Question 1

The brand name or trademark of a company is normally the single most important item desired by a franchisee.

Accepted Answer

A) True 
 B)False

Question 2

A(n) ________ takes ownership of merchandise when it enters their country.

Accepted Answer

The answer of A(n) ________ takes ownership of merchandise when...

Question 3

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

Accepted Answer

The answer of ________ is the exchange of goods or...

Question 4

Offset is ________.

Accepted Answer

A)  countertrade whereby one company sells to another its obligation to make a purchase in a given country 
B)  an agreement that a company will offset a hard-currency sale to a nation by making a hard-currency purchase of an unspecified product from that nation in the future 
C)  the sale of goods or services to a country by a company that promises to make a future purchase of a specific product from that country 
D)  the exchange of goods or services directly for other goods or services without the use of money 
A)  countertrade whereby one company sells to another its obligation to make a purchase in a given country 
B)  an agreement that a company will offset a hard-currency sale to a nation by making a hard-currency purchase of an unspecified product from that nation in the future 
C)  the sale of goods or services to a country by a company that promises to make a future purchase of a specific product from that country 
D)  the exchange of goods or services directly for other goods or services without the use of money

Question 5

Management contracts are better than turnkey projects at allowing governments to obtain designs for infrastructure projects from the world's leading companies.

Accepted Answer

A) True 
 B)False

Question 6

An agreement that allows a country to earn back some of the currency it paid out for the original imports is known as ________.

Accepted Answer

A)  switch trading 
B)  counterpurchase 
C)  buyback 
D)  offset 
A)  switch trading 
B)  counterpurchase 
C)  buyback 
D)  offset

Question 7

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.
-One option that intrigues Alistair is the process in which one company sells to another its obligation to make a purchase in a given country, an arrangement called ________.

Accepted Answer

A)  barter 
B)  offset 
C)  switch trading 
D)  buyback 
A)  barter 
B)  offset 
C)  switch trading 
D)  buyback

Question 8

________ occurs when a company sells its products to intermediaries who then resell to buyers in a target market.

Accepted Answer

The answer of ________ occurs when a company sells its...

Question 9

In developing a successful export strategy, once a potential market has been identified the next step is to ________.

Accepted Answer

A)  match needs to abilities 
B)  initiate meetings 
C)  commit resources 
D)  investigate demand in a target market 
A)  match needs to abilities 
B)  initiate meetings 
C)  commit resources 
D)  investigate demand in a target market

Question 10

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.
-The CEO has just determined that Sports Stuff retain complete control over its operations in Europe. Herb should recommend that the firm explore a ________.

Accepted Answer

A)  joint venture 
B)  turnkey project 
C)  wholly owned subsidiary 
D)  franchise 
A)  joint venture 
B)  turnkey project 
C)  wholly owned subsidiary 
D)  franchise

Question 11

Advance payment is common in all of the following situations EXCEPT when ________.

Accepted Answer

A)  two parties are unfamiliar with each other 
B)  two parties are very familiar with each other 
C)  the transaction is for a relatively small amount 
D)  the buyer is unable to obtain credit 
A)  two parties are unfamiliar with each other 
B)  two parties are very familiar with each other 
C)  the transaction is for a relatively small amount 
D)  the buyer is unable to obtain credit

Question 12

The three main reasons why companies begin exporting are to expand sales, diversify sales, and contract sales.

Accepted Answer

A) True 
 B)False

Question 13

Sales representatives do not take title to merchandise, rather they are hired by a company and normally compensated with a fixed salary plus commission based on the value of sales.

Accepted Answer

A) True 
 B)False

Question 14

The advance payment method reduces the risk of non-shipment the importer faces under the open account method.

Accepted Answer

A) True 
 B)False

Question 15

Exporting permits companies to diversify their sales.

Accepted Answer

A) True 
 B)False

Question 16

A sales representative represents the products of its own company only, not the products of other companies.

Accepted Answer

A) True 
 B)False

Question 17

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.
-Which of these would take ownership of merchandise when it enters their country?

