Exam 11: Selecting and Managing Entry Modes

________ is a contract between an exporter and a shipper that specifies merchandise destination and shipping costs.

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. -Sanjeer is looking for a company to provide services in addition to activities directly related to HomeCare's exporting activities.These activities include developing the distribution channel,providing storage facilities,and even financing trading.Which of these would best fit HomeCare's needs?

Most large companies use exporting as a means of expanding total sales when the domestic market has become saturated.

Which of the following is NOT a form of investment entry?

Differentiate between direct and indirect exporting.What types of intermediaries can exporters rely on in each case? Explain the roles of these intermediaries.

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

Explain the differences between a turnkey project and a strategic alliance.

A ________ joint venture is formed when each partner requires the same component in its production process.

Explain why an exporter would use a sales representative or a distributor,and discuss why the exporter might be reluctant to offer an open account payment method.

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. -Through his research,Sanjeer learned that the first step in developing a successful export strategy is to ________.

Contractual entry modes include all of the following EXCEPT ________.

________ 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.

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

Countertrade can provide access to markets that are otherwise closed because of a lack of hard currency.

Describe in detail the process of how the documentary collection procedure works.

Letters of credit are popular among traders because banks assume most of the risks.

Discuss the advantages of licensing,low-cost production,and low-cost shipping for international companies.

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. -One option that intrigues Alistair is the process in which one company sells to another its obligation to make a purchase in a given country.This arrangement is known as ________.

Which of the following is a method of export/import financing in which the importer's bank issues a document stating that the bank will pay the exporter when the exporter fulfills the terms of the document?

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. -If Sanjeer's HomeCare Products decides to sell to intermediaries who then resell to buyers in target markets,the company would be engaged in which of the following?