Exam 13: Selecting and Managing Entry Modes

Matching needs to abilities is the first step in developing a successful export strategy.

The most important disadvantage of a strategic alliance is that it can create a future local or even global competitor.

Commonly licensed intangible property includes patents, copyrights, special formulas and designs, trademarks, and brand names.

Using examples, explain how licensing works. What are its advantages and disadvantages?

Which of these occurs when a company sells its products to intermediaries who then resell to buyers in a target market?

A(n) ________ requires the importer to pay when goods are delivered.

Counterpurchase is the exchange of goods or services directly for other goods or services without the use of money.

Which of these occurs when a company sells its products directly to buyers in a target market?

Countertrade is often used when the government of the importer's nation lacks the ________ to pay for imports or when it restricts the convertibility of its currency.

Loss of organizational flexibility is a potential disadvantage of which contractual entry mode?

A(n) ________ joint venture is when one company produces a good or service required by another.

What is a turnkey project? Outline its advantages and disadvantages.

Because of the cash outlays involved, countertrade is not an option for smaller companies.

Agency relationships are popular among exporters because they are easy to terminate should difficulties arise.

A document ordering the importer to pay the exporter a specified sum of money at a specified time is called a(n) ________.

A company that provides services to indirect exporters in addition to those activities directly related to clients' exporting activities is called a(n) ________.

A(n) ________ represents its own company's products only, not those of other companies.

A ________ joint venture is formed when each partner requires the same component in its production process.

An entry mode is the institutional arrangement by which a firm gets its products, technologies, human skills, or other resources into a market.

Which of these is the first step in developing a successful export strategy?