Question 1

The highest growth rates for franchising is in the United States.

Accepted Answer

A) True 
 B)False

Question 2

U.S.multinational corporations sometimes choose licensing as a means of market entry because the U.S.government encourages licensing.

Accepted Answer

A) True 
 B)False

Question 3

Major U.S.fast-food chains expand nationally and internationally through

Accepted Answer

A) licensing consortiums. 
B) franchising. 
C) indirect exporting. 
D) direct exporting. 
A) licensing consortiums. 
B) franchising. 
C) indirect exporting. 
D) direct exporting.

Question 4

Paris Pharmaceuticals is based in France and is planning to enter the U.S.market to sell its new hypertension medicine there.Which of the following is not an appropriate entry mode for the company?

Accepted Answer

A) Exporting utilizing distributors 
B) Exporting utilizing U.S.-based contract manufacturers 
C) Licensing the product to a U.S.pharmaceutical firm 
D) Forming a distribution-based alliance with a U.S.pharmaceutical firm 
A) Exporting utilizing distributors 
B) Exporting utilizing U.S.-based contract manufacturers 
C) Licensing the product to a U.S.pharmaceutical firm 
D) Forming a distribution-based alliance with a U.S.pharmaceutical firm

Question 5

Licensing is preferred in markets where the market potential is too small to support a new manufacturing and marketing operation.

Accepted Answer

A) True 
 B)False

Question 6

Tarox Automobiles is considering a joint venture to build an automobile assembly plant in Morocco.Which of the following facts would argue against such a decision?

Accepted Answer

A) Tariffs on automobiles are high in Morocco. 
B) Morocco has quotas on automobile imports. 
C) Tarox's potential partner insists on a "prenuptial agreement" in case disagreements arise between partners. 
D) None of the above 
A) Tariffs on automobiles are high in Morocco. 
B) Morocco has quotas on automobile imports. 
C) Tarox's potential partner insists on a "prenuptial agreement" in case disagreements arise between partners. 
D) None of the above

Question 7

Brazil outlaws export consortia.

Accepted Answer

A) True 
 B)False

Question 8

Joint ventures are preferred in markets

Accepted Answer

A) with high transportation costs. 
B) with low market potential. 
C) with high political risk. 
D) where important customers are willing to invest for a portion of the output. 
A) with high transportation costs. 
B) with low market potential. 
C) with high political risk. 
D) where important customers are willing to invest for a portion of the output.

Question 9

Owning 100 percent of a foreign subsidiary assures management control over that subsidiary.

Accepted Answer

A) True 
 B)False

Question 10

Samer Ali owns a carpet manufacturing company in Egypt.He is deciding which mode of entry to use for entering the relatively small market of Chile.Which of the following would be least appropriate for such a market?

Accepted Answer

A) Exporting using local Chilean agents 
B) Exporting using Chilean distributors 
C) Indirect exporting 
D) Establishing a production facility in Chile 
A) Exporting using local Chilean agents 
B) Exporting using Chilean distributors 
C) Indirect exporting 
D) Establishing a production facility in Chile

Question 11

Action Toys is thinking of employing a contract manufacturer in the Taiwanese market.Which of the following facts is not a reason to use a contract manufacturer there?

Accepted Answer

A) Toy technology is relatively simple. 
B) There are many toy manufacturers in Taiwan. 
C) Taiwanese factories are operating at full capacity. 
D) Taiwan is a major exporter of toys. 
A) Toy technology is relatively simple. 
B) There are many toy manufacturers in Taiwan. 
C) Taiwanese factories are operating at full capacity. 
D) Taiwan is a major exporter of toys.

Question 12

Marketing subsidiaries are required in most developing countries.

Accepted Answer

A) True 
 B)False

Question 13

Using licensing as a method of market entry,a company can gain market presence without an equity investment.

