Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
Review and Discussion Questions
Chapter 12: International Distribution: Exporting and Retailing
Review questions
1. Define exporting and importing.
a. Exporting is the shipment of the finished product from a foreign country to the
country of final purchase.
2. What internal reasons lead to exporting?
a. Managerial urge
b. Unique product characteristics
c. Economies of scale
3. What external factors lead to exporting?
a. Change agents
b. Foreign market features
4. Define market concentration and market spreading.
a. Market concentration is the strategy a company uses by exporting to a small number
of markets or just one key market and then slowly expands to exporting to new
countries.
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
5. What are the home-country based methods of direct exporting?
a. Built–in department
6. What are the foreign country–based methods of direct exporting?
a. Foreign sales branch
b. Foreign sales subsidiary
7. What the major types of merchants and agents used in indirect exporting?
a. Merchants
Export merchant
Trading company
8. What three approaches can be used to price exported products?
a. Lower than domestic prices
9. What are the two main kinds of documents that accompany exports?
a. Export license
b. Financing documents
10. What are the five tasks of physical distribution?
a. Materials handling
b. Inventory location
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
11. What modes of transportation are used in international marketing?
a. Air
b. Water
c. Railroad
12. What forms of utility are created by international distribution systems?
a. Place utility
b. Time utility
13. Define international retailing.
a. International retailing is all of the retail activities that occur across national
boundaries.
14. What are the major types of international retail outlets?
a. Convenience stores
b. Supermarkets
c. Hypermarkets
d. Open markets
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
Discussion questions
1. Compare the internal and external reasons for exporting. Can you think of a situation in
which one contradicts the other? In other words, internal reasons are compelling to export
but external reasons are not, or vice versa.
The internal and external reasons assess demand of the external market. They often
2. Explain which approach, market concentration or market spreading, should be the
primary strategy used in the following situations:
A new type of sports energy drink – market spreading – they are new in the market
and this will give the first mover advantage
3D digital video players – market spreading – they are new in the market and this will
give the first mover advantage
3. Discuss the transportation modes that would work best for the following products that are
to be shipped overseas.
Personal computers – water transportation – these are not extremely small items
Industrial equipment – water transportation because of the heavy weight of these
products
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
4. Discuss how place, time, possession, and communication utilities can be created for each
of the following:
Motorcycles in Spain
o Place – selling at many dealerships
o Time – make sure you have many models in stock so they can be purchased on
the spot
o Possession – make easy financing options available to customers
o Communication – provide lots of information about the product – let consumers
know about updates and/or new models
Video games in Japan
o Place – sell at many stores
o Time – make sure stores have the newest version of games available
o Possession – have stores take all forms of payment, cash, check, credit/debit card
o Communication – let customers and stores know when new versions and games
are being released – get customers really excited about new versions
Instructor Resource
Baack et al., International Marketing, 2e
5. Discuss how well you think online retailing would work for the following products:
Groceries – possibly well. With groceries the concern is how to get the groceries to
consumers without them spoiling. Consumers either need to be home when the items
are delivered or there needs to be ways to store the goods at refrigerated temperatures.
Also, many fresh items consumers like to pick out themselves, like fruits and
vegetables.
Appliances – Very well. This make comparison shopping easy for consumers. Also,
consumers often have to pay a delivery fee even when purchased in the store. I can
imagine many customers wanting to purchase appliances online.