Market Entry Strategies and Export Planning:

What is Foreign Direct Investment (FDI)?

• A. Direct investment in a foreign market with full ownership and control of the business

• B. Selling products abroad through local distributors

• C. Using another company

  to distribute products in an international market

• D. Using e-commerce to reach foreign markets

Which of the following is an example of Greenfield Investment?

• A. Microsoft acquiring a technology company in Japan

• B. Toyota building a new factory in the United States

• C. Apple selling its products through Amazon

• D. Nike partnering with a local factory to produce shoes

What is the main advantage of the Piggybacking strategy?

• A. Provides full control over product distribution

• B. Reduces expansion costs by leveraging another company's network

• C. Eliminates dependence on business partners

• D. Requires a large investment in infrastructure

What is the main risk of Contract Manufacturing?

• A. High production costs

• B. Difficulty accessing international markets

• C. Dependence on third parties and potential quality issues

• D. Requires full control over production

Why is E-commerce a popular market entry strategy?

• A. Because it requires a large investment in physical infrastructure

• B. Because it allows global reach at a lower cost

• C. Because it is only available to large corporations

• D. Because it has uniform regulations across all countries

In Export Planning, which factor is the most important to consider?

• A. The number of workers in the target country

• B. Regulations, target market, and logistics costs

• C. The company's organizational structure

• D. The cultural heritage of the home country

Which of the following is NOT an international market entry mode?

• A. Licensing

• B. Foreign Direct Investment (FDI)

• C. Domestic Franchising

• D. Joint Venture

What is the main advantage of the Joint Venture strategy?

• A. Does not require a local partner

• B. Provides access to the partner's resources and business network

• C. Does not need approval from the local government

• D. Allows companies to avoid foreign market regulations

Companies looking to enter international markets with low risk and minimal costs typically choose...

• A. Foreign Direct Investment

• B. Contract Manufacturing or Piggybacking

• C. Greenfield Investment

• D. Merger & Acquisition

What is the biggest challenge of expanding through E-commerce?

• A. Requires large capital investment to build factories

• B. High competition and varying

  e-commerce regulations across countries

• C. Difficulty in reaching global customers

• D. Cannot be integrated with other marketing strategies