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International Marketing, 3rd ed. - Chapter 16


Multiple Choice
Identify the choice that best completes the statement or answers the question.
 

 1. 
When talking about prices most marketers think in terms of monetary returns. From a customer’s perspective, however, the price of a product is the sum of all ____ the customer has to exchange (or ‘spend’) in order to obtain the benefit(s) provided by the product.
a.
perceived benefits
b.
efforts
c.
monetary and non-monetary assets
d.
perceived advantages
e.
monetary and benefit assets
 

 2. 
The determination of the basic price of a product, the price structure of the entire product line, and the system of rebates, discounts and refunds the firm will offer in exchange for specific actions is called
a.
costing.
b.
price setting.
c.
price finding.
d.
calculation.
e.
value finding.
 

 3. 
Contractual statements fixing the point in time and the circumstances of payment for the products to be delivered are called
a.
terms of payment.
b.
payment conditions.
c.
conditions of payment.
d.
payment order.
e.
facilities for payment.
 

 4. 
When an international marketer charges the same base price for a product in every country-market served this policy is called
a.
average pricing.
b.
norm pricing.
c.
one for all pricing.
d.
strategic pricing.
e.
standard pricing.
 

 5. 
With standard formula pricing, the company calculates the price for a product following the same formula in all country-markets around the world. There are three different ways to establish this formula. Consequently one of the following suggestions is NOT correct. Which one?
a.
Full-cost pricing formula
c.
Direct cost plus contribution margin
b.
Part-cost pricing formula
d.
Relevant cost formula
 

 6. 
When the production cost of the product is taken as the basis and additional costs due to the non-domestic marketing process plus a desired profit margin are added this formula is called
a.
indirect-cost-plus-contribution-margin formula
b.
direct-cost formula
c.
direct-cost-plus-contribution-margin formula
d.
full-cost pricing formula
e.
indirect-cost formula
 

 7. 
Imports by an unauthorized party are referred to as
a.
parallel imports or gray markets.
b.
sequential imports or gray markets.
c.
parallel imports or black markets.
d.
sequential imports or black markets.
e.
by-passing imports.
 

 8. 
Prices for the same product in the foreign market significantly lower than in the home market may provoke
a.
parallel imports.
b.
counter-imports.
c.
re-imports.
d.
side imports.
e.
by-passing imports.
 

 9. 
Price lines set the company’s prices relative to
a.
its cost structure.
b.
competitors’.
c.
the inflation rate.
d.
value perceived by customers.
e.
prices applied in other markets.
 

 10. 
Which one of the following is the lower price limit for the international marketer in the long run?
a.
Costs
b.
Competitors’ prices
c.
Average market prices
d.
Fixed costs
e.
Contribution margins
 

 11. 
International marketers may face a price escalation effect due to
a.
longer distribution channels.
b.
competitors’ strategies.
c.
low profit.
d.
low margins.
e.
low contribution margins.
 

 12. 
The degree of internationalization of intermediaries strongly affects a marketer’s ability to achieve
a.
value added.
b.
price reduction.
c.
price differentiation.
d.
value based calculation.
e.
cost based calculation.
 

 13. 
Frequently, exports of government-subsidized products are viewed in the importing country as
a.
dumping.
b.
forming a cartel.
c.
parallel export.
d.
re-export.
e.
rigid export.
 

 14. 
1.      What makes the difference in calculating the price for an exported product between CFR  and CIF?
a.
ICC cost
b.
Import duties
c.
Insurance
d.
Internal price margin
e.
Income tax
 

 15. 
When all foreign-exchange transactions must be done through a central bank, or another agency, at the official (and fixed) rate it is called
a.
currency licensing restrictions.
b.
currency restrictions.
c.
currency blockage.
d.
exchange restrictions.
e.
currency licensing blockage.
 



 
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