Global Market-Entry Strategies Quiz

What does export refer to?

• Selling goods and services within the home country

• Selling goods and services to buyers located in another country

• Importing goods and services from another country

• Producing goods and services for domestic consumption

What is the difference between indirect export and direct export?

• Indirect export involves avoiding export processes, while direct export involves working with a third party

• Indirect export involves high transportation costs, while direct export involves better control over distribution

• Indirect export involves using a third-party seller, while direct export involves producing the product in the home market and selling it overseas

• Indirect export involves selling products in the home market, while direct export involves selling products overseas

What is a contractual agreement in the context of global market-entry strategies?

• An agreement between two companies to share profits

• An agreement between a company and a government for tax exemptions

• An agreement whereby one company makes an asset available to another company in exchange for compensation

• An agreement between two countries to facilitate trade

What are the advantages of licensing as a market-entry strategy?

• Additional profitability with little initial investment and method of circumventing export barriers

• Inability to engage in global coordination and potential for conflict among partners

• Limited market control and short-lived agreements

• High transportation costs and marketing distance from customers

What is the purpose of franchising in global market expansion?

• To acquire new companies in foreign markets

• To achieve economies of scale by selling in new market

• To establish new operations and operate a business developed by the franchisor in return for a fee

• To avoid export processes and focus on production

What is the meaning of equity stakes in the context of foreign direct investment (FDI)?

• An equal ownership via joint venture with a local partner

• A method of circumventing export barriers

• A partial or full ownership of operations outside of the home country

• A contract between a parent company and a franchisee

What are the characteristics of global strategic partnerships (GSP)?

• Participants make ongoing contributions in global marketing efforts and the relationship is organized along vertical lines

• Participants must contribute to the alliance and depends on the other to a degree that justifies the alliance

• Participants remain independent following formation of the alliance and each partner possesses specific strengths that it shares with the other

• Participants share benefits of alliance but do not have control over performance of assigned tasks

What are the critical factors for successful global strategic partnerships?

• Organizations create win win situations to pursue objectives on the basis of mutual need or advantage

• Organization create a multiple global marketing mission that all of the partners must follow

• Organization create a unique mission that leverage on the strongest partner so that all can benefit from it

• Each partner create their own mission and share them on need to basis

What is the purpose of relationship enterprises in the context of market expansion strategies?

• To target a limited number of customer segments in a few countries

• To serve many markets in a few countries

• To seek out the world to market the product

• To act as one entity with common goals and strategies

What is the market expansion strategy that involves serving many markets in a few countries?

• Narrow focus - country and market concentration

• Country focus - country concentration and market diversification

• Global diversification - country and market diversification

• Country diversification - country diversification and market concentration