Chapter 13

Question 0

Indirect exports

Answer 0

Company sells product then resells to buyers

Question 1

Export

Answer 1

Expand sales
Diversity sales
Gain experience

Question 2

Sales rep

Answer 2

Individual or organization represents it’s own company

Question 3

Financing

Answer 3

To reduce risk

Question 4

Advance placement

Answer 4

Importer pays exporter for merchandise

Question 5

Bill of exchange

Answer 5

Document ordering a importer to pay a exporter money at a specific time

Question 6

Letter of credit

Answer 6

Exporter will be paid when importer fulfills terms

Question 7

Licensing

Answer 7

Company owning intangible property

Question 8

Advantages (licensing)

Answer 8

Reduce risk
Reduce counterfeit
Financing expansion

Question 9

Disadvantages (licensing)

Answer 9

Reduce global consistency
Restrict licensors activity
Lend strategic property

Question 10

Franchising

Answer 10

Company supplies another franchise

Question 11

Advantage (franchising)

Answer 11

Low cost & low risk
Repaid expansion
Local knowledge

Question 12

Disadvantage

Answer 12

Cumbersome

Lost flexibility

Question 13

Joint venture

Answer 13

1. found intervention
2. Backward
3. Buyback
4. Multistage