Foreign Market Entry Strategy 2

What is one main disadvantage of a joint venture?

• Lack of local support

• High shipping cost

• Shared control and decision making

• Expensive license fees

Which strategy requires the least financial investment to enter a foreign market?

• Wholly Owned Subsidiary

• Joint Venture

• Licensing

• Exporting

A company that wants to protect its brand quality in another country may prefer which strategy?

• Exporting

• Licensing

• Joint Venture

• Wholly Owned Subsidiary

What does a local partner provide in a joint venture?

• Full ownership

• Brand reputation

• Market knowledge and support

• Factory buildings

What type of entry strategy allows a company to earn income without building its own operation abroad?

• Wholly Owned Subsidiary

• Joint Venture

• Licensing

• Exporting

Which entry strategy involves the highest control and the highest cost?

• Exporting

• Licensing

• Joint Venture

• Wholly Owned Subsidiary

What happens in a joint venture?

• A company buys 100% of another company

• A foreign government controls the business

• Two companies from different countries form a new business

• A company exports products through an online platform

Which of these is NOT a key benefit of licensing?

• Low cost entry

• Fast market access

• Full control of local operations

• No need to build a factory

A wholly owned subsidiary gives the company more control but also higher costs and risks.

• True

• False

Exporting always requires the company to open an office in the foreign country.

• True

• False