Chapter 3

Trade barriers of all different kinds restrict the entry choice decision. This statement refers to that the company is considering _______________________ factor.

• RISK

• MARKET SIZE & GROWTH

• GOVERNMENT REGULATIONS

• LOCAL INFRASTRUCTURE

Large market justifies major resource commitments in the form of joint venture or wholly owned subsidiaries. This statement shows that companies is considering ___________________ factor before choosing the right entry modes.

• RISK

• GOVERNMENT REGULATIONS

• LOCAL INFRASTRUCTURE

• MARKET SIZE & GROWTH

"Contract between business owner and other company (subsidiary) normally take 10 years".

This statement refer to ......................

The FIVE (5) market entry modes strategies are ........................

• importing, franchising, partnership, licensing & management contracting

• partnership, importing, franchising, licensing & management contracting

• licensing, exporting, management contracting, franchising & strategic alliances

• licensing, management contracting, exporting, franchising & contract manufacturing

Using other company legally protected asset such as brand name and product formula refer to _________ strategy

• contract manufacturing

• management contracting

• franchising

• licensing

"Kellogg Co’s strong dominance in the global ready-to-eat cereal market pushed Nestlé and General Mills to join forces". This statement shows that Nestlé and General Mills are considering ____________ as factor to decide on their market entry modes.

• COMPETITIVE ENVIRONMENT

• LOCAL INFRASTRUCTURE

• MARKET SIZE & GROWTH

• RISK

1. 1.      Cost savings

   2.       Access to specialized expertise

   3.       Increased production capacity

   4.       Risk sharing

The above points refer to the an advantages of using ___________ as entry modes.

AhBOY SedapNYA sells their snacks to a local export trading company, which then exports the products to Singapore or the Middle East. The manufacturer focuses on production, while the intermediary manages exporting activities. The statement shows that the company is using __________ as market entry modes strategy.

"Marriott enters foreign markets by providing management expertise to hotels owned by local investors. The local owners supply the capital and property, while Marriott manages daily operations, staff training, and service standards. In return, Marriott earns management fees without owning the hotel". This statements show that Marriott is using ___________ as entry modes strategy.

One of the disadvantage of using __________ as market entry modes strategy is limited control over the product quality.

• franchising

• management contracting

• contract manufacturing

• licensing