Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
d. market channeling
e. market proliferation
43. Which of the following is the simplest form of home-based direct exporting?
a. built-in departments
b. separate export departments
c. export sales subsidiary
d. sales branches
e. sales subsidiary
44. In international exporting, what type of license applies to products that are not highly
regulated, and the license typically declares the product, its value, and final destination?
a. legitimate
b. validated
c. concentrated
d. general
e. channel
45. Which of the following types of license is relatively complicated and contains far more
information pertaining to the various regulations that apply to the product being exported?
a. legitimate
b. validated
c. concentrated
d. general
e. channel
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
46. Which of the following identifies merchandise in a shipment?
a. market channel license
b. bill of lading
c. draft for payment
d. export agreement
e. export draft
47. Which of the following requires that a buyer pay for goods before receiving them?
a. market channel license
b. bill of lading
c. document against payment
d. document against acceptance
e. bill of first refusal
48. Which of the following represents the most secure option for exporters regarding financing?
a. bill of lading
b. certificate of understanding
c. bill of financing
d. letter of credit
e. terms of sale
49. Which of the following specifies the exact amount of raw materials that are in a shipment?
a. bill of lading
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
b. certificate of shipment
c. bill of confirmation
d. letter of export
e. term of export
50. Which of the following is a type of warehouse facility not owned by the manufacturer?
a. market-based warehouses
b. contractual warehouses
c. third-party warehouses
d. intermediary channel warehouses
e. government-owned warehouses
51. Exporting can be stimulated by latent demand.
a. True
b. False
52. One internal reason for exporting exists when a company leader has experience in a
particular country.
a. True
b. False
53. The possession of unique assets that consumers want to purchase increases the potential for a
company to make profits from exporting a product.
a. True
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
b. False
54. Economies of scale often lead to profitable exporting opportunities.
a. True
b. False
55. Exporting a product can be a successful strategy for dealing with seasonal demand for a
product in a home country.
a. True
b. False
56. Exporting to foreign countries always leads to lower risks for a company.
a. True
b. False
57. Foreign market similarities with a domestic market generally increase confidence that
exporting will be a successful international marketing tactic.
a. True
b. False
58. Exporting products to a foreign country rarely helps a company pursue an expansion
opportunity.
a. True
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
b. False
59. Unsolicited orders are the most common reasons for beginning exporting.
a. True
b. False
60. Market spreading occurs when a company exports in a small number of markets and then
slowly expands into additional countries.
a. True
b. False
61. Marketing concentration involves growing exports in many different markets simultaneously
and rapid expansion to new markets.
a. True
b. False
62. Most companies choose either market concentration or market spreading, but not both
strategies.
a. True
b. False
63. Direct exporting and export marketing represent two different concepts.
a. True
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
b. False
64. Indirect exporting and export selling represent the same concept.
a. True
b. False
65. Export selling means that a manufacturer sells a product to intermediaries that then handle
the foreign selling of the product.
a. True
b. False
66. Marketers experience loss of control with export marketing.
a. True
b. False
67. A foreign sales subsidiary offers little authority and independence to foreign exporting
activities.
a. True
b. False
68. Agents take ownership of products, while merchants do not.
a. True
b. False
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
69. Export merchants are not involved with importing.
a. True
b. False
70. Export commission houses represent foreign buyers in a domestic market.
a. True
b. False
71. Brokers work to bring buyers and sellers together.
a. True
b. False
72. The export license is one of the primary documents necessary for exporting.
a. True
b. False
73. Validated export licenses apply to products that are not highly regulated.
a. True
b. False
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
74. A document against acceptance refers to drafts in which a buyer must pay for goods before
receiving title for them.
a. True
b. False
75. A document against payment refers to drafts in which a buyer agrees to pay the exporter by a
certain time and the agreement must be signed before the buyer receives title to the goods.
a. True
b. False
76. The most secure financing document for exporters is a letter of credit.
a. True
b. False
77. A revocable letter of credit refers to a letter in which the importer bank can cancel or change
terms of agreement without getting approval from all parties.
a. True
b. False
78. A confirmed letter of credit is a letter in which a bank explicitly confirms the credit in
writing on the letter itself.
a. True
b. False
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
79. The ultimate objective of a logistics program is to meet the needs of customers in a
convenient and timely fashion at the lowest possible cost.
a. True
b. False
80. Carrying costs refer to the monies needed to finance inventory and warehouse a product.
a. True
b. False
81. Air transportation remains a relatively inexpensive form of international distribution.
a. True
b. False
82. Ocean transportation tends to not be cost effective.
a. True
b. False
83. Containerization is especially popular in intermodal transportation.
a. True
b. False
84. Railroad transportation carries heavier products over long distances at a relatively lower cost.
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
a. True
b. False
85. Pipeline transportation is especially common for oil in the Middle East.
a. True
b. False
86. Transportation costs greatly impact the efficiency and cost of delivery systems.
a. True
b. False
87. A product that arrives on schedule carries communication utility.
a. True
b. False
88. Types of utility associated with international distribution channels include place, time,
possession, and communication.
a. True
b. False
89. International retailing activities apply most generally to very large retail operations.
a. True
b. False
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
90. International online retailing continues to grow in popularity with international marketers.
a. True
b. False
91. List and describe the various internal firm reasons for exporting products internationally.
92. Describe the various methods for direct exporting, including home-country-based and
foreign-country-based activities.
93. List and describe the roles of export merchants, trading companies, export commission
houses, resident buyers, and brokers as they apply to international distribution activities.
94. Discuss the various forms of export documentation that are important to international
distribution.
95. Discuss the major transportation modes in international distribution, including the various
advantages and disadvantages of each mode.
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019