Exam 13: Entry and Expansion

A representative or intermediary for the firm that purchases products from the firm,takes title,and assumes the selling risk is called a(n)________.

A specialized form of management contract between a customer and an organization to provide a complete operational system together with the skills needed for unassisted maintenance and operation is the ________.

The carrying out of the decision to export-- that is,the implementation of international business transactions--is the primary responsibility of the ________ department.

Power conflicts between export management companies and clients are not an issue because laws have been enacted to prevent and resolve such conflicts.

The desire and drive on the part of management to act on an idea and to support it in the long run is called ________.

Research has shown that U.S.firms perceive Canada to be much closer ________ than Mexico.

________ is characterized by the acquisition of market share abroad and by increased sales.

Of the following,which is NOT a proactive motivation to firms for international business?

Participation by a firm in international business through an intermediary,in which the firm does not deal with foreign customers or firms is referred to as ________.

A measure resulting from the combination of physical and mental distance is known as ________.

The compensation paid by one firm to another under an agreement is called ________,

International activities may enable the firm to increase its output and therefore rise more rapidly on the learning curve.The Boston Consulting Group has shown that the doubling of output can reduce production costs up to ________ percent.

________ is the thought that the carrying out of an interaction takes resources and will cause expenses.

Some of the psychological distance seen by firms is based on perception rather than reality.

A significant reason for ________ is market entry and support of global operations.

An unplanned business opportunity that arises as a result of another firm's activities is known as:

Profit advantage is one example of a major reactive motivation for a firm to go international.

Tierra Dynamic Company,a small Phoenix-based environmental cleanup company,boosted international sales from zero to 25 percent of annual revenues by proactively going for the world.

Private and public sector facilitators supply knowledge and information to a firm as well as participate in the transaction.

The more informal the arrangement between firms,the greater care that needs to be taken when negotiating the agreement.