Question 1

Exporting has an advantage compared to other types of international involvement, because it is usually easier to drop or change arrangements as the firm's needs change.

Accepted Answer

A) True 
 B)False

Question 2

In Europe, auto manufacturers are required by law to allow owners of their brands to give the cars back to the manufacturers at the end of their useful life. The manufacturers must then recycle and reuse at least 85 percent of any vehicle made after 2004. This is an example of a(n):

Accepted Answer

A)  Integration law 
B)  Horizontal law 
C)  Contractual law 
D)  Vertical law 
E)  Take back law

Question 3

Administered and contractual channel systems are vertical marketing systems which depend on informal agreements--or contracts between channel members--to cooperate.

Accepted Answer

A) True 
 B)False

Question 4

Most traditional channel systems don't have a channel captain.

Accepted Answer

A) True 
 B)False

Question 5

Intermediaries are needed LEAST when the desired degree of market exposure is:

Accepted Answer

A)  intensive. 
B)  ideal. 
C)  selective. 
D)  exclusive. 
E)  none of these choices is correct.

Question 6

The Internet gives large firms access to repeat customers, but it does little for small firms trying to develop an initial base of customers.

Accepted Answer

A) True 
 B)False

Question 7

Place decisions make goods and services available in the right quantities and locations, when customers want them.

Accepted Answer

A) True 
 B)False

Question 8

Midwest Tools, Inc. of Indianapolis, Indiana owns a plant in Poland for manufacturing and selling machine tools in Europe. This type of international involvement is called:

Accepted Answer

A)  management contracting. 
B)  licensing. 
C)  a joint venture. 
D)  a direct investment. 
E)  multichanneling.

Exam 10: Place and Development of Channel Systems

Exporting has an advantage compared to other types of international involvement, because it is usually easier to drop or change arrangements as the firm's needs change.

In Europe, auto manufacturers are required by law to allow owners of their brands to give the cars back to the manufacturers at the end of their useful life. The manufacturers must then recycle and reuse at least 85 percent of any vehicle made after 2004. This is an example of a(n) :

Administered and contractual channel systems are vertical marketing systems which depend on informal agreements--or contracts between channel members--to cooperate.

Most traditional channel systems don't have a channel captain.

Intermediaries are needed LEAST when the desired degree of market exposure is:

The Internet gives large firms access to repeat customers, but it does little for small firms trying to develop an initial base of customers.

Place decisions make goods and services available in the right quantities and locations, when customers want them.

Midwest Tools, Inc. of Indianapolis, Indiana owns a plant in Poland for manufacturing and selling machine tools in Europe. This type of international involvement is called: