Before the fall of communism in Eastern Europe and before German reunification, Volkswagen sold 10,000 cars to East Germany and agreed to purchase, over a period of two years, goods for the value of the automobiles, from a list of goods provided by the East German government. What type of countertrade does this example describe?
a. Clearing agreement c. Offset purchase
b. Counterpurchase d. Buyback agreement
Question 2A discontinuous innovation is defined as:
A) a product that pushes all similar products out of the market.
B) a product that disrupts consumers' lives.
C) a product that disrupts a firm's marketing operations.
D) a product that is so new that we have never known anything like it before.
E) a product that has new social meanings carried by its use and ownership.
Question 3Free trade zones
a. are also called export processing zones
b. offer duty free import and storage
c. are owned by development banks
d. are outside the reach of the law
Question 4In which type of countertrade does the exporter agree to buy goods from a shopping list provided by the importer?
a. Barter c. Counterpurchase
b. Switch Trading d. Buyback agreement
Question 5YapSnap.com is a social media website which allows its members to chat and send pictures to each other via private messages. YapSnap can be considered to be a _____ because it changes the way one communicates with other people.
A) dynamically discontinuous innovation
B) continuous innovation
C) dynamically continuous innovation
D) discontinuous innovation
E) hedonic innovation
Question 6The free trade zones in China attracted ____ billion in investments
a. 10 c. 60
b. 110 d. 90
Question 7Which type of countertrade involves parallel contracts?
a. Clearing agreements c. Counterpurchases
b. Switch trading d. Offset purchases
Question 8Which of the following is true of a dynamically continuous innovation?
A) It has the ability to convey meaning about a consumer's reference group.
B) It has a limited effect on existing consumption patterns.
C) It has a pronounced effect on consumption practices.
D) It has the potential to start a new product category.
E) It has the same usage as the products that came before it.
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