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[DOWNLOAD] International Business Final Exam Answers | latest!
Guides you to form and apply the best marketing strategies. Tells you the importance of content marketing and help you learn the best strategy for your content marketing. It provides a preview of all the types of advertisements and how it works....- Chapter Entry Strategy and Strategic Allowances Chapter Eporting Importing and Countertrade Chapter Global Human Resource Management Chapter Entry Strategy and Strategic Allowances 1. Review the Management Focus on Tesco. What are the benefits of...
- The United States is a different market because it is a developed country and has many competitors in all of its markets. The risk is that the United States competitors will beat out Tesco. I think Tesco will do very well. Licensing propriety technology to foreign competitors is the best way to give up a firm's competitive advantage. Answer: The statement is basically correct - licensing proprietary technology to foreign competitors does significantly increase the risk of losing the technology.
- Therefore licensing should generally be avoided in these situations. Yet licensing still may be a good choice in some instances. When a licensing Assignment for Additional Marks at Final Exam 3 arrangement can be structured in such a way as to reduce the risks of a firm's technological know-how being expropriated by licensees, then licensing may be appropriate. A further example is when a firm perceives its technological advantage as being only transitory, and it considers rapid imitation of its core technology by competitors to be likely. In such a case, the firm might want to license its technology as rapidly as possible to foreign firms in order to gain global acceptance for its technology before imitation occurs.
- Such a strategy has some advantages. By licensing its technology to competitors, the firm may deter them from developing their own, possibly superior, technology. And by licensing its technology the firm may be able to establish its technology as the dominant design in the industry. In turn, this may ensure a steady stream of royalty payments. Such situations apart, however, the attractions of licensing are probably outweighed by the risks of losing control over technology, and licensing should be avoided 3. What are the implications of the choice of entry mode? For firms with a competitive advantage based on management know-how, the risk of losing control over the management skills to franchisees or joint venture partners is not that great. Consequently, many service firms favor a combination of franchising and subsidiaries to control the franchises within particular countries or regions. The subsidiaries may be wholly owned or joint ventures, but most Assignment for Additional Marks at Final Exam 4 service firms have found that joint ventures with local partners work best for controlling subsidiaries.
- A small Canadian firm that has developed some valuable new medical products using its unique biotechnology know-how is trying to decide how best to serve the European Union. Its choices are given below. The cost of investment in manufacturing facilities will be a major one for the Canadian firm, but it is not outside its reach. Manufacture the product at home and let foreign sales agents handle marketing. Manufacture the products at home and set up a wholly owned subsidiary in Europe to handle marketing. Enter into a strategic alliance with a large European pharmaceutical firm.
- Answer: If there were no significant barriers to exporting, then option c would seem unnecessarily risky and expensive. After all, the transportation costs required to ship drugs are small relative to the value of the product. Both options a and b would expose the firm to less risk of technological loss, and would allow the firm to maintain much tighter control over the quality and costs of the drug. The choice between a and b boils down to a question of which way will be the most effective in attacking the market. If a foreign sales agent can be found that is already quite familiar with the market and who will agree to aggressively market the product, the agent may be able to increase market share more quickly than a wholly owned marketing subsidiary that will take some time to get going. On the other hand, in the long run the firm will learn a great deal more about the market and will likely earn greater profits if sets up its own sales force.
- Assignment for Additional Marks at Final Exam 6 1. The would- be importer cannot get sufficient credit from domestic sources to pay for shipment, but insists that the finished lumber can quickly be resold in the Philippines for a profit. Outline the steps that the exporter should take to affect the export of this shipment to the Philippines? The American exporter agrees to ship under a letter of credit, and specifies relevant information such as prices, delivery terms, and the like.
