IB-Chpt9-Entry Strategy&Strategic Aliances

What is the first decision firms must make when expanding internationally?

• When to enter them

• How to market their products

• Which markets to enter

• Which entry mode to use

Which of the following is NOT an entry mode for international expansion?

• Retailing

• Licensing

• Exporting

• Franchising

What factor does NOT influence the choice of entry mode?

• Transport costs

• Economic risks

• Political risks

• Cultural preferences

Which market characteristic is considered favorable for firms looking to expand?

• High private sector debt

• High inflation rates

• Command economies

• Political stability

What is a first-mover advantage?

• Reducing costs

• Entering a market late

• Establishing a strong brand name

• Avoiding competition

What is a disadvantage of entering a foreign market late?

• Easier market entry

• Less brand recognition

• Higher costs of business failure

• Lower competition

What is a key advantage of exporting?

• Involves high tariffs

• Avoiding local manufacturing costs

• High transport costs

• Requires local partnerships

Which entry mode involves a firm owning 100% of the stock?

• Wholly owned subsidiary

• Licensing

• Franchising

• Joint venture

What is a potential risk of a joint venture?

• High initial investment

• No local partner involvement

• Shared ownership can lead to conflicts

• Limited market knowledge

What is a strategic alliance?

• A type of franchising

• A merger of two companies

• A cooperative agreement between competitors

• A government regulation