Question

_____34. A marketing orientation by the firm would indicated ______ pricing by the exporter.

a. Ex-Factory      

b. f.o.b.     

c. f.a.s.     

d. c.i.f.

_____35. Common payment methods are: 1. Cash in Advance 2. Consignment 3. Open Account 4. Time or Sight Drafts (Bill of Exchange). The order of decreasing attractiveness to the exporter would be:

a. 1,2,3,4         

b. 1.4.3.2    

c. 1,3,2,4         

d. 1,4,2,3

_____36. Suppose a product is sold by an exporter for $100, the mark up by the importer is 50%, a tariff duty is imposed of 20 percent ad valorem and paid by the importer. For how much will the importer sell it?

a. $170           b. $200           c. $180           d. $150

Answer 1

Answer34 - option D is correct

Reason - market orientation by firm would indicate CIF pricing by the exporter

Answer 35 - option C is correct

• Reason - comman payment method is - cash in advance
• Open account
• Consignment
• Time or sight draft

Answer 36 - option A is correct

Reason -

Cost at which product is sold bely exporter = $100

(Add) markup price = $100 ×50% = $50

(Add) tariff duty = $100×20% =$20

Therefore cost at which at which imoortee will sell it will be $100+$50+$20=$170