Mode of Entry

Sometimes a firm decides to counterattack global competitors in their home markets.

• True

• False

Before deciding on the entry modes into international business, the crucial part is deciding which markets to enter.

• True

• False

There are only 2 modes of entry into international market that a business needs to choose from.

• True

• False

Each business should be diversified across products and also across the market segments that it targets.

• True

• False

Direct exporting involves you directly import your goods and products to another overseas market.

• True

• False

Low cost of entry into an international market is one of the advantages of Franchising.

• True

• False

Joint ventures can face the possibility of cultural clashes within the organisation due to the difference in organisation culture in both partnering firms.

• True

• False

Strategic acquisition implies that your company acquires a controlling interest in an existing company in the overseas market.

• True

• False

Foreign Direct Investment involves a company entering domestic market by making a substantial investment in the country.

• True

• False

Acquisition is not one of the entry mode strategy.

• True

• False