Chap 7 (T/F)

The export marketing plan is the same as the domestic marketing plan that should be specific about the markets to be developed, the marketing strategy for serving them, and the tatics required to carry out the strategy.

• True

• False

FAS is the term of sale that the price includes the cost of the goods, insurance, and all transportation and miscellaneous charges to the named port of final destination.

• True

• False

FOB is the term of sale that the seller pays all the transportation and delivery expense up to the ship’s side and clears the goods for export.

• True

• False

The domestic marketing and general administrative costs included in the domestic selling price are frequently lower than the actual cost of making a CIF export sale.

• True

• False

Although exporters would prefer to sell on the almost risky letter-of-credit terms, increased foreign competition and the universally tight money situation are forcing them to offer credit.

• True

• False

The companies export to shorten a product’s life cycle by exporting to currently unserved markets where the product will be at the introduction stage of the life cycle.

• True

• False

Exports may enable firms to test market strategies and make adjustments with reduced risk in a smaller market.

• True

• False

Exporting allows a company to achieve additional sales, which allow the firm to use its excess production capacity to lower per-unit cost.

• True

• False

If a firm decides to set up its own export operation versus indirect exporting, the firm must obtain overseas distribution.

• True

• False

A disadvantage for companies that insist on less risky transactions, such as a letter of credit, is that they may be losing business to competitors who sell on open accounts.

• True

• False