Exam 13: Selecting and Managing Entry Modes

Sales representatives do all of the following EXCEPT ________.

A(n) ________ represents only its own company's products, not those of other companies.

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 is called ________.

When one company designs, constructs, and tests a production facility for a client, the agreement is called a ________.

Barter is ________.

As companies expand their activities to include more products and/or markets, many firms discover the need for an export department or division.

Which of these is the oldest known form of countertrade?

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

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

Which of these allows the bank issuing a letter of credit to modify the terms of the letter only after obtaining the approval of both exporter and importer?

A letter of credit ________ the importer's risk of nonshipment relative to advance payment.

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

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

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 ________.

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

Which of these take ownership of merchandise when it enters their country?

________ is used mainly in service industries such as auto dealerships, entertainment, lodging, and restaurants as a means of expansion.

When one company designs, constructs, and tests a production facility for a client, the agreement is called a(n) ________.

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. -Which financing method represents the greatest risk for Ann's export business?

________ is the export of industrial equipment in return for products produced by that equipment.