Exam 13: Selecting and Managing Entry Modes

By definition, direct exporters always sell directly to end users.

Under the stipulations of a turnkey project, one company supplies another with managerial expertise for a specific period of time.

Identify the strategic factors that influence a company's international entry mode selection. Explain any three of them.

Initial contact with potential distributors and buyers in developing a successful export strategy should focus on building trust and a cooperative climate.

Advance payment normally takes the form of a sight draft.

The two types of knowledge transferred through management contracts are the specialized knowledge of technical managers and the business-management skills of general managers.

What types of knowledge can be transferred using a management contract? Why are such arrangements attractive?

Describe the process of how the documentary collection procedure works using an example.

Using a distributor reduces an exporter's risk, but also weakens the exporter's control over prices charged to buyers.

All of the following are true of distributors EXCEPT ________.

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

Which of these is the most common method of buying and selling goods internationally?

Buyback is ________.

Companies are often drawn into exporting when customers in other countries solicit their goods.

________ occurs when an importer pays an exporter for merchandise before it is shipped.

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 should be the final step for Sanjeer in developing a successful export strategy?

A separate company created and jointly owned by two or more independent entities to achieve a common business objective is called a(n) ________.

A separate company created and jointly owned by two or more independent entities to achieve a common business objective is called a ________.

The different types of intermediaries involved in indirect exporting include all of the following EXCEPT ________.

Letters of credit are popular among traders because ________ assume most of the risks.