Modes of Entry

What is the purpose of an international agent or distributor?

• Finding competitors and matching their price
• Providing insights and contacts to the markets to help navigate expansion
• Manufacturing the product at a cheaper price
• Hiring and firing of local employees

What is one benefit of licensing in global expansion?

• Greater control
• Lower costs
• Increased efficiency
• Limited risk

What is the definition of a sales subsidiary?

• A business that purchases intellectual property from another country
• A business that is owned and controlled by a larger company
• A business that manufactures products for its subsidiaries
• A business that sells products through its subsidiaries

What is one reason for overseas manufacturing in global expansion?

• To lower costs
• To increase the customer base
• To gain greater control
• To form partnerships with complementary businesses

What is the main difference between strategic alliances and joint ventures?

• Strategic alliances involve manufacturing products, while joint ventures involve distributing products
• Strategic alliances involve selling products, while joint ventures involve purchasing products
• Strategic alliances involve pooling resources and sharing costs, while joint ventures involve forming partnerships.
• Strategic alliances involve partnerships with complementary businesses, while joint ventures involve purchasing intellectual property

Which of the following is the role of a sales subsidiary in global expansion?

• Selling products in another country
• Manufacturing products in another country
• Purchasing intellectual property from other businesses
• Warehousing

Which of the following is considered a risk within overseas manufacturing?

• Lower Costs
• Language differences
• Greater pool of Talent
• Economies of scale

What is the definition of licensing in global expansion?

• The process of forming partnerships with complementary businesses
• The process of purchasing intellectual property from a business in another country
• The process of manufacturing products in another country
• The process of importing and exporting goods or services between countries

What is the process of goods or services being sent to another country called?

• Exporting
• Importing
• Licensing
• Manufacturing

What is the main difference between importing and exporting?

• Importing involves selling products in another country, while exporting involves buying products from another country
• Importing involves bringing in goods or services from another country, while exporting involves sending goods or services to another country
• Importing involves manufacturing products in another country, while exporting involves distributing products in another country
• Importing involves purchasing intellectual property from another country, while exporting involves selling intellectual property to another country