True/False Questions on Market Entry

Firms can ignore sociocultural influences when entering a new foreign market.

• True

• False

Direct exporting involves selling products directly to customers outside the firm’s home country.

• True

• False

Licensing agreements usually give the licensee complete freedom to share information with third parties.

• True

• False

Political risk is not a factor when evaluating foreign market entry.

• True

• False

Licensing always provides the licensor with complete control over the licensed operations.

• True

• False

Contract manufacturing allows a firm to outsource production and reduce its physical resource needs.

• True

• False

A Greenfield strategy involves acquiring an existing company in the foreign market.

• True

• False

Acquisition strategy allows immediate entry into a foreign market but may include inheriting liabilities.

• True

• False

Joint ventures involve two or more firms creating a new, jointly owned entity.

• True

• False

Exporting avoids foreign investment restrictions.

• True

• False