Entry Modes for Entering International Markets

How many modes of entry into an international market were discussed in the reading?

• 14

• 5

• 6

• 7

What is one of the traditional methods used to enter foreign markets as firms begin their global expansion?

• Exporting

• Licensing

• Franchising

• Joint Venture

Which entry strategy involves a firm handling every detail of the project for a foreign client, including training of operating personnel?

• Joint ventures

• Franchising

• Turnkey projects

• Licensing

What is a major advantage of exporting as an entry strategy?

• Moderate involvement and commitment to the country

• High local market expertise

• Increased speed and flexibility of engaging target market.

• Ability to realize location and experience economies.

Which strategy is described as a way to earn great economic returns from the asset of technological know-how?

• Franchising

• Exporting

• Joint ventures

• Turnkey projects

What is a significant disadvantage associated with the licensing entry strategy?

• Slow market entry

• Cultural misalignment

• Lack of control over technological processes & ingenuity.

• High initial investment

In franchising, what does the franchisor typically receive from the franchisee?

• A fixed yearly fee

• Operational support

• A percentage of profits

• Royalty payment

What is a key benefit of establishing joint ventures as an entry strategy?

• Full control over operations

• Immediate profit generation

• Gaining access to local knowledge

• Complete technology security

Which entry strategy involves setting up a new operation or acquiring an established firm in the host country?

• Exporting

• Licensing

• Franchising

• Wholly owned subsidiaries

What is a major disadvantage of exporting mentioned in the text?

• Low market share

• Ineffective marketing

• Limited product range

• High transportation costs