19. ____ are used for intracontinental transportation over long distances of coal, gasoline, forestry
products, and grains.
a.
Airways
b.
Railways
c.
Tankers, barges, and other sea freighters
d.
Pipelines
20. Almost half of imports into the United States, in terms of dollar amounts, enter the country by
a.
Airways
b.
Railways
c.
Tankers, barges, and other sea freighters
d.
Pipelines
21. ____ transport smaller shipments over shorter distances.
a.
Airways
c.
Trucks
b.
Railways
d.
Pipelines
22. ____ is used for products that are low-volume and low-weight but high-value, such as jewelry and
electronics.
a.
Airways
b.
Railways
c.
Tankers, barges, and other sea freighters
d.
Pipelines
23. ____ provide a low-cost mode of transporting liquid or semi-liquid products from the source to the
target market.
a.
Airways
b.
Railways
c.
Tankers, barges, and other sea freighters
d.
Pipelines
24. Grains, gasoline, forestry products, cement, and fertilizers can be transported by
a.
Airways and trucks
c.
Tankers, barges, and railways
b.
Railways and trucks
d.
Pipelines
25. About a third of U.S. exports, in terms of dollar amounts, are transported by
a.
Airways
b.
Railways
c.
Tankers, barges, and other sea freighters
d.
Pipelines
26. How do government agencies affect distribution in high-income, developed countries?
a.
They are a promoter of national security interests.
b.
They are a promoter of international involvement of firms.
c.
Thin provide insurance for higher risk international ventures.
d.
All of the above are true.
27. In the United States, international distribution and logistics involvement is shared by a number of
different government agencies. With which agency are most of the other agencies affiliated?
a.
The International Trade Administration
b.
The Bureau of Export Administration
c.
The U.S. Department of Commerce
d.
The Export-Import Bank.
28. Which agency in the U.S. Department of Commerce offers export assistance to international firms,
and, in particular, to small to medium-size businesses by offering access to a market research data
base?
a.
The International Trade Administration
b.
The Bureau of Export Administration
c.
The U.S. Commercial Service
d.
The Export-Import Bank
29. Which agency of the U.S. Department of Commerce advances U.S. national security, foreign policy,
and economic interests?
a.
The International Trade Administration
b.
The Bureau of Export Administration
c.
The U.S. Commercial Service
d.
The Export-Import Bank
30. Which government agency operates Export Assistance Centers?
a.
The International Trade Administration
b.
The Bureau of Export Administration
c.
The U.S. Commercial Service
d.
The Export-Import Bank
31. Webb-Pomerene associations engage in which the following tasks?
a.
Consumer research for retailers in the home market.
b.
Representing the company at trade shows.
c.
Screening and selecting international distributors for different manufacturers in the home
country.
d.
Webb-Pomerene associations provide none of the above activities.
32. Which government agency guarantees loans and makes loans to international buyers of U.S. goods?
a.
The International Trade Administration
b.
The Bureau of Export Administration
c.
The U.S. Commercial Service
d.
The Export-Import Bank
33. Which agency funds feasibility studies, training, business workshops, and technical assistance, aimed
at infrastructure and industrial projects in developing countries?
a.
The International Trade Administration
b.
The Bureau of Export Administration
c.
The U.S. Commercial Service
d.
The U.S. Trade and Development Agency
34. Which agency is responsible for the International Court of Arbitration?
a.
The U.S. Department of Commerce
b.
The International Chamber of Commerce
c.
The Export-Import Bank
d.
The World Trade Organization
35. What is the appropriate order for choosing a logistics provider?
a.
Measure performance, evaluate bidders, express needs and wants, and create a win-win
relationship.
b.
Identify qualified providers, evaluate bidders and select the partner, develop an integration
plan, and create a win-win relationship.
c.
Develop an integration plan, identify qualified providers, evaluate bidders, and measure
and analyze performance.
d.
Express needs and wants, identify qualified providers, develop an integration plan, and
select the partner.
36. Why might a can of Similac sell for about $25 in the U.S. but sell for about $9 in the Netherlands?
a.
Similac may be trying to penetrate the Netherlands market.
b.
The Dutch government might have required the company to sell at a low price.
c.
The competition in the Netherlands may offer lower prices than in the U.S.
d.
All of the above are possible reasons.
