Exam 11: Selecting and Managing Entry Modes

________ requires the importer to pay when goods are delivered.

All of the following are true of distributors EXCEPT ________.

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. -If,in exchange for a hard-currency sale,Gro-Tru agrees to make a hard-currency purchase of an unspecified product from the importing nation in the future,it would be engaging in which of the following?

When inscribed "accepted" by an importer,a(n)________ becomes a negotiable instrument that can be traded among financial institutions.

Which of the following financing methods entails the greatest risk for exporters?

Offset differs from a counterpurchase in that it does not specify the type of product that must be purchased,just the amount that will be spent.

A wholly owned subsidiary is a facility owned and controlled by a single parent company.

Explain in detail the strategic factors that influence a company's international entry mode selection.

A company that exports products on behalf of an indirect exporter is called a(n)________.

The advance payment method reduces the risk of non-shipment the importer faces under the open account method.

Under the stipulations of a(n)________,one company supplies another with managerial expertise for a specific period of time.

Which of the following is the exchange of goods and services directly for other goods and services without the use of money?

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

What financing methods are available to exporters and importers?

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

Licensing is primarily used in the service industries.

Which of the following normally takes the form of a wire transfer of money from the bank account of the importer directly to that of the exporter prior to shipment of merchandise?

Buyback is defined as which of the following?

The most important disadvantage of a strategic alliance is that it can create a future local or even global competitor.

________ take ownership of merchandise when it enters their country.