Exam 4: Methods of Entry into Foreign Markets

As a company grows in exporting sophistication,it should not become involved with an export trading company because

The customs status of a maquiladora is similar to that of

When they first go into international trading,most companies first do so after careful planning and thoughtful strategic planning.

Maquiladoras are located on the border between

If tariffs on a finished product are higher than tariffs on the parts of the product,the product is said to be in an inverted tariff structure.

A form of piggy-backing in which a successful exporter involves one of its suppliers-or a company that makes a complementary product-in the markets that the exporter has developed is sometimes referred to as ____________________ exporting.

A company has a foreign subsidiary (a wholly-owned foreign enterprise,WOFE)for which it builds a brand new facility.This facility is called a(n)____________________ operation.

An exporter has the most control over its foreign sales through a(n)

What strategy is often followed when access to the market is limited by high tariffs or non-tariff barriers,when shipping costs are prohibitive,or when the exporter is not interested in pursuing the market?

United States companies are prohibited from giving bribes in foreign countries by the ____________________ Act.

There are two types of factors included in the entry decision for an exporter: factors that are market-driven and factors that are company- or product-driven.

The fee a licensee pays a licensor for each use of an intellectual property is called a(n)

A distributor takes much less risk in its relationship with an exporter than does an agent and experiences much lower costs.

While agents,because they are small businesses,are in many countries protected by that country's labor law,distributors,because they tend to be larger and are assumed to be more sophisticated,are covered in most countries by ____________________ law.

By channeling its export sales through a foreign sales corporation,a U.S.company can reduce its tax rate on profits from export sales from 45 percent to 30 percent.

Attempts to reduce business practices that include corruption and bribery have been made by the

Usually,a distributor is located

Among all marketing mix decisions,distribution is the part of the mix that is the easiest or most likely to be adjusted.

In an international environment some companies choose to ____________________ their intellectual property,such as trademarks,copyrights,or designs to foreign firms.

When a firm realizes that it wants to exploit the possibilities that sales abroad can bring,and decides to become directly involved in its exporting activities,it is said to be involved in