EXERCISE INTERNATIONAL BUSINESS-BUS3233 [TOPIC 5]

Which of the following is not one of the three steps in increasing market share, revenue, and profits?

• Assess alternative markets.

• Evaluate respective costs, benefits, and risks.

• Perform a situation analysis.

• Select market with most potential for entry or expansion

LVMH uses all of the following entry methods in its international operations except ________.

• acquiring small foreign firms

• entering licensing agreements

• establishing franchises

• exporting products

Executives at KBH Enterprises are considering the idea of entering the Taiwanese market through a licensing agreement. Which of the following factors is LEAST relevant to the firm's assessment of the Taiwanese market?

• current size of market

• potential size of market

• foreign exchange in market

• legal and political environment in market

What is the first step in selecting a foreign market?

• assessing market potential

• monitoring major markets

• evaluating host country's trade policies

• assessing general legal and political environments

Gameware recently entered the German market. Gameware executives also wanted to enter the Canadian market but had to delay the entry because of limited resources. What type of costs will Gameware incur as a result of being unable to enter the Canadian market?

• indirect costs

• direct costs

• opportunity costs

• variable costs

All of the following are potential benefits of entering a new market except ________

• eliminating synergy with other operations

• lowering manufacturing costs

• limiting competitors' profits

• gaining new technology

Which theory listed below is useful in deciding which mode of entry to use when entering foreign markets?

• ownership advantage theory

• internalization theory

• eclectic theory

• relative factor endowments

Which of the following is not a mode of entry into foreign markets?

• exporting

• importing

• international licensing

• greenfield strategy

________ are tangible or intangible resources owned by a firm which grant it a competitive advantage over its industry rivals.

• Ownership advantages

• Location advantages

• Internalization advantages

• Competitive advantages

Delvin Pharmaceuticals, a U.S. firm, is considering the idea of entering the Japanese market. Which entry mode will Delvin most likely use?

• exporting

• licensing

• turnkey

• franchising