Podcast
Questions and Answers
What is the usual entry strategy for a firm's first foreign market entry?
What is the usual entry strategy for a firm's first foreign market entry?
- Offshoring
- Outsourcing
- Exporting (correct)
- Joint venture
Which type of firms commonly favor exporting as a foreign market entry strategy?
Which type of firms commonly favor exporting as a foreign market entry strategy?
- Publicly traded companies
- Startups
- Multinational corporations (MNCs)
- Small and medium-sized enterprises (SMEs) (correct)
What is the main focus of most exports?
What is the main focus of most exports?
- Services
- Technology transfer
- Intellectual property
- Manufactured goods (correct)
Which of the following is NOT an export channel for firms?
Which of the following is NOT an export channel for firms?
What does global sourcing primarily focus on?
What does global sourcing primarily focus on?
What is the main reason for firms to engage in global sourcing?
What is the main reason for firms to engage in global sourcing?
What is a primary benefit of exporting mentioned in the text?
What is a primary benefit of exporting mentioned in the text?
Which industry has the highest example firm's international sales as a percentage of total sales?
Which industry has the highest example firm's international sales as a percentage of total sales?
What is the average international sales percentage in the Materials industry?
What is the average international sales percentage in the Materials industry?
Which one of the following is NOT listed as an advantage of exporting mentioned in the text?
Which one of the following is NOT listed as an advantage of exporting mentioned in the text?
What type of service can typically be exported via foreign direct investment (FDI)?
What type of service can typically be exported via foreign direct investment (FDI)?
In which industry does the example firm have the lowest international sales as a percentage of total sales?
In which industry does the example firm have the lowest international sales as a percentage of total sales?
Which industry has the example firm with international sales closest to the industry average?
Which industry has the example firm with international sales closest to the industry average?
What is the average international sales percentage in the Healthcare industry?
What is the average international sales percentage in the Healthcare industry?
Which advantage of exporting helps businesses mitigate risk by reaching customers in different regions with varying demands?
Which advantage of exporting helps businesses mitigate risk by reaching customers in different regions with varying demands?
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?
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?
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.
