Exam 13: Selecting and Managing Entry Modes

Scenario: 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. -Through his research,Owen learns that the first step in developing a successful export strategy is ________.

Which of the following occurs when a company sells its products to buyers in a target market without going through intermediary companies?

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

Which of the following steps of the strategy development process for exports involves establishing relationships with potential local distributors?

Matching market needs to the company's abilities is the first step in developing a successful export strategy.

A(n)________ allows the bank to modify the terms of the letter only after obtaining the approval of both exporter and importer.

________ take ownership of the merchandise when it enters their country and accept all the risks associated with generating local sales.

Low tariffs and high quota limits encourage market entry by means of investment.

When one company is hired to design,construct,and test a production facility for a client,the arrangement is called ________.

Which of the following refers to a contract between the exporter and shipper that specifies merchandise destination and shipping costs?

Which of the following is a contractual entry mode in which one company supplies another with intangible property and other assistance over an extended period?

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 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?

Scenario: 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 ________.

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?

Which of the following statements best differentiates between franchising and licensing?

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

Which of the following refers to the exchange of goods or services directly for other goods or services without the use of money?

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

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?

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