Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
Test Bank
Chapter 14: International Distribution: Exporting and Retailing
1. Which of the following terms describes the act of bringing a foreign product into a domestic
market?
a. importing
b. exporting
c. dual distribution
d. channel discrimination
e. market transporting
2. Which of the following is NOT one of the internal firm reasons for exporting?
a. managerial urge
b. unique product characteristics
c. economies of scale
d. product development
e. overcapacity
3. Which of the following is NOT one of the external reasons firms use for exporting?
a. change agents
b. foreign market features
c. domestic market features
d. unsolicited orders
e. consumer indifference
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
4. Which of the following occurs when a company exports to a small number of markets or just
one key market and then slowly expands into additional countries?
a. market spreading
b. market development
c. market concentration
d. market fulfillment
e. market proliferation
5. Which of the following involves growing exports in many different markets simultaneously
and rapid expansion to new markets?
a. market spreading
b. market development
c. market concentration
d. market fulfillment
e. market proliferation
6. Which of the following involves a producer or supplier being in charge of marketing to
foreign buyers?
a. direct marketing
b. direct exporting
c. direct importing
d. indirect exporting
e. indirect importing
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
7. Which of the following means that a manufacturer sells a product to intermediaries who then
handle the foreign selling of a product?
a. direct marketing
b. direct exporting
c. direct importing
d. indirect exporting
e. indirect importing
8. Which of the following three activities are found with home-based direct exporting?
a. built-in department, separate export department, export sales subsidiary
b. built-in department, separate export department, foreign sales branch
c. built-in department, separate export department, foreign sales subsidiary
d. built-in department, separate export department, foreign-based distributors
e. built-in department, separate export department, foreign agents and representatives
9. Which of the following three activities are found with foreign country–based direct exporting?
a. built-in department, separate export department, export sales subsidiary
b. built-in department, separate export department, foreign sales branch
c. built-in department, separate export department, foreign sales subsidiary
d. foreign sales branch, foreign sales subsidiary, and foreign-based distributors and agents
e. foreign sales branch, foreign sales subsidiary, and export sales subsidiary
10. Which of the following represent foreign buyers in a domestic market and act as purchasing
agents for foreign companies?
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
a. export commission houses
b. resident buyers
c. brokers
d. direct merchant intermediaries
e. resident brokers
11. Which of the following are permanent employees of a buyer who act as agents in indirect
exporting?
a. export commission houses
b. resident buyers
c. brokers
d. direct merchant intermediaries
e. resident brokers
12. Which of the following work to bring a buyer and seller together and focus on introductions
and facilitation of contractual arrangements rather than on handling a product?
a. export commission houses
b. resident buyers
c. brokers
d. direct merchant intermediaries
e. resident brokers
13. Which of the following is one of the primary documents required for exporting?
a. bill of export
b. export document
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
c. export license
d. export agreement
e. export certification
14. Which of the following is NOT one of the features of letters of credit?
a. revocable vs. irrevocable
b. confirmed vs. unconfirmed
c. transferrable vs. non-transferable
d. intermediary vs. direct
e. deferred payment
15. Which term refers to all of the activities in the physical movement and storage of goods from
a producer to a consumer?
a. distribution
b. exporting
c. logistics
d. importing
e. marketing channel management
16. Which of the following is NOT one of the five tasks of physical distribution?
a. materials handling
b. inventory control
c. product development
d. inventory location
e. order processing
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
17. 3PL refers to which of the following?
a. third-party logistics
b. third-place logistics
c. third-product logistics
d. third-party liability
e. third-position logistics
18. The stock turnover figure represents which of the following?
a. the number of times per year in which the average inventory on hand is sold
b. the number of times per year in which the average inventory on hand is purchased
c. the number of times per year in which the average inventory on hand is transferred
d. the number of times per year in which the average inventory on hand is exported
e. the number of times per year in which the average inventory is counted
19. Which of the following identifies the point at which merchandise should be reordered along
with the amount of volume to reorder?
