Question 1

____________________ is the umbrella term that encompasses the trading or exchange of goods or services without using currency.

Accepted Answer

A)  Currency swap 
B)  Non-financial exchange 
C)  Negotiated trade 
D)  Sovereign trade 
E)  Countertrade E

Question 2

When discussing transfer pricing, the ______________________ is based on the results of a hypothetical negotiation with an independent business partner.

Accepted Answer

A)  market-based transfer price 
B)  independent transfer price 
C)  assumed transfer price 
D)  arm's-length transfer price 
E)  negotiated transfer price D

Question 3

Which of these is NOT one of the four groups of international pricing decision factors?

Accepted Answer

A)  competitive factors 
B)  promotional factors 
C)  consumer factors 
D)  product factors and distribution factors 
E)  country factors B

Question 4

A(n) _________ of a domestic currency can stimulate exports and also create new market opportunities.

Accepted Answer

A)  weakening 
B)  increasing 
C)  strengthening 
D)  reduction 
E)  dollarization

Question 5

In a global context, the price that a product can gain in the market often determines its development. For example, in low income countries, price must be in line with _____.

Accepted Answer

A)  purchasing power 
B)  purchasing parity 
C)  borrowing power 
D)  promotional pricing 
E)  consumer logistics

Question 6

When determining a product's final price, all of the following should be taken into consideration EXCEPT______________.

Accepted Answer

A)  marketing expenses 
B)  variable costs 
C)  finance and bank charges 
D)  sunk costs 
E)  export-related charges

Question 7

An important variable to consider in pricing decisions is the ____ of the Product Life Cycle existing in ____ countries.

Accepted Answer

A)  validity; developing 
B)  stage; developing 
C)  stage; different 
D)  efficacy; different 
E)  generalizability; developing

Question 8

Why can the same product have different prices in two countries that are next to each other Why is this of concern to a marketer?

Accepted Answer

The answer of Why can the same product have different...

Question 9

Marketers work hard to establish value by setting a reasonable price that matches firm policies and objectives. Customers don't often care about that; they are interested in what the product will cost them. What are the elements of cost that a customer includes beyond the "sticker price" to develop the price that provides value to him or her?

Accepted Answer

The answer of Marketers work hard to establish value by...

Question 10

In some cases, exchange rate risk could be shifted to buyers if the buyer agrees to pay using the exporter's currency. However, there may not be a choice if the trade conventions are ____.

Accepted Answer

A)  reciprocal 
B)  non-standard 
C)  differentiated 
D)  undifferentiated 
E)  standard

Question 11

The __________ method focuses on setting prices by fixing a profit margin over established product costs and thus ensures a more stable, predictable profit.

Accepted Answer

A)  market-based 
B)  cost-based 
C)  skimming 
D)  penetration 
E)  centralized

Question 12

___________________ implies the same price position strategy across different markets.

Accepted Answer

A)  Price discounting 
B)  Full-cost pricing 
C)  Price standardization 
D)  Incremental-cost pricing 
E)  Price adaptation

Exam 11: Setting Global Prices