- The Philippine importer applies to the Bank of Manila or some other international bank for a letter of credit to be issued in favor of the American exporter for the merchandise the importer wishes to buy. The Bank of Manila issues a letter of credit in the Philippine importer's favor and sends it to the American exporter's bank, the Bank of Seattle. The Bank of Seattle advises the American exporter of the opening of a letter of credit in his favor. The American exporter ships the goods to the Philippine importer on a common carrier. Assignment for Additional Marks at Final Exam 7 The American exporter presents a 90 day time draft to the Bank of Seattle, drawn on the Bank of Manila in accordance with the Bank of Manila's letter of credit and accompanied by the bill of lading.
- The American exporter endorses the bill of lading such that the title to the goods goes with the holder of the document - which at this point in the transaction is the Bank of Seattle. The Bank of Seattle presents the draft and documents to the Bank of Manila. The Bank of Manila accepts the draft, taking possession of the documents and promising to pay the now accepted draft in 90 days.
International Business Final Exam Flashcards - 1medicoguia.com
The Bank of Manila returns the accepted draft to the Bank of Seattle. The Bank of Seattle tells the American exporter that they have the accepted bank draft, which is payable in 90 days. The exporter sells the draft to the Bank of Seattle for a discount from the face value and receives the discounted cash value of the draft in return. The Bank of Manila notifies the Philippine importer of the arrival of the documents. It agrees to pay the Bank of Manila in 90 days. The Bank of Manila releases the documents so that the Philippine importer can take possession of the shipment.- In 90 days the Bank of Manila receives the importer's payment so that it has funds to pay the maturing draft. In 90 days the holder of the matured acceptance, in this case the Bank of Seattle, presents it to the Bank of Manila for payment. The Bank of Manila pays. If the exporter feels confident in and can completely trust the purchaser in the Philippines, then a much simpler procedure than this could be followed. The CEO has decided to see what the opportunities are for exporting and has asked you for advice as to the steps the company should take.
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What advice would you give to the CEO? There are a number of approaches that can be pursued in answering this question. There are also a number of resources on the Internet, mentioned throughout the text that can assist companies in learning about the foreign market potential of their products. Another approach would be to contact an export management company for assistance.- What are the advantages and disadvantages of using export credit insurance as opposed to a letter of credit for a exporting a luxury yacht from California to Canada, and b exporting machine tools from New York to Ukraine? However, when the importer is in a strong bargaining position and able to play competing suppliers off against each other, an exporter may have to forgo a letter of credit. The lack of a letter of credit exposes the exporter to the risk that the foreign importer will default on payment. The exporter can insure against this possibility by buying export credit insurance. Students may suggest that in the case of the luxury yacht, should the importer fail to make payment, the clearly defined laws of Canada would make it easier to go after the importer than would be the case with the machine tools in the Ukraine, and that therefore a letter of credit is less important for the yacht exporter.
(DOC) Unit International Business Strategy Q&A Final Exam | Abdullah Saad - 1medicoguia.com
On the other hand, students may note that there is probably more Assignment for Additional Marks at Final Exam 9 competition in machine tools as compared to luxury yachts and that the exporter of machine tools may lose the sale if the exporter insists on a letter of credit. Under what scenarios might its use increase further by the ? Under what scenarios might its use decline?- Currency crises and monetary instability are two conditions that lead to countertrade. As long as countries lack hard currencies and foreign exchange reserves, yet have an interest in trade, countertrade is likely. If countries erect trade barriers that decrease world trade, or, on the positive side, if the monetary systems of many countries strengthen significantly, then countertrade may decrease QUESTION 5: How might a company make strategic use of countertrade schemes to generate export revenues? What are the risks associated with pursuing such a strategy?
International Business Final Exam Flashcards - 1medicoguia.com
ANSWER 5: Countertrade is an alternative means of structuring an international sale when conventional means of payment are difficult, costly, or nonexistent. The governments of developing countries sometimes insist on a certain amount of countertrade. Thus, if a firm is unwilling to enter a countertrade agreement, it may lose an export opportunity to a competitor that is willing to make a countertrade agreement. Companies that are Assignment for Additional Marks at Final Exam 10 willing to entertain countertrade as a means of financing, will have an advantage over those firms that prefer traditional forms of financing.
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