MKT 426 MID TERM EXAM(100% Verified)

Methods of Global Expansion correct answers Foreign direct investment joint venture/ alliance licensing-tech and or brand export Resistance to exporting products and services correct answers 1. too risky - payment collection risk - market acceptance/penetration risk 2. complexity 3. local market good enough? 4. lack of financial and operational resources 5. lack of foreign market knowledge 6. lack of network Potential Benefits of exporting correct answers 1. upside potential - on average, firms that export are 17% more profitable than firms that do not export 2. diversifies domestic market risk 3. capacity utilization 4. may help defend its domestic market 5. enhances the value of the business 6. accumulation of management expertise 7. 1st step towards bigger international opportunities: licensing, joint ventures, or foreign direct investment Components of the Export Plan should address these questions... correct answers 1. Which products are selected for export development, and what modifications, if any, must be made to adapt them for overseas markets? 2. Is an export license needed? 3. Which countries are targeting for sales development? 4. In each country, what are the basic customer profiles, and what marketing and distribution channels should be used to reach customers? 5. What special challenges pertain to each market, and what strategy will be used to address them? 6. How will your product's export sales price be determined? 7. what specific operational steps must be taken and when? 8. what will be the time frame for implementing each element of the plan? 9. What personnel and company resources will be dedicated to exporting? 10. What will be the cost in time and money for each element? 11. How will results be evaluated and used to modify the plan? how many of the products exported from the U.S to foreign buyers do not require an export license? correct answers 95% EAR stands for.... correct answers export administration regulations