Accepted Answer

A)  Sales representatives 
B)  Agents 
C)  Distributors 
D)  All of the above 
A)  Sales representatives 
B)  Agents 
C)  Distributors 
D)  All of the above

Question 18

Generally, a joint venture exposes fewer of a partner's assets to risk than would a wholly owned subsidiary.

Accepted Answer

A) True 
 B)False

Question 19

A(n) ________ license grants a company exclusive rights to produce and market a property, or products made from that property, in a specific region.

Accepted Answer

The answer of A(n) ________ license grants a company exclusive...

Question 20

Using examples, explain how franchising works. How is franchising different from licensing?

Accepted Answer

Franchising is a business model in which

The brand name or trademark of a company is normally the single most important item desired by a franchisee.

A(n) ________ takes ownership of merchandise when it enters their country.

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

Offset is ________.

Management contracts are better than turnkey projects at allowing governments to obtain designs for infrastructure projects from the world's leading companies.

An agreement that allows a country to earn back some of the currency it paid out for the original imports is known as ________.

________ occurs when a company sells its products to intermediaries who then resell to buyers in a target market.

In developing a successful export strategy, once a potential market has been identified the next step is to ________.

Advance payment is common in all of the following situations EXCEPT when ________.

The three main reasons why companies begin exporting are to expand sales, diversify sales, and contract sales.

Sales representatives do not take title to merchandise, rather they are hired by a company and normally compensated with a fixed salary plus commission based on the value of sales.

The advance payment method reduces the risk of non-shipment the importer faces under the open account method.

Exporting permits companies to diversify their sales.

A sales representative represents the products of its own company only, not the products of other companies.

Generally, a joint venture exposes fewer of a partner's assets to risk than would a wholly owned subsidiary.

A(n) ________ license grants a company exclusive rights to produce and market a property, or products made from that property, in a specific region.

Using examples, explain how franchising works. How is franchising different from licensing?

Globalization

Cross-Cultrual Busines

Politics, Law, and Business Ethics

Economic Systems and Development

International Trade

Business-Government Trade Relations

Foreign Direct Investment

Regional Economic Integration

International Financial Markets

International Money System

International Strategy and Organization

Analyzing International Opportunities

Developing and Marketing Products

Managing International Operations

Hiring and Managing Employees

Filters

Exam 13: Selecting and Managing Entry Modes

The brand name or trademark of a company is normally the single most important item desired by a franchisee.

A(n) ________ takes ownership of merchandise when it enters their country.

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

Offset is ________.

Management contracts are better than turnkey projects at allowing governments to obtain designs for infrastructure projects from the world's leading companies.

An agreement that allows a country to earn back some of the currency it paid out for the original imports is known as ________.

________ occurs when a company sells its products to intermediaries who then resell to buyers in a target market.

In developing a successful export strategy, once a potential market has been identified the next step is to ________.

Advance payment is common in all of the following situations EXCEPT when ________.

The three main reasons why companies begin exporting are to expand sales, diversify sales, and contract sales.

Sales representatives do not take title to merchandise, rather they are hired by a company and normally compensated with a fixed salary plus commission based on the value of sales.

The advance payment method reduces the risk of non-shipment the importer faces under the open account method.

Exporting permits companies to diversify their sales.

A sales representative represents the products of its own company only, not the products of other companies.

Generally, a joint venture exposes fewer of a partner's assets to risk than would a wholly owned subsidiary.

A(n) ________ license grants a company exclusive rights to produce and market a property, or products made from that property, in a specific region.

Using examples, explain how franchising works. How is franchising different from licensing?

Globalization

Cross-Cultrual Busines

Politics, Law, and Business Ethics

Economic Systems and Development

International Trade

Business-Government Trade Relations

Foreign Direct Investment

Regional Economic Integration

International Financial Markets

International Money System

International Strategy and Organization

Analyzing International Opportunities

Developing and Marketing Products

Managing International Operations

Hiring and Managing Employees

Filters