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Montclair INBS346 Intro to International Business CH 15

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Question;1. The distribution process includes promotion of goods and services by sellers and resellers.True False2. The behavior of channel members in the distribution process is the result of the interactions between thecultural environment and the marketing process.True False3. In an import-oriented distribution structure, supply often exceeds demand.True False4. Traditional channels in developing countries evolved from economies with a strong dependence onimported manufactured goods.True False5. In a traditional distribution structure, distribution systems are national rather than local in scope.True False6. In the traditional distribution structure, independent agencies that provide facilitating functions arenonexistent or underdeveloped.True False7. A distinguishing characteristic of the Japanese distribution channel system is that it is controlled by a fewsmall retailers found in the country.True False8. The Japanese distribution structure is similar to the one found in the U.S. or in Europe.True False9. In the context of the distribution structure in Japan, it has been observed that Japanese consumers favorcheaper prices over personal service.True False10. As traditional channel structures are changing, importers and retailers are also becoming involved in newproduct development.True False11. In the context of distribution structures, one of Walmart?s strengths is its ability to influence foreigngovernments.True False12. In the context of distribution patterns, wholesaling shows a greater diversity in its structure than doesretailing.True False13. In the context of retail patterns, direct marketing works well in affluent markets as well as in markets withunderdeveloped distribution systems.True False14. Agent middlemen work on commission and do not take title to the merchandise.True False15. Merchant middlemen tend to be more controllable than agent middlemen because they take title tomanufacturers? goods.True False16. The distribution channel process includes all activities, beginning with the manufacturer and ending withthe retailer.True False17. Domestic middlemen offer many advantages for companies with large international sales volume.True False18. An export management company functions as a low-cost, independent marketing department with directresponsibility to the parent firm.True False19. In the context of the different kinds of middlemen, in 2003, the WTO ruled export managementcompanies to be in violation of international trade rules.True False20. Domestic middlemen are most likely to be used when the marketer desires to minimize financial andmanagement investment.True False21. Export management companies work under their own names.True False22. The Export Trading Company Act allows producers of similar products to form export trading companiesin the U.S.True False23. Trading companies provide the best means for intensive coverage of the market.True False24. An e-vendor in a foreign market can generally ignore culture as an important variable because thecommerce is being done via the Internet that is culturally insensitive.True False25. Using foreign-country middlemen moves the manufacturer away from the market and the companybecomes less involved with problems of language, physical distribution, communications, andfinancing.True False26. Channels of distribution often pose longevity problems.True False27. In the U.S., if a middleman is terminated, the company is required to pay one percent of the middleman?saverage annual compensation, multiplied by the number of years the middleman served, as a finalsettlement.True False28. Legal advice is not necessary when entering distribution contracts with middlemen.True False29. Ideally, a website should be translated into the languages of the target market.True False30. A physical distribution system involves only the physical movement of goods.True False31. Which of the following is true of the distribution process?A. It does not involve the physical handling and distribution of goods.B. It includes activities related to the promotion of goods and services.C. The ownership title remains with the distributor even on completion of the transaction.D. It includes buying and selling negotiations.E. The behavior of channel members is not affected by the cultural environment.32. In a _____ distribution structure, an importer controls a fixed supply of goods and the marketing systemdevelops around the philosophy of selling a limited supply of goods at high prices to a small number ofaffluent customers.A. domesticB. traditionalC. manufacturer-orientedD. serviceE. customer-oriented33. Which of the following statements is true of a traditional distribution structure?A. The distribution system is national in scope.B.The relationship between the importer and any middleman is similar to that found in a mass-marketingsystem.C.The idea of a channel as a chain of intermediaries performing specific activities and each selling to asmaller unit beneath it until the chain reaches the ultimate consumer is common.D.Independent agencies providing functions such as advertising, marketing research, and financing are apart of