Exam 9: Market Entry and Expansion

Which of the following is not different about partners in a strategic alliance?

Conditions used to be such that the first entrant into a foreign market could count on being the leader for years, but in today's marketplace, the competitive edge is not as great because:

The primary external influence on a firm's decision to become international is:

The most stimulating motivation to become involved in international marketing is:

Which of the following is considered a proactive motivation to go international?

Resource seekers search for financial contributors who can invest in the foreign market along with the domestic company.

Natural resources are typically man-made components used to produce other products.

A company that starts exporting within two years of start up is called:

What is the difference between proactive and reactive motivators that spur a company to go international?

The acronym EMC represents Electronic Management Changes and is a sophisticated technique for documenting internal and external change within a firm's international management structure.

When a global marketing firm participates in foreign direct investment with 100% ownership of an entity, this is known as sole proprietorship.

Geographical closeness to a foreign market may not necessarily translate into real or perceived closeness to the foreign customers and the concept of psychological distance needs to be understood.

Under this type of agreement, one firm permits another firm to use its intellectual property in exchange for royalty compensation. This property might include patents, trademarks, copyrights, technology, technical know-how, or specific marketing skills. What is this type of agreement called?

One reason global marketers directly invest in a foreign market is the cost factor; corporations are always trying to obtain low-cost resources and ensure their sources of supply.

Another term for strategic alliance is individual monopoly.

With an increase in production on the international level, costs for production in the domestic market often double or triple.

Under a licensing agreement, one firm permits another to use its intellectual property in exchange for compensation designed as a royalty.

Sumitomo, Mitsubishi, and Mitsui are all famous Japanese trading companies. What is the Japanese word for these trading companies?

Financial incentives offer special funding for the investor by providing land, buildings, loans, loan guarantees, or wage subsidies.

Marketing consideration and the attractive investment climate for growth are major causes for the increase in foreign direct investment.