Exam 13: Entry and Expansion

Managers of firms with a strong international performance typically are active,aggressive,and display a high degree of international orientation.

An international business alternative in which the firm sells its expertise in running a company while avoiding the risk or benefit of ownership is called contract manufacturing.

A newly founded firm that,from its inception,is established as an international business is called ________.

Management is often much too preoccupied with short-term,immediate problems to engage in sophisticated long-range planning.As a result,many firms are simply not interested in international business.

________ is a measure resulting from the combination of physical and mental distance.

Of the following,which is NOT an example of an international intermediary?

When operating as a(n)________,the export management corporation purchases products from the domestic firm,takes title,and assumes the trading risk.

Trademark licensing permits the names or logos of designers,literary characters,sports teams,or movie stars to appear on clothing,games,foods and beverages,gifts and novelties,toys,and home furnishings.

________ are an unplanned business opportunities that arises as a result of another firm's activities.

Mitsubishi,Mitsui,and C.Itoh are the ________ of Japan.

________ is manifested later by rising profitability.

Firms with ________ motivations go international because they want to; those with ________ motivations go international because they have to.

Define and describe franchising.What are the three major forms of franchising?

Benefits of ________ are to improve company focus on higher value-added activities,to gain access to world-class capabilities,and to reduce operating costs.However,it has been criticized because of the pressure it puts on the contractors to cut prices and,thereby,labor costs.

What are the two ways that firms can be involved in importing and exporting? Briefly describe each of these methods.Explain transaction cost theory.

Participation by a firm in international business through an intermediary,in which the firm does not deal with foreign customers or firms is called _________.

Sarah's Shoe Shack had plans to be strictly domestic.One day,a customer from France happened upon the Sarah's Shoe Shack corporate website and decided to place an international order.The firm has since grown and now exports to customers throughout Europe.Sarah's Shoe Shack can be called a(n)________.

When working as a(n)________,the export management company is primarily responsible for developing foreign business and sales strategies and establishing contacts abroad.

To combat the high costs and risks of research and development,research consortia have emerged in the United States,Japan,and Europe.

In ________ agreements,partners work together without a binding agreement.This arrangement often takes the form of visits to exchange information about new products,processes,and technologies or may take the more formal form of the exchange of personnel for limited amounts of time.