Exam 11: Selecting and Managing Entry Modes

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

Which of the following is NOT a method of export/import financing?

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,the potential importers have expressed difficulty in obtaining the hard currency to pay for Gro-Tru's products.Alistair Green,vice president for new business development,is exploring how Gro-Tru might 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 ________.

Identify and explain the possible configurations of joint venture.What are the advantages and disadvantages of the joint venture entry mode?

When one company sells to another its obligation to make a purchase in a given country,this is called ________.

In which type of joint venture do the parties choose to invest together in downstream business activities?

Scenario: Wang's Techno Toys Ann Wang has been successful in the domestic market selling high-tech toy products.But facing stiff competition at home,Ann has entered international markets by direct exporting. -If Techno Toy's bank acts as an intermediary without accepting financial risk,it is demonstrating which of the following methods of export/import financing?

Using examples,explain in detail how franchising works.How is franchising different from licensing?

Discuss in detail what types of knowledge can be transferred using a management contract.Why are such arrangements attractive?

Which of the following is the first step in developing a successful export strategy?

Exporting permits companies to diversify their sales.

A company performing market research and interpreting results is at which step in the export strategy process?

A way a company can achieve economies of scale is to expand into international markets.

An entry mode is the institutional arrangement by which a firm gets its products,technologies,human skills,or other resources into a market.

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

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

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

Scenario: Sanjeer's HomeCare Products Sanjeer Sengupta,owner of Sanjeer'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 consider the degree to which he wants to be involved. -Which of these should be the final step for Sanjeer in developing a successful export strategy?

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?

Matching needs to abilities is the first step in developing a successful export strategy.