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Worksheetsentry strategy
Total questions: 20
Worksheet time: 10mins
Firms can enter foreign markets using any of the following methods except
exporting
franchising to home country firms
licensing to host country firms
joint ventures with host country firms
The choice of what foreign market to enter is driven by an assessment of
relative long-run growth and profit potential.
geographic proximity and friendliness of host government.
climate and economic stability of host government.
friendliness of host government and profit potential
A grocery retailer such as Tesco might capitalize on the infrastructure of stores already in place by
exporting
establishing a joint venture with a local enterprise
licensing
franchising to local companies
Basic decisions that a firm contemplating foreign expansion must make include all of the following except
which markets to enter
when to enter a market
on what scale to enter a market
with which partners to enter
First mover advantages are ___________
the advantages frequently associated with entering the market early
the disadvantages that come with entering a foreign market before other international businesses
costs that an early entrant to a market must bear that later entrants avoid
the switching costs involved in moving from one market to another
Pioneering costs are
A) the advantages frequently associated with entering the market early
B) the disadvantages that come with entering a foreign market before other international businesses
C) costs that an early entrant to a market must bear that later entrants avoid
D) the switching costs involved in moving from one market to another
Once attractive markets have been identified, it is important to consider the:
A) timing of entry.
B) competition.
C) costs involved.
D) insurance needed in the event of failure.
Which of the following is not a first-mover advantage?
A) The ability to increase a firm's chances of survival by entering a foreign market before industrial rivals
B) The ability to build sales volume in a country and ride down the experience curve ahead of rivals
C) The ability to create switching costs that tie customers to a company's products or services
D) The ability to preempt rivals and capture demand by establishing a strong brand name
Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on
A) economies of scale
B) pioneering costs
C) first mover advantages
D) early entrant advantages
Most manufacturing firms begin their global expansion through ______.
establishing a joint venture with a host country firm
licensing
turnkey projects
exporting
A firm seeking to achieve experience curve economies and location economies might enter a foreign market via ______
A) a wholly owned subsidiary
B) a joint venture
C) turnkey projects
D) exporting
When an exporting firm finds that its local agent is also carrying competitors’ products, the firm may switch to a ________ to handle local marketing, sales, and service.
A) wholly owned subsidiary
B) franchising arrangement
C) turnkey operation
D) licensing agreement
In a(n) __________ project, the contractor agrees to handle every detail of the project for a foreign client, including the training of operating personnel.
A) establishment
B) greenfield
C) front-to-back
D) turnkey
In which of the following industries are turnkey projects the most common?
A) Fresh fruit, grain, and meat products
B) Chemical, pharmaceutical, and metal refining
C) Electronics, computer chips, and automotive parts
D) Apparel, shoes, and leather products
Having no long-term interest in a foreign country is a disadvantage of ________.
A) licensing
B) wholly owned subsidiaries
C) joint ventures
D) turnkey projects
Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of
A) licensing agreements
B) franchising agreements
C) intangible property
D) tangible property
_______ is/are primarily used by service firms.
A) franchising
B) licensing
C) cross-licensing
D) turnkey projects
The most typical joint venture is
A) 20/80
B) 40/60
C) 30/70
D) 50/50
A significant disadvantage of _____ is quality control.
A) franchising
B) exporting
C) wholly owned subsidiaries
D) turnkey projects
Firms engaging in ______ with a local company can benefit from a local partner’s knowledge of the host country’s competitive conditions, culture, language, political systems, and business systems.
A) turnkey projects
B) joint ventures
C) Greenfield investments
D) licensing arrangements
