International Marketing Chapter 15
Showing posts with label International Marketing Chapter 15. Show all posts
Showing posts with label International Marketing Chapter 15. Show all posts

Which of the following is true of a physical distribution system?

Which of the following is true of a physical distribution system?



A. It involves only the physical movement of goods.

B. It is a total systems approach to the management of the distribution process.

C. A decision involving an activity has no impact on the cost and efficiency of one or all others.

D. It excludes the interdependence of the costs of each activity.

E. It includes transportation mode, inventory quantities, and packing.


Answer: E. It includes transportation mode, inventory quantities, and packing.

Apex Corporation is a wholesaler for Global Electronics in the French market. Global Electronics discovered that Apex Corp. was diverting some of their goods to the English market. Apex Corp. could get a greater profit in the English market because the goods were bought by the firm at a cheaper price in France. In the context of the above scenario, which of the following forms of business is Apex engaged in?

Apex Corporation is a wholesaler for Global Electronics in the French market. Global Electronics discovered that Apex Corp. was diverting some of their goods to the English market. Apex Corp. could get a greater profit in the English market because the goods were bought by the firm at a cheaper price in France. In the context of the above scenario, which of the following forms of business is Apex engaged in?



A. Black marketing.

B. Parallel importing.

C. Backwashing.

D. Industrial piracy.

E. Smuggling.


Answer: B. Parallel importing.

Most middlemen have little loyalty to their vendors. They handle brands in good times when the line is making money but quickly reject such products within a season or a year if they fail to produce during that period. This is an example of problems associated with which of the following six Cs of channel strategy?

Most middlemen have little loyalty to their vendors. They handle brands in good times when the line is making money but quickly reject such products within a season or a year if they fail to produce during that period. This is an example of problems associated with which of the following six Cs of channel strategy?



A. Character

B. Continuity

C. Control

D. Cost

E. Capital requirement


Answer: B. Continuity

Experienced exporters suggest that the only way to select a middleman is:

Experienced exporters suggest that the only way to select a middleman is:



A. to conduct a background check on all the distributors available in the target market.

B. to issue a request-for-proposal to all distributors in the target market and evaluate their responses.

C. consult other manufacturers of the similar products and select the distributor recommended by them.

D. consult trade organizations and select the distributor recommended by them.

E. to personally talk to ultimate consumers to find whom they consider to be the best distributors.


Answer: E. to personally talk to ultimate consumers to find whom they consider to be the best distributors.

One of the reasons that channels of distribution often pose longevity problems is that most middlemen _____.

One of the reasons that channels of distribution often pose longevity problems is that most middlemen _____.



A. do not maintain sufficient inventory to serve customers

B. lack product knowledge resulting in low sales volume

C. have little loyalty to their vendors

D. tend to slow down distribution to extract higher commissions

E. do not have sufficient knowledge of the target market


Answer: C. have little loyalty to their vendors

Most middlemen have little loyalty to their vendors. They handle brands in good times when the line is making money but quickly reject such products within a season or a year if they fail to produce during that period. This is an example of problems associated with which of the following six Cs of distribution channel strategy?

Most middlemen have little loyalty to their vendors. They handle brands in good times when the line is making money but quickly reject such products within a season or a year if they fail to produce during that period. This is an example of problems associated with which of the following six Cs of distribution channel strategy?



A. Character

B. Continuity

C. Control

D. Cost

E. Capital requirement


Answer: B. Continuity

Which of the following is one of the highest costs of doing business in China?

Which of the following is one of the highest costs of doing business in China?



A. Money required for the transportation of goods.

B. Money required for obtaining appropriate permits.

C. Cost of local advertising.

D. Capital required to maintain effective distribution.

E. Cost of customizing products for the Chinese market.


Answer: D. Capital required to maintain effective distribution.

In the context of factors affecting choice of channels, one of the key elements in distribution decisions includes _____.

In the context of factors affecting choice of channels, one of the key elements in distribution decisions includes _____.



A. the selection of optimum container sizes

B. volume discounts and rebates

C. the functions performed by middlemen

D. the local advertising modes

E. the target market culture


Answer: C. the functions performed by middlemen

Which of the following factors affects the choice of distribution channels?

Which of the following factors affects the choice of distribution channels?



A. Distance from manufacturer.

B. Language spoken in the target market.

C. Available distribution intermediaries.

D. Consumer literacy levels.

E. Country's per capita income.


Answer: C. Available distribution intermediaries.

Which of the following is true of foreign sales corporations?

Which of the following is true of foreign sales corporations?



A. They are commonly called piggybackers.

B. They can only be related to a manufacturing parent and not an independent broker.

C. They virtually control distribution through all levels of channels in Japan.

D. They accumulate, transport, and distribute goods from many countries.

E. They can function as a principal or a commissioned agent.


Answer: E. They can function as a principal or a commissioned agent.
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