Accepted Answer

A) True 
 B)False

Question 14

Contract manufacturing is preferred in countries

Accepted Answer

A) Procter & Gamble 
B) Starbucks 
C) Unilever 
D) All of the above 
A) Procter & Gamble 
B) Starbucks 
C) Unilever 
D) All of the above

Question 15

Many Chinese firms acquired companies in foreign markets because

Accepted Answer

A) acquisitions were relatively inexpensive. 
B) governments encouraged acquisitions. 
C) they were late movers into those markets 
D) All of the above 
A) acquisitions were relatively inexpensive. 
B) governments encouraged acquisitions. 
C) they were late movers into those markets 
D) All of the above

Question 16

Master franchisees have traditionally been

Accepted Answer

A) U.S.-based multinational firms. 
B) sophisticated local partners of established multinational franchise chains. 
C) franchises specializing in industrial products. 
D) European-based multinational firms. 
A) U.S.-based multinational firms. 
B) sophisticated local partners of established multinational franchise chains. 
C) franchises specializing in industrial products. 
D) European-based multinational firms.

Question 17

ABC Pharmaceuticals is considering employing a contract manufacturer n Brazil.Which of the following conditions would support such an action?

Accepted Answer

A) There are many sophisticated pharmaceutical manufacturers in Brazil. 
B) Patent protection has been lax in Brazil. 
C) Brazilian manufacturers are producing at capacity. 
D) All of the above 
A) There are many sophisticated pharmaceutical manufacturers in Brazil. 
B) Patent protection has been lax in Brazil. 
C) Brazilian manufacturers are producing at capacity. 
D) All of the above

Question 18

Turkish Textoys produces unique stuffed dolls.It is currently exporting to the United States though several U.S.distributors.The company now wants to take greater control over the marketing of its products in the United States.It should

Accepted Answer

A) employ an export management company. 
B) replace its distributors with local agents. 
C) establish a marketing subsidiary. 
D) join an export consortium. 
A) employ an export management company. 
B) replace its distributors with local agents. 
C) establish a marketing subsidiary. 
D) join an export consortium.

Question 19

Tanner Tractors is considering licensing its new line of tractors to its joint venture in India.Which of the following facts would make this unfeasible?

Accepted Answer

A) Tariffs on tractors are high in India. 
B) Tariffs on tractors are low in India. 
C) You cannot license products to your own joint venture. 
D) None of the above 
A) Tariffs on tractors are high in India. 
B) Tariffs on tractors are low in India. 
C) You cannot license products to your own joint venture. 
D) None of the above

Question 20

Lisa Fritz is deciding which mode of entry to propose to a Japanese pharmaceutical manufacturer thinking of entering the relatively small Peruvian market.Which of the following would be least appropriate for such a market?

Accepted Answer

A) Establishing a compounding facility 
B) Establishing an integrated production facility 
C) Exporting to Peru utilizing a marketing subsidiary 
D) Exporting to Peru utilizing a Peruvian distributor 
A) Establishing a compounding facility 
B) Establishing an integrated production facility 
C) Exporting to Peru utilizing a marketing subsidiary 
D) Exporting to Peru utilizing a Peruvian distributor

The highest growth rates for franchising is in the United States.

U.S.multinational corporations sometimes choose licensing as a means of market entry because the U.S.government encourages licensing.

Major U.S.fast-food chains expand nationally and internationally through

Paris Pharmaceuticals is based in France and is planning to enter the U.S.market to sell its new hypertension medicine there.Which of the following is not an appropriate entry mode for the company?

Licensing is preferred in markets where the market potential is too small to support a new manufacturing and marketing operation.

Tarox Automobiles is considering a joint venture to build an automobile assembly plant in Morocco.Which of the following facts would argue against such a decision?

Brazil outlaws export consortia.

Joint ventures are preferred in markets

Owning 100 percent of a foreign subsidiary assures management control over that subsidiary.

