take ownership of the merchandise when it enters their country. As owners of the products, distributors accept all the risks associated with generating local sales. Individuals or organizations that represent one or more indirect exporters in a target market.
Which of the following occurs when a company sells its products to intermediaries who then resell to buyers in a target market quizlet?
Terms in this set (5) 4)committing resources. -Indirect exporting occurs when a company sells its products to intermediaries (agents,export management companies, and export trading companies) who then resell to buyers in a target market. Explain the various means of financing export and import activities.
When a company in one country sells its products in another country these products are called?
Exports are goods and services that are produced in one country and sold to buyers in another. Exports, along with imports, make up international trade.
Which of the following is the first step in developing a successful export strategy?
Matching market needs to the company’s abilities is the first step in developing a successful export strategy.
Which one of the following is a disadvantage of hiring an export management company EMC )?
Which one of the following is a disadvantage of hiring an export management company (EMC)? Hinders the development of the exporters own international expertise. To better ensure that companies will not make embarrassing blunders, an inexperienced exporter might also want to engage the services of a freight forwarder.
Which of the following is an advantage of wholly owned subsidiaries?
The most important advantage that a wholly-owned subsidiary can provide is a relative control of all company operations in the target market. In particular, a subsidiary offers the company control over how to handle revenue and profits. A wholly-owned subsidiary actually increases the risk for the parent company.
Which of the following is the most common method of buying and selling goods internationally quizlet?
The most common method used for buying and selling goods internationally is exporting. Most large companies use exporting to increase sales and open up new markets when the domestic market has become saturated.
Which of the following is the most common method of buying and selling goods internationally group of answer choices?
22) The most common method used for buying and selling goods internationally is licensing. LO: 13.1: Describe how companies use exporting, importing, and countertrade.
Which is a method of export payment?
CAD payment term / DP in export, happens when the buyer needs to pay the amount due at sight. This payment is made before the documents are released by the buyer’s bank (collecting bank). It is also known as sight draft or cash against documents.
take ownership of the merchandise when it enters their country. As owners of the products, distributors accept all the risks associated with generating local sales.
Which one of the following is the sale of goods or services to a country by a company that promises to make a future purchase of a specific product from that country?
counterpurchase
A counterpurchase refers to the sale of goods and services to a company in a foreign country by a company that promises to make a future purchase of a specific product from the same company in that country.
Is a separate company created and owned by two or more independent entities to achieve a common business objective?
A joint venture is an agreement by two or more people or companies to accomplish a specific business goal together. A joint venture can be structured as a separate business entity or simply grow out of a contract between the parties.
Which one of the following occurs when a company sells its products directly to buyers in a target market?
Direct marketing is when producers sell directly to final buyers.
When selecting a partner for cooperation It is important to remember what?
There are several points to consider when selecting partners for cooperation. 1- each partner must be firmly committed to the stated goals of the cooperative arrangement. Detailing duties and contributions of each party through prior negotiations helps ensure continued cooperation.
What is the main difference between offset and Counterpurchase quizlet?
Counterpurchase requires that one company sells to another its obligation to make a purchase in a given country; offset does not.
Cash In Advance With cash in advance, the exporter can eliminate credit risk or the risk of non-payment since payment is received prior to the transfer of ownership of the goods. Wire transfers and credit cards are the most commonly used cash-in-advance options available to exporters.
What is the most common form of international business activity?
Import-export is the most fundamental and the largest international business activity, and it is often the first choice when the businesses decide to expand abroad as it is the easiest way to enter the market with a small outlay of capital.
Why are exporters not required to take ownership of merchandise?
C) They are seldom required to take ownership of the merchandise when it enters their country. D) They can stunt the growth of the exporter’s market share by charging very high prices.
Who is responsible for shipping costs with FOB?
Where the FOB terms of sale are indicated as “FOB Origin,” the buyer is responsible for the costs involved in transporting the goods from the seller’s warehouse to the final destination. It is important to note that FOB does not define the ownership of the cargo, only who has the shipping cost responsibility.
When does the buyer take responsibility for freight?
The buyer does not take ownership or liability for the goods until the cargo gets to the buyer’s premises. FOB Destination, Freight Prepaid, & Charged Back: The seller takes responsibility for freight until delivery of the goods, and the buyer deducts the charges from the invoice.
When is the seller no longer responsible for shipping?
and risks of shipped goods shift from the seller to the buyer. In modern domestic shipping, the term is used to describe the time when the seller is no longer responsible for the shipped goods and when the buyer is responsible for paying the transport costs.
