Question;1. The distribution process includes promotion of goods and services by sellers and resellers.;True False;2. The behavior of channel members in the distribution process is the result of the interactions between the;cultural environment and the marketing process.;True False;3. In an import-oriented distribution structure, supply often exceeds demand.;True False;4. Traditional channels in developing countries evolved from economies with a strong dependence on;imported manufactured goods.;True False;5. In a traditional distribution structure, distribution systems are national rather than local in scope.;True False;6. In the traditional distribution structure, independent agencies that provide facilitating functions are;nonexistent or underdeveloped.;True False;7. A distinguishing characteristic of the Japanese distribution channel system is that it is controlled by a few;small retailers found in the country.;True False;8. The Japanese distribution structure is similar to the one found in the U.S. or in Europe.;True False;9. In the context of the distribution structure in Japan, it has been observed that Japanese consumers favor;cheaper prices over personal service.;True False;10. As traditional channel structures are changing, importers and retailers are also becoming involved in new;product development.;True False;11. In the context of distribution structures, one of Walmart?s strengths is its ability to influence foreign;governments.;True False;12. In the context of distribution patterns, wholesaling shows a greater diversity in its structure than does;retailing.;True False;13. In the context of retail patterns, direct marketing works well in affluent markets as well as in markets with;underdeveloped distribution systems.;True False;14. Agent middlemen work on commission and do not take title to the merchandise.;True False;15. Merchant middlemen tend to be more controllable than agent middlemen because they take title to;manufacturers? goods.;True False;16. The distribution channel process includes all activities, beginning with the manufacturer and ending with;the retailer.;True False;17. Domestic middlemen offer many advantages for companies with large international sales volume.;True False;18. An export management company functions as a low-cost, independent marketing department with direct;responsibility to the parent firm.;True False;19. In the context of the different kinds of middlemen, in 2003, the WTO ruled export management;companies to be in violation of international trade rules.;True False;20. Domestic middlemen are most likely to be used when the marketer desires to minimize financial and;management investment.;True False;21. Export management companies work under their own names.;True False;22. The Export Trading Company Act allows producers of similar products to form export trading companies;in the U.S.;True False;23. Trading companies provide the best means for intensive coverage of the market.;True False;24. An e-vendor in a foreign market can generally ignore culture as an important variable because the;commerce is being done via the Internet that is culturally insensitive.;True False;25. Using foreign-country middlemen moves the manufacturer away from the market and the company;becomes less involved with problems of language, physical distribution, communications, and;financing.;True False;26. Channels of distribution often pose longevity problems.;True False;27. In the U.S., if a middleman is terminated, the company is required to pay one percent of the middleman?s;average annual compensation, multiplied by the number of years the middleman served, as a final;settlement.;True False;28. Legal advice is not necessary when entering distribution contracts with middlemen.;True False;29. Ideally, a website should be translated into the languages of the target market.;True False;30. A physical distribution system involves only the physical movement of goods.;True False;31. 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 system;develops around the philosophy of selling a limited supply of goods at high prices to a small number of;affluent customers.;A. domestic;B. traditional;C. manufacturer-oriented;D. service;E. customer-oriented;33. 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-marketing;system.;C.;The idea of a channel as a chain of intermediaries performing specific activities and each selling to a;smaller 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 a;part of this distribution structure.;E.;The marketing system develops around the philosophy of selling a limited supply of goods at high;prices to a small number of affluent customers.;34. Which of the following distribution structures is also known as a traditional distribution structure?;A. Export-oriented;B. Import-oriented;C. Manufacturer-oriented;D. Service-oriented;E. Customer-oriented;35. 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-marketing;system.;C.;Several independent agencies providing functions such as advertising, marketing research, financing;are 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 population;B. The Japanese distribution structure;C. Japanese culture;D. The Japanese import and export procedure;E. Intense competition in Japan;37. _____ are considered to be the foundation of the Japanese distribution system.;A. Consumers;B. Brokers;C. Manufacturers;D. Small retailers;E. Wholesalers;38. Which of the following characterizes the business philosophy of the Japanese distribution channels?;A. Loyalty;B. Direct sales;C. Fast delivery;D. Variety;E. Price competition;39. 