this distribution structure.E.The marketing system develops around the philosophy of selling a limited supply of goods at highprices to a small number of affluent customers.34. Which of the following distribution structures is also known as a traditional distribution structure?A. Export-orientedB. Import-orientedC. Manufacturer-orientedD. Service-orientedE. Customer-oriented35. Which of the following statements is true regarding an import-oriented distribution structure?A. The importer?wholesaler traditionally performs most of the marketing functions.B.The relationship between the importer and any middleman is similar to that found in a mass-marketingsystem.C.Several independent agencies providing functions such as advertising, marketing research, financingare a part of this distribution structure.D. The idea of a channel as a chain of intermediaries performing specific activities is common.E. This distribution system is national in scope.36. _____ has long been considered the most effective nontariff barrier to the Japanese market.A. The Japanese populationB. The Japanese distribution structureC. Japanese cultureD. The Japanese import and export procedureE. Intense competition in Japan37. _____ are considered to be the foundation of the Japanese distribution system.A. ConsumersB. BrokersC. ManufacturersD. Small retailersE. Wholesalers38. Which of the following characterizes the business philosophy of the Japanese distribution channels?A. LoyaltyB. Direct salesC. Fast deliveryD. VarietyE. Price competition39. Which of the following statements is true of the Japanese market?A. The costs of Japanese consumer goods are among the lowest in the world.B.Manufacturers are independent of wholesalers for a multitude of services to other members of thedistribution network.C. The Japanese distribution structure supports long-term dealer?supplier relationships.D. Japanese law favors the establishment of large retail stores.E. Japanese consumers favor price over personal service.40. In Japan, under the Large-Scale Retail Store Law, all proposals for new ?large? stores are first judged bythe _____.A. Transport and Tourism DepartmentB. Internal Affairs and Business CouncilC. Ministry of International Trade and IndustryD. Health and Welfare CommitteeE. Local Retailers Union41. In the international business arena, which of the following is considered to be one of Walmart?sstrengths?A. Clean business reputation.B. Internal Internet-based system.C. Ability to beat competitors.D. Outreach programs to placate small retailers.E. Ability to influence foreign governments.42. General Motors, _____, and DaimlerChrysler have created a single online site called Covisint forpurchasing automotive parts from suppliers.A. Toyota Motor CorporationB. Honda Motor CompanyC. Ford Motor CompanyD. Nissan Motor CompanyE. Tata Motors43. Which of the following countries has the largest number of retailers?A. United StatesB. ArgentinaC. ChinaD. South AfricaE. Japan44. In the context of distribution patterns, the rate of change in retailing around the world appears to bedirectly related to the _____.A. literacy rateB. rate of inflationC. population growthD. speed of economic developmentE. currency exchange rate45. _____ is often the approach of choice in markets with insufficient or underdeveloped distributionsystems.A. Direct marketingB. A big wholesale storeC. Internet sellingD. A discount houseE. Television advertising46. Which of the following has proved to be an important way to break the trade barrier imposed by theJapanese distribution system?A. Direct sales through catalogs.B. Large wholesale stores.C. Street corner kiosks.D. Internet shopping.E. Television advertising.47. Which of the following are frequently criticized for not representing the best interests of a manufacturer?A. Global wholesalersB. Trading companiesC. ConsumersD. Merchant middlemenE. Brokers48. _____ take title to manufacturers? goods and assume the trading risks.A. Merchant middlemenB. BrokersC. Buying officesD. Export agentE. Agent middlemen49. The distribution channel process includes all activities, beginning with the manufacturer and ending withthe _____.A. wholesalerB. agent middlemenC. merchant middlemenD. retailerE. final consumer50. Which of the following statements is true regarding agent middlemen?A. They take title to the merchandise.B. They work on commission and arrange for sales in the foreign country.C. Manufacturers cannot control them as they control merchant middlemen.D. They do not represent the best interests of the manufacturer.E. They assume trading risks.51. Which of the following statements is true regarding merchant middlemen?A. They represent the best interests of a manufacturer.B. They can be controlled better than agent middlemen.C. They assume trading risks.D. They work on commission and arrange for sales in the foreign country.E. They do not take title to manufacturers? goods.52. A disadvantage when using home-country middlemen as intermediaries in the distribution process is:A. the large financial investment required.B. the limited control over the distribution process.C. the large managerial investments required.D. the limited number of retailers in the foreign country who can be reached.E. the large amount of commission.53. A major trade-off when