MODES OF ENTERING GLOBAL BUSINESS

Which entry mode allows a company to expand globally without owning any physical assets in the foreign country?

• A. Foreign Direct Investment

• B. Turnkey Projects

• C. Licensing

• D. Mergers

A company sets up a plant in a foreign country, operates it, and hands it over fully functional to the client. What is this called?

• Joint
  Venture
  
  
  

• Contract Manufacturing

• Turnkey Project

• Exporting

Franchising differs from licensing because it typically includes:

• Transfer of patents only

• One-time payment with no support

• A complete business model and ongoing support

• No legal agreement required

What is a turnkey project?

• A business with only one key customer

• A project where a company sets up a plant and hands it over when ready

• A merger of two domestic firms

• A contract for software installation

Which of the following modes of entry involves giving control to another party but still carries your brand name?

• Exporting

• Franchising

• Turnkey Project

• Joint Venture

Which of the following entry modes typically involves the highest level of risk and control?

• Licensing

• Joint Venture

• Indirect Exporting

• Foreign Direct Investment (FDI)

Which comparison is accurate when evaluating entry modes?

• Exporting offers more local responsiveness than FDI

• Mergers require less capital than indirect exporting

• Management contracts provide control without ownership

• Licensing gives more brand protection than franchising

You’re an investor who owns hotels worldwide. You let a hotel in Dubai use your name and systems, but you don’t own the building. You manage it for a fee. Which model is this?

• Management Contract

• Turnkey

• FDI

• Exporting

A Canadian fashion brand partners with an Indian firm, where both share profits, risks, and operations in India. They create a new brand identity specific to the Indian market

• Franchising

• Licensing

• Direct Exporting

• Joint Venture

Which of the following is a key difference between direct and indirect exporting?

• Direct exporting gives more control over foreign operations

• Indirect exporting involves setting up a local office

• Direct exporting uses intermediaries

• Indirect exporting is more expensive