Part 9 Flashcards
Which of the following is NOT a cost or consequence that gray markets impose on global marketers? A. Free riding. B. Damaging channel relationships. C. Dilution of exclusivity. D. Enhancing manufacturer's reputation. E. Undermining segmented pricing schemes
D. Enhancing manufacturer’s reputation.
\_\_\_\_\_\_\_\_ is defined as the sale of an imported product at a price lower than that normally charged in a domestic market or country of origin. A. Parallel importing B. Price discrimination C. Price fixing D. Gray marketing E. Dumping
E. Dumping
Which of the following is an approach used by companies to avoid anti-dumping laws?
A. Restricting exports to countries with strong anti-dumping laws
B. Reducing price transparency
C. Conducting business only on the Internet
D. Making nonprice competitive adjustments
E. Reducing production
D. Making nonprice competitive adjustments
If a company sells products in export markets at prices lower than that normally charged in a domestic market or country of origin they are engaging in \_\_\_\_\_\_\_. A. market skimming B. parallel importing C. gray marketing D. dumping E. using offsets
D. dumping
For positive proof that dumping has occurred in the United States, both \_\_\_\_\_\_\_ and \_\_\_\_\_\_\_ must be demonstrated. A. sales data; profit motive B. artificial sales; injury C. price discrimination; injury D. invoices; proof of sales E. shipments; serial numbers
C. price discrimination; injury
In 2000, the U.S. Congress passed the ______________. This law calls for antidumping revenues to be paid to U.S.
companies harmed by imported goods sold at below-market prices.
A. GATT Article VI.
B. Antidumping and Antisubsidy Regulations
C. GATT agreement
D. Byrd Amendment
E. Tariff Act
D. Byrd Amendment
What is the underlying purpose of price fixing? A. To ensure higher prices B. To increase market share C. To create consumer demand D. To offer lower prices to consumers E. To drive competitors out of business
A. To ensure higher prices
Which of the following refers to a manufacturer conspiring with retailers to ensure certain retail price levels are maintained? A. Dumping B. Vertical price fixing C. Parallel exporting D. Price discrimination E. Horizontal price fixing
B. Vertical price fixing
In 2011, the European Commission determined that P&G, Unilever, and Henkel conspired to set prices for laundry detergent. This is an example of \_\_\_\_\_\_\_. A. vertical price fixing B. black marketing C. horizontal price fixing D. dumping E. gray marketing
C. horizontal price fixing
\_\_\_\_\_\_\_ occurs when a manufacturer conspires with wholesalers or retailers to ensure certain retail prices are maintained. A. Dumping B. Gray marketing C. Black marketing D. Vertical price fixing E. Horizontal price fixing
D. Vertical price fixing
Nintendo was fined nearly $150 million after it was determined that the video game company had colluded with European distributors. The distributors in countries with lower retail prices had agreed not to sell to retailers in countries with high prices. This is a classic example of \_\_\_\_\_\_\_. A. vertical price fixing B. dumping C. horizontal price fixing D. gray marketing E. black marketing
A. vertical price fixing
Transfer pricing refers to ________.
A. transfer of goods from one retailer to another
B. inter-company sales
C. intracorporate exchanges
D. transfer of goods from one market to another
E. business-to-business sales
C. intracorporate exchanges
Why are individual governments concerned with transfer pricing?
A. It is perceived as a potential for dumping.
B. It is not transparent.
C. It is believed to be used to avoid taxes.
D. It is perceived as a form of price-fixing.
E. It is seen as an unfair trade practice.
C. It is believed to be used to avoid taxes.
Cost-based, market-based, and negotiated are three approaches to \_\_\_\_\_\_\_\_. A. dumping B. penetration pricing C. gray marketing D. transfer pricing E. market skimming
D. transfer pricing
Joseph Quinlan, chief marketing strategist at Bank of America, estimated that approximately 25% of U.S. merchandise exports
represent shipments by American companies to their own foreign affiliates and subsidiaries. This situation underscores the
importance of ______ in global marketing.
A. market skimming
B. gray marketing
C. transfer pricing
D. penetration pricing
E. dumping
C. transfer pricing
Since goods cross national borders and represent a sale, transfer pricing is a matter of interest to which authorities?
A. IRS and SEC
B. Municipal tax collector and shipping companies
C. Tax authorities and customs service
D. CEO and dock authorities
E. Board of directors and customs
C. Tax authorities and customs service
Transfer pricing represents which type of exchange transaction?
A. Between buyers and sellers in the same industry.
B. Between buyers and sellers in different countries.
C. Between buyers and sellers of the same product.
D. Between buyers and sellers that have the same corporate parent.
E. Between buyers and sellers in the same country.
D. Between buyers and sellers that have the same corporate parent.
Which of the following terms refers to an alternative financing method where products are exchanged between nations rather than currency? A. Price fixing B. Fair market C. Countertrade D. Transfer pricing E. Global trade
C. Countertrade
Which of the following is the oldest and least complex form of countertrade? A. Monetized trade B. Counterpurchase C. Barter D. Parallel trading E. Parallel barter
C. Barter
A reciprocal arrangement whereby the government in the importing country seeks to recover large sums of hard currency spent
on expensive purchases such as military aircraft or telecommunications systems, is known as a(n)________.
A. offset
B. compensation trading
C. countertrade
D. triangular trade and swap
E. barter
A. offset