using home-country middlemen is:A. the large financial investment required.B. the limited control over the entire distribution process.C. the large managerial investments required.D.the limited number of retailers in the foreign country who can be reached through the home-countrymiddlemen.E. the large amount of commission charged by the home-country middlemen.54. Home-country middlemen are also known as _____ middlemen.A. areaB. localC. merchantD. domesticE. regional55. In the context of the different types of middlemen, which of the following is an example of amanufacturer?s retail store?A. Toys ?R? UsB. WalmartC. CostcoD. BenettonE. IKEA56. James Barker is the marketing manager of a firm with small international sales volume. He is looking fora middleman who can take responsibility for promotion of the company?s products, credit arrangements,physical handling, and market research. Also, the middleman must be able to provide information onfinancial, patent, and licensing matters. In addition, the middleman should agree to work under the nameof the firm. Which of the following types of middlemen would be the best choice for Mr. Barker if hewants to meet his objectives?A. A manufacturer?s export agent.B. An export merchant.C. A trade representative.D. An export management company.E. A complementary marketer.57. Which of the following statements is true regarding an export management company (EMC)?A. It acts as a middleman for firms with relatively large international sales volume.B. It operates under its own name while providing services to another firm.C. It does not have direct responsibility to the parent firm.D. It acts as a middleman for firms willing to involve their own personnel in international functions.E. It calls for a minimum investment from the parent firm to get into international markets.58. A major disadvantage of _____ is that they can seldom afford to make the kind of market investmentneeded to establish deep distribution for products.A. export management companiesB. trading companiesC. import associationsD. global retailersE. complementary marketers59. For companies seeking entrance into the complicated Japanese distribution system, _____ offer one of theeasiest routes to success because they virtually control distribution through all levels of channels in Japan.A. trade representativesB. trading companiesC. brokersD. export management companiesE. complementary marketers60. Which of the following was a goal of the Export Trading Company Act?A. To allow U.S. companies to bypass tax laws with respect to international trading.B. To remove antitrust disincentives to export activities.C. To bypass trade barriers in foreign countries.D. To earn the highest possible profits in foreign countries.E. To combine export shipments within single containers.61. Which of the following arrangements are undertaken when a firm wants to keep its seasonal distributionchannels functioning throughout the year?A. Price skimming.B. Using the services of a trading company.C. Establishing a retail store.D. Using the services of an export management company.E. Complementary marketing.62. Complementary marketing is commonly known as _____.A. backhaulingB. demand shiftingC. piggybackingD. shape shiftingE. skimming63. Companies with marketing facilities in different countries with excess marketing capacity sometimes takeon additional product lines for international distribution. The formal name for this type of marketing is:A. skimming.B. backhauling.C. complementary marketing.D. export marketing.E. demand shifting.64. A(n) _____ is an individual agent middleman or an agent middleman firm providing a selling service formanufacturers that covers only one or two markets.A. complementary marketerB. export management companyC. Webb-Pomerene export associationD. global retailerE. manufacturer?s export agent65. A _____ provides a selling service for a manufacturer, has a short-term relationship, and operates on astraight commission basis.A. manufacturers? retail storeB. trading companyC. global retailerD. manufacturer?s export agentE. complementary marketer66. The Webb-Pomerene Act of 1918 made it possible for American business firms to join forces in exportactivities without being subject to which of the following acts?A. The Sherman Antitrust Act.B. The Federal Communications Act.C. The Trade Commission Act.D. The Food, Drug, and Cosmetics Act.E. The Robinson-Patman Act.67. A(n) _____ is a domestic middleman set up in a foreign country or U.S. possession that can obtain acorporate tax exemption on a portion of the earnings generated by the sale or lease of export property.A. Webb-Pomerene export associationB. manufacturer?s export agentC. export management companyD. complementary marketerE. foreign sales corporation68. Which of the following is a type of domestic middleman?A. Sole proprietors.B. Export Management Companies.C. Foreign distributors.D. Lessors.E. Joint ventures.69. In the context of types of domestic middlemen, the WTO in 2003 ruled _____ to be in violation ofinternational trade rules, thus starting a major trade dispute with the European Union.A. foreign sales corporationsB. direct marketing partnershipsC. trading companiesD. export promotion companiesE. Webb-Pomerene export associations70. 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.71. 