Chapter 15 Entry Strategy and Strategic Alliances

The choice of which international markets to enter should be driven by an assessment of absolute short-run growth and profit potential.

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The attractiveness of a country as a potential market for an international business depends on balancing the benefits, costs, and risks associated with doing business in that country.

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When determining the value of a foreign market, an international firm must consider both its products and the competition.

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Educating customers is an element of pioneering costs.

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A strategic commitment can be reversed by the top management at will.

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Gadgets, Inc., wants to enter a foreign market on a small scale. This will allow it to learn about the market while limiting the firm's exposure to that market.

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Exporting from a firm's home base is most appropriate when lower-cost locations for manufacturing the product can be found abroad.

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Tangible property includes patents, designs, copyrights, and trademarks.

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By producing its product in a centralized location, licensing limits a firm's ability to realize experience curve and location economies.

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Franchising enables a firm to quickly build a global presence.

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