Which group is frequently criticized for not representing the best interests of a manufacturer?

Which of the following is true of the distribution process?

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

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

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.

D. 
It includes buying and selling negotiations

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.

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

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

 A. 
The importer–wholesaler 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.

A. 
The importer–wholesaler traditionally performs most of the marketing functions.

_____ 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

B. 
The Japanese distribution structure

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 dealer–supplier relationships.

D. 
Japanese law favors the establishment of large retail stores.

E. 
Japanese consumers favor price over personal service.

C. 
The Japanese distribution structure supports long-term dealer–supplier relationships.

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 dealer–supplier relationships.

D. 
Japanese law favors the establishment of large retail stores.

E. 
Japanese consumers favor price over personal service.

C. 
The Japanese distribution structure supports long-term dealer–supplier relationships.

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

C. 
Ministry of International Trade and Industry

In the international business arena, which of the following is considered to be one of Walmart’s 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.

B. 
Internal Internet-based system

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

D. 
speed of economic development

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.

B. 
Large wholesale stores.

C. 
Street corner kiosks.

D. 
Internet shopping.

E. 
Television advertising.

A. 
Direct sales through catalogs.

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.

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.

B. 
They work on commission and arrange for sales in the foreign country.

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.

C. 
They assume trading risks

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.

B. 
the limited control over the distribution process

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 home-country middlemen.

E. 
the large amount of commission charged by the home-country middlemen.

E. 
the large amount of commission charged by the home-country middlemen.

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 company’s 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 manufacturer’s export agent.

B. 
An export merchant.

C. 
A trade representative.

D. 
An export management company.

E. 
A complementary marketer.

D. 
An export management company.

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.

E. 
It calls for a minimum investment from the parent firm to get into international markets

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

A. 
export management companies

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.

B. 
To remove antitrust disincentives to export activities

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.

E. 
Complementary marketing.

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.

C. 
complementary marketing

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. 
manufacturer’s export agent

E. 
manufacturer’s export agent

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. 
manufacturer’s export agent

E. 
complementary marketer

D. 
manufacturer’s export agent

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.

A. 
The Sherman Antitrust Act.

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. 
manufacturer’s export agent

C. 
export management company

D. 
complementary marketer

E. 
foreign sales corporation

E. 
foreign sales corporation
 

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.

B. 
Export Management Companies.

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

D. 
export promotion companies

E. 
Webb-Pomerene export associations

A. 
foreign sales corporations

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.

E. 
They can function as a principal or a commissioned agent.

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. 
Country’s per capita income.

C. 
Available distribution intermediaries

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

C. 
the functions performed by middlemen

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.

D. 
Capital required to maintain effective distribution.

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

C. 
have little loyalty to their vendors

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.

C. 
Evaluating the available financial resources.

D. 
Designing the sales force required.

E. 
Understanding the mission of the manufacturing firm.

B. 
Studying the target market

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.

E. 
to personally talk to ultimate consumers to find whom they consider to be the best distributors.

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.

E. 
It includes transportation mode, inventory quantities, and packing