IB Chapter 4

What is non-equity modes of entry?

• methods or strategies that allow a company to enter a foreign market or expand its international business operations without taking an ownership stake in a foreign entity.

• methods or strategies that allow a company to enter a local market or expand its local business operations without taking an ownership stake in a foreign entity.

• methods or strategies that allow a company to enter a foreign market or expand its international business operations by taking an ownership stake in a foreign entity.

• entry to international business either through early entry or late entry

What is exporting?

• selling of products in domestic markets.

• buying of products in domestic markets.

• selling of products in overseas markets.

• buying of products in overseas markets.

Direct export mean company opt to do their own exporting.

• TRUE

• FALSE

Licensing

• licensee, leases the right to use its intellectual property—technology, work methods, patents, copyrights, brand names, or trademarks—to another firm, called the licensor, in return for a fee.

• licensor, sell the right to use its intellectual property—technology, work methods, patents, copyrights, brand names, or trademarks—to another firm, called the licensee, in return for a fee.

• licensor, buy the right to use its intellectual property—technology, work methods, patents, copyrights, brand names, or trademarks—to another firm, called the licensee, in return for a fee.

• licensor, leases the right to use its intellectual property—technology, work methods, patents, copyrights, brand names, or trademarks—to another firm, called the licensee, in return for a fee.

Franchisee pays a fee to the franchisor due to

• Franchisor grants the franchisee the right to operate a business using the franchisor's name.

• üFranchisor grants the franchisee the right to operate a business using the franchisor's trademark.

• üFranchisor grants the franchisee the right to operate a business using the franchisor's business model, and resources.

• All of the answer

A management contract is an agreement between a business or property owner and a ________ company.

• management

• transportation

• licensee

• licensor

In management contract, property owners may hire a property management company to handle the day-to-day operations of rental properties, including tenant management, maintenance, and financial matters.

• TRUE

• FALSE

•A _________ is a single entity, often referred to as the turnkey contractor or provider, is responsible for the entire project, from design to construction, including procurement, and sometimes commissioning.

• turnkey project

• turndown project

• key project

• Uturn project

EPCC project, different entities are involved at various stages. EPCC stands for

• Electricity, Procurement, Construction and Commissioning

• Engineering, Procurement, Consignment and Commissioning

• Engineering, Procurement, Construction and Commissioning

• Engineering, Process, Construction and Commissioning

One company is hired by another company (the client) to produce specific products or components through working agreement  between these companies. This statement explains

• Franchising

• Licensing

• Turnkey Project

• Contract manufacturing