Answer to Question #239748 in Marketing for Maxx

Question

Which foreign market entry strategy has high risk and high return?

Export

Licensing

Contract manufacturing

Direct Investment

Which foreign market entry strategy has low risk and low return?

Export

Licensing

Contract manufacturing

Direct Investment

In exporting strategy, products exported abroad and the home country is the same.

True

False

Export is appropriate when there is a home location cost advantage, high trade barrier, and customization is not crucial.

True

False

Indirect exporting uses intermediaries to sell products directly to customers.

The following are export intermediaries, except one.

Merchants

Agents

Export Management Companies

Exporting Department

Goods are directly exported to foreign buyers by the manufacturer. Direct Exporting

Advantage(s) of export

The benefit of learning for future expansion

Reach customers quickly

Disadvantage(s) of export

Foregoes potential location economies

Answer 1

Which foreign market entry strategy has high risk and high return?

Direct Investment

Which foreign market entry strategy has low risk and low return?

Licensing

In exporting strategy, products exported abroad and the home country is the same.

True

Export is appropriate when there is a home location cost advantage, high trade barrier, and customization is not crucial.

False

Indirect exporting uses intermediaries to sell products directly to customers.

True

The following are export intermediaries, except one.

Merchants

Goods are directly exported to foreign buyers by the manufacturer. Direct Exporting

Advantage(s) of export;

• Full control over products
• short channel
• Good Reputation
• Attractive return on Exports

The benefit of learning for future expansion

• Remain relevant
• Boost profile
• Change your perspective
• Spark new ideas

Reach customers quickly

Disadvantage(s) of export

• You can lose grip on the domestic market and existing customers if you are not careful.
• Exporting isn’t doable in the event that the foreign nation prohibits imports.
• Obtaining documentation and licences for foreign trade is a difficult and frustrating task.