a. economic reorder volume
b. economic reorder point
c. economic ordering quantity
d. economic inventory point
e. economic replenish rate
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
20. Which of the following is NOT one of the major methods of transportation for international
distribution that is discussed in the text?
a. air
b. water
c. railroad
d. pipeline
e. electronic transmission
21. Which of the following remains the most extensively used method of distributing products
internationally?
a. air
b. water
c. railroad
d. pipeline
e. intermodal
22. Economic order quantity ______.
a. identifies the supplier from which merchandise should be reordered
b. specifies the rate at which inventory is being sold
c. notifies the supplier that inventory should be shipped
d. identifies the number of consumers purchasing inventory
e. identifies the point at which merchandise should be reordered
23. Which country has the highest level of rail line availability?
a. the United States
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
b. the United Kingdom
c. Argentina
d. Brazil
e. China
24. Which method of transporting goods would not be used when shipping from Japan to
Australia?
a. air
b. water
c. railroad
d. pipeline
e. motor carrier
25. Which of the following describes the practice of loading flatbed trailers on rail cars for
delivery on part of a distribution route, at which point they are transferred back to trucks for the
balance of the delivery?
a. birdybacking
b. fishbacking
c. piggybacking
d. railbacking
e. piggyboating
26. Combining motor carriers and air carriers in a delivery effort is known as which of the
following?
a. birdybacking
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
b. fishbacking
c. piggybacking
d. railbacking
e. piggyboating
27. Combining water carriers and motor carriers in a delivery effort is known as which of the
following?
a. birdybacking
b. fishbacking
c. piggybacking
d. railbacking
e. piggyboating
28. Making a product available at a place that is convenient for buyers provides which of the
following types of utility?
a. place
b. time
c. possession
d. communication
e. logistical
29. Making sure a product is available when a consumer needs it provides which of the following
types of utility?
a. place
b. time
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
c. possession
d. communication
e. logistical
30. Transferring ownership of products to consumers provides which of the following types of
utility?
a. place
b. time
c. possession
d. communication
e. logistical
31. Providing information to other channel members and customers provides which type of
utility?
a. place
b. time
c. possession
d. communication
e. logistical
32. Which type of store offers widely available, intensively distributed products to consumers?
a. convenience
b. supermarkets
c. hypermarkets
d. department
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
e. specialty
33. When a restaurant needs fresh fish for a Friday lunch special, which type of utility is needed?
a. time
b. place
c. possession
d. communication
e. logistical
34. When a company orders from a supplier because leaders receive valuable tips about the
competition, which type of utility is present?
a. time
b. place
c. possession
d. communication
e. logistical
35. A large retail store that also carries grocers is a ______.
a. convenience store
b. supermarket
c. hypermarket
d. specialty store
e. distribution center
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
36. A store that offers a limited number of products plus gasoline is a ______.
a. convenience store
b. supermarket
c. hypermarket
d. specialty store
e. shopping center
37. Which of the following is NOT a major type of retailing in international marketing?
a. convenience stores
b. supermarkets
c. hypermarkets
d. specialty stores
e. rack jobbers
38. A sporting goods store is a ______.
a. convenience store
b. supermarket
c. hypermarket
d. specialty store
e. wholesale outlet
39. Which of the following describes the decrease in per unit cost resulting from an increased
number of products manufactured?
a. economies of scale
b. economies of scope
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
c. law of diminishing returns
d. law of supply and demand
e. law of diminishing margins
40. Trade associations, governmental agencies, and port authorities are which of the following?
a. change agents
b. outside forces
c. regulatory bodies
d. change intermediaries
e. investment companies
41. Which of the following may be the best approach for an international marketer to use when
entering a foreign market and barriers can be created to keep competitors from exporting to a
market?
a. market concentration
b. market development
c. market spreading
d. market channeling
e. market proliferation
42. If many competitors already exist in a market, which strategy will lead to a higher market
share?
a. market concentration
b. market development
c. market spreading