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.72. Which of the following is one of the six Cs of distribution channel strategy?A. CommunicationB. ContinuityC. CapacityD. CommissionE. Contribution73. In the context of factors affecting choice of channels, one of the key elements in distribution decisionsincludes _____.A. the selection of optimum container sizesB. volume discounts and rebatesC. the functions performed by middlemenD. the local advertising modesE. the target market culture74. Which of the following is a critical element associated with using a particular type of middleman?A. Knowledge of the culture of the target market.B. Number of employees.C. Mode of transportation for moving goods.D. Influence over the target market.E. Cash-flow patterns.75. In which of the following modes of distribution in the foreign market will a company have to makemaximum financial investment?A. Export management companies.B. Trading companies.C. Export associations.D. Direct sales force.E. Complementary marketers.76. 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.77. Which of the following modes of distribution affords the most control over the distribution channels butoften at a cost that is not practical?A. Complementary marketers.B. Direct sales force.C. Export associations.D. Trading companies.E. Export management companies.78. Most middlemen have little loyalty to their vendors. They handle brands in good times when the line ismaking money but quickly reject such products within a season or a year if they fail to produce duringthat period. This is an example of problems associated with which of the following six Cs of distributionchannel strategy?A. CharacterB. ContinuityC. ControlD. CostE. Capital requirement79. One of the reasons that channels of distribution often pose longevity problems is that most middlemen_____.A. do not maintain sufficient inventory to serve customersB. lack product knowledge resulting in low sales volumeC. have little loyalty to their vendorsD. tend to slow down distribution to extract higher commissionsE. do not have sufficient knowledge of the target market80. _____ is an area that should be on a checklist of criteria for evaluating middlemen servicing a market.A. FlexibilityB. HypersensitivityC. Cultural empathyD. ProductivityE. Breadth of knowledge81. Which of the following actions should be taken to begin with the search for prospective middlemen?A. Short listing the middlemen.B. Studying the target market.C. Evaluating the available financial resources.D. Designing the sales force required.E. Understanding the mission of the manufacturing firm.82. 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.83. Sixty percent of the Japanese population lives in the _____ market area, which essentially functions asone massive city.A. Tokyo-Nagoya-OsakaB. Komaki-Tokoname-KariyaC. Nagoya-Handa-SetoD. Nishio-Okazaki-InazawaE. Inuyama-Nisshin-Takahama84. Most middlemen have little loyalty to their vendors. They handle brands in good times when the line ismaking money but quickly reject such products within a season or a year if they fail to produce duringthat period. This is an example of problems associated with which of the following six Cs of channelstrategy?A. CharacterB. ContinuityC. ControlD. CostE. Capital requirement85. Apex Corporation is a wholesaler for Global Electronics in the French market. Global Electronicsdiscovered that Apex Corp. was diverting some of their goods to the English market. Apex Corp. couldget a greater profit in the English market because the goods were bought by the firm at a cheaper price inFrance. In the context of the above scenario, which of the following forms of business is Apex engagedin?A. Black marketing.B. Parallel importing.C. Backwashing.D. Industrial piracy.E. Smuggling.86. In the context of controlling middlemen, parallel importing is also known as _____.A. secondary wholesalingB. black marketingC. backwashingD. industrial piracyE. smuggling87. E-commerce is more developed in _____ than the rest of the world, partly because of the lower cost ofaccess to the Internet than found elsewhere.A. ChinaB. BrazilC. SwitzerlandD. South AfricaE. the United States88. In the context of the Internet in international marketing channels, technically, e-commerce is a form of _____ selling.A. directB. parallelC. dualD. massE. targeted89. In the context of cultural reactions when engaging in e-commerce, the color red is associated with socialism in _____.A. the United StatesB. ChinaC. BrazilD. UruguayE. Spain90. 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.91. Write a short note on the import-oriented distribution structure.92. In the context of channel-of-distribution structures, discuss the distinguishing features of the Japanesedistribution structure.93. Describe export management companies. What are their advantages and disadvantages?94. What is complementary marketing?95. Discuss the export trading company act (ETC).96. What is a foreign sales corporation?97. Discuss the continuity problem associated with a channel of distribution.98. What are the various techniques that can be used to motivate middlemen?99. What is secondary wholesaling?100. What are the various iss

 

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