EIB - Chapter 2

Which of the following best defines “Export Promotion”?

• The set of marketing activities organized to support export expansion

• A policy to reduce import tariffs

• The procedure for assigning HS codes to export products

• An international payment method

Which of the following describes a direct export channel?

• Exporting through an overseas agent or export subsidiary

• Exporting via a domestic trading company

• Exporting through commission agents on behalf of foreign buyers

• Exporting through a joint venture with a foreign partner

How many digits does the most detailed HS code level contain?

• 4 digits

• 6 digits

• 8 digits

• 10 digits

Which of the following is a primary research method in international market research?

• Trade data published on Trade Map

• Focus-group interviews with potential buyers

• WTO industry reports

• Import statistics from UN Comtrade

What is the purpose of the first screening (basic need) in market assessment?

• To verify that the product has the correct HS code

• To assess basic demand based on environmental conditions and import data

• To examine the level of competition in the target market

• To analyze legal policies and tariff barriers

What is the key difference between pull and push strategies in export promotion?

• Pull targets distributors, push targets end consumers

• Pull drives direct consumer demand, push offers incentives to intermediaries

• Pull relies on discounts, push relies on TV advertising

• Pull is only for high-tech products, push is only for FMCG

What distinguishes a “tariff rate quota” (TRQ) from an “absolute quota”?

• A TRQ allows a preferential tariff within the quota, while an absolute quota limits the quantity imported

• A TRQ bans all imports beyond the quota, while an absolute quota offers a preferential tariff

• A TRQ is a quantity quota, while an absolute quota is a tariff quota

• A TRQ applies to exports, and an absolute quota applies to imports

When calculating the “landed cost” in export pricing, which of the following is NOT included?

• International freight costs

• Cargo insurance fees

• Agent commission

• Import duties and port handling fees

What is meant by an ethnocentric pricing policy?

• Charging the same price in all markets regardless of costs or conditions

• Pricing based on full cost plus a desired markup

• Pricing that covers only variable costs to use idle capacity

• Pricing adjusted according to market demand

What is a main difference between an Export Management Company (EMC) and an Export Trading Company (ETC)?

• EMC usually acts as an agent, while ETC buys and resells goods

• EMC is generally larger than ETC

• EMC serves niche markets, ETC serves mass markets

• EMC specializes in agricultural products, ETC focuses on industrial goods