Exam 11: Selecting and Managing Entry Modes

Scenario: Sports Stuff,Inc. Herb Graham is vice president of Sports Stuff,a business that develops,manufactures,and markets sports memorabilia.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 which of the following?

________ organization represents only its own company's products,not those of other companies.

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. -In some countries,it is better to exchange goods and services directly for Techno Toys,without the use of money.This practice is known as ________.

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

Explain in detail why companies should consider exporting.Describe the four-step model of developing a successful export strategy.

A company establishing relationships with potential local distributors,buyers,and others is at which step in the export process?

The different types of intermediaries involved in indirect exporting include all of the following EXCEPT ________.

In developing a successful export strategy,once a potential market has been identified,the next step is to ________.

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. -Alistair has identified one option that might help the firm: selling goods or services that are paid for in whole or in part with other goods or services.Alistair is considering which of the following?

An offset agreement differs from a counterpurchase agreement in which of the following respects?

Advance payment is common in each of the following situations EXCEPT when ________.

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. -Which of the following is NOT an export/import financing method that Techno Toys might utilize?

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

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. -Techno Toys most likely uses which of the following to assist with its direct exporting?

Types of entry modes available to companies include all of the following EXCEPT ________.

Explain how a country's political environment can influence its choice of market entry strategy,and discuss the risks posed by political instability on the management contract entry mode.

Which of the following occurs when a company sells its products to intermediaries who then resell to buyers in a target market?

A sight draft extends the period of time following delivery by which the importer must pay for goods.

When an exporter ships merchandise and later bills the importer for its value,it is using a(n)________ type of export/import financing.

________ is the sale of goods and services to a country by a company that promises to make a future purchase of a specific product from that country.