Exam 13: Selecting and Managing Entry Modes

Scenario: Wang's Techno Toys Ann Wang has been successful in the domestic market selling high-tech toy products. But facing stiff competition at home, Ann has entered international markets by direct exporting. -Which of these is NOT an export/import financing method that Ann likely has at her disposal?

The biggest advantage of an export management company is usually its ________.

Individuals or organizations that represent one or more indirect exporters in a target market are called sales representatives.

A company performing market research and interpreting results is at which step in the export strategy process?

What financing methods are available to exporters and importers?

Which of these is NOT a reason why companies begin exporting?

Scenario: Sports Stuff, Inc. Herb Graham is vice president of Sports Stuff, a business that develops, manufactures, and markets sports memorabilia. The company is looking to expand its operations into the European market. Herb believes that if the company expands its product line to include products reflecting sports that are popular in Europe, the company will achieve success there. -Herb has been exploring another type of entry mode that requires ongoing assistance on the part of one firm, often in the form of start-up capital, management training, or location advice. Herb is probably referring to a ________.

Which of these financing methods entails the greatest risk for importers?

A contractual entry mode in which one company supplies another with intangible property and other assistance over an extended period is called ________.

What is a wholly owned subsidiary? Why would a firm choose to pursue this entry strategy?

Barter is the oldest known form of countertrade.

An offset agreement differs from a counterpurchase agreement because ________.

An export trading company assists its clients by ________.

Scenario: Wang's Techno Toys Ann Wang has been successful in the domestic market selling high-tech toy products. But facing stiff competition at home, Ann has entered international markets by direct exporting. -Techno Toys is most likely using which of the following in her direct exporting activities?

Advance payment is the least favorable method for exporters, but the most favorable method for importers.

The most common methods of buying and selling goods internationally are joint ventures and strategic alliances.

Export/import financing in which a bank acts as an intermediary without accepting financial risk is called ________.

Scenario: Sports Stuff, Inc. Herb Graham is vice president of Sports Stuff, a business that develops, manufactures, and markets sports memorabilia. The company is looking to expand its operations into the European market. Herb believes that if the company expands its product line to include products reflecting sports that are popular in Europe, the company will achieve success there. -Herb knows that much of the success his company enjoys is due to the patents and copyrights that protect the company's products. Herb has discovered that ________ is an entry mode in which a company that owns intangible property grants another firm the right to use that property for a specified period of time.

Scenario: Gro-Tru Grows To Europe Gro-Tru, a maker of chemical fertilizers and pesticides, sees enormous growth potential in Central Europe. The company has received several unsolicited inquiries from potential importers in the region, but in most cases, they have expressed difficulty in getting the hard currency to pay for the imports. Alistair Green, vice president for new business development, is exploring how Gro-Tru might meet the needs of the potential market. -In his research, Alistair uncovered an arrangement in which industrial equipment was exported in return for products produced by that equipment, an arrangement called ________.

An export management company acts as either a(n) ________ or a(n) ________.