Multiple

Which of the following is true of the distribution process?

Choice

A. It does not involve the physical handling and distribution of goods.

QuestionsB. It includes activities related to the promotion of goods and services.

1.

C. The ownership title remains with the distributor even on completion of the transaction.
D. It includes buying and selling negotiations.
E. The behavior of channel members is not affected by the cultural environment.

2.

In a _____ distribution structure, an importer controls a fixed supply of goods and the marketing
system develops around the philosophy of selling a limited supply of goods at high prices to a
small number of affluent customers.
A. domestic
B. traditional
C. manufacturer-oriented
D. service
E. customer-oriented

3.

Which of the following statements is true of a traditional distribution structure?

A. The distribution system is national in scope.
B. The relationship between the importer and any middleman is similar to that found in a
mass-marketing system.
C. The idea of a channel as a chain of intermediaries performing specific activities and each
selling to a smaller unit beneath it until the chain reaches the ultimate consumer is common.
D. Independent agencies providing functions such as advertising, marketing research, and
financing are a part of this distribution structure.
E. The marketing system develops around the philosophy of selling a limited supply of goods
at high prices to a small number of affluent customers.

4.

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

structure?
A. Export-oriented
B. Import-oriented

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C. Manufacturer-oriented
D. Service-oriented
E. Customer-oriented

5.

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

A. The importerwholesaler traditionally performs most of the marketing functions.
B. The relationship between the importer and any middleman is similar to that found in a
mass-marketing system.
C. Several independent agencies providing functions such as advertising, marketing research,
financing are a part of this distribution structure.
D. The idea of a channel as a chain of intermediaries performing specific activities is common.
E. This distribution system is national in scope.

6.

_____ has long been considered the most effective nontariff barrier to the Japanese market.
A. The Japanese population
B. The Japanese distribution structure
C. Japanese culture
D. The Japanese import and export procedure
E. Intense competition in Japan

7.

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

A. Consumers
B. Brokers
C. Manufacturers
D. Small retailers
E. Wholesalers

8.

Which of the following characterizes the business philosophy of the Japanese distribution
channels?
A. Loyalty
B. Direct sales

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C. Fast delivery
D. Variety
E. Price competition

9.

Which of the following statements is true of the Japanese market?

A. The costs of Japanese consumer goods are among the lowest in the world.
B. Manufacturers are independent of wholesalers for a multitude of services to other members
of the distribution network.
C. The Japanese distribution structure supports long-term dealersupplier relationships.
D. Japanese law favors the establishment of large retail stores.
E. Japanese consumers favor price over personal service.

10.

In Japan, under the Large-Scale Retail Store Law, all proposals for new large stores are first
judged by the _____.
A. Transport and Tourism Department
B. Internal Affairs and Business Council
C. Ministry of International Trade and Industry
D. Health and Welfare Committee
E. Local Retailers Union

11.

In the international business arena, which of the following is considered to be one of Walmarts
strengths?
A. Clean business reputation.
B. Internal Internet-based system.
C. Ability to beat competitors.
D. Outreach programs to placate small retailers.
E. Ability to influence foreign governments.

12.

General Motors, _____, and DaimlerChrysler have created a single online site called Covisint
for purchasing automotive parts from suppliers.
A. Toyota Motor Corporation

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B. Honda Motor Company

C. Ford Motor Company
D. Nissan Motor Company
E. Tata Motors

13.

Which of the following countries has the largest number of retailers?

A. United States
B. Argentina
C. China
D. South Africa
E. Japan

14.

In the context of distribution patterns, the rate of change in retailing around the world appears
to be directly related to the _____.
A. literacy rate
B. rate of inflation
C. population growth
D. speed of economic development
E. currency exchange rate

15.

_____ is often the approach of choice in markets with insufficient or underdeveloped distribution
systems.
A. Direct marketing
B. A big wholesale store
C. Internet selling
D. A discount house
E. Television advertising

16.

Which of the following has proved to be an important way to break the trade barrier imposed by
the Japanese distribution system?
A. Direct sales through catalogs.

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B. Large wholesale stores.

C. Street corner kiosks.
D. Internet shopping.
E. Television advertising.

17.

Which of the following are frequently criticized for not representing the best interests of a
manufacturer?
A. Global wholesalers
B. Trading companies
C. Consumers
D. Merchant middlemen
E. Brokers

18.

_____ take title to manufacturers goods and assume the trading risks.
A. Merchant middlemen
B. Brokers
C. Buying offices
D. Export agent
E. Agent middlemen

19.

The distribution channel process includes all activities, beginning with the manufacturer and
ending with the _____.
A. wholesaler
B. agent middlemen
C. merchant middlemen
D. retailer
E. final consumer

20.

Which of the following statements is true regarding agent middlemen?

