大学课程国际营销Chapter 11
巴中人力资源和社会保障局-困难申请
Chapter 11—Export
Pricing
TRUEFALSE
1. Price is the only
element of the marketing mix that is revenue
generating.
ANS: T PTS: 1 DIF: Easy REF: p.
350
2. As more segments of the market are
targeted and more of a product is
made
available, the price is gradually
increased.
ANS: F PTS: 1 DIF: Moderate REF: p.
350
3. Price shouldbe determined in isolation
from the other marketing mix
elements.
ANS:
F PTS: 1 DIF: Easy REF: p. 350
4. When
penetration pricing is used, the product is
offered at a higher price
intended to generate
high sales figures for the new product.
ANS: F
PTS: 1 DIF: Moderate REF: p. 351
5. As in all
marketing decisions, the marketing intermediaries
establish the
basic premise for
pricing.
ANS: F PTS: 1 DIF: Moderate REF: p.
353
6. The costs of modifying the product for
foreign markets are considered
export-related
costs.
ANS: T PTS: 1 DIF: Moderate REF: p.
355
7. Incoterms are the terms agreed upon by
nation states that allow for
incorporation of
companies as recognized globally.
ANS: F PTS: 1
DIF: Moderate REF: p. 357
8. The most favorable
term to the exporter is cash in advance.
ANS: T
PTS: 1 DIF: Easy REF: p. 361
9. A draft is a
form of government currency used to pay duty on
products
shipped across
country
boundaries.
ANS: F PTS: 1 DIF:
Moderate REF: p. 364
10. The most favorable
term to the importer is consignment selling,
which
allows the importer to defer payment
until the goods are actually sold.
ANS: T PTS:
1 DIF: Moderate REF: p. 365
11. Political risk
is a controllable variable, which the exporter
controls
through paying extra taxes or import
duties.
ANS: F PTS: 1 DIF: Moderate REF: p.
365
12. Because international currency is
fluid, neither party will get harmed if
the
exchange rate is different in one country versus
another.
ANS: F PTS: 1 DIF: Moderate REF: p.
368
13. An option gives the holder the
right to buy or sell foreign currency at
a
prespecified price on or up to a prespecified
date.
ANS: T PTS: 1 DIF: Moderate REF: p.
368
14. Absorption defines the currency
fluctuation in which the government
compensates
an exporter for losses in a given market.
ANS:
F PTS: 1 DIF: Moderate REF: p. 370
15. A
European exporter, during a strong euro, has one
alternative- increase
the export price
in
conjunction with increases in the value of
the euro to maintain stable export
prices in
foreign
currencies.
ANS: F PTS: 1 DIF:
Moderate REF: p. 370
16. Some exporters prefer
price stability to the greatest possible degree
and
allow mark-ups to vary in maintaining
stable local currency prices.
ANS: T PTS: 1
DIF: Moderate REF: p. 371
17. Financing
assistance for exporters is only available from
public sectors.
ANS: F PTS: 1 DIF: Moderate
REF: p. 372
18. As the share of international
sales and reach of companies increases,
banking
relationships become less important.
ANS: F
PTS: 1 DIF: Moderate REF: p. 372
19. Factoring
houses are places where customs affords reliable
accounting of
the dollar increment of actual
purchasing power.
ANS: F PTS: 1 DIF: Moderate
REF: p. 373
20. Forfaiting provides the
exporter with cash at the time of a
shipment.
ANS: T PTS: 1 DIF: Moderate REF: p.
373
21. The ability to offer financing or
credit terms is often critical in
competing
for, and winning, export
contracts.
ANS: T PTS: 1 DIF: Moderate REF: p.
374
22. The final export price of a good is
negotiated in person.
ANS: T PTS: 1 DIF: Easy
REF: p. 376
23. Skimming is selling goods
overseas for less than in the exporter's
home
market or at a price below the cost of
production, or both.
ANS: F PTS: 1 DIF: Easy
REF: p. 377
MULTIPLE
CHOICE
1. Which of the following is not a
general alternative pricing mechanism?
a.
Monopoly
b. Skimming
c. Market pricing
d.
