Question 1

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

Accepted Answer

A)  fails to specify the type of product that must be purchased
B)  fails to specify the amount that will be spent on the purchase
C)  fails to give a business greater freedom in fulfilling its end of a countertrade deal
D)  fails to make a hard-currency purchase of any product from that nation in the futureE) A) and D)
F) B) and D)

Question 2

Which of the following financing methods entails the greatest risk for importers?

Accepted Answer

A)  documentary collection
B)  advance payment
C)  letter of credit
D)  open accountE) A) and C)
F) A) and B)

Question 3

Which of the following statements is true of licensing?

Accepted Answer

A)  Licensing restricts finances needed for international expansion.
B)  Cross licensing grants a company the right to use a property but does not grant it sole access to a market.
C)  A major advantage of licensing is that it is the least risky method of international expansion.
D)  Licensing increases the likelihood that a licensor's product will appear on the black market.E) A) and D)
F) B) and C)

Question 4

Direct exporters always sell directly to end users.

Accepted Answer

A) True 
 B)False

Question 5

A ________ is a separate company created and owned by two or more independent entities to achieve a common business objective.

Accepted Answer

A)  wholly owned subsidiary
B)  joint venture
C)  strategic alliance
D)  turnkey projectE) A) and C)
F) A) and B)

Question 6

Letters of credit are popular among traders because most of the risks are assumed by ________.

Accepted Answer

A)  distributors
B)  importers
C)  exporters
D)  banksE) B) and C)
F) A) and B)

Question 7

Which of the following is 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?

Accepted Answer

A)  franchising
B)  licensing
C)  management contract
D)  strategic allianceE) All of the above
F) B) and C)

Question 8

Franchising is primarily used in the manufacturing industries.

Accepted Answer

A) True 
 B)False

Question 9

Identify the strategic factors that influence a company's international entry mode selection.Explain any three of them.

Accepted Answer

The choice of entry mode has many import...

Question 10

Discuss the advantages of licensing,low-cost production,and low-cost shipping for international companies.

Accepted Answer

There are several advantages to using li...

Question 11

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

Accepted Answer

A)  sight draft
B)  ocean bill of lading
C)  time draft
D)  inland bill of ladingE) None of the above
F) All of the above

Question 12

What are the differences between a turnkey project and a strategic alliance?

Accepted Answer

When one company designs,constructs,and ...

Question 13

A company proposes that in exchange for a hard-currency sale,it will make a hard-currency purchase of an unspecified product from the buyer nation in the future.Which of the following is the company proposing?

Accepted Answer

A)  a counterpurchase
B)  an offset
C)  a buyback
D)  a barterE) A) and B)
F) All of the above

Question 14

Cross licensing occurs when companies use licensing agreements to swap intangible property with one another.

Accepted Answer

A) True 
 B)False

Question 15

Products for which there are fewer substitutes can more easily absorb higher shipping and production costs.

Accepted Answer

A) True 
 B)False

Question 16

What is countertrade? Explain the concept of buyback as a type of countertrade,and discuss buyback as a joint venture configuration.

Accepted Answer

Companies are sometimes unable to import...

Question 17

A document ordering the importer to pay the exporter a specified sum of money at a specified time is called a ________.

Accepted Answer

A)  bill of lading
B)  letter of credit
C)  bill of exchange
D)  management contractE) A) and C)
F) C) and D)

Question 18

The sale of goods and services to a country by a company that promises to buy a specific product from that country in the future is called a(n) ________.

Accepted Answer

A)  counterpurchase
B)  offset
C)  joint venture
D)  barterE) A) and B)
F) All of the above

Question 19

Which of the following is a strategic factor that influences a company's international entry mode selection?

Accepted Answer

A)  market consumption capacity
B)  market receptivity
C)  market size
D)  market intensityE) A) and D)
F) All of the above

Question 20

The primary advantage of franchising is that franchisees have a great degree of organizational flexibility.

Accepted Answer

A) True 
 B)False

Exam 13: Selecting and Managing Entry Modes

Which of the following is a strategic factor that influences a company's international entry mode selection?

Correct AnswerverifiedShow Answer

Products for which there are fewer substitutes can more easily absorb higher shipping and production costs.

Correct AnswerverifiedShow Answer

Cross licensing occurs when companies use licensing agreements to swap intangible property with one another.

Correct AnswerverifiedShow Answer

Direct exporters always sell directly to end users.

Correct AnswerverifiedShow Answer

Which of the following is 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?

Correct AnswerverifiedShow Answer

Franchising is primarily used in the manufacturing industries.

Correct AnswerverifiedShow Answer

A document ordering the importer to pay the exporter a specified sum of money at a specified time is called a ________.

Correct AnswerverifiedShow Answer

Letters of credit are popular among traders because most of the risks are assumed by ________.

Correct AnswerverifiedShow Answer

Which of the following statements is true of licensing?

Correct AnswerverifiedShow Answer

What are the differences between a turnkey project and a strategic alliance?

Correct AnswerverifiedWhen one company designs,constructs,and ...View AnswerShow Answer

Discuss the advantages of licensing,low-cost production,and low-cost shipping for international companies.

Correct AnswerverifiedThere are several advantages to using li...View AnswerShow Answer

What is countertrade? Explain the concept of buyback as a type of countertrade,and discuss buyback as a joint venture configuration.

Correct AnswerverifiedCompanies are sometimes unable to import...View AnswerShow Answer

The primary advantage of franchising is that franchisees have a great degree of organizational flexibility.

Correct AnswerverifiedShow Answer

A ________ is a separate company created and owned by two or more independent entities to achieve a common business objective.

Correct AnswerverifiedShow Answer

The sale of goods and services to a country by a company that promises to buy a specific product from that country in the future is called a(n) ________.

Correct AnswerverifiedShow Answer

A company proposes that in exchange for a hard-currency sale,it will make a hard-currency purchase of an unspecified product from the buyer nation in the future.Which of the following is the company proposing?

Correct AnswerverifiedShow Answer

Identify the strategic factors that influence a company's international entry mode selection.Explain any three of them.

Correct AnswerverifiedThe choice of entry mode has many import...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following financing methods entails the greatest risk for importers?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
When one company designs,constructs,and ...
View Answer

Correct Answer
verified
There are several advantages to using li...
View Answer

Correct Answer
verified
Companies are sometimes unable to import...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The choice of entry mode has many import...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified