Exam 13: Selecting and Managing Entry Modes

A ________ joint venture is formed when each partner requires the same component in its production process.

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

Which of the following requires an importer to pay for the imported goods when they are delivered?

What are the advantages of pursuing a wholly owned subsidiary as an entry strategy?

Explain franchising with examples.Mention the advantages and disadvantages associated with franchising.How is franchising different from licensing?

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 methods of export/import financing is Techno Toys' bank using if it acts as an intermediary without accepting financial risk?

________ is a countertrade whereby one company sells to another its obligation to make a purchase in a given country.

Owen's HomeCare Products Owen McCain,owner of Owen'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 scale his exporting activities accordingly. -If Owen's HomeCare Products decides to sell their products to intermediaries who then resell them to buyers in target markets,the company would be engaging in ________.

The most common method used for buying and selling goods internationally is licensing.

Sports Stuff Inc. Herb Graham is vice president of Sports Stuff Inc. ,a business that develops,manufactures,and markets sports products.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. -Herb knows that much of the success his company enjoys is due to the patents and copyrights that protect the company's products.If Sports Stuff chooses an entry mode in which it grants another firm the right to use its intangible property for a specified period of time,it would be engaging in ________.

Export/import financing in which an exporter ships merchandise and later bills the importer for its value is called ________.

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

Export/import financing in which a bank acts as an intermediary without accepting financial risk is called ________.

Which of the following letters of credit can be modified without obtaining approval from either the exporter or the importer,by the bank issuing the letter of credit?

Owen's HomeCare Products Owen McCain,owner of Owen'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 scale his exporting activities accordingly. -Which of the following steps would Owen implement toward the end while developing a successful export strategy?

Buyback is defined as ________.

Which of the following statements is true of the strategic factors that influence a company's international entry mode selection?

Which of the following is a method of export/import financing?

Which of the following is an investment entry mode?

________ is a payment method commonly used when there is an ongoing relationship between the involved parties.