Chapter 3 Review Questions
Let us see how much you have learned in this chapter by going over these review questions.
- Which is not a method of indirect exporting?
- Conctract manufacturing
- What is piggyback marketing?
- An arrangement in which one firm distributes a second firm's product or service.
- An arrangement where you end up competing against own product.
- An arrangement with foreign manufacturers to produce your product.
- Bringing together your firm and a foreign company with similar goals to establish a market entry and a distribution network.
- Piggybacking off of advantageous foreign tax incentives.
- Which statement is false regarding distributors?
- Generally provides support and service for the product.
- Maintain adequate facilities and personnel for normal servicing operations.
- May resell the product to local dealers and retailers.
- Usually carry an inventory of products and a sufficient supply of spare parts.
- Usually sell competing products.
- Which statement is false regarding joint ventures?
- Each partner brings specialized skills and contributes to the endeavor.
- Each partner makes a substantial investment into the venture.
- In some countries, a joint venture is the only way a foreign company can set up operations.
- Product promotion and maketing costs are very small.
- Requires direct involvment in managing the joint venture.
© 2004 John Michael Pierobon