Exam 14: Exporting and Countertrade

A risk-averse manager at a Canadian firm would most likely pursue initial internationalization in ________.

Favorable foreign market conditions that encourage firms to internationalize are known as ________.

Lamp Shade Imports (Scenario) The ABC Lamp Company is an SME that designs and manufactures high quality lamps that are sold in high-end furniture stores across Canada and the United States. ABC imports lamp shades from Asia where costs are lower than in North America. ABC has received a large order from a hotel chain that wants to purchase 5,000 lamps in the next three months, and ABC will need to import corresponding lamp shades. ABC recently ended a relationship with a Chinese supplier due to the poor quality of shades that were shipped. ABC managers are seeking a new Asian supplier that can fill the hotel lamp order. -Which of the following factors should be considered by ABC when trying to obtain financing for export sales?

Countertrade is ________.

Company-owned subsidiary is ________.

Push factors include unfavorable trends in the domestic market that compel firms to explore opportunities beyond national borders.

In a short essay, describe three different types of payment methods used in international exporting and importing. Include the advantages or disadvantages of each method.

Which of the following industries-large, publicly traded U.S.-based manufacturing firms-will be more dependent on international sales?

The Internet provides the means to export pure services.

Exporting is ________.

Which of the following foreign market entry strategies offers the focal firm the highest degree of control over foreign operations?

In international trade transactions, an open account is considered as a more secure method of payment than a letter of credit.

The risks and need for financing associated with international sales can be alleviated through the use of distribution channel intermediaries.

Incoterms were developed by the International Chamber of Commerce in order to ________.

Licensing and franchising are ________.

Focal firms that internationalize through exporting will most likely perform ________ in the home market.

When large MNEs access equity financing by selling corporate bonds or shares in stock markets, it is considered as intracorporate financing.

________ is the selling, at a discount, of long-term accounts receivable of the seller or promissory notes of the foreign buyer.

The pre-internationalization stage of internationalization is followed by the committed involvement stage.

Reva Inc. is a U.S.-based automobile manufacturing company that sets up manufacturing bases in India. Its suppliers followed them to India. This is an example of a proactive move.