Exam 9: Global Market Entry Strategies

To identify market opportunities for a given product a marketer typically starts off with a large pool of candidate countries.To narrow down this pool of countries, the company will typically do a preliminary screening.The goal of this exercise is twofold: marketers want to minimize the mistakes of (1) _____ and (2) wasting time on countries that offer no or little potential.

Companies that plan to engage in exporting have a choice between indirect, _____, and direct exporting.

Nurturing a future competitor is the biggest danger in _____.

According to the textbook, in franchising, companies can capitalize on a/n _____ expanding overseas with a minimum of investment.

One of the main advantages of direct exporting over indirect exporting is that the exporter has more:

Companies that enter via wholly owned subsidiaries are sometimes perceived as a threat to the culture and/or economic sovereignty of the_____.

Briefly, explain the concept of licensing in a foreign market.In addition, cite the benefits and drawbacks of licensing.Be specific in your responses.

Briefly explain the concept of joint venture.Additionally, give the benefits and drawbacks of entering into a joint venture.

Risks of exiting a foreign market may lead to all the following except:

When contrasted with greenfield operations, _____ provide(s) a rapid means to get access to the local market.

Direct exporting means that the company sets up its own export organization and relies on a middleman based in a foreign market.

In a master franchise, the franchiser gives a master franchise to a local entrepreneur, who will, in turn, sell local franchises within a territory.

Advantages of wholly owned subsidiaries include all of the following except:

Most companies start their international expansion by exporting.

Markets can be classified in five types of countries based on their respective market attractiveness.Which of the following of those types can be used to gather intelligence and establish a network?

In licensing, the licensor is the one paying royalty fees.

In the mode of entry, some companies see liaison office as a low-cost _____.

In the area of exporting, a middleman could be an _____.

Just as there are barriers to entry, there are exit barriers that may delay or complicate an exit decision.Cite and discuss obstacles and risks that compound companies' divestment decisions.

Wholly owned subsidiaries give MNCs _____ of their operations.