Multiple Choice Answers

1. The import distributor can:
a. have has an assigned territory.
b. purchase the product from the foreign source for resale.
c. possesses a sales force.
d. possesses a customer support organization and be prepared to handle all warranty issues.
e. All of the above

2. A foreign retailer:
a. can buy from import distributors only.
b. can purchases directly from foreign manufacturers or their wholesalers.
c. can purchase only under Consignment.
d. never takes ownership of the goods sold.
e. None of the above.

3. Direct sales to foreign end-users by manufacturers:
a. is the most common method of reaching markets.
b. is best when the cost of the products is extremely low.
c. is best suited for high-priced, specialty items requiring extensive before-sale or after-sale support.
d. is only recommended when product support is low
e. is never recommended

4. In the case of ________________, the buyer pays his or her bank for the merchandise and then receives the documents necessary to obtain the shipped goods.
a. Letter of Credit
b. Documentary Collection at sight
c. Documentary Collection at Time
d. A and B
e. A and C