Exam 6: International Market Entry

A(n) _____ is a transaction involving two or more corporations in which only one permanent corporation survives.

Non-tariff trade barriers are barriers to free trade that take a form other than tariffs.

A firm may internationalize as part of an effort to manage its value chain effectively, particularly with respect to minimizing costs.

_____ is a type of alliance where a contract is established between the parent and the individual who actually buys the business unit to sell a given product or conduct business under its trademark.

Which type of venture is the most difficult to pursue, but gives a firm the greatest control because it is able to design every detail of the business?

What is franchising? Explain how this alliance works.

What is a greenfield venture and why is it the most difficult venture to pursue?

Which of the following is a benefit of early followers?

The shipping of a good from the home market to markets outside the home country is called:

In a(n) _____ firm, the business assets are highly specialized, but interdependent with the other assets of the firm.

Write a explanatory note on informal alliances.

Why is it better for a firm to enter a market in a small way?

A firm that builds a wholly-owned subsidiary from the ground up is building a:

In which type of agreement does a firm agrees to pay a firm for the right to either manufacture or sell a product?

An estimated _____ percent of U.S. retail business is conducted through franchisors.

Trade barriers in the form of tariffs have increased significantly in recent years.

Typically, _____ begins when there are direct sales and the firm is directly contacted by customers.