entry strategy

Firms can enter foreign markets using any of the following methods except

• exporting

• franchising to home country firms

• licensing to host country firms

• joint ventures with host country firms

The choice of what foreign market to enter is driven by an assessment of

• relative long-run growth and profit potential.

• geographic proximity and friendliness of host government.

• climate and economic stability of host government.

• friendliness of host government and profit potential

A grocery retailer such as Tesco might capitalize on the infrastructure of stores already in place by

• exporting

• establishing a joint venture with a local enterprise

• licensing

• franchising to local companies

Basic decisions that a firm contemplating foreign expansion must make include all of the following except

• which markets to enter

• when to enter a market

• on what scale to enter a market

• with which partners to enter

First mover advantages are ___________

• the advantages frequently associated with entering the market early

• the disadvantages that come with entering a foreign market before other international businesses

• costs that an early entrant to a market must bear that later entrants avoid

• the switching costs involved in moving from one market to another

Pioneering costs are

• A) the advantages frequently associated with entering the market early

• B) the disadvantages that come with entering a foreign market before other international businesses

• C) costs that an early entrant to a market must bear that later entrants avoid

• D) the switching costs involved in moving from one market to another

Once attractive markets have been identified, it is important to consider the:

• A) timing of entry.

• B) competition.

• C) costs involved.

• D) insurance needed in the event of failure.

Which of the following is not a first-mover advantage?

• A) The ability to increase a firm's chances of survival by entering a foreign market before industrial rivals

• B) The ability to build sales volume in a country and ride down the experience curve ahead of rivals

• C) The ability to create switching costs that tie customers to a company's products or services

• D) The ability to preempt rivals and capture demand by establishing a strong brand name

Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on

• A) economies of scale

• B) pioneering costs

• C) first mover advantages

• D) early entrant advantages

Most manufacturing firms begin their global expansion through ______.

• establishing a joint venture with a host country firm

• licensing

• turnkey projects

• exporting