3.9.3 International business

Which of the following is a method of entering international markets that involves buying from or selling to companies and consumers in other countries?

• Licensing

• Direct Investment

• Importing and Exporting

• Alliances

What is a potential drawback of forming alliances when entering international markets?

• High initial investment costs

• Loss of some control over the venture

• Difficulty in obtaining raw materials

• Increased tariffs and quotas

Which factor affecting the attractiveness of international markets involves considering the population demographics?

• Political and Economic Factors

• Cultural, Ethical and Environmental Factors

• Size of the Market

• Technological Factors

What is one of the benefits of licensing as a method of entering international markets?

• High level of control over the product

• Low amount of risk

• Immediate market presence

• High initial investment

Which factor includes the need to consider political conditions and exchange rates when entering international markets?

• Size of the Market

• Political and Economic Factors

• Cultural, Ethical and Environmental Factors

• Technological Factors

What is a common way businesses can reduce costs when entering international markets?

• Increasing product prices

• Reducing the scale of operations

• Getting raw materials from countries with the cheapest prices

• Hiring more employees

Which method of entering international markets involves a business taking over or merging with a business in a different country?

• Licensing

• Direct Investment

• Importing and Exporting

• Alliances

What is one of the cultural, ethical, and environmental factors that can affect the attractiveness of international markets?

• Availability of technology

• Population demographics

• Language and cultural barriers

• Political stability

Which of the following is NOT a factor that affects the attractiveness of international markets?

• Size of the Market

• Political and Economic Factors

• Cultural, Ethical and Environmental Factors

• Marketing Strategies

What is one of the main benefits of direct investment as a method of entering international markets?

• Low initial investment

• High level of control over the business

• Immediate market presence

• Low risk