A. They take title to the merchandise.
B. They work on commission and arrange for sales in the foreign country.

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C. Manufacturers cannot control them as they control merchant middlemen.

D. They do not represent the best interests of the manufacturer.
E. They assume trading risks.

21.

Which of the following statements is true regarding merchant middlemen?

A. They represent the best interests of a manufacturer.
B. They can be controlled better than agent middlemen.
C. They assume trading risks.
D. They work on commission and arrange for sales in the foreign country.
E. They do not take title to manufacturers goods.

22.

A disadvantage when using home-country middlemen as intermediaries in the distribution

process is:
A. the large financial investment required.
B. the limited control over the distribution process.
C. the large managerial investments required.
D. the limited number of retailers in the foreign country who can be reached.
E. the large amount of commission.

23.

A major trade-off when using home-country middlemen is:

A. the large financial investment required.
B. the limited control over the entire distribution process.
C. the large managerial investments required.
D. the limited number of retailers in the foreign country who can be reached through the homecountry middlemen.
E. the large amount of commission charged by the home-country middlemen.

24.

Home-country middlemen are also known as _____ middlemen.

A. area
B. local
C. merchant

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D. domestic
E. regional

25.

In the context of the different types of middlemen, which of the following is an example of a
manufacturers retail store?
A. Toys R Us
B. Walmart
C. Costco
D. Benetton
E. IKEA

26.

James Barker is the marketing manager of a firm with small international sales volume. He is
looking for a middleman who can take responsibility for promotion of the companys products,
credit arrangements, physical handling, and market research. Also, the middleman must be
able to provide information on financial, patent, and licensing matters. In addition, the
middleman should agree to work under the name of the firm. Which of the following types of
middlemen would be the best choice for Mr. Barker if he wants to meet his objectives?
A. A manufacturers export agent.
B. An export merchant.
C. A trade representative.
D. An export management company.
E. A complementary marketer.

27.

Which of the following statements is true regarding an export management company (EMC)?
A. It acts as a middleman for firms with relatively large international sales volume.
B. It operates under its own name while providing services to another firm.
C. It does not have direct responsibility to the parent firm.
D. It acts as a middleman for firms willing to involve their own personnel in international
functions.
E. It calls for a minimum investment from the parent firm to get into international markets.

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28.

A major disadvantage of _____ is that they can seldom afford to make the kind of market
investment needed to establish deep distribution for products.
A. export management companies
B. trading companies
C. import associations
D. global retailers
E. complementary marketers

29.

For companies seeking entrance into the complicated Japanese distribution system, _____
offer one of the easiest routes to success because they virtually control distribution through all
levels of channels in Japan.
A. trade representatives
B. trading companies
C. brokers
D. export management companies
E. complementary marketers

30.

Which of the following was a goal of the Export Trading Company Act?
A. To allow U.S. companies to bypass tax laws with respect to international trading.
B. To remove antitrust disincentives to export activities.
C. To bypass trade barriers in foreign countries.
D. To earn the highest possible profits in foreign countries.
E. To combine export shipments within single containers.

31.

Which of the following arrangements are undertaken when a firm wants to keep its seasonal
distribution channels functioning throughout the year?
A. Price skimming.
B. Using the services of a trading company.
C. Establishing a retail store.
D. Using the services of an export management company.
E. Complementary marketing.

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32.

Complementary marketing is commonly known as _____.

A. backhauling
B. demand shifting
C. piggybacking
D. shape shifting
E. skimming

33.

Companies with marketing facilities in different countries with excess marketing capacity
sometimes take on additional product lines for international distribution. The formal name for
this type of marketing is:
A. skimming.
B. backhauling.
C. complementary marketing.
D. export marketing.
E. demand shifting.

34.

A(n) _____ is an individual agent middleman or an agent middleman firm providing a selling
service for manufacturers that covers only one or two markets.
A. complementary marketer
B. export management company
C. Webb-Pomerene export association
D. global retailer
E. manufacturers export agent

35.

A _____ provides a selling service for a manufacturer, has a short-term relationship, and
operates on a straight commission basis.
A. manufacturers retail store
B. trading company
C. global retailer
D. manufacturers export agent

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E. complementary marketer

36.

The Webb-Pomerene Act of 1918 made it possible for American business firms to join forces in
export activities without being subject to which of the following acts?
A. The Sherman Antitrust Act.
B. The Federal Communications Act.
C. The Trade Commission Act.
D. The Food, Drug, and Cosmetics Act.
E. The Robinson-Patman Act.

37.

A(n) _____ is a domestic middleman set up in a foreign country or U.S. possession that can
obtain a corporate tax exemption on a portion of the earnings generated by the sale or lease of
export property.
A. Webb-Pomerene export association
B. manufacturers export agent
C. export management company
D. complementary marketer
E. foreign sales corporation

38.

