Quiz 5

Name: Carlos Yaque

Date: 11/20/22

1. What are the main departments or divisions in a company? let´s say, for example, in
a company like Volkswagen. Please explain their functions

The main departments in any company are going to be:

 Logistics
o Which will deal with transportation, what is brought in and out of the company.
Such as bringing the materials in and taking the products out
 Production
o In charge of producing the product, and have enough stock of materials to cover
sales but not too much to where you will have excess stock that you cant use,
essentially throwing away money
 Human Resources
o In charge of hiring, firing, and all the needs of employees
 Marketing and Sales
o In charge of “selling” the product to the public, innovating new ways of getting
customers and their attention and attracting customers and potential customers
 Customer Service
o Like human resources but dealing with customers their needs, issues, and
feedback which you can send to the marketing and sales department, production
and logistics to further improve the product or service

2. What are the incoterms, please explain them. (incoterms 2020)

Incoterms are a collection of 11 internationally recognized which are conditions of sale that
outline the obligations of both sellers and buyers. They outline which parties are responsible for
organizing and paying for the shipment, insurance, paperwork, customs clearance, and other
logistical tasks.

3. What factors influence a company´s international product strategy?

The main factors that influence a company’s international product strategy are:

 Laws and Regulations

 Cultural Differences
 Brand and Product Names
 National Image
 Counterfeit Goods and Black Markets
 Shortened Product Life Cycles
 4. Please explain in your own words the developing pricing strategies and give two
examples of each that are not included in the textbook. 

Developing pricing strategies involves the adaptation of a company’s overall international

strategy when it comes to how they sell their product. A company can be a low-cost leader such
as Ryanair, or the complete opposite and be a premium product for a premium price that if
marketed properly can be very successful such as Supreme Clothing. There are 2 other pricing
strategies as well, dual pricing and worldwide pricing. Dual pricing is when a companies product
is adjusted to be different in the international market compared to the home market. This is due
to changes in currency rates, shipping costs, or even when one wants to compete against a rival.
Another pricing strategy is worldwide pricing, this is when a company uses a set price across
different markets as it does not need to adjust to local markets.