Deck 8: Importing, Exporting, and Sourcing

Question 1

Export marketing requires all of the following except:

A)an understanding of the target market environment.
B)the use of marketing research.
C)identification of market potential.
D)decisions concerning product design.
E)reaching retail customers.

Answer 1

E

Question 2

According to President Obama, "The more American companies export, the more they produce. And the more they produce, the more people they hire-and that means more jobs."

Answer 2

True

Question 3

The terms "export selling" and "export marketing" are interchangeable.

Answer 3

False

Question 4

After research has zeroed in on potential markets, there is no substitute for a personal visit to size up the market firsthand and begin the development of an actual export marketing program.

Question 5

Export marketing is the integrated marketing of goods and services that are destined for customers in international markets. What does the marketing require?

Question 6

"Export selling" involves tailoring various elements of the marketing mix to global market requirements.

Question 7

In his 2010 State of the Union address, U.S. President Barack Obama had vowed to double U.S. exports by 2015; doing so would require boosting exports 25 percent annually.

Question 8

The possible arrangements of the responsibilities for handling exports include all of the following except:

A)as a part-time activity performed by domestic employees.
B)through an export partner affiliated with the domestic marketing structure.
C)through an export department within an international division.
D)through an export department that is independent of the domestic marketing structure.
E)through an export department of an embassy in a foreign country.

Question 9

After the research effort has zeroed in on potential markets, marketers should:

A)work on understanding the target market environment.
B)modify methods used for marketing research.
C)identify products that can be marketed.
D)make decisions concerning product design.
E)plan a personal visit.

Question 10

The export marketer takes the domestic product "as is" and sells it to international customers.

Question 11

________ is the most important aspect of a company's international orientation.

A)Experience
B)Commitment
C)Dynamism
D)Confidence

Question 12

The advantages of a market visit include all of the following except:

A)confirm market potential.
B)contradict market potential.
C)gain confidence in firm's ability for exporting.
D)gather additional data to reach final decision.
E)build confidence in firm's ability for exporting.

Question 13

Governments in Japan, Singapore, South Korea, and China have supported exports for years which have tremendously helped their economies. Since exporting is a very important component of a country's business strategy, many government programs are offered that support exports. Describe ways by which governments can support exports.

Question 14

The only marketing mix element that is applicable in export selling is:

A)price.
B)product.
C)promotion.
D)place.
E)process.

Question 15

In 2013, U.S. goods and services exports totaled $2.3 trillion, which comes to about 15 percent of the GDP. This means that nearly 85 percent of the goods and services produced in the United States are consumed at home.

Question 16

Research discovered that even the most experienced exporters express lack of confidence in their knowledge about shipping arrangements, payment procedures, and regulations.

Question 17

In his 2010 State of the Union address, U.S. President Barack Obama vowed to double U.S. exports by 2015. To this end, President Barack Obama created a National Export Initiative and established the President's Export Council. What is meant by export marketing and export selling?

Question 18

Switzerland exports 51 percent of their GDP, compared to the United States, which exports only about 14 percent.

Question 19

Research has shown that exporting is essentially a developmental process that proceeds in different stages. Before a firm reaches stage 4, it must do which one of the following activities?

A)explore the feasibility of exporting
B)commit resources for exporting
C)receive unsolicited export orders
D)believe in attractiveness of exporting
E)build confidence in firm's ability for exporting

Question 20

Which of the following is not true about a personal visit to size up the market firsthand and begin the development of an actual export-marketing program?

A)Confirm assumptions regarding market potential
B)Contradict assumptions regarding market potential
C)Gather additional data to help make decisions
D)Develop a marketing plan in cooperation with local agents
E)Arrange a face-to-face meeting and avoid going to trade shows

Question 21

Agricultural subsidies are particularly controversial because, although they protect the interests of farmers in some countries, they work to the detriment of farmers in countries such as:

A)Singapore.
B)the United States.
C)India.
D)Switzerland.
E)Japan.

Question 22

The four tigers-Singapore, South Korea, Taiwan, and Hong Kong-learned from the ________ experience and built strong export-based economies of their own.

A)Chinese
B)Indian
C)German
D)American
E)Japanese

Question 23

Governments commonly use activities to support and encourage firms that engage in exporting. Such activities include all of the following except:

A)tax incentives.
B)subsidies.
C)export assistance.
D)free trade zones.
E)voting rights.

Question 24

The four tigers-Singapore, South Korea, Taiwan, and Hong Kong-learned from the Japanese experience and built strong export-based economies of their own.

Question 25

Developed under the auspices of the Custom Cooperation Council (now the World Customs Organization)the system which took effect is referred to as:

A)preferential tariffs.
B)harmonized tariff.
C)BTN duty.
D)specialized tariff.
E)antidumping duty.

