Question 1

Cooperative exporting is also called:

Accepted Answer

Cooperative exporting is also called piggyback exporting, which refers to the practice of using the distribution channels of another company, such as a domestic partner, to access international markets.

Question 2

_______________________ means that the firm uses a middleman based in its home market to do the exporting.

Accepted Answer

Indirect exporting means that the firm uses a middleman based in its home market to do the exporting. This is different from direct exporting, where the firm exports its products directly to customers in foreign markets. Option A (licensing) involves granting a foreign company the right to use the firm's intellectual property in exchange for a fee or royalty. Option B (contract manufacturing) involves outsourcing production to a foreign firm. Option C (cooperative exporting) involves two or more firms working together to export products. Option D (venture exporting) involves the firm setting up a joint venture with a foreign partner to export products.

Question 3

Markets can be classified in four types of countries based on their respective market attractiveness. Which of the following of those types can be used to build up an
Initial presence (such as through a liaison office)?

Accepted Answer

The answer of Markets can be classified in four types...

Question 4

One of the main advantages of direct exporting over indirect exporting is that the exporter has more:

Accepted Answer

Direct exporting allows the exporter to have more control over its operations as it is directly involved in selling its products to the foreign market. In indirect exporting, the exporter relies on intermediaries such as agents and distributors, which may result in a lack of control over the marketing and distribution of their products.

Question 5

______________________ means that the firm enters into an agreement with another firm (local or foreign) where the partner will use its distribution network
To sell the exporter's goods.

Accepted Answer

Cooperative exporting is when a firm enters into an agreement with another firm (local or foreign) where the partner will use its distribution network to sell the exporter's goods. It involves a collaborative effort between two firms in two different countries to achieve a common goal.

Question 6

Markets can be classified in four types of countries based on their respective market attractiveness. Vietnam and the Philippines would fall into which of the types listed
Below (where the purpose would be to build up an initial presence such as through a
Liaison office)?

Accepted Answer

Vietnam and the Philippines are classified as emerging countries, as they have some level of economic and political instability but also show high potential for growth and development. Building up an initial presence such as through a liaison office would be a suitable strategy in these types of markets. The other options (platform countries, maturing and established countries, and growth countries) do not accurately describe the market conditions in Vietnam and the Philippines.

Question 7

Companies that plan to engage in exporting have a choice between indirect, _________________, and direct exporting.

Accepted Answer

Cooperative exporting is a method where companies may collaborate or use intermediaries to enter foreign markets, unlike licensing or direct exporting which involve different strategies and levels of involvement.

Question 8

A _________________________ perspective argues that the desirable governance structure (high- versus low-control mode) will depend on the comparative transaction
Costs (the costs of running an operation).

Accepted Answer

The concept discussed in the question is transaction cost analysis, which suggests that the governance structure should be determined by comparing the costs of different modes of operation. Option E is the only choice that mentions transaction cost analysis, making it the correct answer.

Question 9

Markets can be classified in four types of countries based on their respective market attractiveness. Which of the following countries would most likely be listed as a
Maturing/established market?

Accepted Answer

Taiwan would be most likely listed as a maturing/established market due to its developed economy and well-established infrastructure.

Question 10

One of the most popular forms of cooperative exporting is _________________. With this method, the company uses the overseas distribution network of another
Company (local or foreign) for selling its goods in the foreign market.

Accepted Answer

Cooperative exporting method described in the question is piggyback exporting.

Question 11

The Oriental Land Company in Japan owns Tokyo Disneyland. This would be an example of an international _________________ agreement between the
Oriental Land Company (owner) and Disneyland (receives royalties).

Accepted Answer

The agreement between the Oriental Land Company and Disneyland is a licensing agreement, where the Oriental Land Company has the rights to use Disneyland's intellectual property (such as characters, rides, and branding) in exchange for paying royalties to Disneyland.

Question 12

Most companies start their international expansion with _________________.

Accepted Answer

Exporting is the most common way for companies to start their international expansion as it involves the least amount of investment and risk. Companies can test the waters in a foreign market by exporting their products without having to set up a physical presence in the market.

Question 13

Markets can be classified in four types of countries based on their respective market attractiveness. Which of the following countries would most likely be listed as an
Established/maturing market?

Accepted Answer

Japan would most likely be listed as an Established/maturing market due to its developed infrastructure, stable economy, and established consumer base.

