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 overseas distributor

• Exporting via a domestic trading company

• Exporting through commission agents on behalf of foreign buyers

• Exporting through a joint venture with a foreign partner

According to the Harmonized Commodity Description and Coding System (HS) established by the WCO, how many digits does an HS code contain at the most detailed level under the international standard?

• 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 EMC and an 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