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 the;distribution 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 by;the _____.;A. Transport and Tourism Department;B. Internal Affairs and Business Council;C. Ministry of International Trade and Industry;D. Health and Welfare Committee;E. Local Retailers Union;41. In the international business arena, which of the following is considered to be one of Walmart?s;strengths?;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 for;purchasing automotive parts from suppliers.;A. Toyota Motor Corporation;B. Honda Motor Company;C. Ford Motor Company;D. Nissan Motor Company;E. Tata Motors;43. Which of the following countries has the largest number of retailers?;A. United States;B. Argentina;C. China;D. South Africa;E. Japan;44. In the context of distribution patterns, the rate of change in retailing around the world appears to be;directly related to the _____.;A. literacy rate;B. rate of inflation;C. population growth;D. speed of economic development;E. currency exchange rate;45. _____ is often the approach of choice in markets with insufficient or underdeveloped distribution;systems.;A. Direct marketing;B. A big wholesale store;C. Internet selling;D. A discount house;E. Television advertising;46. Which of the following has proved to be an important way to break the trade barrier imposed by the;Japanese 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 wholesalers;B. Trading companies;C. Consumers;D. Merchant middlemen;E. Brokers;48. _____ take title to manufacturers? goods and assume the trading risks.;A. Merchant middlemen;B. Brokers;C. Buying offices;D. Export agent;E. Agent middlemen;49. The distribution channel process includes all activities, beginning with the manufacturer and ending with;the _____.;A. wholesaler;B. agent middlemen;C. merchant middlemen;D. retailer;E. final consumer;50. 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-country;middlemen.;E. the large amount of commission charged by the home-country middlemen.;54. Home-country middlemen are also known as _____ middlemen.;A. area;B. local;C. merchant;D. domestic;E. regional;55. In the context of the different types of middlemen, which of the following is an example of a;manufacturer?s retail store?;A. Toys ?R? Us;B. Walmart;C. Costco;D. Benetton;E. IKEA;56. James Barker is the marketing manager of a firm with small international sales volume. He is looking for;a 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 on;financial, patent, and licensing matters. In addition, the middleman should agree to work under the name;of the firm. Which of the following types of middlemen would be the best choice for Mr. Barker if he;wants 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 investment;needed to establish deep distribution for products.;A. export management companies;B. trading companies;C. import associations;D. global retailers;E. complementary marketers;59. For companies seeking entrance into the complicated Japanese distribution system, _____ offer one of the;easiest routes to success because they virtually control distribution through all levels of channels in Japan.;A. trade representatives;B. trading companies;C. brokers;D. export management companies;E. complementary marketers;60. 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 distribution;channels 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. backhauling;B. demand shifting;C. piggybacking;D. shape shifting;E. skimming;63. Companies with marketing facilities in different countries with excess marketing capacity sometimes take;on 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 for;manufacturers that covers only one or two markets.;A. complementary marketer;B. export management company;C. Webb-Pomerene export association;D. global retailer;E. manufacturer?s export agent;65. A _____ provides a selling service for a manufacturer, has a short-term relationship, and operates on a;straight commission basis.;A. manufacturers? retail store;B. trading company;C. global retailer;D. manufacturer?s export agent;E. complementary marketer;66. The Webb-Pomerene Act of 1918 made it possible for American business firms to join forces in export;activities 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 a;corporate tax exemption on a portion of the earnings generated by the sale or lease of export property.;A. Webb-Pomerene export association;B. manufacturer?s export agent;C. export management company;D. complementary marketer;E. foreign sales corporation;68. 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 of;international trade rules, thus starting a major trade dispute with the European Union.;A. foreign sales corporations;B. direct marketing partnerships;C. trading companies;D. export promotion companies;E. Webb-Pomerene export associations;70. 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. Communication;B. Continuity;C. Capacity;D. Commission;E. Contribution;73. 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;74. 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 make;maximum 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 but;often 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 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;79. 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;80. _____ is an area that should be on a checklist of criteria for evaluating middlemen servicing a market.;A. Flexibility;B. Hypersensitivity;C. Cultural empathy;D. Productivity;E. Breadth of knowledge;81. 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 as;one massive city.;A. Tokyo-Nagoya-Osaka;B. Komaki-Tokoname-Kariya;C. Nagoya-Handa-Seto;D. Nishio-Okazaki-Inazawa;E. Inuyama-Nisshin-Takahama;84. 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;85. 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.;86. In the context of controlling middlemen, parallel importing is also known as _____.;A. secondary wholesaling;B. black marketing;C. backwashing;D. industrial piracy;E. smuggling;87. 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. China;B. Brazil;C. Switzerland;D. South Africa;E. the United States;88. In the context of the Internet in international marketing channels, technically, e-commerce is a form of _____ selling.;A. direct;B. parallel;C. dual;D. mass;E. targeted;89. In the context of cultural reactions when engaging in e-commerce, the color red is associated with socialism in _____.;A. the United States;B. China;C. Brazil;D. Uruguay;E. Spain;90. 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 Japanese;distribution 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 issues that must be taken into consideration by an e-vendor?
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