Question 26

After the aftermath of the tragedy involving fire in garment factories in Bangladesh, it was found that the buildings were inspected by:

A)Dhaka's building-safety authority.
B)Business Social Compliance Initiative (BSCI).
C)Walmart's approved contractors.
D)Worker Rights Consortium.
E)Interfaith Center for Corporate Responsibility.

Question 27

Exporting is considered as essentially a developmental process. What are the stages in which this process can be divided?

Question 28

Representatives of the apparel, footwear, and textile industries in many countries are deeply concerned about the impact that increased trade with China will have on these sectors.

Question 29

Which of the following was a major U.S. tax incentive for exporters that the WTO recently ruled was an illegal subsidy?

A)NTR
B)CVD
C)FSC
D)NTB
E)HTS

Question 30

The Ministry of International Trade and Industry (MITI)has helped devise export strategies for companies in:

A)Singapore.
B)South Korea.
C)Taiwan.
D)Hong Kong.
E)Japan.

Question 31

Potential export problems include packaging, government red tape, warehousing, advertising, and trade restrictions.

Question 32

In the last stage of the developmental process for exporting, a firm evaluates global market potential before screening for the "best" target markets to include in its marketing strategy and plan.

Question 33

The so-called "China Triangle" includes:

A)Hong Kong, Republic of China, and Singapore
B)Republic of China, Taiwan, and Hong Kong
C)Republic of China, Taiwan, and South Korea
D)Taiwan, Hong Kong, and Republic of China
E)Singapore, China, and Republic of China

Question 34

According to research, exporting is essentially a developmental process starting with the first stage when the firm exports to one or more markets on a trial basis.

Question 35

The export and import process can entail red tape and bureaucratic delays. In an effort to facilitate exports, countries are designating certain areas as:

A)import control zones.
B)special tariff zones.
C)global business zones.
D)free trade zones.
E)duty free zones.

Question 36

The top ranked country among those exporting to the United States is:

A)Taiwan.
B)China.
C)Mexico.
D)India.
E)Honduras.

Question 37

Tax incentives, subsidies, export assistance, and free trade zones are common support provided by governments to firms that engage in exporting.

Question 38

Representatives of the apparel, footwear, furniture, and textile industries in many countries are deeply concerned about the impact that increased trade with ________ will have on these sectors.

A)Hong Kong
B)China
C)Italy
D)India
E)Bangladesh

Question 39

After the aftermath of the tragedy involving fire in garment factories in Bangladesh, Walmart implemented a "zero-tolerance policy." The Workers Rights Consortium, the International Labor Organization and other groups monitoring labor issues are stepping up pressure on companies that participate in the global garment supply chain due to the following reasons, except:

A)retailers pay lip service to concerns about factory safety.
B)retailers continue to focus on low prices.
C)those auditing facilities are audited by BSCI's qualified engineers.
D)the buyers and consumer are willing to pay more for garments.
E)retailers do not provide funds for fire safety training.

Question 40

A nontariff barrier (NTB)includes all of the following except:

A)quotas.
B)discriminatory procurement policies.
C)restrictive administrative policies.
D)restrictive technical regulations.
E)ad valorem duty.

Question 41

The Fly American Act is an example of a nontariff barrier.

Question 42

The Harmonized Tariff System (HTS)is currently the dominant system for determining the correct classification number.

Question 43

Which of the following types of duties would be imposed on a company whose home-country government provides export subsidies?

A)ad valorem duty
B)countervailing duty
C)antidumping duty
D)specific duty
E)customs duty

Question 44

According to the recent import regulations in the United States, action figures that represent non-human creatures such as monsters or robots are categorized as toys and qualify for lower duties than human figures that are classified as dolls.

Question 45

The Common Agricultural Policy (CAP)determines the level of subsidies granted to farmers in Latin America.

Question 46

A nontariff barrier (NTB)is a hidden trade barrier that is a deterrent or obstacle to the sale of products in a foreign market.

Question 47

The sale of merchandise in export markets at unfair prices is known as:

A)dumping.
B)countervailing.
C)tariff.
D)ad valorem.
E)transaction.

Question 48

A duty that represents a certain percentage of the value of a particular product is a(n):

A)specific duty.
B)ad valorem duty.
C)BTN duty.
D)"schedule B" duty.
E)antidumping duty.

Question 49

China has imposed tariffs as high as 28% on foreign-made auto parts.

Question 50

Governmental actions at times are designed to discourage imports and block market access. Why do governments want to curtail imports? Explain some of the barriers that are placed to discourage imports.

Question 51

Tariffs can be thought of as the "three R's" of global business: rules, rigor, and regulations of individual countries.

Question 52

In an effort to facilitate Z).exports, countries are designating certain areas as "free trade zones" (FTZ)or "special economic zones" (SE

Question 53

The United States has given Normal Trade Relations (NTR)status to some 180 countries. In actuality only four countries are excluded from this status which includes all of the following countries except:

A)North Korea.
B)Iraq.
C)Iran.
D)Cuba.
E)Libya.

