International Entry

What is an advantage of Exporting?

• Helps to avoid the substantial costs of establishing in the host country

• Might be cheaper to produce the product abroad as opposed to exporting

• Tariff barriers may be a road block

• It is more expensive to export bulkier products

Which of the following is not an advantage of a joint venture? 

• Access to parent companies resources 

• Reduction of costs 

• Improved risk taking ability 

• Increased impact of losses 

Which company is an example of a wholly owned subsidiary?  

• Marvel  

• DC Comics

• Mcdonalds  

• Toyota  

The selling firm is not able to profit from turnkey projects.

• True

• False

Exporting is the process by which companies from one country sell their goods and services to companies or consumers in a different country. 

• True

• False

What year did Ford and Toyota become a joint venture? 

• 2008

• 2012

• 2011

• 2014

Which is the definition of a Joint Venture?  

• Shared resources responsibilities risks

• Cooperative undertaking between two or more companies while maintaining distinct identities. 

• Allows access to parent companies' resources 

Core competency of wholly owned subsidiaries:

• Differentiates an organization from its competition 

• Does NOT differentiate an organization from its competition 

What are the following considered to be?

-Exporting and wholly-owned subsidiaries

-Location and scale economies

-Product manufacturing and distribution

• Pressures for Cost Reductions

• Core Competencies

• Joint Venture Advantages

What is an example of a turnkey project?

• Urban Outfitters

• Jewar International Airport

• The renovation of an old factory

• McDonalds