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1 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. International Business, 12e (Hill) Chapter 16 Exporting, Importing, and Countertrade 1) Proactive firms do not consider exporting until their domestic market is saturated. Answer: FALSE Explanation: Proactive firms continually seek opportunities for profitable exporting and systematically scan foreign markets to see where the opportunities lie for leveraging their technology, products, and marketing skills in foreign countries. This is unlike the reactive firms who do not even consider exporting until their domestic market is saturated. Difficulty: 1 Easy Topic: Overview of Importing and Exporting Learning Objective: 16-01 Explain the promises and risks associated with exporting. Bloom's: Understand AACSB: Knowledge Application Accessibility: Keyboard Navigation 2) Ignorance of the potential opportunities is a huge barrier to exporting. Answer: TRUE Explanation: One reason more firms are not proactive in seeking export opportunities is that they are unfamiliar with foreign market opportunities; they simply do not know how big the opportunities actually are or where they might lie. Difficulty: 1 Easy Topic: Overview of Importing and Exporting Learning Objective: 16-01 Explain the promises and risks associated with exporting. Bloom's: Understand AACSB: Knowledge Application Accessibility: Keyboard Navigation 3) Exporters often face voluminous paperwork and complex formalities. Answer: TRUE Explanation: Many would-be exporters, particularly smaller firms, are often intimidated by the complexities and mechanics of exporting to countries where business practices, language, culture, legal systems, and currency are very different from those in the home market. Exporters often face voluminous paperwork, complex formalities, and many potential delays and errors. Difficulty: 1 Easy Topic: Overview of Importing and Exporting Learning Objective: 16-01 Explain the promises and risks associated with exporting. Bloom's: Understand AACSB: Knowledge Application Accessibility: Keyboard Navigation Why is this page out of focus?This is a Premium document. Become Premium to read the whole document. Why is this page out of focus?This is a Premium document. Become Premium to read the whole document. Why is this page out of focus?This is a Premium document. Become Premium to read the whole document. Why is this page out of focus?This is a Premium document. Become Premium to read the whole document. Why is this page out of focus?This is a Premium document. Become Premium to read the whole document. Why is this page out of focus?This is a Premium document. Become Premium to read the whole document. Why is this page out of focus?This is a Premium document. 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Why is this page out of focus?This is a Premium document. Become Premium to read the whole document. What are some reasons that firms decide to export their products or services?The following are seven reasons why small firms should consider exporting as a way to expand sales base and lessen the effects of a down economy.. Market growth. ... . Economies of scale. ... . Extend product life cycle. ... . Moderate seasonal production cycles. ... . Faster growth, higher profits. ... . Competition. ... . Enjoy what you do.. What is true of reactive firms?What is true of reactive firms? They consider exporting only after their domestic market is saturated.
Why is exporting a good strategy to grow a business?Exporting can be profitable for businesses of all sizes. On average, sales grow faster, more jobs are created, and employees earn more than in non-exporting firms. Competitive Advantage. The United States is known worldwide for high quality, innovative goods and services, customer service, and sound business practices.
What is exporting approach?The most common methods of exporting are indirect selling and direct selling. In indirect selling, an export intermediary, such as an export management company (EMC) or an export trading company (ETC), assumes responsibility for finding overseas buyers, shipping products, and getting paid.
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