Which of the following is a type of domestic middleman?

A. Sole proprietors.
B. Export Management Companies.
C. Foreign distributors.
D. Lessors.
E. Joint ventures.

39.

In the context of types of domestic middlemen, the WTO in 2003 ruled _____ to be in violation
of international trade rules, thus starting a major trade dispute with the European Union.
A. foreign sales corporations
B. direct marketing partnerships
C. trading companies

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D. export promotion companies

E. Webb-Pomerene export associations

40.

Which of the following is true of foreign sales corporations?

A. They are commonly called piggybackers.
B. They can only be related to a manufacturing parent and not an independent broker.
C. They virtually control distribution through all levels of channels in Japan.
D. They accumulate, transport, and distribute goods from many countries.
E. They can function as a principal or a commissioned agent.

41.

Which of the following factors affects the choice of distribution channels?

A. Distance from manufacturer.
B. Language spoken in the target market.
C. Available distribution intermediaries.
D. Consumer literacy levels.
E. Countrys per capita income.

42.

Which of the following is one of the six Cs of distribution channel strategy?

A. Communication
B. Continuity
C. Capacity
D. Commission
E. Contribution

43.

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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44.

Which of the following is a critical element associated with using a particular type of
middleman?
A. Knowledge of the culture of the target market.
B. Number of employees.
C. Mode of transportation for moving goods.
D. Influence over the target market.
E. Cash-flow patterns.

45.

In which of the following modes of distribution in the foreign market will a company have to
make maximum financial investment?
A. Export management companies.
B. Trading companies.
C. Export associations.
D. Direct sales force.
E. Complementary marketers.

46.

Which of the following is one of the highest costs of doing business in China?
A. Money required for the transportation of goods.
B. Money required for obtaining appropriate permits.
C. Cost of local advertising.
D. Capital required to maintain effective distribution.
E. Cost of customizing products for the Chinese market.

47.

Which of the following modes of distribution affords the most control over the distribution
channels but often at a cost that is not practical?
A. Complementary marketers.
B. Direct sales force.
C. Export associations.
D. Trading companies.
E. Export management companies.

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48.

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?
A. Character
B. Continuity
C. Control
D. Cost
E. Capital requirement

49.

One of the reasons that channels of distribution often pose longevity problems is that most
middlemen _____.
A. do not maintain sufficient inventory to serve customers
B. lack product knowledge resulting in low sales volume
C. have little loyalty to their vendors
D. tend to slow down distribution to extract higher commissions
E. do not have sufficient knowledge of the target market

50.

_____ is an area that should be on a checklist of criteria for evaluating middlemen servicing a
market.
A. Flexibility
B. Hypersensitivity
C. Cultural empathy
D. Productivity
E. Breadth of knowledge

51.

Which of the following actions should be taken to begin with the search for prospective
middlemen?
A. Short listing the middlemen.
B. Studying the target market.

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C. Evaluating the available financial resources.

D. Designing the sales force required.
E. Understanding the mission of the manufacturing firm.

52.

Experienced exporters suggest that the only way to select a middleman is:
A. to conduct a background check on all the distributors available in the target market.
B. to issue a request-for-proposal to all distributors in the target market and evaluate their
responses.
C. consult other manufacturers of the similar products and select the distributor recommended
by them.
D. consult trade organizations and select the distributor recommended by them.
E. to personally talk to ultimate consumers to find whom they consider to be the best
distributors.

54.

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 channel strategy?
A. Character
B. Continuity
C. Control
D. Cost
E. Capital requirement

55.

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?
A. Black marketing.
B. Parallel importing.

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C. Backwashing.
D. Industrial piracy.
E. Smuggling.

56.

In the context of controlling middlemen, parallel importing is also known as _____.

A. secondary wholesaling
B. black marketing
C. backwashing
D. industrial piracy
E. smuggling

57.

E-commerce is more developed in _____ than the rest of the world, partly because of the lower
cost of access to the Internet than found elsewhere.
A. China
B. Brazil
C. Switzerland
D. South Africa
E. the United States

58.

In the context of the Internet in international marketing channels, technically, e-commerce is a

form of _____ selling.
A. direct
B. parallel
C. dual
D. mass
E. targeted

59.

In the context of cultural reactions when engaging in e-commerce, the color red is associated
with socialism in _____.
A. the United States
B. China

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C. Brazil
D. Uruguay
E. Spain

60.

Which of the following is true of a physical distribution system?

A. It involves only the physical movement of goods.
B. It is a total systems approach to the management of the distribution process.
C. A decision involving an activity has no impact on the cost and efficiency of one or all others.
D. It excludes the interdependence of the costs of each activity.
E. It includes transportation mode, inventory quantities, and packing.

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