Exam 11: Selecting and Managing Entry Modes

Using examples,explain in detail how licensing works.What are its advantages and disadvantages?

Which of the following is NOT a type of countertrade?

In a backward integration joint venture,the parties choose to invest together in downstream business activities.

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

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 is called a(n)________.

Advance payment is the least favourable method for exporters.

________ occurs when a company sells its products directly to buyers in a target market.

The biggest advantage of an export management company is usually its ________.

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

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

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's boss is concerned with the firm's lack of experience in foreign markets.To minimize this problem,Herb most likely recommends that the firm create a ________ with a local partner.

Which of the following requires the importer to pay when goods are delivered?

Selling goods or services that are paid for,in whole or part,with other goods or services is called ________.

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

Differentiate between joint ventures and strategic alliances.How do they compare in advantages and disadvantages?

Companies are often drawn into exporting when customers in other countries solicit their goods.

Because of the cash outlays involved,countertrade is not an option for smaller companies.

A confirmed letter of credit is guaranteed by both the exporter's bank in the country of export and the importer's bank in the country of import.

The most common methods of buying and selling goods internationally are joint ventures and strategic alliances.

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