TRUE/FALSEQUESTIONS1. Thechoiceofhowtoenteranewmarketisinfluencedbymanyfactors,includingthelocal(True。businessenvironmentandacompanysowncorecompetency.Moderate。p.364。LO1)2. Anentrymodeistheinstitutionalarrangementbywhichafirmgetsitsproducts,technologies,humanskills,orotherresourcesintoamarket.(True。Easy。p.364。LO1)3. Themostcommonmethodsofbuyingandsellinggoodsinternationallyarejointventuresandstrategicalliances.(False。Moderate。p.364。LO1)4. Thethreemainreasonswhycompaniesbeginexportingaretoexpandsales,diversifysales,andcontractsales.(False。Easy。p.364。LO1)5. Mostlargecompaniesuseexportingasameansofexpandingtotalsaleswhenthedomesticmarkethasbecomesaturated.(True。Moderate。p.364。LO1)6. Awayacompanycanachieveeconomiesofscaleistoexpandintointernationalmarkets.(True。Moderate。p.364。LO1)7. Exportingpermitscompaniestodiversifytheirsales.(True。Easy。p.365。LO1)8. Exportingisalow-cost,low-riskwayofgettingstartedininternationalbusiness.(True。Easy。p.365。LO1)9. Companiesareoftendrawnintoexportingwhencustomersinothercountriessolicittheirgoods.(True。Easy。p.365。LO1)10. Matchingneedstoabilitiesisthefirststepindevelopingasuccessfulexportstrategy.(False。Moderate。p.365。LO1)11. Indirectexportingoccurswhenacompanysellsitsproductstointermediarieswhothenreselltobuyersinatargetmarket.(True。Moderate。p.366。LO1)12. Agencyrelationshipsarepopularamongexportersbecausetheyareeasytoterminateshoulddifficultiesarise.(False。Moderate。p.367。LO1)AACSB:Ethics13. Individualsororganizationsthatrepresentoneormoreindirectexportersinatargetmarketarecalledsalesrepresentatives.(False。Moderate。p.367。LO1)14. Acompanythatexportsproductsonbehalfofanindirectexporteriscalledanexporttradingcompany(ETC).(False。Moderate。p.367。LO1)15. Thebiggestadvantageofanexportmanagementcompany(EMC)isusuallyadeepunderstandingofthecultural,political,legal,andeconomicconditionsofthetargetmarket.(True。Moderate。p.367。LO1)16. Whereasanexporttradingcompany(ETC)isrestrictedtoexport-relatedactivities,anexportmanagementcompany(EMC)assistsitsclientsbyprovidingimport,exportandcountertradeservices,developingandexpandingdistributionchannels,andevenmanufacturingproducts.(False。Difficult:p.367。LO1)17. Afreightforwarderisaspecialistinexport-relatedactivitiessuchascustomsclearing,tariffschedules,andshippingandinsurancefees.(True。Easy。p.368。LO1)18. Countertradecanprovideaccesstomarketsthatareotherwiseclosedbecauseofalackofhardcurrency.(True。Moderate。p.368。LO1)19. Aninternationaloceanshipmentrequiresaninlandbillofladingtogettheshipmenttotheexportersborder,andanoceanbillofladingforwatertransporttotheimporternation.(True。Moderate。p.370。LO2)20. Arevocableletterofcreditallowsthebankissuingthelettertomodifythetermsoftheletteronlyafterobtainingtheapprovalofbothexporterandimporter.(False。Difficult。p.371。LO2)21.Aconfirmedletterofcreditisguaranteedbyboththeexporterandtheimportersbankinthecountryofimport.(True。Moderate。p.371。LO2)sbankinthecountryofexport22. Lettersofcreditarepopularamongtradersbecausebanksassumemostoftherisks.(True。Moderate。p.371。LO2)23. Theadvancepaymentmethodreducestheriskofnon-shipmenttheimporterfacesundertheopenaccountmethod.(False。Easy。p.372。LO2)AACSB:Ethics24. Commonlylicensedintangiblepropertyincludespatents,copyrights,specialformulasanddesigns,trademarks,andbrandnames.(True。Moderate。p.373。LO3)AACSB:Technology25. Licensingofteninvolvesgrantingcompaniestherighttouseprocesstechnologiesinherenttotheproductionofaparticulargood.(True。Moderate。p.373。LO3)AACSB:Technology26. Crosslicensingoccurswhencompaniesemploylicensingagreementstoswapintangiblepropertywithoneanother.(True。Easy。p.374。LO3)AACSB:Technology27.Becauselicensingcreatesacooperativearrangementby“lending”rtantstrategicallyimpopropertyfromonecompanytoanother,iteliminatesfuturecompetition.(False。Difficult。p.374。LO3)28. Thebrandnameortrademarkofacompanyisnormallythesinglemostimportantitemdesiredbyafranchisee.(True。Moderate。p.375。LO3)29. Franchisingismostcommoninmanufacturingindustries,whereaslicensingisprimarilyusedinserviceindustries.(False。Moderate。p.375。LO3)30.Generally,ajointventureexposesfewerofapartnerownedsubsidiary.sassetstoriskthanwouldawholly(True。Easy。p.381。LO4)31. Arelationshipwherebytwoormoreentitiesformaseparatecompanytoachievethestrategicgoalsofeachiscalledastrategicalliance.(False。Moderate。p.382。LO4)32. Themostimportantdisadvantageofastrategicallianceisthatitcancreateafuturelocalorevenglobalcompetitor.(True。Easy。p.382。LO4)MULTIPLECHOICEQUESTIONS1. Whichoftheseisthefirststepindevelopingasuccessfulexportstrategy?a. Initiatemeetingsb. Commitresourcesc. Identifyapotentialmarketd. Matchneedstoabilities(c。Easy。p.365