product design.
E)plan a personal visit.

Question 7

Paris is widely regarded as the design capitol of the world,where the world's largest furniture and home furnishings trade fair took place in 2016.

Question 8

Research has shown that exporting is essentially a developmental process that proceeds in different stages.Before a firm reaches stage 4,it must do which one of the following activities?

A)explore the feasibility of exporting
B)commit resources for exporting
C)receive unsolicited export orders
D)believe in attractiveness of exporting
E)build confidence in firm's ability for exporting

Question 9

The possible arrangements of the responsibilities for handling exports include all of the following except:

A)as a part-time activity performed by domestic employees.
B)through an export partner affiliated with the domestic marketing structure.
C)through an export department within an international division.
D)through an export department that is independent of the domestic marketing structure.
E)through an export department of an embassy in a foreign country.

Question 10

After research has zeroed in on potential markets,there is no substitute for a personal visit to size up the market firsthand and begin the development of an actual export-marketing program.

Question 11

Governments in Japan,Singapore,South Korea,and China have supported exports for years,which have tremendously helped their economies.Since exporting is a very important component of a country's business strategy,many government programs are offered that support exports.Describe ways by which governments can support exports.

Question 12

Exports from China have grown significantly in the years since China joined the World Trade Organization (WTO).

Question 13

"Tariff" is an ancient trading term derived from the Arabic word "ta'rif",which means "information" or "notification."

Question 14

Even today,the managerial mind-set in many companies still favors export selling rather than export marketing.

Question 15

"Export selling" involves tailoring various elements of the marketing mix to global market requirements.

Question 16

The export marketer takes the domestic product "as is" and sells it to international customers.

Question 17

The advantages of a market visit include all of the following except:

A)confirm market potential.
B)contradict market potential.
C)gain confidence in firm's ability for exporting.
D)gather additional data to reach final decision.
E)build confidence in firm's ability for exporting.

Question 18

The terms "export selling" and "export marketing" are interchangeable.

Question 19

Export marketing requires all of the following except:

A)an understanding of the target market environment.
B)the use of marketing research.
C)identification of market potential.
D)decisions concerning product design.
E)reaching retail customers.

Question 20

________ is the most important aspect of a company's international orientation.

A)Experience
B)Commitment
C)Dynamism
D)Confidence
E)Cooperation

Question 21

Developed under the auspices of the Custom Cooperation Council (now the World Customs Organization)the system which took effect is referred to as:

A)preferential tariffs.
B)harmonized tariff.
C)BTN duty.
D)specialized tariff.
E)antidumping duty.

Question 22

Governments commonly use activities to support and encourage firms that engage in exporting.Such activities include all of the following except:

A)tax incentives.
B)subsidies.
C)export assistance.
D)free trade zones.
E)voting rights.

Question 23

A nontariff barrier (NTB)includes all of the following except:

A)quotas.
B)discriminatory procurement policies.
C)restrictive administrative policies.
D)restrictive technical regulations.
E)ad valorem duty.

Question 24

The top ranked country among those exporting apparels to the United States is:

A)Taiwan.
B)China.
C)Mexico.
D)India.
E)Honduras.

Question 25

In the last stage of the developmental process for exporting,a firm evaluates global market potential before screening for the "best" target markets to include in its marketing strategy and plan.

Question 26

Potential export problems include packaging,government red tape,warehousing,advertising,and trade restrictions.

Question 27

The four tigers-Singapore,South Korea,Taiwan,and Hong Kong-learned from the Japanese experience and built strong export-based economies of their own.

Question 28

What is the impact of tariffs imposed by U.S.Donald Trump's "America First" policy on imports of steel and aluminum?

Question 29

According to research,exporting is essentially a developmental process starting with the first stage when the firm exports to one or more markets on a trial basis.

Question 30

Exporting is considered as essentially a developmental process.What are the stages in which this process can be divided?

Question 31

The four tigers-Singapore,South Korea,Taiwan,and Hong Kong-learned from the ________ experience and built strong export-based economies of their own.

A)Chinese
B)Indian
C)German
D)American
E)Japanese

Question 32

Representatives of the apparel,footwear,and textile industries in many countries are deeply concerned about the impact that increased trade with China will have on these sectors.

