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In an import-oriented distribution structure, in most cases, supply exceeds demand.

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Retailing around the world has been in a state of active ferment for several years and the rate of change appears to be directly related to the ____.


A) literacy rate in the country
B) rate of inflation in the country
C) rate of population growth
D) stage and speed of economic development
E) dollar exchange rate for the currency of the country

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One of the highest costs of doing business in China is the:


A) money required for the transportation of the goods.
B) amount of money and time required for obtaining the appropriate permits.
C) cost of local advertising.
D) capital required to maintain effective distribution.
E) cost of customizing the products for the Chinese market.

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Which of the following does NOT contribute to explaining why Japan has a high number of small stores?


A) Population density
B) A tradition of frequent trips to the store
C) Emphasis on service
D) Freshness and quality expectations
E) Limited commercial real estate plots

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Retailing shows even greater diversity in its structure than does wholesaling.

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Which of the following statements is true regarding an export management company (EMC) ?


A) It acts as a middleman for firms with relatively large international volume.
B) EMCs work under their own names.
C) EMCs have direct responsibility to the parent company.
D) It acts as a middleman for companies willing to involve their own personnel in the international function.
E) EMCs seldom can afford to make the kind of market investment needed to establish deep distribution for products.

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One of the distinguishing characteristics of the Japanese channel system is that the channel system is controlled by a few small retailers found in the country.

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All the following statements are true regarding a Japanese market EXCEPT:


A) the costs of Japanese consumer goods are among the highest in the world.
B) manufacturers depend on wholesalers for a multitude of services to other members of the distribution network like financing, physical distribution etc.
C) the Japanese distribution structure supports long-term dealer-supplier relationships.
D) the Japanese market is characterized by the tradition of frequent trips to the store.
E) the Japanese consumers favor price over personal service.

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What is the basic function of the Export Trading Company Act?


A) It allows U.S. companies to bypass tax laws with respect to international trading.
B) It allows producers of similar products to form export trading companies.
C) It allows companies to bypass trade barriers in foreign countries.
D) It allows companies to earn the highest possible profits in foreign countries.
E) It allows companies to combine export shipments within single containers.

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One of the reasons that channels of distribution often pose longevity problems is that ____.


A) most middlemen do not maintain sufficient inventory to serve customers
B) some middlemen lack product knowledge resulting in low sales volume
C) most middlemen have little loyalty to their vendors
D) most middlemen tend to slow down distribution to extract higher commissions
E) most middlemen do not have sufficient knowledge of the target market

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Which of the following represents a joint export ventures through which U.S. firms can take advantage of economies of scale, spread risk, and pool their expertise?


A) Manufacturers' export agents
B) U.S. trading companies
C) Manufacturers' Retail Stores
D) Export management companies
E) Complimentary marketers

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According to the text, the search for prospective middlemen should begin with:


A) shortlisting the middlemen.
B) studying the target market.
C) evaluating the financial resources available with the manufacturing company.
D) exploring the financial investment required for using own sales force in the target market.
E) understanding the mission and vision of the manufacturing firm.

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As channels grow longer, the ability of a manufacturer to control price, volume, promotion, and type of outlets increases.

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Experienced exporters suggest that the only way to select a middleman is:


A) to conduct a background check on all the distributors available in the target market.
B) to issue a request-for-proposal (RFP) to all distributors in the target market and evaluate their responses.
C) consult other manufacturers of the similar products and select the distributor recommended by them.
D) consult trade organizations and select the distributor recommended by them.
E) to personally talk to ultimate users of your product to find whom they consider to be the best distributors.

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The Webb-Pomerene Act of 1918 made it possible for American business firms to join forces in export activities without being subject to which of the following acts?


A) The Sherman Antitrust Act
B) The Federal Communications Act
C) The Federal Trade Commission Act
D) The Federal Food, Drug, and Cosmetic Act
E) The Robinson-Patman act

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Which of the following statements is true regarding an import-oriented distribution structure?


A) Distribution systems are national in scope.
B) The relationship between the importer and any middleman in the marketplace is similar to that found in a mass-marketing system.
C) The idea of a channel as a chain of intermediaries performing specific activities and each selling to a smaller unit beneath it until the chain reaches the ultimate consumer is common in an import-oriented system.
D) Several independent agencies providing functions such as advertising, marketing research, financing are a part of this distribution structure.
E) An import-oriented distribution structure is considered as a traditional distribution structure.

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Another term for home-country middlemen is _____ middlemen.


A) uniform
B) agent
C) merchant
D) domestic
E) regional

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The WTO in 2003 ruled _____ to be in violation of international trade rules, thus starting a major trade dispute with the European Union that still simmers and occasionally sizzles.


A) foreign sales corporation
B) direct marketing partnerships
C) trading companies
D) export promotion company
E) Webb-Pomerene export associations

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A variety of factors affect choice of channels in a foreign market. All of the following points should be addressed prior to the selection process EXCEPT:


A) identify specific target markets within and across countries.
B) specify marketing goals in terms of volume, market share, and profit margin requirements.
C) specify financial and personnel commitments to the development of international distribution.
D) identify control, length of channels, terms of sale, and channel relationships.
E) identify decision-making processes and languages of prospective middlemen.

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All of the following statements are true regarding merchant middlemen EXCEPT:


A) they take title to manufacturers' goods.
B) they are more controllable by manufacturers than agent middlemen.
C) they assume trading risk.
D) they are primarily concerned with sales and profit margins on their merchandise.
E) they are frequently criticized for not representing the best interests of a manufacturer.

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