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WorksheetsInternational Business Modes of Entry Quiz
Total questions: 15
Worksheet time: 8mins
Which mode of entry is typically the easiest way to enter an international market?
Acquisitions
Exporting
Outsourcing
Partnership
What is the main advantage of exporting as a mode of entry?
Gaining control of the target's operations
Sharing risks and expertise with another enterprise
Avoiding the expense of establishing operations in the new country
Gaining access to local expertise
Most of the Asian countries, including China, Vietnam, Indonesia, and India are _____________________ for the U.S.
Contract Manufacturers
Artisans
Helpers
Partners
What is the main characteristic of licensing as a mode of entry?
The company establishes business operations on foreign soil
The licensee acquires the right to use products and goods, while the ownership remains with the licensor
The licensor and licensee merge into a new legal entity
The licensor permits the franchisee to use its brand name for a fee
What is the main motivation for companies to consider a partnership as a mode of entry?
Avoiding the expense of establishing operations in the new country
Risk and reward sharing
Acquiring the right to use products and goods
Gaining control of the target's operations
The arrangement between Tata and Starbucks is an example of ____________
Export
Partnership
Takeover
Joint Venture
What is the main characteristic of a merger as a mode of entry?
An agreement between two parties to cooperate in a certain way for a certain time
A more-than-friendly acquisition between roughly equal companies
A financial transaction to gain control of the target's operations
The formal establishment of business operations on foreign soil
Which mode of entry involves partnering with specialized manufacturers to produce goods on behalf of a hiring company?
Outsourcing
Licensing
Acquisitions
Joint Venture
What is the main characteristic of foreign direct investment (FDI) as a mode of entry?
The licensee acquires the right to use products and goods, while the ownership remains with the licensor
The building of factories, sales offices, and distribution networks to serve local markets in a nation other than the company’s home country
A financial transaction to gain control of the target's operations
An agreement between two parties to cooperate in a certain way for a certain time
What is the main motivation for companies to consider a joint venture as a mode of entry?
To divide the risk with other parties and leverage each other’s strengths
To gain control of the target's operations
To avoid the expense of establishing operations in the new country
To acquire the right to use products and goods
"Soundtrack of your ride" is partnership between ________________
Ikea and Lego
Uber and Spotify
Tata and Nestle
None of the above
What is the main characteristic of a hostile takeover as a mode of entry?
A more-than-friendly acquisition between roughly equal companies
The formal establishment of business operations on foreign soil
An attempt to take over another company against the wishes of the target company's board/management
An agreement between two parties to cooperate in a certain way for a certain time
_________________refers to the legal rights given to the inventor or creator to protect his invention or creation.
Franchisee
Intellectual property rights
Takeover
Logo
What is the main characteristic of contract manufacturing as a mode of entry?
The building of factories, sales offices, and distribution networks to serve local markets in a nation other than the company’s home country
An attempt to take over another company against the wishes of the target company's board/management
The licensee acquires the right to use products and goods, while the ownership remains with the licensor
Partnering with specialized manufacturers to produce goods on behalf of a hiring company
Arrangement between Dabbawallas and Flipkart is a ___________
Takeover
Partnership
Strategic alliance
Outsourcing
