Question

CHAPTER #3 Mini-Case Ever since he was five years old, Rhett Tenna has had poor eyesight and as an eyeglass wearer he suffered through all the names that went along with it. Rhett eventually switched from glasses to contacts, but he always wondered why his glasses were not fashionable. After graduation from college, Rhett set out on a lifelong goal: to make eyewear synonymous with fashion. He opened a specialty store called "The Eyes Have It." His marketing plan was to remove the social stigma of wearing glasses, and replace it with a sense of flair and high fashion. From the day he opened his first store, Rhett's plan met with resounding success. Today, "The Eyes Have It" has grown from that single outlet to a medium-sized company with dozens of stores located in six states, and a manufacturing plant that turns out designer frames. A recent internal audit, however, suggested a problem that Rhett had not anticipated. The study indicated that the U.S. market is just about saturated and growth of "The Eyes Have It" stores will be very limited. The audit concerned Rhett until he recognized an untapped market existed overseas. If people all over the world have the same problem, the global market opportunities are fantastie! All in favor of going global say: "The Eyes Have It"! 1) At first, Rhett believed he should maintain all of his manufacturing within the United States and simply export his designer frames to foreign sellers. However, he lacked expertise in exporting. Rhett decided to see if the federal government could provide any help by contacting a(n) A) World Trade Center. BYExport Assistance Center. C) Federal Reserve Bank. D) U.S. Export Savings Bank.

Answer 1

1. (B) export assistance center

reason export assistance centrer help the those business who want to produce goods for export purpose only. Rhett willing to setup new business in US and want to export that glasses to other country so he  would be seeking help , how he can organize his export , their documentation, types of goods and services thereto. etc.

2. (A) ethnocentric

reason it is an approach that the HR firms uses as a strategy to in which company can employ when expanding operations into a new foreign country taking care of their culture, economic differences etc.

3. (a) hurt his overseas efforts since his prices will be very high.

when price US dollar rise that it creates problems for exportor in which he would find it difficult to export their goods and services to overseas markets. it will increase the cost of goods and services for importor of other country.

4. (D) licensing agreement

Reasom when firms pay a royalty for what they sold and would bear all the start-up expenses of this effort. they are doing agreement with other firms.

5. (C) import quota

Reason when a country set the limit of importing goods from other country they impose import quota to other country. so the taiwanese country has set import quota for US company.