chapter 10

Question 1

Types of export channels (3)

Answer 1

• Indirect export
• Direct export
• Cooperative export

Question 2

Partner mindshare

Answer 2

The level of mindshare that the manufacturer’s product occupies in the mind of the export partner

Question 3

Indirect export mode

Answer 3

A manufacturer uses independent export organizations located in its own country (or third country)

Question 4

Main entry modes of indirect exporting (5)

Answer 4

• Export buying agent
• Broker
• Export management company / export house
• Trading company
• Piggyback

Question 5

A representative of foreign buyers who is located in the exporter’s home country. The agent offers services to the foreign buyers, such as identifying potential sellers and negotiating prices

Answer 5

Export buying agent

Question 6

The function is to bring buyer and seller together. Specialist in performing the contractual function and does not handle the products themselves

Answer 6

Broker

Question 7

Export management company / export house

Answer 7

Are specialist companies set up to act as ‘export department’ for a range of non-competing companies

Question 8

role is to find a buyer quickly for the products that have been taken in exchange. Play central role in diverse areas such as shipping, warehousing, financing, insurance etc.

Answer 8

Trading company

Question 9

Choosing a back to ride on, it is about the rider’s use of the carrier’s international distribution organization

Answer 9

Piggyback

Question 10

Direct export modes

Answer 10

The manufacturer sells directly to an importer, agent or distributor, located in the foreign target market

Question 11

Independent companies that stock the manufacturer’s product. They will have substantial feedom to choose their own customers and price. They profit from the difference between selling price and the buying price from manufacturer

Answer 11

Distributors

Question 12

An independent company that sells on to customers on behalf of the manufacturer (exporter). Usually it will not see or stock the product. It profits from a commission paid by the manufacturer on a pre-agreed basis

Answer 12

Agents

Question 13

Agent incentives categories (2)

Answer 13

• High-powered incentives (immediate, monetary rewards for accomplishing specific tasks)
• Low-powered incentives (motivators, non-monetary, long-term bonding)

Question 14

Country attractivenes vs. partner performance

• low attr & low perform
• low attr & medium perfor
• low attr & high perf
• medium attr & low perf
• medium attr & med perf
• medium attr & high perf
• high attr & low perf
• high attr & med perf
• high attr & high perf

Answer 14

• consider exit
• maintain position
• consider alternative mode
• get new partner
• grow partner / maintain
• maintain position
• get new partner
• grow partner
• consider integration

Question 15

Frequenty found among SMEs attempting to enter export markets for the first time. Cooperation can be tight or loose

Answer 15

Cooperative export modes / export marketing groups