GB 370 TEST 2 OLE MISS GENTRY
QUESTIONS & ANSWERS(RATED
A+)
Global efficiencies - ANSWERlocation efficiencies
economies of scale
economies of scope
Location efficiencies - ANSWERseeking lower input cost locations
Economies of scale - ANSWERlarger facilities result in lower costs
Economies of scope - ANSWERbroadening product lines
Multimarket flexibility - ANSWERinternational businesses may respond to a change
in one country by implementing a change in another country
Worldwide learning - ANSWERthe diverse operating environments of multinational
corporations (MNCs) contribute to organizational learning that can be transferred to
other operating environments
Home Replication - ANSWERutilizing a core competency or a firm-specific
advantage developed at home as a main competitive weapon in foreign markets
Multi-Domestic Strategy - ANSWERManaging a corporation as a collection of
independent operating subsidiaries frees a firm to customize its products, its
marketing campaigns, and operating techniques to meet local customer needs.
Global Strategy - ANSWERViewing the world as a single marketplace and having as
a primary goal the creation of standardized goods and services that will address the
needs of customers worldwide.
Transnational Strategy - ANSWERAttempting to combine the benefits of scale
efficiencies pursued by a global corporation, with the benefits and advantages of
local responsiveness of a multi-domestic corporation.
Trade growth - ANSWERabout a little less than 4% increase year on year (whole
world)
How to be an importer - ANSWER-alibaba.com
-you're a reseller
-you're a solution provider
-you're wal-mart
alibaba.com - ANSWERYou can buy nearly anything on there
You pay with PayPal
, You ship it to your house
You're a reseller - ANSWERYou sell the stock on eBay or peddle it around town
You're a solution provider - ANSWERYou talk to the customer in depth about what
they want, then you buy it for them (charge a markup)
You're wal-mart - ANSWERYou setup an office there and buy all kinds of stuff
Letter of Credit - ANSWERis issued by a bank at the request of an importer and
states the bank will pay a specified sum of money to a beneficiary, normally the
exporter, on presentation of, specified documents
How is Letter of Credit system attractive - ANSWERbecause both parties are likely to
trust a reputable bank even if they do not trust each other
How is payment made in an export transaction? - ANSWERMost export transactions
involve a draft, also called a bill of exchange
A draft - ANSWERis an order written by an exporter instructing an importer, or an
importer's agent, to pay a specified amount of money at a specified time
sight draft - ANSWERa draft payable on presentation to the drawee
time draft - ANSWERallows for a delay in payment - normally 30, 60, 90, or 120 days
Bill of Lading - ANSWERis issued to the exporter by the common carrier transporting
the merchandise
Bob gives jim the exporter a Bill of Lading. What are the 3 purposes of a Bill of
Lading - ANSWERit is a receipt
it is a contract
it is a document of title
How to be an exporter - ANSWERFirst - find customers
U.S. exporters can draw on two forms of government-backed assistance to help their
export programs - ANSWERthey can get financing aid from the Export-Import Bank
they can get export credit insurance from the Foreign Credit Insurance Association
The Export Import Bank - ANSWERis an independent agency of the U.S.
government (similar institutions lots of places)
What is the mission of The Export Import Bank - ANSWERis to provide financing aid
that will facilitate exports, imports, and the exchange of commodities between the
U.S. and other countries
Export Credit Insurance - ANSWERIn the U.S., export credit insurance is provided
by the Foreign Credit Insurance Association (FICA)
QUESTIONS & ANSWERS(RATED
A+)
Global efficiencies - ANSWERlocation efficiencies
economies of scale
economies of scope
Location efficiencies - ANSWERseeking lower input cost locations
Economies of scale - ANSWERlarger facilities result in lower costs
Economies of scope - ANSWERbroadening product lines
Multimarket flexibility - ANSWERinternational businesses may respond to a change
in one country by implementing a change in another country
Worldwide learning - ANSWERthe diverse operating environments of multinational
corporations (MNCs) contribute to organizational learning that can be transferred to
other operating environments
Home Replication - ANSWERutilizing a core competency or a firm-specific
advantage developed at home as a main competitive weapon in foreign markets
Multi-Domestic Strategy - ANSWERManaging a corporation as a collection of
independent operating subsidiaries frees a firm to customize its products, its
marketing campaigns, and operating techniques to meet local customer needs.
Global Strategy - ANSWERViewing the world as a single marketplace and having as
a primary goal the creation of standardized goods and services that will address the
needs of customers worldwide.
Transnational Strategy - ANSWERAttempting to combine the benefits of scale
efficiencies pursued by a global corporation, with the benefits and advantages of
local responsiveness of a multi-domestic corporation.
Trade growth - ANSWERabout a little less than 4% increase year on year (whole
world)
How to be an importer - ANSWER-alibaba.com
-you're a reseller
-you're a solution provider
-you're wal-mart
alibaba.com - ANSWERYou can buy nearly anything on there
You pay with PayPal
, You ship it to your house
You're a reseller - ANSWERYou sell the stock on eBay or peddle it around town
You're a solution provider - ANSWERYou talk to the customer in depth about what
they want, then you buy it for them (charge a markup)
You're wal-mart - ANSWERYou setup an office there and buy all kinds of stuff
Letter of Credit - ANSWERis issued by a bank at the request of an importer and
states the bank will pay a specified sum of money to a beneficiary, normally the
exporter, on presentation of, specified documents
How is Letter of Credit system attractive - ANSWERbecause both parties are likely to
trust a reputable bank even if they do not trust each other
How is payment made in an export transaction? - ANSWERMost export transactions
involve a draft, also called a bill of exchange
A draft - ANSWERis an order written by an exporter instructing an importer, or an
importer's agent, to pay a specified amount of money at a specified time
sight draft - ANSWERa draft payable on presentation to the drawee
time draft - ANSWERallows for a delay in payment - normally 30, 60, 90, or 120 days
Bill of Lading - ANSWERis issued to the exporter by the common carrier transporting
the merchandise
Bob gives jim the exporter a Bill of Lading. What are the 3 purposes of a Bill of
Lading - ANSWERit is a receipt
it is a contract
it is a document of title
How to be an exporter - ANSWERFirst - find customers
U.S. exporters can draw on two forms of government-backed assistance to help their
export programs - ANSWERthey can get financing aid from the Export-Import Bank
they can get export credit insurance from the Foreign Credit Insurance Association
The Export Import Bank - ANSWERis an independent agency of the U.S.
government (similar institutions lots of places)
What is the mission of The Export Import Bank - ANSWERis to provide financing aid
that will facilitate exports, imports, and the exchange of commodities between the
U.S. and other countries
Export Credit Insurance - ANSWERIn the U.S., export credit insurance is provided
by the Foreign Credit Insurance Association (FICA)
