IB Business Management MCQ QuizIB_Business_Management_4_6 Intern

Identify the term used to describe selling products to buyers in other nations.

• E-commerce

• Exporting

• Licensing

• Joint ventures

Identify the term used when a firm sets up its own production facilities and offices in a foreign market.

• Direct investment

• Exporting

• Franchising

• Licensing

Identify the strategy whereby two or more firms pool their resources into a new endeavour, without setting up a new legal entity.

• Direct investment

• Joint venture

• Merger

• Strategic alliance

Identify the incorrect feature of entering new markets using an exporting strategy.

• Exchange rate fluctuations impact the exporter’s competitiveness

• It is a relatively high risk market entry strategy

• Tariffs may be imposed on the exported products

• Transportation costs may be high

Identify the potential disadvantage of entering new markets using a direct investment strategy.

• Effects of exchange rate fluctuations

• Impacts of protectionist measures implemented by foreign governments

• Proximity to customers

• Social and cultural barriers

Identify the incorrect statement about entering foreign markets.

• It helps to extend the life cycle of a firm’s products

• It increases brand recognition

• It reduces working capital requirements

• It spreads risks for owners and investors

Identify the challenge of rapid international growth.

• Brand awareness

• Diseconomies of scale

• Profitability

• Wider customer base

Identify the entry method into a foreign market that is most likely to make a business a multinational company.

• Direct investment

• E-commerce

• Exporting

• Strategic alliance

Which method of entry into new markets involves two or more firms coming together to become a single entity?

• Cooperative

• Merger

• Joint venture

• Strategic alliance

Which method of entry into new markets involves allowing other firms to operate under a specific brand name?

• Cooperative

• E-commerce

• Exporting

• Franchising