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WorksheetsMGT361: Chapter 8 Mode of Entry
Total questions: 13
Worksheet time: 6mins
What is the first step in selecting a foreign market?
assessing market potential
monitoring major markets
evaluating host country's trade policies
assessing general legal and political environments
________ are those factors that affect the desirability of host country production relative to home country production.
Ownership advantages
Location advantages
National competitive advantages
Internalization advantages
Toyota's efficient manufacturing techniques and reputation for producing high-quality automobiles are examples of ________.
location advantages
ownership advantages
internalization advantages
operational advantages
When deciding which mode of entry to use, a firm must consider things like ownership advantages, location advantages, and internalization advantages.
True
False
________ is the most common form of international business activity.
Exporting
Licensing
Greenfield strategy
Management contract
________ for exporting are those that push a firm into foreign markets.
Reactive motivations
Proactive motivations
Opportunity motivations
Avoidance motivations
Franklin Carpets engages in indirect exporting, so the firm sells its carpets to a(n) ________.
domestic customer who then sells the carpets to a foreign customer
foreign customer who then sells the carpets to a domestic customer
affiliated company located in a foreign country
foreign customer through e-commerce
When British Petroleum ships crude oil from its storage facilities in Kuwait to its Australian subsidiary, ________ has occurred.
indirect exporting
direct exporting
an intracorporate transfer
an intercorporate transfer
What are the third parties that specialize in facilitating imports and exports called?
intermediaries
wholesalers
exporters
distributors
Kodak focuses on developing photo editing software, and the firm has agreements with a Chinese manufacturer to assemble most Kodak cameras. Which entry mode for international business is used by Kodak?
management contracting
international franchising
contract manufacturing
international licensing
When two or more firms agree to work together and create a joint owned firm to promote mutual interest, ________ has occurred.
an acquisition
a joint venture
a licensing agreement
a franchise agreement
One disadvantage of exporting is the logistical complexities.
True
False
Ownership advantages are always tangible or intangible resources owned by a firm that grant it a competitive advantage over its industry rivals.
True
False
