Exam 4: Methods of Entry into Foreign Markets

The granting of rights to intellectual property owned by a company to another company for a fee is the definition of a licensing agreement between two corporations.

Agents usually sell more than one product and represent more than one company.The products they sell are

An export trading company is an intermediary which will purchase goods in the exporting country and will resell them to a customer in a foreign country.

Parallel imports are sometimes called gray market goods.

When a successful exporter involves one of its suppliers-or a company that makes a complementary product-in the markets that this exporter has developed,it results in a form of piggy-backing sometimes called collaborative exporting.

When a distributor is involved in international trade,there are two sets of invoices: one set between the exporter and the distributor (who is also the importer),and a set of domestic invoices between the distributor and its customers.

An exporter invests in a facility abroad,but finds one or more partners with which to share the costs of the venture and it results in creation of a new corporation in a foreign country.This is an example of a(n)____________________ venture.

Not only are export trading companies helpful for organizations who are novices at international trade,but as an organization becomes more involved in international trade,the export trading company becomes more of a necessity.

An intermediary that purchases goods in the exporting country and resells them to a customer in a foreign country is called a(n)

Because agents tend to be individuals or very small firms,governments in some countries put them under

The European Union has complained to the World Trade Organization (WTO)that American foreign sales corporations result in a(n)____________________ to exports,which is prohibited by the WTO.

When manufacturing costs are lower abroad,when shipping costs are prohibitive,when domestic manufacturing capacity is reached,or when the product has significant intangible content,such as services,a company may consider