Exam 13: Selecting and Managing Entry Modes

Which of the following types of joint ventures involve parties investing together in downstream business activities?

Switch trading is the export of industrial equipment in return for products produced by that equipment.

Which of the following normally takes the form of a wire transfer of money from the bank account of the importer directly to that of the exporter prior to shipment of merchandise?

Countertrade provides a way for firms to trade either by using a small amount of hard currency or even none at all.

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

A confirmed letter of credit is guaranteed by both the exporter's bank in the country of export and the importer's bank in the country of import.

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

Which of the following is a contractual entry mode?

Which of the following steps of the strategy development process for exports involves performing market research and interpreting results obtained from the research?

Wang's Techno Toys Ann Wang has been successfully running Wang's Techno Toys that sells high-tech toys in the domestic market.Continually increasing and stiff competition at home has now forced Wang's Techno Toys to enter international markets through direct exports. -Which of the following will most likely help Techno Toys sell its toys directly to buyers in the target market?

The biggest advantage of an export management company is usually its ________.

Advance payment is commonly used for export/import financing when ________.

What are the different financing methods available to exporters and importers?

A(n)________ is guaranteed by both the exporter's bank in the country of export and the importer's bank in the country of import.

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

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 inquiries from potential importers in the region,but in most cases,the potential importers have expressed difficulty in obtaining the hard currency to pay for Gro-Tru's products.Alistair Green,vice-president for business development,is exploring how Gro-Tru can meet the needs of the potential market. -In his research,Alistair discovers a type of arrangement in which industrial equipment is exported in return for products produced by that equipment.This arrangement is known as ________.

Using a distributor increases an exporter's risk.

Companies involved in direct exporting typically rely on ________.

A(n)________ exports products on behalf of an indirect exporter.

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 inquiries from potential importers in the region,but in most cases,the potential importers have expressed difficulty in obtaining the hard currency to pay for Gro-Tru's products.Alistair Green,vice-president for business development,is exploring how Gro-Tru can meet the needs of the potential market. -Which of the following methods would Gro-Tru be implementing if it exchanges its products directly for other goods or services without the use of money?