Exam 13: Selecting and Managing Entry Modes

Because licensing creates a cooperative arrangement by "lending" strategically important property from one company to another, it eliminates future competition.

Differentiate between joint ventures and strategic alliances. How do they compare in advantages and disadvantages?

________ is a contractual entry mode in which a company owning intangible property grants another firm the right to use that property for a specified period of time.

Identify and briefly explain the possible configurations of joint venture. What are the advantages and disadvantages of the joint venture entry mode?

Scenario: Sanjeer's HomeCare Products Sanjeer Sengupta, owner of Sanjeer's HomeCare Products, is considering going international. He feels that the products he manufactures will be well received, especially in developing countries. He wants to understand the exporting process and then consider the degree to which he wants to be involved. -If Sanjeer's HomeCare Products were to sell to intermediaries who then resell to buyers in target markets, it would be engaged in ________.

Selling goods or services that are paid for, in whole or part, with other goods or services is called ________.

Which of these is not a form of investment entry?

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's boss is concerned with the firm's lack of experience in foreign markets. Herb might want to recommend that the firm create a ________ with a local partner as a means of minimizing this problem.

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. -If Gro-Tru prefers an arrangement in which it offsets a hard-currency sale to a nation by making a hard-currency purchase of an unspecified product from the nation in the future, it would be engaging in a(n) ________ transaction.

________ occurs when a company sells its products directly to buyers in a target market.

Contractual entry modes include all of the following EXCEPT ________.

The biggest advantage of an export management company (ETF) is usually a deep understanding of the cultural, political, legal, and economic conditions of the target market.

Counterpurchase is ________.

Selling goods or services that are paid for, in whole or part, with other goods or services is called ________.

Companies that provide services to indirect exporters in addition to activities directly related to clients' exporting activities are called ________.

The choice of how to enter a new market is influenced by many factors, including the local business environment and a company's own core competency.

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. -If Gro-Tru exchanged its products directly for other goods or services without the use of money, the transaction would be referred to as ________.

How can small exporters increase the probability of getting paid for a shipment?

When one company sells to another its obligation to make a purchase in a given country, it is called ________.

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. -In some countries, Ann found it is better to exchange goods and services directly for her Techno Toys without the use of money, a practice known as ________.