Question 1

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

Accepted Answer

A) distributors 
B) importers 
C) exporters 
D) banks 
A) distributors 
B) importers 
C) exporters 
D) banks

Question 2

Which of the following is a strategic factor that influences a company's international entry mode selection?

Accepted Answer

A) market consumption capacity 
B) market receptivity 
C) market size 
D) market intensity 
A) market consumption capacity 
B) market receptivity 
C) market size 
D) market intensity

Question 3

Which of the following is a contractual entry mode in which a company owning intangible property grants another firm the right to use that property for a specified period of time?

Accepted Answer

A) franchising 
B) licensing 
C) management contract 
D) strategic alliance 
A) franchising 
B) licensing 
C) management contract 
D) strategic alliance

Question 4

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

Accepted Answer

A) wholly owned subsidiary 
B) joint venture 
C) strategic alliance 
D) turnkey project 
A) wholly owned subsidiary 
B) joint venture 
C) strategic alliance 
D) turnkey project

Question 5

Which of the following financing methods entails the greatest risk for importers?

Accepted Answer

A) documentary collection 
B) advance payment 
C) letter of credit 
D) open account 
A) documentary collection 
B) advance payment 
C) letter of credit 
D) open account

Question 6

Direct exporters always sell directly to end users.

Accepted Answer

A) True 
 B)False

Question 7

Discuss the advantages of licensing,low-cost production,and low-cost shipping for international companies.

Accepted Answer

There are several advantages to using li

Question 8

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

Accepted Answer

A) sight draft 
B) ocean bill of lading 
C) time draft 
D) inland bill of lading 
A) sight draft 
B) ocean bill of lading 
C) time draft 
D) inland bill of lading

Question 9

Franchising is primarily used in the manufacturing industries.

Accepted Answer

A) True 
 B)False

Question 10

What are the differences between a turnkey project and a strategic alliance?

Accepted Answer

When one company designs,constructs,and

Question 11

The primary advantage of franchising is that franchisees have a great degree of organizational flexibility.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements is true of licensing?

Accepted Answer

A) Licensing restricts finances needed for international expansion. 
B) Cross licensing grants a company the right to use a property but does not grant it sole access to a market. 
C) A major advantage of licensing is that it is the least risky method of international expansion. 
D) Licensing increases the likelihood that a licensor's product will appear on the black market. 
A) Licensing restricts finances needed for international expansion. 
B) Cross licensing grants a company the right to use a property but does not grant it sole access to a market. 
C) A major advantage of licensing is that it is the least risky method of international expansion. 
D) Licensing increases the likelihood that a licensor's product will appear on the black market.

Question 13

The sale of goods and services to a country by a company that promises to buy a specific product from that country in the future is called a(n)________.

Accepted Answer

A) counterpurchase 
B) offset 
C) joint venture 
D) barter 
A) counterpurchase 
B) offset 
C) joint venture 
D) barter

Question 14

A document ordering the importer to pay the exporter a specified sum of money at a specified time is called a ________.

Accepted Answer

A) bill of lading 
B) letter of credit 
C) bill of exchange 
D) management contract 
A) bill of lading 
B) letter of credit 
C) bill of exchange 
D) management contract

Question 15

An offset agreement differs from a counterpurchase agreement in that an offset agreement ________.

Accepted Answer

A) fails to specify the type of product that must be purchased 
B) fails to specify the amount that will be spent on the purchase 
C) fails to give a business greater freedom in fulfilling its end of a countertrade deal 
D) fails to make a hard-currency purchase of any product from that nation in the future 
A) fails to specify the type of product that must be purchased 
B) fails to specify the amount that will be spent on the purchase 
C) fails to give a business greater freedom in fulfilling its end of a countertrade deal 
D) fails to make a hard-currency purchase of any product from that nation in the future

Question 16

Cross licensing occurs when companies use licensing agreements to swap intangible property with one another.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

The choice of entry mode has many import

Question 18

A company proposes that in exchange for a hard-currency sale,it will make a hard-currency purchase of an unspecified product from the buyer nation in the future.Which of the following is the company proposing?

