Exam 9: Global Market Entry Strategies

Three factors influence transaction costs: (1) the degree of specificity of the assets involved in the trans- action, (2) the uncertainty surrounding the transaction, and (3) _____

In high-tech industries, companies often enter _____ agreements.Under such agreement, parties mutually share patents of comparable value and without payment of licensing fees.

Franchising is an arrangement whereby the franchisor gives the franchisor the right to use the franchisee's trade names, trademarks, business models, and/or know-how in a given territory for a specific time period

Entry scale is a very important element of a firm's globalization strategy.

Markets can be classified in five types of countries based on their respective market attractiveness.Which of the following countries would most likely be listed as a maturing/established market?

The goals of a preliminary screen to determine market opportunities are to minimize mistakes of ignoring countries that offer viable opportunities for the product and:

Licensing is a contractual transaction.

Government regulations are a major consideration in entry-mode choices.

Corporate objectives have no influence in choosing entry modes.

Indirect exporting means the firm enters into an agreement with another company (local or foreign) where the partner will use its distribution network to sell the exporter's goods.

One of the chief disadvantages of a wholly owned subsidiary is that:

A study by a team of McKinsey consultants advises parent companies to create a launch team during the launch phase-beginning with the signing of a memorandum of understanding and continuing through the first 100 days of operation.The launch team should address the four key joint venture challenges.Which is not one they name?

When Coca-Cola looks at per capita income and the number of minutes that it would take for somebody to work to be able to afford a Coca-Cola product, the company is following which of the following steps of the initial screening process for market entry?

In a cooperative joint venture, the partners agree to raise capital in proportion to the equity stakes agreed upon.

_____ countries (with respect to market attractiveness) can be used to gather intelligence and establish a network.

One of the most popular franchise plans used in international marketing is _____ where the franchiser gives the franchise to a local entrepreneur who in turn sells local franchises within a territory.

Companies often adopt a phased entry strategy: they start off with a minimal-risk strategy; once the firm becomes more familiar with the market and the uncertainty drops, it may switch to a higher commitment mode, such as a wholly owned venture.

_____ means that the firm uses a middleman based in its home market to do the exporting.

In licensing, the licensee is the one offering proprietary assets.

A variety of reasons that may cause a positive relationship between entry scale and post-entry performance.Which is not a reason?