Samer Ali owns a carpet manufacturing company in Egypt.He is deciding which mode of entry to use for entering the relatively small market of Chile.Which of the following would be least appropriate for such a market?

Action Toys is thinking of employing a contract manufacturer in the Taiwanese market.Which of the following facts is not a reason to use a contract manufacturer there?

Marketing subsidiaries are required in most developing countries.

Using licensing as a method of market entry,a company can gain market presence without an equity investment.

Contract manufacturing is preferred in countries

Many Chinese firms acquired companies in foreign markets because

Master franchisees have traditionally been

ABC Pharmaceuticals is considering employing a contract manufacturer n Brazil.Which of the following conditions would support such an action?

Turkish Textoys produces unique stuffed dolls.It is currently exporting to the United States though several U.S.distributors.The company now wants to take greater control over the marketing of its products in the United States.It should

Tanner Tractors is considering licensing its new line of tractors to its joint venture in India.Which of the following facts would make this unfeasible?

Lisa Fritz is deciding which mode of entry to propose to a Japanese pharmaceutical manufacturer thinking of entering the relatively small Peruvian market.Which of the following would be least appropriate for such a market?

Introduction to Global Marketing

The Global Economy

Cultural and Social Forces

Political and Regulatory Climate

Global Markets

Global Competitors

Global Marketing Research

Global Market Participation

Global Product Strategies

Global Strategies for Services,Brands,and Social Marketing

Pricing for International and Global Markets

Managing Global Distribution Channels

Global Promotion Strategies

Managing Global Advertising

Organizing for Global Marketing

Filters

Exam 9: Global Market Entry Strategies

The highest growth rates for franchising is in the United States.

U.S.multinational corporations sometimes choose licensing as a means of market entry because the U.S.government encourages licensing.

Major U.S.fast-food chains expand nationally and internationally through

Paris Pharmaceuticals is based in France and is planning to enter the U.S.market to sell its new hypertension medicine there.Which of the following is not an appropriate entry mode for the company?

Licensing is preferred in markets where the market potential is too small to support a new manufacturing and marketing operation.

Tarox Automobiles is considering a joint venture to build an automobile assembly plant in Morocco.Which of the following facts would argue against such a decision?

Brazil outlaws export consortia.

Joint ventures are preferred in markets

Owning 100 percent of a foreign subsidiary assures management control over that subsidiary.

Samer Ali owns a carpet manufacturing company in Egypt.He is deciding which mode of entry to use for entering the relatively small market of Chile.Which of the following would be least appropriate for such a market?

Action Toys is thinking of employing a contract manufacturer in the Taiwanese market.Which of the following facts is not a reason to use a contract manufacturer there?

Marketing subsidiaries are required in most developing countries.

Using licensing as a method of market entry,a company can gain market presence without an equity investment.

Contract manufacturing is preferred in countries

Many Chinese firms acquired companies in foreign markets because

Master franchisees have traditionally been

ABC Pharmaceuticals is considering employing a contract manufacturer n Brazil.Which of the following conditions would support such an action?

Turkish Textoys produces unique stuffed dolls.It is currently exporting to the United States though several U.S.distributors.The company now wants to take greater control over the marketing of its products in the United States.It should

Tanner Tractors is considering licensing its new line of tractors to its joint venture in India.Which of the following facts would make this unfeasible?

Lisa Fritz is deciding which mode of entry to propose to a Japanese pharmaceutical manufacturer thinking of entering the relatively small Peruvian market.Which of the following would be least appropriate for such a market?

Introduction to Global Marketing

The Global Economy

Cultural and Social Forces

Political and Regulatory Climate

Global Markets

Global Competitors

Global Marketing Research

Global Market Participation

Global Product Strategies

Global Strategies for Services,Brands,and Social Marketing

Pricing for International and Global Markets

Managing Global Distribution Channels

Global Promotion Strategies

Managing Global Advertising

Organizing for Global Marketing

Filters