Question 33

Which of the following was a major U.S.tax incentive for exporters that the WTO recently ruled was an illegal subsidy?

A)NTR
B)CVD
C)FSC
D)NTB
E)HTS

Question 34

Representatives of the apparel,footwear,furniture,and textile industries in many countries are deeply concerned about the impact that increased trade with ________ will have on these sectors.

A)Hong Kong
B)China
C)Italy
D)India
E)Bangladesh

Question 35

The so-called "China triangle" includes:

A)Hong Kong,Republic of China,and Singapore
B)Republic of China,Taiwan,and Hong Kong
C)Republic of China,Taiwan,and South Korea
D)Taiwan,Hong Kong,and Republic of China
E)Singapore,China,and Republic of China

Question 36

The export and import process can entail red tape and bureaucratic delays.In an effort to facilitate exports,countries are designating certain areas as:

A)import control zones.
B)special tariff zones.
C)global business zones.
D)free trade zones.
E)duty free zones.

Question 37

The Ministry of International Trade and Industry (MITI)has helped devise export strategies for companies in:

A)Singapore.
B)South Korea.
C)Taiwan.
D)Hong Kong.
E)Japan.

Question 38

Agricultural subsidies are particularly controversial because,although they protect the interests of farmers in some countries,they work to the detriment of farmers in countries such as:

A)Singapore.
B)the United States.
C)India.
D)Switzerland.
E)Japan.

Question 39

After recovering from the destruction of its economy during World War II,________ became an economic superpower as a direct result of export strategies.

A)Hong Kong
B)China
C)Italy
D)Japan
E)Germany

Question 40

Any government concerned with trade deficits or economic development should focus on educating firms about the potential gains from exporting.

Question 41

The Harmonized Tariff System (HTS)has eliminated virtually all problems associated with assigning tariff classifications to new products.

Question 42

Some Italian food brands are well known throughout the world;however,these foods are not globally exported.Describe the reasons giving examples.

Question 43

Which of the following is described as the three Rs of global business: rules,rate schedules,and regulations?

A)quotas
B)tariffs
C)NTBs
D)NTR
E)duties

Question 44

A nontariff barrier (NTB)is a hidden trade barrier that is a deterrent or obstacle to the sale of products in a foreign market.

Question 45

A duty that represents a certain percentage of the value of a particular product is a(n):

A)specific duty.
B)ad valorem duty.
C)BTN duty.
D)"schedule B" duty.
E)antidumping duty.

Question 46

Sweden applies a system to certain categories of imported agricultural products referred to as:

A)temporary surcharges.
B)ad valorem duty.
C)variable import levies.
D)specific duty.
E)countervailing duty.

Question 47

The United States has given normal trade relations (NTR)status to some 180 countries.In actuality only four countries are excluded from this status which includes all of the following countries except:

A)North Korea.
B)Iraq.
C)Iran.
D)Cuba.
E)Libya.

Question 48

Which of the following types of duties would be imposed on a company whose home-country government provides export subsidies?

A)ad valorem duty
B)countervailing duty
C)antidumping duty
D)specific duty
E)customs duty

Question 49

Tariffs can be thought of as the "three Rs" of global business: rules,rigor,and regulations of individual countries.

Question 50

Overall,Italy's retail sector has pursued very little international expansion;by contrast,other European supermarket chains such as Tesco (UK),Metro (Germany),and Carrefour (France)took local products and brands with them as they expanded around the globe.

Question 51

According to the recent import regulations in the United States,action figures that represent non-human creatures such as monsters or robots are categorized as toys and qualify for lower duties than human figures that are classified as dolls.

Question 52

The Fly American Act is an example of a nontariff barrier.

Question 53

The Harmonized Tariff System (HTS)is currently the dominant system for determining the correct classification number.

Question 54

Why does the tariff system vary from country to country? Explain,giving examples of tariffs imposed by the United States with particular emphasis on preferential tariffs.What are the conditions under which GATT allows the use of preferential tariffs?

Question 55

Tax incentives,subsidies,export assistance,and free trade zones are common support provided by governments to firms that engage in exporting.

