Chapter 1 Review Questions

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

1. Which is not a benefit of writing an export plan?
   1. It becomes a management tool to measure progress.
   2. It becomes a selling tool to get financing.
   3. It becomes a selling tool to get ISO 9000 certified.
   4. It becomes a selling tool to get management to commit to support the exporting effort.
   5. It becomes a tool to facilitate communication.

2. Which is a reason for exporting?
   1. Fluctuations in foreign currency exchange.
   2. It is easier to get financing when exporting.
   3. Sacrifice short term profits for long term gains.
   4. Tax advantages.
   5. The need to develop new promotional material.

3. Which statement is false?
   1. Expect the export plan to be revised and refined over time.
   2. Experience has proven that a company's international success depends more on its marketing methods than on the unique benefits of its products.
   3. Exporting is easy.
   4. Formulating an export strategy based on good information and proper assessment increases the probability of achieving success.
   5. The first time an export plan is developed, it should be kept simple.

4. Which is not a common exporting mistake?
   1. Assuming a given market technique and product will automatically be successful in all countries.
   2. Failure to provide readily available servicing for its products.
   3. Having a sufficient commitment by top management to overcome the initial difficulties and financial requirements of exporting.
   4. Neglecting export business when the domestic market booms.
   5. Unwillingness to modify products to meet regulations or cultural preferences of other countries.

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© 2004 John Michael Pierobon

Notes