37. Which method is most likely to eliminate the existence of parallel imports?
a.
Eliminating price differences
b.
Creating products for low markets that are not as attractive for an up-market
c.
Complicating the repair process for gray market goods
d.
Litigation
38. Which of the following is not a recommended way of fighting against parallel imports?
a.
Create products for low markets that are not as attractive for up markets.
b.
Complicate the repair and servicing process for gray market goods.
c.
Inform consumers about the perils of buying gray market products.
d.
All of the above are legitimate methods of fighting against parallel imports.
39. According to the text, which method did Mercedes-Benz use to discourage parallel imports?
a.
Mercedes charged the same retail price worldwide.
b.
Mercedes informed consumers about he perils of buying parallel imports.
c.
Mercedes took the parallel importers to court.
d.
Mercedes complicated the repair and servicing process of the gray market automobiles.
COMPLETION
1. Companies relying on _________________________ middlemen relinquish their control of the
marketing mix to their distributors in the target-market foreign country.
2. _________________________ companies are highly specialized in certain industries, such as
endoscopic surgery instruments or networking products, and typically represent smaller companies in a
region of the country.
3. ____________________ are families of firms with interlocking stakes in one another.
4. Cooperative export arrangements, also referred to as piggybacking or _________________________,
involve exporters agreeing to handle export functions for unrelated companies on a contractual basis.
5. _________________________ Associations are comprised of competing companies that join
resources and efforts to export internationally.
6. Establishing a(n) ______________________________ allows for a portion of a U.S. taxpaying firm’s
foreign source income to be exempt from U.S. income tax.
7. The ____________________ agent deals in illegal and/or gray-market products.
8. _________________________ are intermediaries that take title to and possession of the products they
carry.
9. Agents and ____________________ bring buyers and sellers together, but do not carry title to and
take possession of the product they deal with.
10. A particular type of merchant middleman is the _________________________, who purchases
commodity goods from the manufacturer to sell to the trade (wholesaler, retailer, business-to-business
client) in the target market.
11. The managing agent, often called the ____________________, has an exclusive arrangement with the
company, representing its operations in a particular country; they do not take title to the goods and are
usually paid as a percentage of sales of the company they manage.
12. _________________________ and customs brokers arrange for transportation, customs clearance, and
document filing for products exported abroad.
13. ____________________ are used for transporting over long distances high-weight, high-volume
products that have a low per pound value.
14. ____________________ are used for transporting over long distances products such as such as grains,
gasoline, forestry products, cement, and fertilizers.
15. ____________________ remain the primary mode for intracontinental freight transportation.
16. Cargo such as coal, gasoline, forestry products, and grains, as well as higher value products, such as
equipment and automobiles, are transported by ____________________.
17. Much of the local transportation—within cities, for example—is handled by ____________________,
which offer high flexibility at competitive rates.
18. ____________________ transportation handles smaller shipments over shorter distances.
19. The ___________________________________ in the U.S. Department of Commerce offers export
assistance to international firms, and, in particular, to small to medium-size businesses.
20. The ___________________________________ in the U.S. Department of Commerce advances U.S.
national security, foreign policy, and economic interests by regulating exports of products and
technologies that could affect those interests.
21. The U.S. _________________________ promotes and protects small and medium-size U.S. business
interests in key export markets.
22. The U.S. Commercial Service operates _________________________ which offer companies a range
of export facilitation services.
23. The _________________________ of the United States is an independent government agency that
aids the financing of international sales of U.S. products and services.
24. The United States ___________________________________ creates jobs for Americans by helping
U.S. companies pursue overseas business opportunities.
25. The ___________________________________ is a business organization that represents enterprises
from all sectors in every part of the world engaging in international business. It makes voluntary rules
that govern the conduct of business across borders and it provides important services such as the
International Court of Arbitration.
26. _________________________ are products purchased in a low-price market and diverted to other
markets by means of a distribution system not authorized by the manufacturer.
ESSAY
1. Discuss the difference between using home-country intermediaries and host-country intermediaries.
2. Discuss the difference between U.S. trading companies and Japanese trading companies.
3. Discuss the role that containerization plays in international distribution.
4. What are some of the ways that the U.S. Department of Commerce and its agencies facilitate
international trade?
5. How can a company discourage parallel imports?