Chapter 3 Review Questions

Let us see how much you have learned in this chapter by going over these review questions.

1. Which is not a method of indirect exporting?
   1. Conctract manufacturing
   2. Franchising
   3. Licensing
   4. Remarketer
   5. Retailer

2. What is piggyback marketing?
   1. An arrangement in which one firm distributes a second firm's product or service.
   2. An arrangement where you end up competing against own product.
   3. An arrangement with foreign manufacturers to produce your product.
   4. Bringing together your firm and a foreign company with similar goals to establish a market entry and a distribution network.
   5. Piggybacking off of advantageous foreign tax incentives.

3. Which statement is false regarding distributors?
   1. Generally provides support and service for the product.
   2. Maintain adequate facilities and personnel for normal servicing operations.
   3. May resell the product to local dealers and retailers.
   4. Usually carry an inventory of products and a sufficient supply of spare parts.
   5. Usually sell competing products.

4. Which statement is false regarding joint ventures?
   1. Each partner brings specialized skills and contributes to the endeavor.
   2. Each partner makes a substantial investment into the venture.
   3. In some countries, a joint venture is the only way a foreign company can set up operations.
   4. Product promotion and maketing costs are very small.
   5. Requires direct involvment in managing the joint venture.

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© 2004 John Michael Pierobon

Notes