Exam 13: Selecting and Managing Entry Modes

Discuss the steps companies can take to avoid export and import blunders.

Typically, indirect exporting relies on local sales representatives or distributors.

A form of countertrade that usually typifies long-term relationships between the companies involved is called ________.

A specialist in such export-related activities as customs clearing, tariff schedules, and shipping and insurance fees is called a(n) ________.

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

A contract between the exporter and shipper that specifies merchandise destination and shipping costs is called a ________.

A contract between an exporter and a shipper that specifies merchandise destination and shipping costs is called a(n) ________.

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

Complete managerial control over day-to-day operations is an advantage of the wholly owned subsidiary entry mode.

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. -Alistair has identified one option that might help the firm; selling goods or services that are paid for in whole or part with other goods or services. Alistair is referring to ________.

Which of these is NOT an export/import financing method?

The ________ payment method is commonly used when there is an ongoing relationship between two parties.

Franchising is most common in manufacturing industries, whereas licensing is primarily used in service industries.

A company that exports products on behalf of an indirect exporter is called a(n) ________.

Which of these refers to the export of industrial equipment in return for products produced by that equipment?

Most large companies use exporting as a means of expanding total sales when the domestic market has become saturated.

When inscribed "accepted" by an importer, a(n) ________ becomes a negotiable instrument that can be traded among financial institutions.

Which of these is NOT a type of countertrade?

________ is a common form of payment when two parties are unfamiliar with each other, or when the transaction is relatively small.

A relationship whereby two or more entities cooperate (but do not form a separate company) to achieve the strategic goals of each is called a(n) ________.