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WorksheetsEntering Foreign Markets
Total questions: 13
Worksheet time: 9mins
Resource-Based View: Value, Rarity, Imitability, and _____.
Liability of Foreignness
Organization
Equity
Exports
What is Liability of Foreignness?
Disadvantages foreign firms experience in host countries because of their non-native status
Benefits that accrue to firms that enter the market first and that later entrants do not enjoy
Amount of resources committed to entering a foreign market
Resource-Based View says that foreign firms need overwhelming resources and capabilities to offset the Liability of Foreignness
Foreign Market Entries: Where, When, and (a) to enter.
What is Overcoming Liability of Foreignness?
Positive or negative perception of firms and products from a certain country
Disadvantages foreign firms experience in host countries because of their non-native status
Resource-Based View says that foreign firms need overwhelming resources and capabilities to offset the Liability of Foreignness
Efforts among a number of firms to jointly market their products and services
Location-specific advantages may grow, change, and/or decline, prompting firms to relocate.
True
False
What is Cultural Distance?
Stage-by-stage (step-by-step) process a firm must go through to internationalize its business
Is “the extent of similarity or dissimilarity between the regulatory, normative, and cognitive institutions of two countries”
The amount of resources committed to entering a foreign market
Is the difference between two cultures along some identifiable dimensions (such as individualism)
First Mover Advantage
Opportunity to free ride on first mover investments
Benefits that accrue to firms that enter the market first and that late entrants do not enjoy
Firms target countries and regions entrants by lowering total costs
Advantage: abundance of innovative individuals, firms, and universities
Firms go to countries that have a strong demand for their products and services
Advantage: abundance of strong market demand and customers willing to pay
Institution-Based View (Click all that apply)
Regulatory risks
VRIO
Trade and investment barriers
Differences in cultures, norms, and values
(a) is “the extent of similarity or dissimilarity between the regulatory, normative, and cognitive institutions of two countries”
Scale of Entry: a mode of entry (exports and contractual agreements) that reflects relatively smaller commitments to overseas markets
True
False
Late-Mover Advantage
Opportunity to free ride on first mover investments
Efforts among a number of firms to jointly market their products and services
Benefits that accrue to firms that enter the market first and that late entrants do not enjoy
The extent of similarity or dissimilarity between the regulatory, normative, and cognitive institutions of two countries
The amount of resources committed to entering a foreign market.
Equity mode
Non-equity entry method
Direct exports
Scale of entry
Country-of-Origin Effect: the positive or negative perception of firms and products from a certain country.
True
False
