Entering Foreign Markets Quiz-6

Small-scale entries normally benefit by their:

• limited downside risk.

• emphasis on “learning before doing.”

• strong strategic commitment.

• first mover advantages.

In the United States, foreign airlines are not allowed to acquire US airlines. This is an example of what type of trade barrier?

• Tariff

• Nontariff

• Haven currency

• Entry mode restriction

Greenfield operations refer to:

• wholly owned subsidiaries.

• turnkey projects.

• R&D contracts.

• co-marketing.

The late-mover advantage of a company such as Amazon is:

• developing proprietary, technological leadership.

• opportunity for a free ride.

• resolution of market uncertainties.

• lowering the barriers to market entry.

Which of the following would be considered an obstacle to internationalization for a small firm in a large domestic market?

• A plentiful resource base

• The large size of their domestic market

• A large margin for error

• The success of their suppliers

First-mover preemptive investments would include:

• avoiding scarce resources.

• finding free-ride opportunities.

• waiting for market uncertainties to be resolved.

• cherry picking leading local suppliers and distributors.

The liability of foreignness is:

• the inherent disadvantage foreign firms experience in host countries.

• related strictly to the formal institutions that govern the way business is done in a foreign country.

• a challenge when it comes to resource supply but not to competitive advantage.

• irrelevant in the process of entering foreign markets.

What typically happens in round one of an obsolescing bargain?

• The government establishes trade barriers

• The MNE enters and earns profits.

• The government demands renegotiation.

• The MNE and the government negotiate a deal.

The strategic goal of __________ involves going after countries that offer the highest price.

• natural resources-seeking

• market-seeking

• efficiency-seeking

• innovation-seeking

According to the textbook, what is most necessary to overcome the liability of foreignness from a resource-based view?

• Grasping the dynamism underlying the industry

• Developing overwhelming capabilities

• Understanding the rules of the game

• Matching market entry efforts with strategic goals