Entry Strategy of MNCs

What is the primary responsibility of company-based managers in indirect exporting?

• Negotiating contracts

• Handling customer complaints

• Total export management

• Conducting market research

In direct exporting, what role does a sales representative typically assume?

• Oversees production processes

• Manages the entire supply chain

• Works for a commission

• Handles all export documentation

What is a key advantage of licensing for entering foreign markets?

• Involves complex legal processes

• Provides guaranteed periodic royalties

• Requires significant capital investment

• Requires full ownership of production

Which of the following is NOT a model of franchising?

• Retailer - Retailer

• Distributor - Manufacturer

• Manufacturer - Retailer

• Wholesaler - Retailer

What is a drawback of franchising?

• Lack of training support

• Limited brand recognition

• High initial capital requirement

• Need for careful quality control

What is a joint venture?

• A form of franchising

• A partnership between two or more firms

• A method of direct exporting

• A type of licensing agreement

What is one of the main benefits of a successful joint venture?

• Increased competition

• Access to new markets

• Higher individual investment risk

• Limited resource sharing

What is a strategic alliance?

• A type of joint venture

• A licensing agreement

• A partnership for mutual benefit

• A form of direct exporting

Which of the following is a type of strategic alliance?

• Joint ventures

• Direct exporting

• Technology-based alliances

• Franchising

What is the purpose of free trade zones?

• To limit foreign competition

• To increase tariffs

• To promote trade and investment

• To restrict exports