Exam 11: Selecting and Managing Entry Modes

________ is the exchange of goods or services directly for other goods or services without the use of money.

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

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. -The CEO has just determined that Sports Stuff plans to retain complete control over its operations in Europe.To achieve that objective,Herb would most likely recommend that the firm establish a ________.

Which of the following types of agreements allows a country to earn back some of the currency it pays out for imports?

A relationship whereby two or more entities cooperate (but do not form a separate company)to achieve the strategic goals of each is called a(n)________.

Agency relationships are popular among exporters because they are easy to terminate should difficulties arise.

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 has been exploring another type of entry mode that requires ongoing assistance on the part of one firm,often in the form of start-up capital,management training,or location advice.Herb is most likely considering a ________.

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

Which of the following is the most common method of buying and selling goods internationally?

Explain in detail what is a turnkey project.Outline its advantages and disadvantages.

Which of the following is the oldest known form of countertrade?

Advance payment normally takes the form of a sight draft.

________ occurs when a company sells its products to intermediaries who then resell to buyers in a target market.

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?

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

Individuals or organizations that represent one or more indirect exporters in a target market are called ________.

________ is a separate company created and jointly 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?

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. -From a risk perspective,which financing method is the LEAST favourable for Techno Toys' export business?

By definition,direct exporters always sell directly to end users.