Exam 10: Exporting and Countertrade

In a short essay, describe three disadvantages firms face when internationalizing through exporting.

Global sourcing and exporting are most often managed from a firm's home country.

A long-term commitment, as well as a large amount of financial and human resources, are required of firms that enter foreign markets through licensing agreements.

In a short essay, describe how governments assist exporters with their financial needs. Provide an example of a government agency that aids exporters.

A firm allocates resources based on available international business opportunities during which of the following internationalization stages?

Small Business Intermediaries Mary's Mosaics is a small business in California that creates custom-designed decorative items from mosaic tiles and glass. The website 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. -Which of the following is most likely an important characteristic for the Canadian intermediaries used by Mary's Mosaics?

When a firm invests capital in a foreign market in order to gain ownership of a facility it is known by which of the following terms?

Organic Towel Exports 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 website. 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 should be considered in making the decision to export OTC towels to Canada?

What are the criteria used by exporters to screen prospective foreign intermediaries? What are reasons that a relationship between an exporter and an intermediary might become strained? Provide your answers in a short essay.

In a short essay, describe at least six of the numerous variables important to managers as they determine the best entry strategy for their firm.

After managers have chosen an appropriate market to which to export, they next need to make which of the following decisions?

Which of the following terms refers to purchasing foreign merchandise and bringing it into the home market?

Lamp Shade Imports 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 in ABC's search for a new lamp shade supplier?

Organic Towel Exports 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 website. 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 would most likely be more important for OTC managers to evaluate when making the decision whether to export their towels to Earth Waves?

In countertrade transactions, developing countries typically offer all of the following except ________.

Among the following firms, which one imports the most from China?

Barter, the oldest form of commerce, has been totally replaced by countertrade in modern global markets.

All of the following are reasons that national governments might require exporters to obtain a license to export except ________.

A focal firm that maintains a relatively low degree of control over foreign operations is most likely using which of the following foreign market entry strategies?

In a short essay, compare the advantages of using direct exporting and indirect exporting.