Question 56

Governmental actions at times are designed to discourage imports and block market access.Why do governments want to curtail imports? Explain some of the barriers that are placed to discourage imports.

Question 57

The sale of merchandise in export markets at unfair prices is known as:

A)dumping.
B)countervailing.
C)tariff.
D)ad valorem.
E)transaction.

Question 58

The Common Agricultural Policy (CAP)determines the level of subsidies granted to farmers in Latin America.

Question 59

In an effort to facilitate exports,countries are designating certain areas as "free trade zones" (FTZ)or "special economic zones" (SEZ).

Question 60

When Honda's U.S.manufacturing subsidiaries purchase parts from Japan,customs authorities in the United States have the right to scrutinize the transfer price to make sure it is a fair reflection of market value.

Question 61

Which of the following can be referred to as a "buyer for export" or an "export commission house" and operates on behalf of a buyer from a foreign country?

A)foreign purchasing agent
B)export broker
C)export merchant
D)export management company
E)freight forwarder

Question 62

An ad valorem duty is expressed as a percentage of the value of goods.

Question 63

Foreign purchasing agents are also referred to as jobbers.

Question 64

________ is an independent marketing intermediary that acts as the export department for two or more manufacturers whose product lines do not compete with each other.

A)Manufacturer's export agent
B)Export commission representative
C)Export merchant
D)Export management company
E)Cooperative exporter

Question 65

Which of the following receives a fee for bringing together an exporter and a buyer in another country?

A)foreign purchasing agent
B)export broker
C)export merchant
D)export management company
E)freight forwarder

Question 66

The possible arrangements for handling exports include all of the following except:

A)as a part-time activity performed by domestic employees.
B)through an export partner affiliated with the domestic marketing structure that takes possession of the goods before they leave the country.
C)as a low-cost arrangement requiring no additional personnel.
D)through an export department within an international division.
E)for multidivisional companies,each of the preceding options is available.

Question 67

The MEA can act as an export distributor or as an export commission representative.However,the MEA does not perform the functions of an export department,and the scope of market activities is usually limited to a few countries.

Question 68

How can restrictive administrative and technical regulations create barriers to trade?

Question 69

"Piggyback exporter," "cooperative exporter," and "export vendor" are all terms used to describe an export broker.

Question 70

________ are variously referred to as buyer for export,export commission house,or export confirming house.

A)Export brokers
B)Export merchants
C)Foreign purchasing agents
D)Export managers
E)Manufacturer's agents

Question 71

Direct representation,as opposed to representation by independent intermediaries,for exporting by the market country has several advantages which do not include:

A)facilitates control and communications.
B)allows decisions concerning program development and resource allocation.
C)benefits when a product is not yet established in a market.
D)ensures marketer's interest and special efforts.
E)helps sell products directly to the consumer in the market country.

Question 72

What are customs duties? How do they work in controlling imported goods?

Question 73

________ is sometimes called a mother hen,a piggyback exporter,or an export vendor.

A)Export broker
B)Export merchant
C)Cooperative exporter
D)Export manager
E)Manufacturer's agent

Question 74

What are some of the entities that an exporter should be familiar with? Describe and explain the role played by each of these entities,separating those that have responsibilities from exporters from those that have no responsibilities from the exporters.

Question 75

What are the differences between antidumping and countervailing duties? Under what conditions are these duties imposed?

Question 76

CVDs are additional duties levied by exporting countries on imported videodiscs.

Question 77

Export management company (EMC)is an independent marketing intermediary that acts as the export department for two or more manufacturers (principals)whose product lines compete with each other.

Question 78

A company that assigns a sufficiently high priority to its export business will establish an in-house organization.It then faces the question of how to organize it effectively.

Question 79

________ are licensed specialists in traffic operations,customs clearance,and shipping tariffs and schedules.They can be considered as the travel agents for handling export goods.

A)Foreign purchasing agents
B)Export brokers
C)Export merchants
D)Freight forwarders
E)Cooperative exporters

Question 80

A licensed forwarder receives brokerage fees or rebates from a(n)________ for booked space.

A)foreign purchasing agent
B)export broker
C)export merchant
D)export management company
E)shipping company