D a domestic firm entering into a partnership with a foreign firm E none of the

D. a domestic firm entering into a partnership with a foreign firm. E. none of the above. AACSB: Reflective Thinking Bloom's: Knowledge Difficulty: Medium Learning Objective: 11-07 know the main approaches firms use to reach customers in international markets. 267. (p. 305) Oceanside Tools, Inc. of Newport, Rhode Island has agreed to work with a Thai company to produce and sell chemicals in Thailand. The U.S. firm will provide technical and marketing know-how, while its Thai partner will provide knowledge of Thai markets and political connections. The partners will share the costs and profits 50/50. This type of international involvement is called: A. direct investment. B. management contracting. C. licensing. D. multinational marketing. E. joint venturing. AACSB: Reflective Thinking Bloom's: Application Difficulty: Medium Learning Objective: 11-07 know the main approaches firms use to reach customers in international markets. 268. (p. 305) Using the ______ approach to entering international markets gives a firm complete control of marketing strategy planning in the foreign market. A. joint venture B. management contracting C. direct investment D. licensing E. exporting AACSB: Reflective Thinking Bloom's: Knowledge Difficulty: Easy Learning Objective: 11-07 know the main approaches firms use to reach customers in international markets. 11-147

Chapter 11 - Place and Development of Channel Systems 269. (p. 305) When Renault Motor Co. builds a new production facility in Venezuela and it is the sole owner of the facility, this is an example of a(n) _________ investment approach. A. Indirect B. Management contracting C. Joint venture D. Licensing E. Direct AACSB: Analytic Bloom's: Application Difficulty: Easy Learning Objective: 11-07 know the main approaches firms use to reach customers in international markets. 270. (p. 305) Midwest Tools, Inc. of Indianapolis, Indiana owns a plant in Poland for manufacturing and selling machine tools in Europe. This type of international involvement is called: A. management contracting. B. licensing. C. a joint venture. D. a direct investment. E. multichanneling. AACSB: Reflective Thinking Bloom's: Application Difficulty: Medium Learning Objective: 11-07 know the main approaches firms use to reach customers in international markets. 11-148

Chapter 11 - Place and Development of Channel Systems Use this information for questions that refer to the World Tennis Ball (WTB) Company case. World Tennis Ball Co. (WTB) makes tennis balls and sells them only in the U.S. Raul Fernandez, the firm's marketing manager, is comparing his firm's distribution with two major competitors. 1) WTB sells its products through four regional distributors who then sell to 22 sporting goods wholesalers. The wholesalers sell to a total of 7,000 retail outlets. From its website, WTB also sells directly to any customer who will purchase a minimum quantity of 24 tennis balls. WTB cooperates with members of its channel, but maintains some control through its economic power and leadership. It helps to direct the activities of the whole channel and tries to avoid or resolve channel conflicts.