Exam 13: Selecting and Managing Entry Modes

Which of the following steps of the strategy development process for exports involves performing market research and interpreting results obtained from the research?

Which of the following letters of credit can be modified without obtaining approval from either the exporter or the importer,by the bank issuing the letter of credit?

Which of the following allows a country to earn back some of the currency it pays out for imports?

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

Which of the following occurs when a company sells its products to buyers in a target market without going through intermediary companies?

Companies involved in direct exporting typically rely on ________.

Scenario: Wang's Techno Toys Ann Wang has been successfully running Wang's Techno Toys that sells high-tech toys in the domestic market.Continually increasing and stiff competition at home has now forced Wang's Techno Toys to enter international markets through direct exports. -Which of the following will most likely help Techno Toys sell its toys directly to buyers in the target market?

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

An offset agreement differs from a counterpurchase agreement in that an offset agreement ________.

Advance payment made by an importer to an exporter normally takes the form of a sight draft.

Explain franchising with examples.Mention the advantages and disadvantages associated with franchising.How is franchising different from licensing?

The most common method used for buying and selling goods internationally is licensing.

What are the different financing methods available to exporters and importers?

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

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 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 business development,is exploring how Gro-Tru can meet the needs of the potential market. -Gro-Tru would be engaging in ________,if it decides that in exchange for a hard-currency sale it would make a hard-currency purchase of an unspecified product from the importing nation in the future.

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.

Which of the following statements is true of countertrade?

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 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 business development,is exploring how Gro-Tru can meet the needs of the potential market. -In his research,Alistair discovers a type of arrangement in which industrial equipment is exported in return for products produced by that equipment.This arrangement is known as ________.

The brand name or trademark of a company is normally the single most important item desired by a franchisee.

A form of countertrade that usually typifies long-term relationships between the companies involved is called ________.