Question 1

In a(n) _____, a firm moves into a market in association with other firms.

Accepted Answer

A)  turnkey operation 
B)  alliance 
C)  greenfield venture 
D)  brownfield venture 
A)  turnkey operation 
B)  alliance 
C)  greenfield venture 
D)  brownfield venture B

Question 2

In a transnational firm, the business assets are highly specialized, but interdependent with the other assets of the firm.

Accepted Answer

A) True 
 B)False  True

Question 3

A joint venture commonly has detailed agreements covering what each party is to provide, what each can expect, and how each is to operate within the joint venture.

Accepted Answer

A) True 
 B)False  True

Question 4

When a firm can enter the market immediately with a ready-made application that allows the firm to start doing business immediately, it is known as a:

Accepted Answer

A)  license. 
B)  franchise. 
C)  turnkey operation. 
D)  joint venture. 
A)  license. 
B)  franchise. 
C)  turnkey operation. 
D)  joint venture.

Question 5

The keys to success for a greenfield venture are ready-made applications that allow the firm to start doing business immediately.

Accepted Answer

A) True 
 B)False

Question 6

The least formal method by which to enter an international market is an informal alliance.

Accepted Answer

A) True 
 B)False

Question 7

Once a firm makes a major investment in capital assets, its ability to leave is reduced, as is its negotiation ability.

Accepted Answer

A) True 
 B)False

Question 8

What is the risk associated with being a first mover?

Accepted Answer

A)  If customer loyalty is very high, critical relationships may be established and a barrier to entry into the market already established. 
B)  Competition is based on cost and it may be difficult to be profitable. 
C)  Costs of establishing the market are hard to recover. 
D)  These industries and nations have low customer loyalty. 
A)  If customer loyalty is very high, critical relationships may be established and a barrier to entry into the market already established. 
B)  Competition is based on cost and it may be difficult to be profitable. 
C)  Costs of establishing the market are hard to recover. 
D)  These industries and nations have low customer loyalty.

Question 9

In perfectly efficient markets, there are no at-par profits.

Accepted Answer

A) True 
 B)False

Question 10

A born global firm builds an understanding of international markets over time.

Accepted Answer

A) True 
 B)False

Question 11

List the key points in implementing a merger or acquisition.

Accepted Answer

Key points in implementing a merger or a

Question 12

Which of the following statements about born global firms is false?

Accepted Answer

A)  They build an understanding of international markets over time. 
B)  The growth of born global businesses has increased in recent years. 
C)  Often these are technology-focused firms. 
D)  They are entrepreneurial firms that are global from their inception. 
A)  They build an understanding of international markets over time. 
B)  The growth of born global businesses has increased in recent years. 
C)  Often these are technology-focused firms. 
D)  They are entrepreneurial firms that are global from their inception.

Question 13

The first firm into an area is typically referred to as a first mover.

Accepted Answer

A) True 
 B)False

Question 14

What is a transnational firm? Mention at least one distinguishing characteristic.

Accepted Answer

Many businesses develop international as

Question 15

Success in market entry is often the result of the process pursued, rather than whether the strategy was correct.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements about franchising is true?

Accepted Answer

A)  It is a type of formal equity alliance. 
B)  It begins when there are direct sales. 
C)  It is the most immediate way to internationalize a firm. 
D)  It typically does not even have a signed document. 
A)  It is a type of formal equity alliance. 
B)  It begins when there are direct sales. 
C)  It is the most immediate way to internationalize a firm. 
D)  It typically does not even have a signed document.

Question 17

Most of the differences in the implementation of joint ventures center on the fact that the two parties are joining together of their own free will and that within the confines of their agreement, the parties can also leave that arrangement.

Accepted Answer

A) True 
 B)False

Question 18

Mergers typically involve more risk and costs but less than alliances.

Accepted Answer

A) True 
 B)False

Question 19

Most firms based in large continental markets, such as the U.S. or Brazil, will focus on the domestic market and pursue international sales.