Penetration pricing
ANS: A PTS: 1 DIF: Moderate
REF: p. 350
2. Which of the following
statements about prices is false?
a. It cannot
determine the long-term viability of an
enterprise.
b. It serves as a means of
communication with a buyer by providing a
basis
for judging the attractiveness of an
offer.
c. It is a major competitive tool in
meeting and beating close rivals
and
substitutes.
d. Competition has an
impact on prices.
ANS: A PTS: 1 DIF: Moderate
REF: p. 350
3. For an exporter to use the _____
approach, the product has tobe unique,
and some
segments of the market must be willing to pay the
high price.
a. extinction pricing
b.
skimming
c. penetration pricing
d. market
pricing
ANS: B PTS: 1 DIF: Moderate REF: p.
350
4. With multiple-product pricing, the
various items in the line may be
differentiated
by pricing them appropriately to indicate all but
which of the
following examples?
a. Economy
version
b. Standard version
c. Top-of-the-
line version
d. Generic version
ANS: D PTS:
1 DIF: Difficult REF: p. 351
5. Which of the
following can be used to discourage marketers from
entering
the market?
a. Cost-plus
pricing
b. Changing pricing
c. Multiple-
product pricing
d. Penetration pricing
ANS:
D PTS: 1 DIF: Moderate REF: p. 351
6.
Which of the following is a reactive approach that
may lead to problems if
sales volumes never
rise to sufficient levels to produce a
satisfactory return?
a. Market pricing
b.
Penetration pricing
c. Multiple-product
pricing
d. Changing pricing
ANS: A PTS: 1
DIF: Moderate REF: p. 351
7. Which of the
following is not an attribute of pricing policy
selection?
a. Decision control
b.
Flexibility
c. Differentiation
d.
Objectives
ANS: C PTS: 1 DIF: Moderate REF: p.
352
8. Which of the following is not considered
an internal factor for setting the
export
price?
a. Company’s philosophy
b. Company’s
goals
c. Company’s objectives
d. Company’s
customers
ANS: D PTS: 1 DIF: Moderate REF: p.
352-353
9. Which of the following is not a
factor to be considered in determining
the
price of an exported
product?
a. The
importance of price in customer decision
making.
b. The brand or brand family being
considered.
c. The strength of perceived price-
quality relationships.
d. Potential reactions
to marketing mix manipulation by
marketers.
ANS: B PTS: 1 DIF: Difficult REF: p.
353
10. _____ pricing is set regardless of the
buyer or may be based on average
unit costs of
fixed, variable, or export-related costs.
a.
Dual
b. Export variable
c. Standard
worldwide
d. Market-differentiated
ANS: C
PTS: 1 DIF: Moderate REF: p. 353
11. Cost-
driven and market-driven approaches are associated
with:
a. standard worldwide
pricing.
b. dual pricing.
c. market-
differentiated pricing.
d. marginal cost
method.
ANS: B PTS: 1 DIF: Moderate REF: p.
354
12. ____ price system differentiates
between domestic and export prices.
a. Dual
pricing
b. Bilateral pricing
c. Semi-
pricing
d. Export secondary methodology
ANS:
A PTS: 1 DIF: Moderate REF: p. 354
13. In the
cost-plus method of pricing, there is one major
drawback that
sometimes precludes exports from
using it. What is this drawback?
a. The cost of
the final price may be so high that the firm's
competitiveness is
compromised.
b. It is so
variable that the actual price cannot be
substantiated.
c. There is a high turnover of
product resulting in costing fluctuations.
d.
Each of the elements has to be examined
individually, providing complex
structures
grids.
ANS: A PTS: 1 DIF: Difficult REF: p.
354
14. The marginal cost method of pricing
considers the direct costs of
producing and
selling products for export as the floor beneath
which prices
cannot be set. What costs need to
be excluded in these direct costs?
a. Variable
costs and product costs
b. Shipment costs and
manufacturing costs
c. Fixed costs, R&D and
domestic overhead
d. Inventory costs and
production costs
ANS: C PTS: 1 DIF: Moderate
REF: p. 354
15. Market-differentiated pricing
calls for export pricing according to
the
dynamic conditions of the marketplace. What
are the three changes which
might affect this
type of pricing?
a. Pre, present, or post
fluctuations
b. Competition, exchange rates, or
environment
c. Space, time, or utility
d.
Money, media, or markets
ANS: B PTS: 1 DIF:
Moderate REF: p. 354
16. In preparing a
quotation, an exporter must be careful to take
into account
three things. Which of the
following is not one of those
requirements?
a. Government action in
previous tariff-related intergovernmental
disputes.
b. The cost of modifying the product
for foreign markets.
c. Operational costs of
the export operation.
d. Costs incurred in
entering the foreign markets.
ANS: A PTS: 1
DIF: Difficult REF: p. 355
17. The combined
effect of both clear-cut and hidden costs results
in export
prices that far exceed
domestic
prices. This cause is known as:
a. export
pricing.
b. seamless integration.
c.
relationship pricing.
d. price
escalation.
ANS: D PTS: 1 DIF: Easy REF: p.
355
18. Which of the following is not a
strategy described in the text to
compensate
for price escalation?
a. Weed out government
controls and avoid them by entering
markets
through third parties
b. Reorganize
the channel of distribution
c. Adapt the
product
d. Use new or more economical tariff or
tax classifications
ANS: A PTS: 1 DIF:
Difficult REF: p. 355-356
19. Which of the
following allows an exporter to berefunded up to
99 percent
of duties paid on imported goods
when they are exported or incorporated
in
articles that are subsequently exported
within five years of the importation?
a.
Foreign sourcing
b. Zipping imports
c. Duty
drawbacks
d. Long-term pressure
ANS: C PTS:
1 DIF: Difficult REF: p. 356
20. Without
accurate information, a company cannot combat
phenomena
such as price
escalation.
Appropriate export pricing requires
the establishment of procedures to
assess
export performance.
Which department
can provide this vital information on hidden
costs?
a. Strategy and planning
b. Research
and development
c. Accounting
d.
Administration
ANS: C PTS: 1 DIF: Moderate REF:
p. 357
21. What does Free alongside ship (FAS)
mean?
a. At a named port of export, the
exporter quotes a price for the goods
including
delivery, alongsidea vessel at the port.
b. The
price of goods is designated while traveling on a
ship in an ocean.
c. The seller quotes a price
covering all expenses up to, and
including,
delivery of goods on an overseas
vessel provided by or for the buyer.
d. When
other ships come alongside the vessel, there are
no taxes making it
free.
ANS: A PTS: 1 DIF:
Moderate REF: p. 358
22. Free on board
(FOB):
a. means that the exporter quotes a
price for the good.
b. applies only to vessel
shipments.
c. replaced a variety of FOB terms
for all modes of transportation
except
vessel.
d. applies only at a
designated inland shipping point.
ANS: B PTS: 1
DIF: Difficult REF: p. 359
23. Which of the
following does not apply to freight
forwarders?
a. They act as facilitators and
advisors and help keeping down some of
the
export-related costs.
b. They can
prepare quotations.
c. They pay for the
shipping and absorb the costs.
d. They ensure
that unexpected charges do not cause the exporter
to lose
money.
ANS: C PTS: 1 DIF: Difficult
REF: p. 359
24. What is a letter of
credit?
a. An instrument issued by a bank at
the request of a buyer in which the
bank
promises to pay a specified amount of
money on presentation of documents
stipulated
in the letter.
b. It is a letter which states
that after the seller ships the goods, the
shipping
documents and the draft demanding
payment should be presented to the
importer
through banks acting as the seller’s agent.
c.
It is given to shipping companies who have a line
of vessels.
d. An instrument of currency issued
by a foreign government to the exporter.
ANS: A
PTS: 1 DIF: Moderate REF: p. 361
25. Which one
of the following is not a dimension of a letter of
credit?
a. Irrevocable versus
revocable.
b. Instant versus prolonged
c.
Confirmed versus unconfirmed
d. Revolving
versus nonrevolving
ANS: B PTS: 1 DIF: Moderate
REF: p. 361-362
26. Which of the following is a
draft most similar to?
a. A money order
b. A
line of credit
c. An established credit
application
d. A personal check
ANS: D PTS:
1 DIF: Easy REF: p. 364
27. When a draft is
drawn on and accepted by a bank, what does it
become?
a. Money in the bank
b. Banker's
acceptance
c. Surety
d. Short-term mark-up
instrument
ANS: B PTS: 1 DIF: Moderate REF: p.
