Entering Foreign Markets Flashcard-6

Front

Small-scale entries normally benefit by their:

Back

limited downside risk.

Front

In the United States, foreign airlines are not allowed to acquire US airlines. This is an example of what type of trade barrier?

Back

Entry mode restriction

Front

Greenfield operations refer to: wholly owned subsidiaries, turnkey projects, R&D contracts, co-marketing.

Back

wholly owned subsidiaries.

Front

The late-mover advantage of a company such as Amazon is:

Back

opportunity for a free ride.

Front

Which of the following would be considered an obstacle to internationalization for a small firm in a large domestic market? A plentiful resource base, The large size of their domestic market, A large margin for error, The success of their suppliers

Back

The large size of their domestic market

Front

First-mover preemptive investments would include:

Back

cherry picking leading local suppliers and distributors.

Front

The liability of foreignness is:

Back

the inherent disadvantage foreign firms experience in host countries.

Front

What typically happens in round one of an obsolescing bargain?

Back

The MNE and the government negotiate a deal.

Front

The strategic goal of __________ involves going after countries that offer the highest price.

Back

market-seeking

Front

According to the textbook, what is most necessary to overcome the liability of foreignness from a resource-based view? Options: Grasping the dynamism underlying the industry, Developing overwhelming capabilities, Understanding the rules of the game, Matching market entry efforts with strategic goals

Back

Developing overwhelming capabilities