What is the major difference between "currency risk" and "risk of noncompletion"? How are these risks handled in a typical international trade transaction?
What will be an ideal response?
Answer: Currency risk is the risk that the currency designated for payment of the import changes in value relative to the other currency. A U.S. firm exporting to France wants dollars, while the French importer wants to pay euros. If the sale contract specifies payment in dollars, the French importer has a currency risk–more euros than expected might be needed when payment is due. If the sales contract specifies payment in euros, the U.S. exporter has a currency risk–fewer dollars than expected might be received when the euros are exchanged for dollars.
Risk of noncompletion is the risk that one of the parties fails to fulfill its obligations. The importer may refuse to pay for the goods, or the exporter may fail to ship the goods. Events not under the control of the parties to the trade, such as major storms, disease epidemics, terrorist acts, or war, may make completion of the trade impossible. The several documents involved in international trade are intended to reduce financial loss from noncompletion.
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a. 0 b. 10 c. 40 d. 500
One concern about using social media, like Twitter, to compile marketing research data is
A. high cost. B. lack of accuracy. C. bias. D. consumer privacy. E. lack of availability.
Theatergoers in the Midwest were pleasantly surprised when they arrived at the cinema to see the latest release and learned that a price reduction had just gone into effect. The Wehrenberg Theater chain, which is the oldest theater company and operates in 15 Midwest locations, decided to drop matinee prices from $7.75 to $4.50 per person and reduce evening prices from $9.75 to $7.50 per person. The price decrease is a result of decreased traffic at the theater and a trend for consumers to use Netflix or Hulu to watch movies. The Starplex Cinemas operating in the same communities as Wehrenberg followed suit and reduced their prices to attract consumers as well. The two movie theater chains are utilizing the ______ pricing basis.
A. competition-based B. markup C. demand-based D. cost-plus
Use this information for questions that refer to the Sunny Day Foods (SDF) case.For six months, Kim Wu has been working for Sunny Day Foods (SDF), a fast-growing manufacturer of organic foods. After graduating college, she worked for four years as a sales rep for a nationally known food company; but she jumped at the chance when SDF contacted her about becoming marketing manager for its breakfast foods division, which sells dry cereals and a pancake mix.Kim spent the first few months on the job trying to better understand SDF, its product line, and its marketing strategy. She reviewed the company's past marketing research, commissioned new research, and talked to both consumers and retailers. Now, the CEO of the company wants her thoughts on what the company's marketing strategy should
be for the next few years.Her research indicates that among cereal customers, there are at least five segments of customers who use SDF products.a) One segment, the loyalists, has a strong preference for one or two of the SDF cereals. These customers often go out of their way to visit a store with their favorite SDF cereal and buy only that product at the store.b) Another segment, the regulars, buys SDF cereals without much thought. For them it is just part of their routine and, if you ask them why they pick the cereal, they'd say it's just a habit.c) A third segment, the deal prone, sees SDF cereals as just another organic cereal. They view all organic cereals as pretty much the same and buy whichever brand seems to offer the best deal that week.d) A fourth segment, the politicos, consists of former buyers of SDF cereals. A few years ago, the company took a strong stand in a presidential race and these customers resented it. Now, they boycott all SDF foods because of that incident.e) A fifth segment, SDF who?, is made up of consumers who buy organic cereals but who don't have much awareness of particular organic brand names.In reviewing how SDF currently brands its products, Kim sees that it is using several different approaches. The Sunny Day Foods brand is used on most products the company sells. But a few years ago the company brought out an instant organic oatmeal with the Hot 'n Healthy name. SDF also makes cereal sold by a health food chain; and the package for that chain uses the store's own name, Nature's Foods, as the brand name for the cereal.For which market segment would coupons be most effective? A. politicos B. deal prone C. regulars D. SDF who? E. loyalists