Exam 13: Selecting and Managing Entry Modes

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 that would provide services in addition to activities directly related to HomeCare's exporting activities, including developing the distribution channel, providing storage facilities, and even financing trading. Which of these would likely fit HomeCare's needs best?

A way a company can achieve economies of scale is to expand into international markets.

Describe any two contractual entry modes, listing the advantages and disadvantages of each.

A specialist in export-related activities such as customs clearing, tariff schedules, and shipping and insurance fees is called a(n) ________.

A(n) ________ is guaranteed by both the exporter's bank in the country of export and the importer's bank in the country of import.

Briefly explain the different types of countertrade.

In which type of joint venture do the parties choose to invest together in downstream business activities?

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

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

Firms of all sizes ranging from entrepreneurs to large multinational firms, engage in exporting.

A freight forwarder is a specialist in export-related activities such as customs clearing, tariff schedules, and shipping and insurance fees.

A revocable letter of credit allows the bank issuing the letter to modify the terms of the letter only after obtaining the approval of both exporter and importer.