Question

Mirros, a U.S. kitchenware distributor, sells its inventory twice a year to All Cooks, a kitchenware retailer in the United States. All Cooks, in turn, sells those products through its retail stores in Vietnam and Thailand. In which of the following entry modes is Mirros most likely engaged?

A) Exporting
B) Licensing
C) Franchising
D) Indirect Exporting

Answer 1

Mirros is most likely engaged in exporting, as it sells its inventory to All Cooks for resale in Vietnam and Thailand.

Step-by-step explanation:

In this scenario, Mirros, a U.S. kitchenware distributor, sells its inventory to All Cooks, who then sells the products through its retail stores in Vietnam and Thailand. Based on this information, Mirros is most likely engaged in exporting.

Exporting refers to selling products produced in one country to customers in another country. In this case, Mirros is exporting its inventory to All Cooks, who is then responsible for selling the products in Vietnam and Thailand.

Other entry modes such as licensing, franchising, or indirect exporting would not be applicable because Mirros is directly selling its inventory to All Cooks for resale.