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Exam 15: International Marketing Channels

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Question 41

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Discuss the continuity problem associated with a channel of distribution.

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Channels of distribution often pose long...

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Question 42

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In the context of factors affecting choice of channels, one of the key elements in distribution decisions includes _____.

A) the selection of optimum container sizes
B) volume discounts and rebates
C) the functions performed by middlemen
D) the local advertising modes
E) the target market culture

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Question 43

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Domestic middlemen are most likely to be used when the marketer desires to minimize financial and management investment.

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

The distribution process includes promotion of goods and services by sellers and resellers.

Most middlemen have little loyalty to their vendors. They handle brands in good times when the line is making money but quickly reject such products within a season or a year if they fail to produce during that period. This is an example of problems associated with which of the following six Cs of distribution channel strategy?

An export management company functions as a low-cost, independent marketing department with direct responsibility to the parent firm.

In the U.S., if a middleman is terminated, the company is required to pay one percent of the middleman's average annual compensation, multiplied by the number of years the middleman served, as a final settlement.

In an import-oriented distribution structure, supply often exceeds demand.

Using foreign-country middlemen moves the manufacturer away from the market and the company becomes less involved with problems of language, physical distribution, communications, and financing.

Legal advice is not necessary when entering distribution contracts with middlemen.

Which of the following distribution structures is also known as a traditional distribution structure?

A distinguishing characteristic of the Japanese distribution channel system is that it is controlled by a few small retailers found in the country.

What is secondary wholesaling?

_____ are considered to be the foundation of the Japanese distribution system.

The behavior of channel members in the distribution process is the result of the interactions between the cultural environment and the marketing process.

In which of the following modes of distribution in the foreign market will a company have to make maximum financial investment?

Which of the following are frequently criticized for not representing the best interests of a manufacturer?

Apex Corporation is a wholesaler for Global Electronics in the French market. Global Electronics discovered that Apex Corp. was diverting some of their goods to the English market. Apex Corp. could get a greater profit in the English market because the goods were bought by the firm at a cheaper price in France. In the context of the above scenario, which of the following forms of business is Apex engaged in?

Domestic middlemen offer many advantages for companies with large international sales volume.