Accepted Answer

A) True 
 B)False

Question 20

The impact of increased market share can affect a firm in several ways, including offering new sales when the firm's existing market is saturated.

Accepted Answer

A) True 
 B)False

In a(n) _____, a firm moves into a market in association with other firms.

In a transnational firm, the business assets are highly specialized, but interdependent with the other assets of the firm.

A joint venture commonly has detailed agreements covering what each party is to provide, what each can expect, and how each is to operate within the joint venture.

When a firm can enter the market immediately with a ready-made application that allows the firm to start doing business immediately, it is known as a:

The keys to success for a greenfield venture are ready-made applications that allow the firm to start doing business immediately.

The least formal method by which to enter an international market is an informal alliance.

Once a firm makes a major investment in capital assets, its ability to leave is reduced, as is its negotiation ability.

What is the risk associated with being a first mover?

In perfectly efficient markets, there are no at-par profits.

A born global firm builds an understanding of international markets over time.

List the key points in implementing a merger or acquisition.

Which of the following statements about born global firms is false?

The first firm into an area is typically referred to as a first mover.

What is a transnational firm? Mention at least one distinguishing characteristic.

Success in market entry is often the result of the process pursued, rather than whether the strategy was correct.

Which of the following statements about franchising is true?

Most of the differences in the implementation of joint ventures center on the fact that the two parties are joining together of their own free will and that within the confines of their agreement, the parties can also leave that arrangement.

Mergers typically involve more risk and costs but less than alliances.

Most firms based in large continental markets, such as the U.S. or Brazil, will focus on the domestic market and pursue international sales.

The impact of increased market share can affect a firm in several ways, including offering new sales when the firm's existing market is saturated.

Introduction to International Management

Culture and International Management

The Economic, Legal, and Political Environment

Strategy Fundamentals and Corporate Strategy

Business- and Functional-Level Strategy

Motivation

Leadership

Decision Making

Influence and Negotiation

Evaluation and Control

Human Resources Management

The Structure of the International Firm

The Future of International Management

Filters

Exam 6: International Market Entry

In a(n) _____, a firm moves into a market in association with other firms.

In a transnational firm, the business assets are highly specialized, but interdependent with the other assets of the firm.

A joint venture commonly has detailed agreements covering what each party is to provide, what each can expect, and how each is to operate within the joint venture.

When a firm can enter the market immediately with a ready-made application that allows the firm to start doing business immediately, it is known as a:

The keys to success for a greenfield venture are ready-made applications that allow the firm to start doing business immediately.

The least formal method by which to enter an international market is an informal alliance.

Once a firm makes a major investment in capital assets, its ability to leave is reduced, as is its negotiation ability.

What is the risk associated with being a first mover?

In perfectly efficient markets, there are no at-par profits.

A born global firm builds an understanding of international markets over time.

List the key points in implementing a merger or acquisition.

Which of the following statements about born global firms is false?

The first firm into an area is typically referred to as a first mover.

What is a transnational firm? Mention at least one distinguishing characteristic.

Success in market entry is often the result of the process pursued, rather than whether the strategy was correct.

Which of the following statements about franchising is true?

Most of the differences in the implementation of joint ventures center on the fact that the two parties are joining together of their own free will and that within the confines of their agreement, the parties can also leave that arrangement.

Mergers typically involve more risk and costs but less than alliances.

Most firms based in large continental markets, such as the U.S. or Brazil, will focus on the domestic market and pursue international sales.

The impact of increased market share can affect a firm in several ways, including offering new sales when the firm's existing market is saturated.

Introduction to International Management

Culture and International Management

The Economic, Legal, and Political Environment

Strategy Fundamentals and Corporate Strategy

Business- and Functional-Level Strategy

Motivation

Leadership

Decision Making

Influence and Negotiation

Evaluation and Control

Human Resources Management

The Structure of the International Firm

The Future of International Management

Filters