Global Marketing

Chapter 8
Importing, Exporting, and Sourcing
1) The success of Chinese and Vietnamese exporters and the EU's subsequent
imposition of
tariffs, serves as a reminder
of the impact exporting and importing can have on national and
region economies.
Answer: TRUE
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Ref: 236
2) The terms 'export selling' and 'export marketing' are interchangeable.
Answer: FALSE
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Ref: 237
3) 'Export selling' involves tailoring v
arious elements of the marketing mix to global market
requirements.
Answer: FALSE
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Ref: 237
4) Export marketing requires an understanding of the target market environment.
Answer: TRUE
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Ref: 237
5) After the research effort 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.
Answer: TRUE
Page
Ref: 237
6) One way to visit a potential market is through a trade show or
a state
-
or federally
-
sponsored
trade mission.
Answer: TRUE
Page
Ref: 238
7) Locating market is one of the potential export problems.
Answer: TRUE
Page
Ref: 238
8) It was found by research that even the most experienced exporters express
lack of co
nfidence
in their knowledge about shipping arrangements, payment procedures, and
regulations.
Answer: TRUE
Page
Ref: 239
9) Officially, the EU tariffs on Chinese and Vietnamese shoe imports are known as
anti
-
dumping
duties.
Answer: TRUE
Page
Ref: 236
10) The four tigers
—
Singapore, South Korea, Taiwan and Hong Kong
—
learned from the
Japanese experience and built strong export
-
based economies of their own.
Answer: TRUE
Page
Ref: 240
11) Tax incentives treat earnings from export activities
preferentially either by applying a lower
rate to earnings from these activities or by refunding taxes already paid on
income associated
with exporting.
Answer: TRUE
Page
Ref: 240
12) The WTO recently ruled that America's foreign sales corporation (FSC
) law was acceptable
to signatory countries.
Answer: FALSE
Page
Ref: 240
13) The Common Agricultural Policy (CAP) determines the level of subsidies
granted to farmers
in Latin America.
Answer: FALSE
Page
Ref: 241
14) In an effort to facilitate expo
rts, countries are designating certain areas as 'free trade zones'
(FTZ) or 'special economic zones' (SEZ).
Answer: TRUE
Page
Ref: 241
15) Tariffs can be thought of as the "three R's" of global business: rules, rigor, and
regulations of
individual coun
tries.
Answer: FALSE
Page
Ref: 243
16) The Harmonized Tariff System (HTS) is currently the dominant system for
determining
tariffs.
Answer: TRUE
Page
Ref: 243
17) Under the HTS, only U.S.
exports valued at more than $2,500 are counted in export
statistics.
Answer: TRUE
Page
Ref: 243
18) The Harmonized Tariff System (HTS) has eliminated virtually all problems
associated with
assigning tariff classifications to new products.
Answer: FALS
E
Page
Ref: 243
19) 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 qualified
for lower
duties than human figures that are classifie
d as dolls.
Answer: FALSE
Page
Ref: 244
20) A nontariff barrier (NTB) is a hidden trade barrier which is a deterrent or
obstacle to the sale
of products in a foreign market.
Answer: TRUE
Page
Ref: 244
21) The Buy American Act of 1933 which stipulat
es 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.
Answer: TRUE
Page
Ref: 244
22) The Fly American Act is an example o
f a nontariff barrier.
Answer: TRUE
Page
Ref: 244
23) The NTR (normal trade relations) status is really a misnomer since the United
States has
given that status to some 180 countries around the world.
Answer: TRUE
Page
Ref: 245
24) A preferential tariff is a reduced tariff rate applied to imports from only GATT
members.
Answer: FALSE
Page
Ref: 246
D) a selling app
roach.
E) any decisions concerning product design.
Answer: D
Page
Ref: 237
-
238
42) Which of the following is
not
true about trade shows?
A) By attending, company representatives can find buyers outside the home
country.
B) They can provide important co
mpetitor information.
C) The federal government has exclusive rights to sponsor U.S. trade shows.
D) Company representatives can establish contacts with agents and distributors..
E) find distributors and agents
Answer: C
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Ref: 238
43) According to percent market share of top ten apparel exporting countries to
the United
States, which country ranked as number one in 2008?
A) Taiwan
B) China
C) Mexico
D) India
E) Honduras
Answer: B
Page
Ref: 240
44) The Ministry of International T
rade and Industry (MITI) has helped devise export strategies
for companies in:
A) Singapore.
B) South Korea.
C) Taiwan.
D) Hong Kong.
E) Japan.
Answer: E
Page
Ref: 240