What are export management companies, and how do they help ...

[iveyjurea]

What are export management companies, and how do they help potential exporters?
 
  What will be an ideal response?

Question 2

Which of the following is the primary disadvantage of using internal sources of candidates to fill vacant positions in a firm?
 
  A) lack of knowledge regarding a candidate's strengths
  B) potential to lose employees who aren't promoted
  C) questionable commitment of candidates to the firm
  D) significant training and orientation requirements

[tuate]

Answer to Question 1

An export management company (EMC) usually acts as the export arm of a manufacturer. The EMC primarily obtains orders for its clients' products through the selection of appropriate markets, distribution channels, and promotion campaigns. It collects, analyzes, and furnishes credit information and advice regarding foreign accounts and payment terms. The EMC also may take care of export documents, arrange transportation, set up patent and trademark protection in foreign countries, and assist in establishing alternative forms of doing business, such as licensing. EMCs operate on a contractual basis and provide exclusive representation in a foreign territory. In the United States, most EMCs are small, entrepreneurial ventures that tend to specialize by product, function, or market area. Although EMCs perform an important function for companies that need their expertise, a manufacturer that uses an EMC may lose control over foreign sales, as they are passing off that responsibility to an independent party. If the EMC does not actively promote the product, the company will not generate many exports.

Answer to Question 2

Answer: B