Entry Strategy and Strategic Alliance

When a firm faces significant transportation costs, ____can be uneconomical.

• Joint ventures.

• Greenfield investments.

• Licensing agreements.

• Exporting.

Firms that lack the capital necessary to develop foreign operations may choose ____ as a means of expanding internationally.

• Turnkey projects.

• Licensing.

• Greenfield investment.

• Acquisitions.

This mode of entry is primarily used by service firms

• Licensing

• Franchising

• A strategic alliance

• A turnkey project.

What are the first mover disadvantages. Choose the answer.

• pioneering costs

• The ability to create switching cost

• Cost of business failure

• Ability to pre-empt rivals by establishing a strong brand name.

• ability to build up sales volume

A wholly owned subsidiary limits a firm's control over operations in different countries.

• True

• False