Exam 13: Selecting and Managing Entry Modes

Franchising can allow for rapid geographic expansion.

________ is 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.

When joint venture partners choose to invest together in downstream business activities, the joint venture is characterized by ________.

________ is export/import financing in which the importer's bank issues a document stating that the bank will pay the exporter when the exporter fulfills the terms of the document.

Differentiate between direct and indirect exporting. What types of intermediaries can exporters rely on in each case? Explain the roles of these intermediaries.

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

Which of these is NOT an entry mode?

Direct exporters do NOT employ either local sales representatives or distributors.

________ is the sale of goods and services to a country by a company that promises to make a future purchase of a specific product from that country.

Which of the following is NOT true of countertrade?

A company that exports products on behalf of an indirect exporter is called an export trading company (ETC).

When a time draft is ________, it becomes a negotiable instrument that can be traded among financial institutions.

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. -Through his research, Sanjeer learned that the first step in developing a successful export strategy is to ________.

Switch trading is ________.

Exporting is a low-cost, low-risk way of getting started in international business.

Services offered by export management companies include ________.

Whereas an export trading company (ETC) is restricted to export-related activities, an export management company (ETF) assists its clients by providing import, export and countertrade services, developing and expanding distribution channels, and even manufacturing products.

Licensing often involves granting companies the right to use process technologies inherent to the production of a particular good.

A(n) ________ allows the bank issuing a letter of credit to modify the terms of the letter only after obtaining the approval of the exporters and the importer.

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