51. All of the following are considered to be exporter strategies when the domestic

currency is strong EXCEPT:

a.  conduct conventional cash-for-goods trade.

b.  engage in nonprice competition by improving quality, delivery, and aftersale

service.

c.  improve productivity and engage in vigorous cost reduction.

d.  shift sourcing and manufacturing overseas.

e.  give priority to exports to relatively strong-currency countries.

52. Which of the following are considered to be exporter strategies when the domestic

currency is weak?

a.  conduct conventional cash-for-goods trade.

b.  engage in nonprice competition by improving quality, delivery, and aftersale

service.

c.  improve productivity and engage in vigorous cost reduction.

d.  shift sourcing and manufacturing overseas.

e.  give priority to exports to relatively strong-currency countries.

53. Two major issues confronting international marketers result from currency

movement.  The first of these is in which currency do we quote our prices?   The

second is:

a.  how much of the loss or gain (because of pass through) should be passed to

consumers?

b.  how much should we invest in the local currency?

c.  how much should we invest in our own currency?

d.  what role should the central bank play in currency movement?

e.  should we trust international arbitrage as a means of settling currency value?

54. A weakening of the U.S. dollar relative to the Japanese yen has the effect of:

a.  strengthening the Japanese position in the United States.

b.  strengthening the U.S. position in Japan.

c.  weakening the dollar in Europe.

d.  strengthening the yen in Europe.

e.  all positions remain unchanged.

55. A strengthening of the U.S. dollar relative to the Japanese yen has the effect of:

a.  strengthening the Japanese position in the United States.

b.  strengthening the U.S. position in Japan.

c.  weakening the dollar in Europe.

d.  strengthening the yen in Europe.

e.  all positions remain unchanged.

56. One of the ways that a weakening of the U.S. dollar relative to the Japanese yen

may not necessarily be a benefit to a U.S. firm is that:

a.  the government may not allow the pass through.

b.  the government might erect tariff barriers.

c.  Japanese parts might become more expensive and when imported for inclusion into

an exported product, prices might actually rise.

d.  other currencies might be the ones actually traded.

e.  costs can be cut in other ways.

57. When considering the currency pass-through phenomenon, all of the following

factors give an indication as to the appropriate action EXCEPT:

a.  the customer’s price sensitivity.

b.  government actions.

c.  the impact of dollar appreciation on the firm’s cost structure.

d.  the impact of dollar depreciation on the firm’s cost structure.

e.  the amount of competition in the export market.

58. When exporters lower their mark-ups in a more price-conscious export market than

in a price-sensitive market, with respect to exchange rate movements this is called

______________________.

a.  local-currency price stability (LCPS)

b.  pricing-to-market (PTM)

c.  transfer pricing

d.  countertrade pricing

e.  demand mark-up pricing

59. When an exporter uses the _______________________ method, the effect can be

negative.  Frequent adjustments of prices in response to currency movements will

distress local channels and customers.

a.  local-currency price stability (LCPS)

b.  pricing-to-market (PTM)

c.  transfer pricing

d.  countertrade pricing

e.  demand mark-up pricing

60. _____________________ is a special form of pricing where mark-ups are adjusted

to stabilize prices in the buyer’s currency.  This method helps to create stability in the

local currency.

a.  Local-currency price stability (LCPS)

b.  Pricing-to-market (PTM)

c.  Transfer pricing

d.  Countertrade pricing

e.  Demand mark-up pricing