Question 14

___________________ has disadvantages. Chief among these are that the company has little or no control over the way their product is marketed in a foreign country,
Lack of adequate sales support (among other support variables) can lead to poor sales,
And bad decisions made by an intermediary can damage the corporate image.

Accepted Answer

Indirect exporting has disadvantages such as little or no control over the way their product is marketed in a foreign country, lack of adequate sales support, and bad decisions made by an intermediary can damage the corporate image.

Question 15

___________________ is a contractual strategy where the firm offers some proprietary assets to a foreign company in exchange for royalty fees.

Accepted Answer

Licensing is a contractual strategy in which a firm (licensor) grants the rights to use some of its proprietary assets (technology, patents, brand names, etc.) to a foreign company (licensee) in exchange for royalty fees. This allows the licensee to produce and sell products using the licensor's assets, while the licensor benefits from additional revenue streams without having to establish production facilities or distribution networks in the foreign market.

Question 16

Markets can be classified in four types of countries based on their respective market attractiveness. Which of the following countries would most likely be listed as
A growth country?

Accepted Answer

The answer of Markets can be classified in four types...

Question 17

______________________ means that the company sets up its own export organization within the company and relies on a middleman based in a
Foreign market (foreign distributor).

Accepted Answer

Direct exporting means that the company sets up its own export organization within the company and relies on a foreign distributor or agent, rather than using a middleman.

Question 18

___________________ offers several advantages. Chief among these are the firm gets instant foreign market expertise, very little risk is involved, and
No major resource commitments are required.

Accepted Answer

Indirect exporting allows a firm to enter foreign markets with minimal risk and resource commitment by using intermediaries who have the necessary market expertise.

Question 19

In the area of exporting, a middleman could be an __________________________.

Accepted Answer

An export management company acts as a middleman between the exporter and the foreign customers. They handle all the aspects of exporting, from finding foreign buyers to arranging the shipment of goods.

Question 20

From a transaction-cost analysis perspective, market failure typically happens when transaction-specific assets become _________________ and therefore more high-
Control situations are needed.

Accepted Answer

Transaction-specific assets are assets that are valuable and specific to a particular transaction. When these assets become more valuable, market failure can occur because the costs of negotiating and enforcing contracts between parties become too high. This can lead to the need for more control or regulation to mitigate the risks of market failure.

Quiz 9: Global Market Entry Strategies

Cooperative exporting is also called:

_______________________ means that the firm uses a middleman based in its home market to do the exporting.

Markets can be classified in four types of countries based on their respective market attractiveness. Which of the following of those types can be used to build up an Initial presence (such as through a liaison office) ?

One of the main advantages of direct exporting over indirect exporting is that the exporter has more:

______________________ means that the firm enters into an agreement with another firm (local or foreign) where the partner will use its distribution network To sell the exporter's goods.

Markets can be classified in four types of countries based on their respective market attractiveness. Vietnam and the Philippines would fall into which of the types listed Below (where the purpose would be to build up an initial presence such as through a Liaison office) ?

Companies that plan to engage in exporting have a choice between indirect, _________________, and direct exporting.

A _________________________ perspective argues that the desirable governance structure (high- versus low-control mode) will depend on the comparative transaction Costs (the costs of running an operation) .

Markets can be classified in four types of countries based on their respective market attractiveness. Which of the following countries would most likely be listed as a Maturing/established market?

One of the most popular forms of cooperative exporting is _________________. With this method, the company uses the overseas distribution network of another Company (local or foreign) for selling its goods in the foreign market.

The Oriental Land Company in Japan owns Tokyo Disneyland. This would be an example of an international _________________ agreement between the Oriental Land Company (owner) and Disneyland (receives royalties) .

Most companies start their international expansion with _________________.

Markets can be classified in four types of countries based on their respective market attractiveness. Which of the following countries would most likely be listed as an Established/maturing market?

___________________ is a contractual strategy where the firm offers some proprietary assets to a foreign company in exchange for royalty fees.

Markets can be classified in four types of countries based on their respective market attractiveness. Which of the following countries would most likely be listed as A growth country?

______________________ means that the company sets up its own export organization within the company and relies on a middleman based in a Foreign market (foreign distributor) .

___________________ offers several advantages. Chief among these are the firm gets instant foreign market expertise, very little risk is involved, and No major resource commitments are required.

In the area of exporting, a middleman could be an __________________________.

From a transaction-cost analysis perspective, market failure typically happens when transaction-specific assets become _________________ and therefore more high- Control situations are needed.