Exam 4: Methods of Entry into Foreign Markets

An export management company earns its revenue through

When a company has a subsidiary in a foreign country,as far as the foreign country's government is concerned that subsidiary is

Joint ventures are becoming more and more attractive to foreign investors.

An agent often has several principals and generally sells a group of complementary products rather than products that compete directly with one another.

Most governments make a substantive differentiation in the way agents and distributors are considered by their judiciary systems.

When a principal is allowed to negotiate directly with the importer,then the principal's agent is considered by a large number of countries' governments as a binding agent.

If an American cement company were to make an agreement with a cement producer in a foreign country to produce the American company's cement,this would be an example of ____________________ manufacturing.

Unique,powerful Japanese trading companies are called

In its relationship with an agent,an exporter is known as the

Most export management corporations are small firms,typically with fewer than fifteen employees.

____________________ is a form of exporting by which a firm can benefit by not having to lay out any capital but is able to generate world-wide income from its intellectual property fairly rapidly.

A customer of a firm enters a foreign market by setting up a manufacturing facility.It tells its suppliers that they will need to supply parts for assembly at the manufacturing facility and for customer service.Therefore,the suppliers are engaged in what kind of exporting?

Because of action by the World Trade Organization to lower tariffs in the future,there should be an increase in the importance of foreign trade zones.

In a franchising arrangement,the ____________________ pays fees to the company that owns the bundle of intellectual property items.

If an exporting firm wants to change from a strategy where it has used agents or distributors to a strategy based upon sales subsidiaries,it is usually easy and painless to make this switch.

The company that develops a business product or concept and grants rights to a large number of intellectual property items all bundled in a business package is called a franchisor.

_____ is not truly a method of entry into a country for an exporter.

A foreign sales corporation is a device used by U.S.exporters to reduce taxes.To qualify,the goods exported must have _____ percent U.S.content.This results in a tax reduction of _____ percent.

An advantage of gray markets is the increased amount of control that a company has over a product after it has been sold.

Joint ventures were developed as ways to partner with a politically well-connected company in a foreign country to help prevent things like nationalization of a foreign company by the host government.