Question 54

Sweden applies a system to certain categories of imported agricultural products referred to as:

A)temporary surcharges.
B)ad valorem duty.
C)variable import levies.
D)specific duty.
E)countervailing duty.

Question 55

Why does the tariff system vary from country to country? Explain, giving examples of tariffs imposed by the United States with particular emphasis on preferential tariffs. What are the conditions under which GATT allows the use of preferential tariffs?

Question 56

Overall, Italy's retail sector has pursued very little international expansion; by contrast, other European supermarket chains such as Tesco (UK), Metro (Germany), and Carrefour (France)took local products and brands with them as they expanded around the globe.

Question 57

Which of the following is described as the three R's of global business: rules, rate schedules, and regulations?

A)quotas
B)tariffs
C)NTBs
D)NTR
E)duties

Question 58

The Buy American Act of 1933, which stipulates that U.S. federal agencies must buy articles produced in the United States unless domestically produced goods are not available, is an example of discriminatory procurement policies.

Question 59

In 2010, dozens of Bangladeshis were killed in two separate fires in factories that made clothing for western clients such as JCPenney and Gap. In November 2012, 112 garment workers were killed when a fire broke out at Tazreen Fashions, a clothing manufacturer in Dhaka, Bangladesh. What are the implications of these tragic incidences on the export by a country dependent on exports?

Question 60

The Harmonized Tariff System (HTS)has eliminated virtually all problems associated with assigning tariff classifications to new products.

Question 61

________ is sometimes called a mother hen, a piggyback exporter, or an export vendor

A)Export broker
B)Export merchant
C)Cooperative exporter
D)Export manager
E)Manufacturer's agent

Question 62

An ad valorem duty is expressed as a percentage of the value of goods.

Question 63

Direct representation identifies that the exporter is selling directly to the consumer or customer.

Question 64

"Piggyback exporter," "cooperative exporter," and "export vendor" are all terms used to describe an export broker.

Question 65

The possible arrangements for handling exports include all of the following except:

A)as a part-time activity performed by domestic employees.
B)through an export partner affiliated with the domestic marketing structure that takes possession of the goods before they leave the country.
C)as a low-cost arrangement requiring no additional personnel.
D)through an export department within an international division.
E)for multidivisional companies, each of the preceding options is available.

Question 66

Foreign purchasing agents are also referred to as jobbers.

Question 67

________ is an independent marketing intermediary that acts as the export department for two or more manufacturers whose product lines do not compete with each other.

A)Manufacturer's export agent
B)Export commission representative
C)Export merchant
D)Export management company
E)Cooperative exporter

Question 68

Export management company (EMC)is an independent marketing intermediary that acts as the export department for two or more manufacturers (principals)whose product lines compete with each other.

Question 69

CVDs are additional duties levied by exporting countries on imported videodiscs.

Question 70

A company that assigns a sufficiently high priority to its export business will establish an in-house organization. It then faces the question of how to organize it effectively.

Question 71

What are customs duties? How do they work in controlling imported goods?

Question 72

________ are licensed specialists in traffic operations, customs clearance, and shipping tariffs and schedules. They can be considered as the travel agents for handling export goods.

A)Foreign purchasing agents
B)Export brokers
C)Export merchants
D)Freight forwarders
E)Cooperative exporters

Question 73

Which of the following can be referred to as a "buyer for export" or an "export commission house" and operates on behalf of a buyer from a foreign country?

A)foreign purchasing agent
B)export broker
C)export merchant
D)export management company
E)freight forwarder

Question 74

________ are variously referred to as buyer for export, export commission house, or export confirming house.

A)Export brokers
B)Export merchants
C)Foreign purchasing agents
D)Export managers
E)Manufacturer's agents

Question 75

Which of the following receives a fee for bringing together an exporter and a buyer in another country?

A)foreign purchasing agent
B)export broker
C)export merchant
D)export management company
E)freight forwarder

Question 76

What are some of the entities that an exporter should be familiar with? Describe and explain the role played by each of these entities, separating those that have responsibilities from exporters from those that have no responsibilities from the exporters.

Question 77

The MEA can act as an export distributor or as an export commission representative. However, the MEA does not perform the functions of an export department, and the scope of market activities is usually limited to a few countries.

Question 78

Direct representation, as opposed to representation by independent intermediaries, for exporting by the market country, has several advantages which do not include:

A)facilitates control and communications.
B)allows decisions concerning program development and resource allocation.
C)benefits when a product is not yet established in a market.
D)ensures marketer's interest and special efforts.
E)helps selling products directly to the consumer in the market country.

Question 79

What are the differences between antidumping and countervailing duties? Under what conditions are these duties imposed?

Question 80

When Honda's U.S. manufacturing subsidiaries purchase parts from Japan, customs authorities in the United States have the right to scrutinize the transfer price to make sure it is a fair reflection of market value.