Question 1

The Internet supports more companies' efforts to launch a direct exporting strategy by ________.
A)providing information quickly and inexpensively
B)eliminating the need for highly detailed export plans
C)letting software take over customer service responsibilities
D)countering the power of electronic data interchange systems

Accepted Answer

The Internet provides quick and inexpensive access to information, making it easier for companies to research and enter foreign markets, thus supporting their direct exporting strategy.

Question 2

The perspective of ________ holds that as a company gains experience, resources, and confidence, it progressively increases its scope of countries to which it exports.
A)serendipity
B)export management
C)the born-global theory
D)incremental internationalization

Accepted Answer

The perspective described in the statement is known as incremental internationalization, where a company gradually expands its export scope as it gains more experience and resources. The other options, serendipity, export management, and the born-global theory, do not describe this specific perspective.

Question 3

What is a born global? How has technology triggered the growth of born globals?

Accepted Answer

The answer of What is a born global? How has...

Question 4

What is the difference between exporting and importing? What are the unique characteristics of service exports and service imports?

Accepted Answer

The answer of What is the difference between exporting and...

Question 5

An exporter that implements a(n)________ strategy does so with the intent to develop its own international marketing capability.
A)indirect selling
B)freight forwarding
C)direct exporting
D)export intermediation

Accepted Answer

Direct exporting refers to an exporting strategy where the exporter directly sells its products to customers in a foreign market without involving any middlemen. By implementing this strategy, the exporter aims to establish its own international marketing capability through developing the necessary infrastructure such as distribution channels, sales force, and customer service. This approach allows the exporter to have greater control over its export operations and build a stronger relationship with its foreign customers.

Question 6

What are the three main types of exporters? What are the three main types of importers? Briefly describe the characteristics of each.

Accepted Answer

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Question 7

"Born global" firms are those that step straight onto the world stage, making exporting the primary goal of the firm from day one of operations.

Accepted Answer

Born global firms are indeed those that prioritize exporting as their primary goal right from the start of their operations. They are characterized by their rapid internationalization and global outlook, often leveraging technology and digital platforms to reach customers across multiple countries and regions.

Question 8

What are some reasons that firms decide to export their products or services? What does a firm need to consider when developing an export plan?

Accepted Answer

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Question 9

The incremental internationalization view of exporting holds that companies first target countries that are ________ their home market.
A)different from
B)similar to
C)smaller than
D)larger than

Accepted Answer

The incremental internationalization view of exporting suggests that companies should first target countries that are similar to their home market in terms of cultural, economic, and political conditions. This allows for a smoother transition and easier adaptation to the new market. As the company gains more experience and resources, it can gradually expand to countries that are different or larger than their home market.

Question 10

The probability that a business is engaged in exporting tends to ________.
A)decrease with the size of the firm
B)increase with the product life cycle
C)decrease with the product life cycle
D)increase with the size of the firm

Accepted Answer

As firms become larger, they gain more resources and capability to expand their operations, including exporting. Smaller firms may lack the resources and expertise to navigate the complexities of international trade.

Question 11

Vandelay Designs is a small firm based in Boston that makes and sells scrapbooking products through its retail store and Web site.Many of Vandelay's first sales were made to customers located in Canada, England, and Japan.Vandelay Designs would best be identified as a(n)________.
A)incremental exporter
B)occasional exporter
C)born global
D)geo-expo

Accepted Answer

Vandelay Designs is best identified as a born global firm, as it started off with international customers right from the beginning rather than gradually expanding into international markets.

Question 12

An Australian company makes athletic wear for women, men, and children.After several years of successfully exporting its products to the U.K.and the U.S., the company began exporting to Japan.This is an example of ________.
A)a born-global company
B)a location advantage
C)third-party exporting
D)incremental internationalization

Accepted Answer

This is an example of incremental internationalization, where a company gradually increases its international activities over time. Starting from exporting to familiar markets like the U.K. and the U.S., and then expanding to a new market like Japan, reflects a step-by-step approach to international expansion.

