Chapter 14: Selecting and Managing Entry Modes

The two categories of entry mode besides exporting and countertrade are

• direct and indirect entry

• contractual and investment entry

• agent and distributor entry

• distributor and representative entry

One key step in the process of developing an export strategy involves matching market needs to

• partner selection

• export/import financing

• countertrade possibilities

• company abilities

A company that sells its own products to buyers in a target market is called a(n)

• sales representative

• indirect exporter

• direct exporter

• export trading company

An export management company typically exports products

• in exchange for other products only

• of its own directly to buyers abroad

• to a country and then sells to another party its obligation to import from that country

• on behalf of an indirect exporter

Which of the following provides services to indirect exporters and is popular in Asian countries?

• Export management company

• Direct exporter

• Export trading company

• Countertrade agent

Selling products that are paid for, in whole or in part, with other products is called

• diversification

• indirect exporting

• countertrade

• direct exporting

A form of countertrade that exchanges goods or services for other goods or services without any money exchanging hands is called

• barter

• buyback

• counterpurchase

• offset

A company that agrees to make a hard-currency purchase of an unspecified product from a nation after it makes a hard-currency sale to that nation is engaging in

• buyback countertrade

• barter

• offset countertrade

• counterpurchase

Export/import financing in which an importer pays an exporter for merchandise before it is shipped is called

• advance payment

• letter of credit

• documentary collection

• open account

Export/import financing in which a bank acts as an intermediary without accepting financial risk is called

• documentary collection

• letter of credit

• open account

• advance payment