Exam 14: Exporting and Countertrade

Two-way trade between ________ and the United States represents the world's largest bilateral trading relationship.

In a short essay, explain the factors involved in a firm's decision to use indirect exporting or direct exporting.

Organic Towel Exports (Scenario) The Organic Towel Company (OTC) employs 400 workers at its facility in Liverpool, England, where the firm has been manufacturing 100% organic cotton towels for five years. OTC sells towels in the United Kingdom primarily to boutique hotels and specialty retail stores, as well as to individual consumers through the company's . Recently, OTC managers attended a trade show in London where they made contact with numerous foreign market managers. OTC received a request from Earth Waves, an organic clothing store in Toronto, Canada, for a large order of towels. OTC had not been looking into expanding, but firm managers are seriously considering the opportunity to reach a global niche market with their towels. -Which of the following most strongly suggests OTC should not export its towels to Earth Waves?

Which of the following questions is most likely to be addressed as firms organize for exporting?

Prox Inc. is a U.S.-based manufacturer of consumer electronics. It decides to export to Mexico and wants to protect its goods against damage, loss, and pilferage. Which of the following documents is applicable here?

Describe the four-step process many managers use to achieve successful exporting.

Which of the following activities can be classified as home-based international exchange activities?

Which of the following is an advantage of countertrade?

Organic Towel Exports (Scenario) The Organic Towel Company (OTC) employs 400 workers at its facility in Liverpool, England, where the firm has been manufacturing 100% organic cotton towels for five years. OTC sells towels in the United Kingdom primarily to boutique hotels and specialty retail stores, as well as to individual consumers through the company's . Recently, OTC managers attended a trade show in London where they made contact with numerous foreign market managers. OTC received a request from Earth Waves, an organic clothing store in Toronto, Canada, for a large order of towels. OTC had not been looking into expanding, but firm managers are seriously considering the opportunity to reach a global niche market with their towels. -Which of the following most likely supports OTC exporting their towels to Earth Waves?

The bill of lading is the "birth certificate" of the goods being shipped and indicates the country where they originate.

In a short essay, explain why exporting is often more advantageous for SMEs than large MNEs. Provide an example of an SME that has seen significant growth since exporting.

Small Business Intermediaries (Scenario) Mary's Mosaics is a small business in California that creates custom-designed decorative items from mosaic tiles and glass. The international e-commerce created for Mary's Mosaics generates the majority of the firm's business, although the firm also sells items to U.S. retailers for domestic sale. Mary Boyd, the CEO of Mary's Mosaics, recently received an order from a Spanish retailer for $20,000 worth of mosaic items. Similar orders have been placed from importers in Australia, England, and Canada. Mary needs to identify appropriate foreign intermediaries for each market. -When Mary begins her search for a foreign intermediary in Australia, ________ would most likely provide her with helpful information.

Indirect exporting is exporting that is accomplished by contracting with intermediaries located in the foreign market.

Organic Towel Exports (Scenario) The Organic Towel Company (OTC) employs 400 workers at its facility in Liverpool, England, where the firm has been manufacturing 100% organic cotton towels for five years. OTC sells towels in the United Kingdom primarily to boutique hotels and specialty retail stores, as well as to individual consumers through the company's . Recently, OTC managers attended a trade show in London where they made contact with numerous foreign market managers. OTC received a request from Earth Waves, an organic clothing store in Toronto, Canada, for a large order of towels. OTC had not been looking into expanding, but firm managers are seriously considering the opportunity to reach a global niche market with their towels. -Which of the following questions must be evaluated by OTC managers as a first step to exporting?

Which of the following is an example of a push factor for a focal firm?

Buying products and services from foreign sources and bringing them into the home market is called ________.

Factoring occurs when an independent company coordinates an export order in the seller's country and makes payment for the goods in the currency of that country.

Which of the following is most likely a disadvantage to firms who use exporting as an entry strategy?

Compared to other entry strategies, exporting minimizes risk and maximizes flexibility.

________ is the procurement of products or services from independent suppliers or company-owned subsidiaries located abroad for consumption in the home country or a third country.