Question 13

Advocates of exporting e-waste assert that the activity helps entrepreneurs in developing countries create value by recovering and recycling scarce resources such as copper.

Accepted Answer

Advocates of exporting e-waste argue that it can help create jobs and economic opportunities in developing countries by recovering valuable materials from discarded electronics. Copper, in particular, is a valuable resource that can be extracted and sold, providing a source of income for those involved in the e-waste recycling industry.

Question 14

The stages of development in a company's export expansion are tied to company size.

Accepted Answer

The stages of development in a company's export expansion are more closely related to experience, strategic decisions, and market opportunities rather than the size of the company.

Question 15

Smithson Pottery is considered a regular exporter because the firm fills unsolicited orders from foreign buyers and passively investigates international trade options.

Accepted Answer

Regular exporters actively seek out foreign markets and opportunities rather than just filling unsolicited orders or passively investigating international trade options.

Question 16

Pender Pet Products is considered an opportunistic importer because the firm seeks products around the world that it can import and sell profitably to domestic consumers.

Accepted Answer

The statement accurately describes Pender Pet Products as an opportunistic importer.

Question 17

Which of the following BEST describes the concept of serendipity in exporting?
A)modifying products to meet cultural preferences
B)initiating global sales through e-commerce methods
C)relying too much on exports when domestic sales suddenly increase
D)opportunistically responding to unsolicited orders from foreign customers

Accepted Answer

Serendipity in exporting refers to the accidental and fortunate discovery of potential export opportunities. This means that a business unexpectedly receives unsolicited orders from foreign customers. Therefore, the best choice that describes this concept is D - opportunistically responding to unsolicited orders from foreign customers.

Question 18

Export intensity, the percentage of total revenues coming from exports, is not always correlated with company size.

Accepted Answer

It is possible for a small company to have a high export intensity if they focus primarily on exporting, while a larger company may have a lower export intensity if they have a more diversified business model. Therefore, export intensity is not always correlated with company size.

Question 19

In conducting ________, a business sells goods directly to or through an independent domestic intermediary in the exporter's home country that exports the products to foreign markets.
A)direct exporting
B)global marketing
C)strategic planning
D)indirect exporting

Accepted Answer

Indirect exporting involves selling goods to an independent domestic intermediary who then exports the products to foreign markets on the exporter's behalf. Direct exporting involves selling goods directly to foreign customers or through a foreign intermediary, while global marketing involves creating a unified marketing strategy for worldwide use. Strategic planning is a broader business process that involves setting long-term goals and determining the resources needed to achieve them.

Question 20

Serendipity is often an export trigger for companies that purposefully look to internationalize their operations.

Accepted Answer

Serendipity refers to a fortunate happenstance, and while it may lead to unexpected opportunities, companies that purposefully look to internationalize their operations typically have a deliberate strategy in place rather than relying on chance.

Quiz 14: Export and Import

The Internet supports more companies' efforts to launch a direct exporting strategy by ________.

The perspective of ________ holds that as a company gains experience, resources, and confidence, it progressively increases its scope of countries to which it exports.

What is a born global? How has technology triggered the growth of born globals?

What is the difference between exporting and importing? What are the unique characteristics of service exports and service imports?

An exporter that implements a(n) ________ strategy does so with the intent to develop its own international marketing capability.

What are the three main types of exporters? What are the three main types of importers? Briefly describe the characteristics of each.

"Born global" firms are those that step straight onto the world stage, making exporting the primary goal of the firm from day one of operations.

What are some reasons that firms decide to export their products or services? What does a firm need to consider when developing an export plan?

The incremental internationalization view of exporting holds that companies first target countries that are ________ their home market.

The probability that a business is engaged in exporting tends to ________.

Vandelay Designs is a small firm based in Boston that makes and sells scrapbooking products through its retail store and Web site.Many of Vandelay's first sales were made to customers located in Canada, England, and Japan.Vandelay Designs would best be identified as a(n) ________.

An Australian company makes athletic wear for women, men, and children.After several years of successfully exporting its products to the U.K.and the U.S., the company began exporting to Japan.This is an example of ________.