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Questions and Answers
What is the usual entry strategy for a firm's first foreign market entry?
Which type of firms commonly favor exporting as a foreign market entry strategy?
What is the main focus of most exports?
Which of the following is NOT an export channel for firms?
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What does global sourcing primarily focus on?
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What is the main reason for firms to engage in global sourcing?
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What is a primary benefit of exporting mentioned in the text?
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Which industry has the highest example firm's international sales as a percentage of total sales?
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What is the average international sales percentage in the Materials industry?
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Which one of the following is NOT listed as an advantage of exporting mentioned in the text?
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What type of service can typically be exported via foreign direct investment (FDI)?
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In which industry does the example firm have the lowest international sales as a percentage of total sales?
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Which industry has the example firm with international sales closest to the industry average?
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What is the average international sales percentage in the Healthcare industry?
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Which advantage of exporting helps businesses mitigate risk by reaching customers in different regions with varying demands?
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What is an advantage of exporting that helps businesses maintain a more consistent revenue stream by providing a buffer against seasonal or regional economic downturns?
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Study Notes
Entry Strategies and Exporting
- The usual entry strategy for a firm's first foreign market entry is not specified, but exporting is a common choice for many firms.
Types of Firms and Exporting
- Small and medium-sized enterprises (SMEs) commonly favor exporting as a foreign market entry strategy.
Focus of Exports
- The main focus of most exports is on industrial goods, including capital goods, intermediate goods, and consumer goods.
Export Channels
- The following are export channels for firms: indirect exporting, direct exporting, and cooperative exporting.
- Setting up a wholly-owned subsidiary is NOT an export channel for firms.
Global Sourcing
- Global sourcing primarily focuses on sourcing materials, components, or finished goods from suppliers in other countries.
- The main reason for firms to engage in global sourcing is to reduce costs and improve efficiency.
Benefits of Exporting
- A primary benefit of exporting mentioned in the text is that it helps businesses mitigate risk by reaching customers in different regions with varying demands.
- Another advantage of exporting is that it helps businesses maintain a more consistent revenue stream by providing a buffer against seasonal or regional economic downturns.
Industry Examples
- The industry with the highest example firm's international sales as a percentage of total sales is the Technology industry.
- The average international sales percentage in the Materials industry is around 30%.
- The industry with the example firm with the lowest international sales as a percentage of total sales is the Healthcare industry.
- The industry with the example firm with international sales closest to the industry average is the Consumer Goods industry.
- The average international sales percentage in the Healthcare industry is around 20%.
Service Exporting
- Professional services, such as management consulting, engineering, and architecture, can typically be exported via foreign direct investment (FDI).
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Description
Test your knowledge on exporting and global sourcing with this quiz based on Chapter 13 of 'International Business: The New Realities Fifth Edition'. The quiz covers topics such as foreign market entry strategies, export-import transactions, working with foreign intermediaries, and outsourcing.