365
28. What are the two forms of risk which
might affect an export transaction?
a. Inward
and outbound
b. Pre and post selling
c.
Commercial and political
d. Contact and
expatriate
ANS: C PTS: 1 DIF: Moderate REF: p.
365
29. Which of the following statements about
the forward exchange market is
false?
a. A
transaction in the forward market entails a
contractual obligation to buy
or sell.
b.
Forward contracts are the most common foreign
currency contractual
hedge.
c. It gives the
holder the right to buy or sell foreign currency
at a prespecified
price on or up
to a
prespecified date.
d. The exporter gets a bank
to agree to a rate at which it will buy the
foreign
currency the exporter will receive when
the importer makes payment.
ANS: C PTS: 1 DIF:
Difficult REF: p. 368
30. Destination-specific
adjustment of mark-ups in response to exchange-
rate
changes are referred to as:
a.
pass-through.
b. markup via
commercialization.
c. prime manipulation.
d.
pricing-to-market.
ANS: D PTS: 1 DIF: Difficult
REF: p. 370
31. Which of the following provides
the exporter with a complete financial
package
that combines credit protection, accounts-
receivable bookkeeping,
and collection services
to take away many of the challenges that come
with
doing business overseas?
a.
Forfaiting
b. Factoring
c. Invoice
discounting
d. A bank loan
ANS: B PTS: 1
DIF: Difficult REF: p. 373
32. Which of the
following is a disadvantage of official financing
programs?
a. Protection in the riskiest part of
an exporter’s business.
b. Encouragement to
exporters to make competitive offers by reducing
terms
of payment.
c. Protection against
political risks over which the exporter does not
have
control.
d. Broadening of potential
markets by minimizing exporter risks.
ANS: B
PTS: 1 DIF: Difficult REF: p. 373-374
33. With
which of the following does an institution
guarantee payment to the
seller for a
reasonable premium, if the buyer defaults?
a.
Bill of payment
b. Export credit
insurance
c. Collateral security
d. Letter
of credit
ANS: B PTS: 1 DIF: Moderate REF: p.
374
34. Which of the following refers to a
tactic whereby a foreign firm
intentionally
sells at a loss in another country in order to
increase its market
share at the expense of
domestic producers, which amounts to
an
international price war?
a. Unintentional
dumping
b. Predatory dumping
c. Sporadic
dumping
d. Persistent dumping
ANS: B
PTS: 1 DIF: Easy REF: p. 377
35. Countervailing
duties are associated with which of the
following?
a. Price negotiations
b.
Leasing
c. Dumping
d. Factoring
ANS: C
PTS: 1 DIF: Moderate REF: p. 378
SHORT ANSWER
1. What is a skimming
price strategy?
ANS:
In first-time pricing,
one of the general alternatives involves skimming.
The
objective of skimming is to achieve the
highest possible contribution in a
short time
period. For an exporter to use this approach, the
product has to be
unique, and some segments of
the market must be willing to pay the
high
price. As more segments are targeted and
more of the product is made
available, the
price is gradually lowered. The success of
skimming depends
on the ability and speed of
competitive reaction.
PTS: 1 DIF: Moderate REF:
p. 350
2. Why has price become such a dynamic
element of the marketing mix?
ANS:
The
status of price has changed to that of a dynamic
element of the marketing
mix. This has resulted
from both internal and external pressures on
business
firms. Management must analyze the
interactive effect that pricing has on
the
other elements of the mix and how pricing
can assist in meeting overall goals
of the
marketing strategy.
PTS: 1 DIF: Moderate REF:
p. 378
3. What is the process of setting an
export price?
ANS:
The process of setting an
export price must startwith the determination of
an
appropriate cost baseline and should include
variables such as export-related
costs to avoid
compromising the desired profit margin. The
quotation needs
to spell out the respective
responsibilities of the buyer and the seller
in
getting the goods to the intended
destination. The terms of sale indicate
these
responsibilities but may also be
used as a competitive tool. The terms
of
payment have to be clarified to ensure that
the export will indeed get paid for
the
products and services rendered. Facilitating
agents such as freight
forwarders and banks are
often used to absorb some of the risk
and
uncertainty in preparing price quotations
and establishing terms of payment.
PTS: 1 DIF:
Moderate REF: p. 378