Accepted Answer

A) a counterpurchase 
B) an offset 
C) a buyback 
D) a barter 
A) a counterpurchase 
B) an offset 
C) a buyback 
D) a barter

Question 19

Products for which there are fewer substitutes can more easily absorb higher shipping and production costs.

Accepted Answer

A) True 
 B)False

Question 20

What is countertrade? Explain the concept of buyback as a type of countertrade,and discuss buyback as a joint venture configuration.

Accepted Answer

Companies are sometimes unable to import

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

Which of the following is a strategic factor that influences a company's international entry mode selection?

Which of the following is a contractual entry mode in which a company owning intangible property grants another firm the right to use that property for a specified period of time?

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

Which of the following financing methods entails the greatest risk for importers?

Direct exporters always sell directly to end users.

Discuss the advantages of licensing,low-cost production,and low-cost shipping for international companies.

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

Franchising is primarily used in the manufacturing industries.

What are the differences between a turnkey project and a strategic alliance?

The primary advantage of franchising is that franchisees have a great degree of organizational flexibility.

Which of the following statements is true of licensing?

The sale of goods and services to a country by a company that promises to buy a specific product from that country in the future is called a(n)________.

A document ordering the importer to pay the exporter a specified sum of money at a specified time is called a ________.

An offset agreement differs from a counterpurchase agreement in that an offset agreement ________.

Cross licensing occurs when companies use licensing agreements to swap intangible property with one another.

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

A company proposes that in exchange for a hard-currency sale,it will make a hard-currency purchase of an unspecified product from the buyer nation in the future.Which of the following is the company proposing?

Products for which there are fewer substitutes can more easily absorb higher shipping and production costs.

What is countertrade? Explain the concept of buyback as a type of countertrade,and discuss buyback as a joint venture configuration.

Globalization

Cross-Cultural Business

Political Economy and Ethics

Economic Development of Nations

International Trade Theory

Political Economy of Trade

Foreign Direct Investment

Regional Economic Integration

International Financial Markets

International Monetary System

International Strategy and Organization

Analyzing International Opportunities

Developing and Marketing Products

Managing International Operations

Hiring and Managing Employees

Filters

Exam 13: Selecting and Managing Entry Modes

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

Which of the following is a strategic factor that influences a company's international entry mode selection?

Which of the following is a contractual entry mode in which a company owning intangible property grants another firm the right to use that property for a specified period of time?

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

Which of the following financing methods entails the greatest risk for importers?

Direct exporters always sell directly to end users.

Discuss the advantages of licensing,low-cost production,and low-cost shipping for international companies.

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

Franchising is primarily used in the manufacturing industries.

What are the differences between a turnkey project and a strategic alliance?

The primary advantage of franchising is that franchisees have a great degree of organizational flexibility.

Which of the following statements is true of licensing?

The sale of goods and services to a country by a company that promises to buy a specific product from that country in the future is called a(n)________.

A document ordering the importer to pay the exporter a specified sum of money at a specified time is called a ________.

An offset agreement differs from a counterpurchase agreement in that an offset agreement ________.

Cross licensing occurs when companies use licensing agreements to swap intangible property with one another.

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

A company proposes that in exchange for a hard-currency sale,it will make a hard-currency purchase of an unspecified product from the buyer nation in the future.Which of the following is the company proposing?

Products for which there are fewer substitutes can more easily absorb higher shipping and production costs.

What is countertrade? Explain the concept of buyback as a type of countertrade,and discuss buyback as a joint venture configuration.

Globalization

Cross-Cultural Business

Political Economy and Ethics

Economic Development of Nations

International Trade Theory

Political Economy of Trade

Foreign Direct Investment

Regional Economic Integration

International Financial Markets

International Monetary System

International Strategy and Organization

Analyzing International Opportunities

Developing and Marketing Products

Managing International Operations

Hiring and Managing Employees

Filters