Exam 6: International Market Entry

Typically, as sales increase, a firm will next try to import goods through an alliance, such as a joint venture.

All nations require the permission of the governments if there are layoffs due to a merger or acquisition.

A(n) _____ is an organizational form that focuses strictly on the country in which the organization has entered.

As demand increases, a firm begins to try to serve that demand and the first means is typically through:

Which of the following typically does not even have a signed document, but is simply a statement by one firm to another?

_____ are formal agreements between two or more firms where a new separate entity is created for the purpose of producing or distributing goods and services.

Efforts between nations to have the same code of standards for products and how they are treated in regards to tariffs is called:

Which of the following statements about first movers is false?

In a licensing arrangement, there is an alliance between two firms but it tends to be much more coordinated than in a franchise.

Mergers and acquisitions are not mere linkages between firms-they create permanent changes to the structure of the firms involved.

_____ are goods that may have most of the value added in one country but due to trade barriers the product is shipped to another country where final production on the good occurs, with the good then being listed as an export from that country.

Shrinkage is the loss of goods due to stealing or breakage, often in a retail store.

Which of the following requires the least investment overseas?

A franchisee will normally develop accounting and finance applications for the franchisor to use, and assist in marketing and promotion.

Importing is still the dominant type of international activity for many firms because it requires the least investment overseas.

The most immediate way to internationalize a firm is to directly export goods to a market outside the home country.

Which of the following statements about a joint venture is false?

How can firms gain market share by expanding internationally?

Those firms that enter the market whether a nation or product market after it has become established are:

If customers have low brand loyalty and primarily are driven by product choice, a late entrant can have a desirable position.