Exam 9: Global Market Entry Strategies

When going abroad most companies start their international expansion with _____.

A _____ perspective argues that the desirable governance structure (high- versus low-control mode) will depend on the comparative transaction costs, that is,the costs of running an operation.

There are no magic ingredients to foster the stability of joint ventures, however, all of the following are good guidelines except:

_____ offers several advantages.Chief among these are the firm gets instant foreign market expertise, very little risk is involved, and no major resource commitments are required.

One of the most popular entry modes in the international marketplace for service firms is:

In many instances, the key determinant of entry choice decisions is the size of the market.Market potential can relate to the current size of the market.However, _____ may also be considered.

Strategic alliances between strong and weak partners often work because of the synergy and learning that can take place between mentor and subordinate.

Lack of trust and mutual conflicts can often turn _____ into partnerships doomed to failure.

With respect to joint ventures, the _____ argument is illustrated by not only shared capital and risk but possible contributions brought in by the local partner in land, raw materials, expertise on the local environment, and access to local distribution networks.

Most companies start their international expansion with _____.

The resource-based view (RBV) starts with the premise that possessing resources is sufficient for a company to create a competitive advantage

_____ has disadvantages.Chief among these are that the company has little or no control over the way their product is marketed in a foreign country, lack of adequate sales support (among other support variables) can lead to poor sales, and bad decisions made by an intermediary can damage the corporate image.

A four-step procedure that can be employed for the initial screening process includes the following except:

_____ argues that the desirable governance structure (high- versus low-control mode) depends on the comparative transaction costs, that is, the costs of running the operation.

MetLife, the insurance company, opened a liaison office in Shanghai and Beijing while it was waiting for permission from the Chinese government to start operations.This is an example of dealing with_____ in markets.

Strategic alliances refer to a broader form of partnerships in which companies agree to make equity investments in each other.

_____ means that the company sets up its own export organization within the company and relies on a middleman based in a foreign market (foreign distributor).

One of the most popular forms of cooperative exporting is _____.With this method, the company uses the overseas distribution network of another company (local or foreign) for selling its goods in the foreign market.

One of the problems with joint ventures is _____ between partners.An example would be when one partner wants to stress reduction of political and economic controls on decision-making and the other partner wants to accept technology and capital but precludes foreign authority infringement on sovereignty and ideology.

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 growth country?