Entry Modes Quiz

Which entry mode involves a company selling its products directly to a foreign market?

• Joint Venture

• Exporting

• Licensing

• Franchising

What is the primary advantage of using a joint venture as an entry mode?

• Complete control over operations

• Access to local market knowledge

• Minimal financial risk

• High-profit margins

Which entry mode involves granting another company the rights to produce and sell products under your brand?

• Exporting

• Franchising

• Licensing

• Wholly Owned Subsidiary

What is a key disadvantage of the franchising entry mode?

• High capital investment

• Limited control over franchisee operations

• Slow market entry

• Difficult to scale

Which entry mode involves the highest level of resource commitment and control?

• Licensing

• Joint Venture

• Wholly Owned Subsidiary

• Exporting

What is one advantage of entering a market through a wholly owned subsidiary?

• Lower investment required

• Complete operational control

• Shared financial risk

• Quick market entry

In which entry mode does a company establish a new operation in a foreign country from scratch?

• Greenfield Investment

• Joint Venture

• Licensing

• Acquisition

Which entry mode involves partnering with a local firm to share ownership and control?

• Wholly Owned Subsidiary

• Licensing

• Joint Venture

• Exporting

What is a significant risk when using the acquisition entry mode?

• Low investment costs

• Integration challenges

• Slow market entry

• Lack of market control

Which entry mode allows a company to quickly enter a foreign market by purchasing an existing firm?

• Licensing

• Acquisition

• Greenfield Investment

• Franchising