Exam 12: Strategies for Analyzing and Entering Foreign Markets

Compare and contrast the three forms of foreign direct investment.

Tanya is employed by an export management company that provides its services to many exporters in the Chicago area. Tanya would likely be responsible for ________.

The number of joint ventures being formed today is on the decline.

How is compensation typically addressed in international licensing and franchising contracts? What basic issues should be addressed in such contracts?

In comparison to licensing, franchising offers a firm ________.

Turnkey projects and foreign direct investment are both risky modes for entering foreign markets. Briefly describe the risks associated with each mode.

When there is overcapacity in an industry, acquisition is the best strategy.

Which term refers to a firm building and operating a facility before transferring ownership of the facility to another party?

Research suggests that in ________ of cases, a firm's initial direct exporting to a foreign market is the result of unsolicited orders.

Intracorporate transfers are common in the service sector.

International franchising is most likely to succeed when the franchisor has ________.

Firms can reduce the uncertainty associated with sociocultural influences by focusing their internationalization efforts in countries that are culturally similar to their own.

Which form of exporting is used by firms in order to lower their production costs?

Exporting is the most complicated mode of internationalizing due to the issue of tariffs and nontariff barriers.

One disadvantage of exporting is the logistical complexities.

Webb-Pomerene associations play a major role in international business.

When British Petroleum ships crude oil from its storage facilities in Kuwait to its Australian subsidiary, ________ has occurred.

________ is the most common form of international business activity.

Toyota's efficient manufacturing techniques and reputation for producing high-quality automobiles are examples of ________.

Government stability is an important factor in foreign market assessment.